Strategy Prepare For the Postal Hike
Postage costs represent about 40 percent of total catalog marketing expenses. Don't let next year's rate increase catch you off-guard.
When postage rates increase, catalogers really feel the pinch. For example, in January of this year, we experienced a 5.4 percent rate hike. This was the first rate increase since June 2002 (which, at the time, was the third increase in two years). Brace yourself for yet another increase in 2007. What's more, rumor has it the U.S. Postal Service wants to increase rates again in 2008, which would make three rate hikes in three years.