Is Postage Too High?
Since 2020 we have seen plenty of postage increases. The recent price increase on July 14, 2024, is the sixth hike under Postmaster General Louis DeJoy’s tenure and a 31% spike in the cost of a stamp since he took office. USPS has begun raising its rates on a biannual basis and DeJoy has tapped into the authority he won in 2020 to increase prices more than the rate of inflation on nearly every allowable occasion.
So, is postage too high? Yeah. But what are you going to do about it?
Very little marketing or fundraising worth doing is free. Even when the media is free, like a posting on Facebook or Linked In, there is a requirement to keep it updated and timely – generally a significant investment in time or staff. “Investment” is the operational word here.
Paid advertising on the web, by the way, has risen far faster than postage.
Return On Investment – ROI – requires investment…no I and you get no R. Direct Mail continues to show the highest ROI in direct marketing among competing channels. Direct mail has some unique advantages that other channels cannot provide:
- Targetability – Direct mail allows you to target your best audience with precise and accurate lists.
- Exclusivity – How many emails do you get a day? How many ads do you see on the web? Now, how many pieces of mail in the mailbox? Your postal mail will at least get a glance. The rest is up to you.
- Tactile impressions – People like touching stuff.
There’s more, but without a doubt marketers need direct mail. Fundraising in particular has no way of replacing it. So, yes, it costs more. Here are a few things you might do:
- Minimize waste – Clean your list. There are a lot of tools – NCOA, ACS (address correction)…and more.
- Plan ahead to avoid costly mistakes
- Reevaluate your mailer type and size
- Coordinate other channels – multichannel beats monochannel every time.
- Ask your donors to kick in a couple extra bucks to help with the rising cost of postage.
- Use presorted bulk mailing discounts where you currently use First-Class, if allowable. A mail house can help you with this.
Yes, postage is high, and the current Postmaster General seems unlikely to take his foot off the gas for the next few years. Still, direct mail remains an irreplaceable channel. Mail smart, but for goodness sake, keep mailing.
For a free consultation and analysis of your mail and how you might save on postage and shave your costs, contact us here.
Source: snailworks.com, Dave Lewis, march 29, 2024
Return On Investment – ROI – requires investment…no I and you get no R. Direct Mail continues to show the highest ROI in direct marketing among competing channels.