5 Steps To Shape-based Postage Compliance

You've probably heard that the U.S. Postal Service has filed to raise rates again in May 2007. Now the proposed rates follow a complex pricing structure which will rely on shape, as well as weight when compared to the flat 5.4% increase implemented last January. As a consequence of this, the rate for the three-ounce parcel will jump 61% to $1.40 from $0.87. Other classes of mail will see similar increases.
"The proposed pricing structure rewards companies for designing mail that is compatible with USPS mail automation systems," says Marvin Makofsky, president of Conformer Expansion Products.
Many financial institutions send statements and performance reports in 9” x 12” envelopes. These organizations that rely heavily on mass mailings can realize huge savings through more efficient packaging by using the proper envelopes.
Companies that mail items such as books and DVDs can reap even larger savings by converting parcels to flats. Using paperboard or plastic envelopes instead of padded mailers allows the post office to process these packages as flats and saves $10,000 on a mailing of 50,000.
A national bank that mails personal checkbooks to 500,000 clients per month can cut annual postage costs by $2.3 million, simply by using envelopes instead of traditional check boxes.

So what can you do? Careful planning now will help limit the impact of the upcoming rate hike:

Audit current postage use.
Get the information regarding the types of items, the number of pieces and the weight of each piece that go out each quarter and each year. Calculate the current expenses for postage.
Calculate the effect of the proposed increase
Estimate the impact of the proposed postage rise (www.usps.com/ratecase) on the current mail volume.
Identify opportunities to increase the mailing efficiency
Fold documents and mail them as letters instead of flats. Switch to automation-friendly packaging and limit the use of padded mailers and thin boxes. Find creative packaging and mailing solutions.
Create and publish packaging standards
Identify cost-effective packaging methods and publish these standards throughout the organization. Keep appropriate mailing supplies readily available.
Secure senior-level oversight.
Senior leaders need to take an active role in ensuring administrative efficiency. Meet with all the managers involved in the mail process—from designing packages and collateral materials to shipping items. Let it be a united effort. In the end, the entire organization will win.

By: Ryju

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