Postage Rate Increases

 
 

Postage Rate Increase – Are Your Costs Typical?

A number of people have asked me about the effect of the recent rate increase, and whether their experience is ‘typical’ of other mailers. The answer is as varied as the weather in Chicago on any given day.

Letter mailers saw the loss of Carrier Route discounts for destination entry. If you are a flats mailer, you were blindsided in May when the rates jumped up to 40%. Periodicals mailers had to re-learn how to sort and present their mail. And parcel rates went up, down and everywhere in between. BUT…if you do your homework, you’ll save yourself postage now, AND in the future.

Automation compatible letters are the most efficient pieces of mail for the Postal Service to process. Design an automation compatible piece and you save some money. Utilize drop shipment discounts and postage drops even more. Eliminating Carrier Route can also save you money. The Postal Service finds this mail more difficult to process, and has told us so by making the AADC postage rate less expensive than the Carrier Route rate.

There are still ways to further reduce the postage hit on letter mail. By utilizing a 3rd party provider, we can co-palletize the no discount mail that falls into 5-Digit Scheme, 3-Digit Scheme and AADC trays. Under co-palletization, the service bureau takes full trays of your mail and separates it to the various SCF’s throughout the country. These trays are run on the same tray sorting equipment the Postal Service uses. Your trays of mail are combined with other full trays of mail from other mailers to build pallets of mail for SCF discounts. With this work sharing discount, you can save money without changing anything you currently do. Just give us the say so that you’d like to try it.

They say every cloud has a silver lining. Flats mailers, periodicals mailers and now even parcel mailers can utilize a 3rd party provider to move mail closer to it’s destination and save money by commingling or zone skipping in the process.

Want to know more? Give us a call.

Jan Merchantz jmerchantz@superiormailing.com
Content Expert

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6755 South Sayre Ave.
Bedford Park, IL. 60638-4724

Phone: (708) 728-0101
Fax: (708) 728-1070

 
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