Is Mailing Still Good Business?
Quick printers are always alert for new business opportunities—a chance to increase manufacturing capacity or capability or to expand service offerings. Increasingly over the last decade, quick printers have been attracted to mailing services, both as a way to increase overall profitability and to stay or become a more valuable service provider to customers and prospects.
But is mailing still good business? The United States Postal Service is currently in a period of transition whose magnitude is similar to mail reclassification in 1996, when automation-based postage discounts became prevalent. The USPS is integrating technology into much of its mail processing operations, from eliminating paper forms for mail acceptance to enabling mail tracking using the new intelligent mail barcode (IMB). The effect of this transition is to require mailers to be techno-savvy at a whole new level.
The USPS is using postage rates to provide the incentives for mailers to adopt the new technology. In December 2006, Congress passed postal reform legislation that enabled the USPS to abandon the former cumbersome and lengthy process for raising postage rates. The new rules mean that postage rates, like the charges of other common carriers such as UPS and FedEx, will be raised annually by a small amount. This annual increase provides the opportunity for the USPS to adjust rates to encourage compliance with technology-based requirements—smaller percentage increases for mail that is sized for efficient processing and addressed and prepared to enable processing entirely by machine, from mail entry to line-of-travel sortation for letter carriers.
For quick printers, this technology shift may represent a significant opportunity. Some customers who are currently providing their own mailing services internally may find themselves unwilling or unable to comply with USPS requirements for the best postage rates, and thus face postage rate increases that make it economically feasible to switch mailing services to an outside provider. Similarly, some lettershops may not wish to make the investment in personnel and training that is necessary to comply with new USPS requirements. Both these developments could release a new segment of customers into the mailing marketplace.
Advantages of Offering Mailing Services
Despite the changes in USPS requirements to qualify for the best postage rates, mailing remains a good choice for quick printers who want to expand their business mix to offer additional services to current customers or attract new customers. Here are some of the ways that the businesses and organizations who are customers of quick printers use mail services:
Direct mail marketing. For businesses of all sizes, regular, periodic mailings sent to customers and prospects remains a cost effective and successful way to sell products or services, to create name recognition, and to build an image.
Membership campaigns. Charitable organizations, community service groups, and affinity groups (like travel clubs or alumni associations) use mail to solicit and renew memberships.
Fundraising drives. Mail is used by charitable and non-profit organizations for annual appeals as well as one-time drives for a specific purpose.
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