Merchants Say 2012 Postal Rate Increase Means Fewer Catalogs Mailed

The USPS is so focused on saving itself that it’s going to kill off it’s customers long before it’s demise, and probably take a few print segments down with it. I know there are thousands of people examining this situation and contributing to some sort of reality based solution, but in the simplest of marketing terms the best option to increase income is sometimes to actually LOWER prices and make up those costs with volume… right?

By Jim Tierney

The U.S. Postal Service’s 2.1% average rate increase, announced Tuesday, won’t stop merchants from mailing catalogs next year. But some mailers say they will look at other options to increase their non-mail channels.

Mailers will see an average 2.1% increase in postal rates effective Jan. 22, 2012 according to the U.S. Postal Service. Prices for shipping services will also change on Jan. 22.

Carrier Route flats will increase 2.4% and High Density flats 2.8%.

Deb Dyer, vice president of marketing for bedding merchant Cuddledown, says the rate increase “won’t keep us from sending catalogs to our house file or prospects, but it will make us look at other digital prospect opportunities and programs.”

Ultimately, Dyer adds: “We’re looking to create a diversified portfolio with our prospecting efforts so we don’t need to mail as many catalogs and incur the costs.”

Larry Davis, vice president of marketing for Ross-Simons, says his company is looking at a 2.5% increase on postage across its blended mailing and shipping portfolio, which is a direct hit to its bottom line of a couple hundred thousand dollars.

“We simply cannot pass postage increases on to the consumers when they have so many alternate ways to shop,” Davis says. “While we appreciate that the Postal Service struggles financially, given declining circulation, we strongly believe that postal rate increases should come with additional value for the mailer.”

Davis says if the USPS had allowed for a 10% weight increase per piece in exchange for the rate increase, Ross-Simons could mail more pages, offer more products and expected more direct response.

“We might even have mailed more catalogs and shipped more packages,” Davis adds. “As things stand, we will look to reduce circulation to offset the increase in postage rates.”

Continues at: Merchants Say 2012 Postal Rate Increase Means Fewer Catalogs Mailed.