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POSTAL INCREASE COMING TO YOUR DEALERSHIP

By Tom Williams

The cost of mailing is going up. Not just for you and your business, but everyone in the United States. It is a fact of life and just like death and taxes, the news of the increase is being received with the same enthusiasm as both death and taxes.

Why the increase? Some of the same reasons you and I face in our businesses. The post office is seeing an increase in things like fuel, transportation, utilities and health care benefits-sound familiar? Without an increase to keep up with rising costs, they face significant losses. Many of us may not be aware that the post office isn't subsidized by our tax dollars. They rely on the sale of postal products and services to cover their operating costs.

The post office had been working on this current increase for several years. They had originally asked for a 7.69% increase on first class postage, to 42 cents, but they were forced to settle for a 5.13% increase on first class postage, to 41 cents. Very little attention is being paid to other classes of mail by the media, but they are getting an even larger increase than the 5.13% first class increase.

One of the areas that most affect dealer's marketing budgets is the increase in standard mail rates (formerly bulk rates). Here you will see as much as a 10.8% increase in basic enhanced carrier route rates, which is what most dealers use form mass mailings. This is a huge increase in the cost of mailing your promotional pieces for your sales and service operations.

How can you avoid such a large increase? Talk to your professional at your mail house. They may be able to direct you toward various entry discounts by using different lists and sortation, that will save you money and help avoid such a big hit in postage.

Each dealerships circumstances are different, so I can't make a flat out suggestion to everyone, except to seek advise and starting the conversation now, don't wait until May 14, 2007 when the increases go in to effect.

To learn more about Tom Williams or Budget Direct Mail Inc. Visit www.budgetdirectmail.com or call (317)780-8236 or Email Tom: twillie304@gmail.com