The United States Postal Service postmaster general, Patrick Donahoe, recently told The New York Times that the postal service is in a financial crisis today because of an inflexible business model. Many legislatures believe that there are options to cut costs and increase revenue while still preserving the postal service. Reports on the current state of the United States Postal Service are a bit chaotic. It is predicted that in 2013, the United States Postal Service will undergo changes that it has never previously experienced. This includes postage rate increases, new piece specifications, and a reduction of the network that delivers the mail. It is hoped that these shifts will create significant savings for the United States Postal Service. If direct mail continues to be a profitable medium for marketing, brands must find the most cost effective solutions in light of the USPS transformation.
Postage rates for folded self mailers
The rate increase percentage is based upon produce and service. The overall average rate increase across all classes of mail is capped at 2.1 percent. There are a variety of common mail formats that are considered folded self mailers that currently mail at standard letter rates. The 2013 changes now categorize these letters into a higher postage rate. Paper modifications can also offset the impact of postage rate changes on folded self mailers and unenveloped mail pieces. If marketers begin to understand all of the new specification changes, they can then modify and test formats that comply with new regulations without losing any impact.