Direct Marketing Geting A Tad More Expensive

Direct Marketing relies on Direct Mail Campaigns as the most effective channel, with respect to the initial investment (i.e. ROI). But will it also stay the most cost effective, beside most effective, as we look to marketing our businesses in 2018?

It’s no secret the USPS has been struggling for quite some time. With that struggle, come routine, periodical price bumps and this is the most recent of them.

Overall, Direct Marketing via mail still offers one of the most cost effective ways to test a marketing concept. Also it requires very little technical know how. All you do is print your message on a flyer and slap a stamp on it – and it can be on its way… Oh, well, we forgot to mention we’ll supply you with the right Mailing List to go with that cheap effort. We keep it affordable for your business to do Direct Marketing to potential customers who move to your area when they need you the most.

But let’s not divert from the real news bulletin:  The United States Postal Service filed notice with the Postal Regulatory Commission (PRC) today of price changes to take effect Jan. 21, 2018. The new prices, if approved, include a one cent increase in the price of a First-Class Mail Forever stamp from 49 cents to 50 cents.

Direct Marketing Cost Increase on Direct Mail

Postcard stamps and metered letters would also have a one cent increase. Today’s filing does not include any price change for single-piece letters being mailed to international destinations or for additional ounces for letters.

The proposed prices would raise Mailing Services product prices approximately 1.9 percent, and most Shipping Services products will average a 3.9 percent price increase. While Mailing Services price increases are limited based on the Consumer Price Index (CPI), Shipping Services prices are adjusted strategically, according to market conditions and the need to maintain affordable services for customers.

The proposed Mailing Services price changes include:

ProductCurrent Proposed
Letters (1 oz.)49 cents50 cents
Letters additional ounces21 cents21 cents
Letters (metered)46 cents47 cents
Outbound International Letters (1 oz.)$1.15$1.15
Domestic Postcards34 cents35 cents

The new Shipping Services product prices would increase Priority Mail 3.9 percent and Priority Mail Retail an average of 0.8 percent. As in the past, the Postal Service will not include any surcharges for fuel, residential delivery, or regular Saturday delivery.

The proposed domestic Priority Mail Flat Rate Retail price changes are:

ProductCurrentProposed
Small Flat Rate Box$7.15$7.20
Medium Flat Rate Box$13.60$13.65
Large Flat Rate Box$18.85$18.90
APO/FPO Large Flat Rate Box$17.35$17.40
Regular Flat Rate Envelope$6.65$6.70
Legal Flat Rate Envelope$6.95$7.00
Padded Flat Rate Envelope$7.20$7.25

The PRC will review the prices before they are scheduled to take effect on Jan. 21, 2018. The complete Postal Service price filings with the new prices for all products can be found on the PRC site under the Daily Listings section at https://www.prc.gov/dockets/daily. For the Mailing Services filing see Oct. 6, 2017, Docket No. R2018-1. For the Shipping Services filing see Oct. 6, 2017, Docket No. CP2018-8.

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.

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We recommend you also read a bit more about why YOUR business should employ Direct Marketing using New Homeowners who just move to your area of business, as your target audience, each week, like clockworks.

Contact us with any questions you have – our Direct Mail experts will be ready to answer any question and provide you with samples and help creating your first home-brewed Direct Mail campaign.

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