Postal Service Ups Postage Rates, Direct Mail Stands Strong

Despite a recent announcement from the Postal Service that they intend to raise postage rates again, there are those in the direct mail industry remaining optimistic. The hike would take the price of a first-class stamp from 44 cents to 46 cents while also affecting all other postage rates to a similar degree.

With such a dark cloud looming over their heads, one would expect the leaders of the direct mail industry to be up in arms. For the most part, thats an accurate picture, but there is one industry heavyweight who doesnt seem concerned.

Joy Gendusa, Founder and CEO of PostcardMania, a full-service postcard marketing firm based in Clearwater, FL, is taking the news as a challenge for her team, as well as an opportunity for growth.

Im not saying its great, or Im glad its happening, she says, as her dog scampers into her laid-back executive suite. Im only saying in this economy, when most are cutting back on marketing budgets, it is the perfect time to ramp up advertising and gain market share. Thats what we do, and weve had great success with it. I always stress the importance of consistent mailings to my clients especially when times are tough.

It turns out Gendusa has good reason to be relaxed.

PostcardMania owns and operates a print and production facility right on their campus, which allows them to pre-sort every piece of mail they send out. By doing this, they get discounted postage rates, which they pass on to their customers. Hence, Gendusas confident her customers wont be jumping ship.

In 2009, ExactTarget conducted a Channel Preference Study that found direct mail influences 76% of Internet users to buy a product or service online. So while some direct mail companies are spewing doom and gloom about the rate increase, their fears are unfounded.

One of PostcardManias clients, Commerce Payment, puts it this way: We found our direct mail postcard leads are much more qualified than other sources we use such as Googleour close/conversion rate from direct mail has been 1520% higher than our internet marketing rates.

Direct mail is in no direct danger with results like that.