Understand changes to postal rates

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Dear Dan: We do a lot of business mailings through the U.S. Postal Service, but every time I blink they seem to change the rules, as well as the rates. Now I understand that more changes are coming. Is direct mail still worth it? – Big Mailer

Dear Big Mailer: With so much attention focused these days on marketing via e-mail, mobile devices, Web sites and search ads, “old school” methods such as direct mail can get lost. But for many types of customers – especially younger age groups – getting something in the mail has actually become an attention-getting novelty.
Direct mail can still be a cost-effective way to tell customers and prospects who you are and what your business offers. You can use it to promote interest in a new product or service, generate orders, drive traffic to your website, thank customers for their business and build brand recognition.
Here’s a roundup of key postal changes set for May, and where to get the detailed information on pricing:
• Shipping services: Prices on U.S. Postal Service shipping will change, including Express Mail, Priority Mail, Parcel Select, Parcel Return Service and International Mail. USPS will, for the first time, offer a variety of pricing incentives, including online discounts, rebates, and commercial volume prices. Postmaster General John Potter says the pricing incentives should be especially attractive to small business shippers.
• Express and Priority Mail Discounts: Express Mail prices will now be zone-based, so you will pay less for nearby destinations. Get a three percent discount for purchasing online or through a corporate account, and more if you hit volume minimums. Priority Mail discounts will average 3.5 percent if you use electronic postage.
• Forever Stamps: First class stamps will be 42 cents, but you can continue to use the Forever Stamps purchased before May 12 at 41 cents, even after the price change. The Postal Service is printing 5 billion of them, and you can order online at the USPS Postal Store (shop.usps.com).
• Parcel Post: The Parcel Return Service will move entirely to a weight-based pricing system, resulting in significant price reductions for many lighter packages.
• Key Postage Price Points:
First Class letter (1 oz.): $0.42
First Class letter (2 oz.): $0.59
Postcard: $0.27
First Class large envelope (2 oz.): $1.00
Certified Mail: $2.70
First Class to Canada/Mexico (1 oz.): $0.72
First Class all other countries (1 oz.): $0.94 •
Daniel Kehrer can be reached at
editor@business.com.

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