lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

Its official: Shape-based postage has arrived. For the average consumer, the new postage rates mean a trip to the post office to stock up on two-cent stamps. For many businesses, the new pricing system means a hefty bite out of bottom lines.

Hardest hit will be companies that ship lightweight parcels—now the most expensive postage classification. Under the old, weight-based system, a six-ounce package costs $1.59 to mail. Shape-based pricing bumps the rate up to $1.98, an increase of 24.5%.

Large envelopes, which classify as flats, also face hefty hikes, up to 54%.

These dramatic increases have created a stir among organizations like the Direct Marketing Association (DMA). The global trade association has lobbied unsuccessfully for an implementation delay.

Room for optimism? The U.S. Postal Service heralds shape-based postage as a move toward a more efficient system that minimizes overall costs. For instance, letters that weigh less than three ounces—but more than one ounce—actually cost less to mail today than under the old system. The key is efficient packaging.

“Fold letters and statements to fit in #10 or 6” x 9 ?” envelopes. Instead of shipping small items like note pads or brochures in boxes, use mailers that classify as flats.”

Such cost-saving opportunities require end users and fulfillment houses to literally think out of the box, coming up with creative ways to improve efficiency. “It’s savings all around—not only in postage, but also in actual service costs. I can process a job faster by inserting it into an expansion envelope rather than assembling a box and taping it, putting the contents in, taping it again and putting a label on it. Efficiency-wise, it’s a lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

o

ape-based pricing bumps the rate up to $1.98, an increase of 24.5%.

Large envelopes, which classify as flats, also face hefty hikes, up to 54%.

These dramatic increases have created a stir among organizations like the Direct Marketing Association (DMA). The global trade association has lobbied unsuccessfully for an implementation delay.

Room for optimism? The U.S. Postal Service heralds shape-based postage as a move toward a more efficient system that minimizes overall costs. For instance, letters that weigh less than three ounces—but more than one ounce—actually cost less to mail today than under the old system. The key is efficient packaging.

“Fold letters and statements to fit in #10 or 6” x 9 ?” envelopes. Instead of shipping small items like note pads or brochures in boxes, use mailers that classify as flats.”

Such cost-saving opportunities require end users and fulfillment houses to literally think out of the box, coming up with creative ways to improve efficiency. “It’s savings all around—not only in postage, but also in actual service costs. I can process a job faster by inserting it into an expansion envelope rather than assembling a box and taping it, putting the contents in, taping it again and putting a label on it. Efficiency-wise, it’s a lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

move toward a more efficient system that minimizes overall costs. For instance, letters that weigh less than three ounces—but more than one ounce—actually cost less to mail today than under the old system. The key is efficient packaging.

“Fold letters and statements to fit in #10 or 6” x 9 ?” envelopes. Instead of shipping small items like note pads or brochures in boxes, use mailers that classify as flats.”

Such cost-saving opportunities require end users and fulfillment houses to literally think out of the box, coming up with creative ways to improve efficiency. “It’s savings all around—not only in postage, but also in actual service costs. I can process a job faster by inserting it into an expansion envelope rather than assembling a box and taping it, putting the contents in, taping it again and putting a label on it. Efficiency-wise, it’s a lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

aving opportunities require end users and fulfillment houses to literally think out of the box, coming up with creative ways to improve efficiency. “It’s savings all around—not only in postage, but also in actual service costs. I can process a job faster by inserting it into an expansion envelope rather than assembling a box and taping it, putting the contents in, taping it again and putting a label on it. Efficiency-wise, it’s a lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

lot less costly… getting it into the mail stream.”

Next steps Now that shape-based postage has arrived, abstract warnings about postage increases will soon crystallize on corporate balance sheets, spawning widespread sticker shock. The following steps can help companies realize the savings potential built into the new pricing system:

• Analyze current mail usage. Audit the mail room to determine typical volume.

o How many letters, flats and parcels go out?

o How are mail pieces packaged?

o Can parcels be converted to flats or flats to letters?

• Measure total mail costs. The total cost of a mail piece extends beyond the postage. Organizations also need to consider costs associated with mail supplies and fulfillment. Because of the postage penalties associated with parcels, experts recommend splitting parcels into two machinable flats where possible.

• Factor postage into design. Often, marketing departments create oversized or dimensional mail pieces to boost open and response rates. Such pieces also incur the highest postage rates. Companies now need to test whether the higher response justifies the increased postage.

And above all… • Push the envelope. The new system represents a radical change and will continue to evolve. Beginning today, for instance, flat mail pieces with parcel-like characteristics ship as parcels. This shift in classification comes with a serious rate increase because these packages require special handling. But already, manufacturers have developed creative methods to ship commonly mailed items like DVDs as flats.

As the country adjusts to the new postage system, end users, manufacturers and fulfillment companies will need to work together. Only through widespread cooperation can the country move toward a more efficient mail system that actually works.