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Featured Links: Direct Marketing

	Proposed Postal Rate Hike Big Concern

	Direct mail continues to be a primary marketing tactic in the transportation and logistics industry. In fact, direct mail saw a 6.4 percent increase as a marketing investment last year, according the TMCA Marketing Trends Report. But all that lies in jeopardy with the Postal Regulatory Commission's recommendation last month of steep hikes in postal rates and several changes in requirements for mailers. The complicated rates, which must be approved by the U.S. Postal Service's board of governors to go into effect, drew quick criticism from the direct marketing and publishing industries, along with TMCA members. Although the average increase will be 7.6 percent, some mailers could see increases of as much as 40 percent, according to some experts in the catalog industry, particularly if you're a smaller mailer. "Some of our members have already suggested that if this increase goes into effect that they're going to have to scale back mailings," says Brian Everett, Chief Executive Officer for TMCA. With rising postage costs, those who utilize direct mail may be forced to reduce their circulation and target marketing. According to the Postal Rate Commission Report, these are the proposed postal rate increases: First-Class Mail: Letters with cards - 6.9% Within the county - 18.3% Outside the county - 11.7% Standard Mail: Regular - 9.5% Nonprofit - 6.7% ECR - 6.9% Nonprofit ECR - 8.8% Competitive Services: Parcel post - 16.6% Priority mail - 13.6% Express mail - 12.5% Special Services: Registered mail - 20.7% Certified mail - 10.4% Money orders - 8.8% P.O. boxes - 10.1% "Our concern is that the Postal Service may be moving too quickly, too far, leaving direct marketers to struggle with higher rates and even more-complex new rules that may be imposed too quickly for mailers to adjust their own operations," said Everett. The proposed postal changes also include new data hygiene requirements that have some marketing pros concerned and add another layer of complexity to the new rules and requirements. "There are all kinds of new requirements on data hygiene and list processing in order to get the discounted rates," one direct mailer said. "This is the first time a rate recommendation has been this wide-sweeping with this many requirements that I can remember. It's not just a rate hike." TMCA will continue to monitor developments in this decision and will keep TMCA members informed.
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