Postage due: a guide to avoiding unpleasant and costly direct mail surprises when using the U.S. Postal Service.

• Author: Doyle, Jim
• Position: Postal services Prices Increases

On April 8, the United States Postal Service (USPS) requested a 5.4 percent increase to almost all categories of mail. First-class mail could increase from 37 cents to 39 cents.

Since postage is the single largest expense in nearly every direct mail promotion, it is more important than ever that bank marketers know how to find the most economical postal rate. This article will touch on the basic principles you need to know to ensure that you are getting the optimum rate.

Let's start by looking at two examples of what can go wrong in a campaign if you are not knowledgeable about these rate issues.

Example No. 1: A campaign promoting a bank's involvement in a local charity event. A bank plans to send an economical mailing that promotes an environmental fund-raising event.

Because this is essentially a brand-building message, the bank determines that a simple postcard would be appropriate. The graphics department comes up with a design for 6-by-9-inch postcard. The marketer checks to see what the postage will be. The mailroom manager observes that a flat card larger than 4-1/4-by-6-inches is classified as a "letter" and that the bank would be paying the same postage as a No. 10 envelope.

Armed with this information, the marketer goes back to the graphic designer, who insists that the copy could not possibly fit onto a 4-1/4-by-6-card. With a flash of inspiration, the marketer instructs the designer to come up with a design for an envelope package. After all, an envelope from the bank is sure to get attention.

The designer returns with an attractive envelope design that has small green triangles printed around the entire envelope face. After several thousand are printed and delivered to the mailroom, the mailroom manager reports that the small green diamonds denote "first class" to the USPS. The standard mail discounts that were budgeted do not apply. More confused than ever, the marketer learns that the envelopes can still be presorted, even though they are considered "first class." The postage ends up being 40 percent more than was budgeted!

Example No. 2: Your mailing envelopes are too thick. The marketer is mailing in a 6-by-9-inch envelope with an embossed plastic card for immediate membership in a preferred customer club. With a multipage, four-color brochure describing the benefits of membership, a wallet card showing bank locations and a letter welcoming the customer to the premium club, the mail piece exceeds the 1/4-inch thickness...