On March 2nd, Postmaster John Potter of the USPS, announced a 10-year plan to return to profitability, including increased productivity, new products, and legislative reform…blah, blah, blah
The net result to consumers and businesses is higher rates and reduced service, including a five-day-per-week delivery service with the elimination of Saturday delivery. The USPS is also considering additional price increases above the inflationary-based increases, secured within the last few years.
While a 2-cent difference in postage to consumers is annoying, it can be extremely difficult on business. For example, let’s say Wells Fargo Bank has 500,000 customers and of that, 75% receive statements via USPS with 50% of those statements weighing 1 oz or less and the balance weighing more than 1 oz and less than 2 oz. Because of the nature of the content, the USPS requires statement to be mailed 1st class.
Let’s see how one simple mailing rolls out with respect to postage:
- 500,000 clients
- 375,000 receive statements via USPS
- 187,500 50% weigh less than 1 oz (187,500 x .382 = $71,625)
- 187,500 50% weigh less than 2 oz (187,500 x .507 = $95,063)
Postage = $166,688
…more reason to get customers online and to engage through social media.
