Postage costs represent about 40 percent of total catalog marketing expenses. Don’t let next year’s rate increase catch you off-guard.

u Don’t over-circulate. Decide your “new” incremental break-even point, and eliminate mailings to outside lists and to segments of your housefile falling below your established criteria.

u Reduce catalog trim size. If you have a pound rate catalog (that weighs 3.3 ounces or more), a slight reduction in the physical trim size will reduce your postage and paper costs. A reduction of a half-inch vertically on an 80-page catalog can save $15,000 on the paper and postage costs per 1 million copies printed. (Note: This assumes no change in the weight requirement.)

These USPS rate increases are serious. They pose a real threat to catalog businesses. Now is the time to push your printer for co-mailing opportunities. If you’re with a printer that’s not proactive in this area, find a new printer. n

Stephen R. Lett is president of Lett Direct. Reach him at (302) 537-
0375 or via his Web site: www.lett
direct.com.