Copyright Quality Publishing, Inc. Jan/Feb 2003| [Headnote] |
| The rates keep gong up and up, but here are ... |
One of your office/marketing expenses recently went up 3 cents. No big deal? Think again. It was a whopping 9 percent increase!
Last June, the cost to mail a First Class letter jumped to 37 cents from 34 cents for the first ounce, but that wasn't the only change. Rates for just about everything else-postcards, Priority Mail, Express Mail heavier than 8 ounces, Media Mail (book rate), Certified Mail, Registered Mail, Standard (Bulk) Mail, Parcel Post, and Address Correction-went up too. And the U.S. Postal Service (USPS) wants yet another rate increase in 2003!
What can you do to control or, better yet, reduce your business' postage costs? Simply follow these suggestions.
1. Know the current postal rates. Before you look at the chart that accompanies this article, ask yourself-and everyone else in your office who sends out mail-these two questions as a quick test of postal rate know-how:
Q. If you plan to mail a letter and sales literature to one of your prospects or customers in a #10 (business size) envelope, with a total weight of 1.5 ounces, how much First Class postage is required?
A. If you answered anything other than 60 cents, you're mistaken. That's because, after the first ounce at 37 cents, the rate for each additional ounce, or fraction thereof, is not 37 cents but 23 cents (as it was before June 30, 2002). So, if anyone in your office is adding another 37 cents in postage for each extra ounce, you're wasting 14 cents per ounce per envelope. And if your office does a lot of mailing, that can really add up!
Q. If you plan to mail one of your prospects an unfolded letter with a large brochure in a 9 x 12-inch envelope and the total weight is less than 1 ounce, how much postage is required?
A. If you answered anything other than 49 cents, you're mistaken-and unaware of the little-known "nonmachinable surcharge." This is an extra 12 cents (or 5.5 cents if presorted) the USPS may tack on if your envelope is "nonstandard." It's considered "nonstandard" if it weighs no more than one ounce but is taller than 6.125 inches or longer than 11.5 inches or thicker than .25 inches or the aspect ratio (length divided by height) is less than 1.3 or more than 2.5. So you may want to consider folding the enclosures once and using a 6 x 9-inch envelope for 37 cents. If the weight is more than an ounce, the regular rate applies-60 cents for up to 2 ounces, 83 cents for up to 3 ounces, etc.-and there's no surcharge.
2. Don't guess; weigh your mail. As a general rule, four sheets of 24-pound paper in a #10 envelope weigh less than 1 ounce. If you use 20-pound paper, you might figure five sheets. But on humid days, extra moisture in the air may increase the weight. Ink, stamps, tape, a mailing label, and a paper clip may add a slight bit of weight too.
Therefore, guessing may be tricky. If you don't care to risk having your mail arrive with postage due, or being returned to sender, weigh it if there are more than three sheets in an envelope or if you're enclosing a reply envelope, business card, or brochure.
3. Use an accurate postal scale. You most likely have a postal scale in your office, but just how accurate is it? Test it periodically, using a 1-ounce weight from a scientific supply house or nine new pennies, which weigh almost exactly i ounce. Or stuff an envelope with paper until your scale reads 1 ounce. Then weigh the envelope again on an electronic scale at the post office. If that scale shows your envelope weighs more or less than 1 ounce, adjust your scale accordingly. Or buy a new one. Prices for spring-operated postal scales (with dubious accuracy and a weight limit of 1 pound) start at less than $10, whereas prices for the more accurate electronic scales start just below $70. If you can still find a new or used balance beam scale somewhere, consider buying it. Mine has proven accurate for decades.
If you lease a postage meter, you may be leasing a scale with it. But unless the scale is connected to, or is part of, the meter-to provide automatic readouts of weight and required postage-why keep making lease payments? Buy your own scale and save.
4. Use an up-to-date postal rate chart.
If your scale has a chart on it, chances are it's outdated. Remove it or cover it up so staffers don't rely on it. Then clip, post, and use our up-to-date (though limited) chart or create your own, including all the rates and fees that regularly concern you. If you have an electronic scale and it provides automatic readouts of the correct postage needed for each item, input the new rates.
5. Keep a variety of postage stamps on hand if you don't have a postage meter or if you don't want all your mail to be metered. Then, for example, you won't have to use two 37-cent stamps to mail a letter that weighs just less than 2 ounces. In addition to 37-cent and 23-cent stamps, keep a small supply of 1-cent, 3-- cent, 5-cent, and 10-cent stamps as well as $1.00, $3.85 (Priority Mail), and $13.65 (Express Mail) postage. You may want to keep your stamps, one denomination per drawer, in a multiple-drawer cabinet designed for storing screws, bolts, and nuts, and available in hardware stores.
6. Restrict access to your meter or stamps so postage won't be used by employees for personal or unauthorized purposes. If you have a meter, jot down the ascending and descending readings regularly to keep track of usage.
7. Know when the mail is picked up from nearby mailboxes so you can get your mail out on time and help avoid costly Priority Mail and Express Mail expenses.
8. Clean your mailing list regularly if you do mass mailings. You may be sending multiple pieces to the same address or sending mail to people who have moved, died, or lost interest in your product or service.
9. Have a direct mail copywriter write any sales letters you send out. If you use an experienced pro, you'll get better results for every dollar you spend on postage.
10. Take advantage of presort discounts if appropriate. Besides having a permit, you'll need to mail at least 200 pieces at a time to qualify for the Standard (Bulk) Rate discount or at least 500 pieces for the First Class Rate discount. For help with other USPS requirements, such as bar coding, there are software programs and letter (mailing) shops.
11. Consider alternate forms of communication-- phone, fax, e -mail, and the Internet.
12. Appoint someone to control postage costs. He or she should know about rates, fees, and requirements. If professional advice is needed, consult with a USPS representative from your local or regional office.
| U.S. POSTAL RATES Effective June 30, 2002 |
| [Sidebar] |
| For all the current rates-with complete charts showing weights and zones-ask your post office for the Ratefold Notice 123, effective June 30, 2002. Also pickup a zone chart (useful for Priority Mail, Express Mail, and parcels sent to other states). Or on the Web, go to www.usps.com, and download what you need. |
| [Author Affiliation] |
| Stan Holden is a freelance writer and author of several guides on making and saving money. He's based in the Chicago area and can be reached at HoldenDM@aol.com. |
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