In late October, the United States Postal Service (USPS) announced that it will once again increase the price of postage. Beginning on January 22, 2012, it will cost a penny more to mail letters to any location in the United States, bringing the new price of First-Class Mail stamps to 45-cents. This price increase for postage, filed with the Postal Regulatory Commission, is the first price change for first class postage in more than two and a half years. Prices also will change for other mailing services, including Standard Mail, Periodicals, Package Services and Extra Services, but does not affect Express Mail and Priority Mail prices. More information on the new pricing is available here.
Really USPS, AGAIN!?
Now hold the phone. This increase isn’t just an increase for the sake of making customers pay more, but rather, part of the USPS’s overall strategy to finally fix the broken mailing system. “The overall average price increase is small and is needed to help address our current financial crisis,” said Postmaster General Patrick Donahoe. “We continue to take actions within our control to increase revenue in other ways and to aggressively cut costs.”
With the increased use of technology, such as online bill pay and email, the USPS has really taken a financial hit in recent years. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. According to the Washington Post, the USPS lost $8 billion in fiscal 2010, and when numbers are released for 2011, the agency’s financial position is expected to be in worse shape. These discouraging statistics hit even closer to home when The Mailworks reported that the Utica, New York Distribution Center will be closing in early 2012. The USPS is listed as the second largest employer in the U.S. (Wal-Mart is the largest). This phenomenon is not exclusively unique to the postal climate in the US: up to a third of the present 9,000-strong network of post offices could be closed in the United Kingdom under similar restructuring.
This postage increase is not necessarily bad news for your business. In fact it’s is good news for Albany mail houses such as The Mailworks. For example, first-class mail presort mailers will now be better for your business, especially small businesses who have recently felt the sting of our changing economy. When the new price increase goes into effect, the second ounce for presorted first class letters will be free. “This gives companies expanded opportunities to advertise new services and products to their customers as part of bill and statement mailings,” said Paul Vogel, President and Chief Marketing/Sales Officer. So what does that mean for you? It means that you will now be able to mail more elaborate, detailed marketing pieces at the first class rate to your customers with no additional cost.
Our team at The Mailworks can help you with all of your postage questions. We have a savvy team of direct mail experts that are dedicated to helping our clients bring their direct mail ideas to fruition in a cost effective and efficient manner.
