If you haven’t heard:
The USPS lowered postage rates for the first time in 97 years!
The last postage rate decrease was back in 1919, when:
- the Chicago White Sox cheated to win the World Series (the Black Sox Scandal)
- 40 cents could buy you a pound of bacon
- and a first-class postage stamp went from 3 cents to 2
So what does this mean for your direct mail campaign? How can you see those savings? And how did this even come about??
Let me explain…
Remember the Great Recession of 2008-09? Businesses cut back on mailing, and just like lots of other companies, the Postal Service lost a TON of money — $7 billion in 2009 alone.
So in 2013, the USPS asked Congress for help.
In January 2014, Congress allowed the USPS to tack on a surcharge of 4.3% to mailing products and services to help them recover from their losses.
The Postal Regulatory Commission (PRC) — the federal agency that watches over the USPS — mandated that the surcharge stay in place ONLY until it added up to $4.6 billion in revenue.
On April 10, 2016, the revenues from that surcharge hit $4.6 billion.
So when is postage going down?
It already did!
Here’s a quick look at the rate changes:
|ITEM||BEFORE REDUCTION||CURRENT RATE|
|Letters (1 ounce)||49 cents||47 cents|
|Letters additional ounces||22 cents||21 cents|
|Postcards||35 cents||34 cents|
Well: What does that mean for you?
- If you’re in the middle of a postcard campaign, you’re going to save money on future mailings!
- If you have printed cards waiting to be mailed out, now is the time to send them.
- If you’re a small business owner thinking about trying direct mail marketing for the first time —IT’S TIME!
After the 1-cent postcard postage stamp decrease: If you were to send out 25,000 postcards, you’d save $250 on postage!
The next question is:
What will you do with the money you save on the postage decrease?
- Buy more bonbons?
- Or invest it back into your business?
Obviously, how you spend it is up to you.
But if you’ve already budgeted a certain amount for your 2016 marketing, why not take those savings and reinvest it to bring in EVEN MORE MONEY to your small business?
I’m not just trying to sell you more postcards — the fact is: THEY WORK!
- Direct mail offers an average return on investment of 1,300% (Epsilon)
- 39% of customers try a business for the first time because of direct mail (DMR)
- 4% of consumers report reading direct mail “immediately” (Direct Marketing News)
At PostcardMania, we send out 180,000 postcards per week to market ourselves — which means we’ll be saving $1,800 in weekly postage!
When my CMO came into my office and asked if I’d rather save the $1,800 or send out the 7,500 more postcards $1,800 would buy — you can guess what I said…
Send out more postcards, of course!
Have questions about how to make the most of the USPS’s stamp price decrease, or anything else about your marketing (direct-mail related or not)? Call one of our consultants at 1-800-628-1804 — it’s FREE!