How Postal Rate Hikes Impact Print and Mail Providers (piworld.com)

It’s been hard to avoid the conversation around postal rates in the commercial and direct mail printing industry during the past few years. As Postmaster General Louis DeJoy has made aggressive moves to bring the U.S. Postal Service (USPS) into profitability after the requirement to pre-pay the organization’s pension fund was finally relaxed, printers have borne the brunt of those rising prices. Print buyers have started pushing back when it comes to higher mailing costs, especially as the costs of everything from the inks, to the paper, to the labor running the presses have also been on the rise.

But what does the actual landscape look like for print providers on the postal rate front? And how are they managing the increases?

John Miglautsch, founder of Miglautsch Marketing and long-time direct mail advocate for the industry, points out that a major catalog job he ran in 1982 was about 62 cents per piece, compared to a similar catalog job in 2018 that came in around 67 cents. “In 40 years,” he notes, “the price [to mail] a catalog hasn’t changed as much as the price of eggs in just the last few years.”

Unfortunately, the bulk of those increases seems to have come rapidly during the past couple of years, leaving commercial/direct mail printers and print buyers alike scrambling to compensate for costs that are significantly higher. A few cents per piece spread out across thousands — if not hundreds of thousands — of pieces adds up fast, after all, and can take a huge chunk out of the direct marketing budget before anyone can blink. And that impact is being felt as buyers pull back on the number of pieces they’re mailing to compensate for those higher costs.
more at: https://www.piworld.com/article/how-postal-rate-hikes-impact-print-and-mail-providers/