USPS introduces several new incentives for mailers alongside proposed price increases
By:Mark Haslan
Overnight Prints

 

Earlier in July, the United States Postal Service announced plans to raise postal rates for the majority of its services. Should the proposal be passed, it would increase rates by around 6 percent, except for periodicals, standard mail parcels and media/library mail, which would grow by 8 percent, 23 percent and 7 percent, respectively.

 

Though the initiative is designed to help the failing USPS return to profitability, many businesses that rely on direct mail were understandably upset. In response, the organization has announced a series of incentives that will help drive down costs on some campaigns.

 

The first initiative, called the "Saturation Mail/High Density Incentive Program" gives businesses rebates on postage. Discounts of up to 22 percent of regular saturation postage and 12 percent of high-density mail postage will be given to all companies that send 5 percent more mailers in 2010.

 

Saturation mail is commonly used by business owners to reach the greatest number of consumers possible, especially if they are targeting local customers. With the service, businesses can target up to 90 percent of residential addresses or 75 percent of business addresses on a single carrier route.

 

Additionally, the Postal Service will launch the "Reply Rides Free" service for businesses that use transactional mail to deliver marketing messages. Under the program, if a reply envelope is included within a mailer, the sender will be charged a reduced amount.

 

Because transactional messages have the highest open rate of any mail type, many businesses include offers with them to maximize exposure. For example, retailers could include a special offer alongside an invoice to encourage consumers to make an additional purchase. With the Reply Rides Free service, business owners will be able to capitalize on this offer type.

 

These incentives, should they be passed by regulators, will go into effect on January 2, 2011, alongside the other proposals. The Postal Regulator Commission will decide whether to approve the new rates no later than October 4.

 

For businesses looking for more immediate discounts, the USPS is currently running its second annual summer sale. Companies that send more than 105 percent of the volumes they mailed last summer, the USPS will refund 30 percent of the shipping costs. The promotion runs through September 30.
 

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