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Can a Mailer Find True Happiness?
Nov 1, 2007 12:00 PM
, By Pamela Gaul
Direct mailers have been searching for even a shred of contentment since the most recent postal increase. It may be too much to think that the postal rate cloud has a silver lining. But, like a child's security blanket, it could at least be flannel. In other words, there's hope. Let's see why. SOME FACTS
First class mailers will see major rate changes thanks to separate charges for postcards, letters, flats and parcels, as well as the elimination of automation carrier route discounts. On the positive side, depending on one's view, these mailers get lower extra-ounce rates. Regular and nonprofit standard mailers will have to deal with different rates for letters, flats, non-flat machinable pieces and parcels. While the enhanced carrier route and auto-basic discounts are discontinued, the cost to mail a five-digit automation letter is now less than the enhanced carrier route line of travel rate. Destination delivery unit drop shipments for letters have been dropped as well. Standard mailers won't get any solace from the following, either:
NOW ABOUT THAT FLANNEL LINING…
If not addressed, all of this would discourage the hardest working marketer, format designer or data provider. But all three could find a bit of relief if their mail is machinable, automated and barcoded. In analyzing a variety of campaigns over the last year, R.R. Donnelley has observed postal increases between 3% and 4% for standard letters, including nonprofit. We've also noted hikes of 20% to 37% for standard flats, with up to 50% jumps for nonprofit flats. The industry speculates that flat-size mailers will move quickly to letter-size pieces to keep cost increases down. On the surface, downsizing may look like an option. Then again, appearances can be deceiving. Consider the difference in mail sortation level discounts. For example, it takes 150 pieces of letter mail to get a five-digit discount, but only 15 flats to qualify for the same savings. Also, non-automation mail preparation and sorting levels vary significantly. The U.S. Postal Service now requires a three- and five-digit sortation scheme, which means mailers can combine three- and five-digit mail which previously wouldn't qualify for discounts. Thus, flats will qualify for deeper discounts and create fewer mail bundles. Saturation levels also may work in mailers' favor. Enhanced carrier route flats are only slightly more expensive than letters. A basic ECR letter costs 22.6 cents and a basic ECR flat 24.9 cents. That's only 10% extra for a much more powerful format! HOW TO MAKE THE MOST OF MAIL FORMATS
Here are three possibilities for mailers trying to cope with postal increases:
PAMELA GAUL is director of market and business development at R.R. Donnelley Response Marketing Services, Downers Grove, IL. |
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