Strategy Prepare For the Postal Hike

Sometime in 2007, probably in April or May, Standard mail rates likely will increase approximately 9 percent. Today, a catalog that weighs 3.3 ounces or less goes in the mail at the three-/five-digit rate of $275/M. The USPS plans to split the three-/five-digit classification into two separate classes, i.e., five-digit and three-digit. The five-digit rate is expected to be $300/M, a 7 percent jump. The three-digit rate is going to $328/M, or a 19 percent increase. If we assume a 50-50 split on the three-digit vs. five-digit rates (112,500 copies of each class in a mailing of 225,000 catalogs) the "blended" rate of the rate increase, taking these two classes into consideration, is approximately 14 percent. The carrier route rate is $204/M, which will rise to $233/M, a 14 percent increase.