The Postal Rate Commission (PRC) Denies Exigent Postage Rate Increase … Big !@#$ Deal


Recently, The Postal Rate Commission denied the US Postal Service an exigent postage increase.

So, OK, now what?

So, Direct marketers aren’t getting slammed with another 5 percent-plus postage rate increase in January. Big whoop-de-doo. Postage is still the biggest expense in all my clients’ mail campaigns. And the cost of mailing vs. the risk of the unknown is still the biggest reason marketers shy away from the direct mail channel.

The second biggest reason? Well, everybody has heard the horror stories. All that money spent on killer creative, design, lists, printing, postage, and then the campaign bombs.  And then everybody talks about how the campaign bombed and direct mail sucks.

OK, so many of those direct mail campaign “bombs” forgot to follow the basic principles of the business — i.e., the 40/40/20 rule. They probably did the creative first and then figured out lists last like most companies I see do.

This kind of activity perpetuates the urban legend that direct mail doesn’t work. Well, except for a few companies. Those companies, you know, the junk mailers, the big companies with unlimited budgets who don’t care about results and just want to build their brand images… they are the ones who do well.

Now I won’t even get into the whole environmental argument of direct mail not being green. Believe what you want, but that’s a myth. The direct mail and paper industries are ultracautious to replenish the environment.

And let’s not forget about our internet marketing brethren, who have done such a wonderful job throwing direct mail under the bus, positioning it as passé or old school, while they prop themselves up as the future of direct marketing. I won’t even go there today.

Let’s face it, direct mail has a bad reputation. But that can change. Here’s how:

The smartest thing those wunderkinds at our beloved Postal Service can do is nurture the direct mail industry. Imagine what would happen if the USPS actually offered discounts for online marketers to give direct mail a chance? Now imagine the same thing happening with small and emerging businesses. How many companies would try direct mail if the risks were reduced? How many tests? How many rollouts?

And what about nurturing those retailers who still use direct mail as a major part of their marketing programs? Sure, the USPS has tested some “Summer SalesOpens in a new window,” which is a move in the right direction, but it’s time for the Postal Service to stop dipping a toe in the water and give volume mailers an opportunity to push their circulations up. Seasoned mailers know the results are there, they’ve just been beaten down by a constant barrage of postage increases.

More importantly, over time, how many direct mail pieces are needed in circulation to drive additional revenue for the post office? Some way the USPS is going to have to get itself out of the bureaucratic hole it’s dug for itself.

Hey, I’m not dreaming here. It’s a simple business model: high costs = less volume, lower costs = increased volume.

The USPS has traveled the higher-priced road before, and in the process did an amazing job of building up the internet and literally exploding the size of the online marketing community (to which it offers thanks, by the way).

Maybe now it’s time to think things through and encourage more mailers and subsequently more volume. And inevitably if they do it right, more (well, to be fair … SOME) profits.

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