Prepare for key classification changes next year. This is a column for those who understand that they’re in the direct mail business. Believe it or not, many catalog marketers refuse to acknowledge this fact, even though some 30 percent to 40 percent of their operating costs come from mail-related marketing and fulfillment expenses. Those in the direct mail business know all too well that postal rate cases usually are harbingers of rising postal costs. They also know that by the time higher rates are put into effect, they must have a plan in place to accommodate the rate and operational changes every rate case brings. As you
United States Postal Service
Productivity is alive and well and residing in — of all places — the U.S. Postal Service (USPS). In fact, according to Richard Strasser, CFO at USPS, 2004 marks the fifth consecutive year of increased productivity at the agency. Now I know the USPS is not the most popular government agency among those in the direct marketing world. And heaven knows, the USPS certainly did burn bridges in past years by deciding to raise rates in swift succession — hitting catalogers and direct mailers particularly hard. But I’ll give credit (albeit grudgingly) when it’s due. Listen to these statistics, as recently
When I first started out in magazine editing 14 years ago, one of my tasks as a junior editor was to open the mail. It actually was a line item on my job description, because the duty was no small feat back then. Each day a hearty gentleman from our mail room would heave onto my desk a mail crate stuffed with press releases, flyers, letters to the editor and other mail. Back then I opened about 100 pieces of mail a day and rerouted each to the appropriate editor, our files or the trash. Today, however, I get a tiny folder of
Multichannel industry leaders such as Cabela’s, Talbots, Eddie Bauer, Neiman Marcus, Nordstrom, Lands’ End and L.L. Bean have established themselves as the standard-setters for returns processing, allowing customers the flexibility of returning goods with a no-quibble guarantee. But there’s a downside to a liberal returns policy: Companies have seen return rates increase every year for the past 10 years. For example, $5 of every $100 worth of goods purchased on the Web are returned, compared to $6 for traditional retailers, according to The Boston Consulting Group and Shop.org. And for many merchandise categories, returns rates are much higher. Moreover, the study found
By Gene A. Del Polito Any direct marketer with a pulse knows that sometime early next year, the United States Postal Service (USPS) will implement a schedule of new, higher postal rates. While the Postal Rate Commission (PRC) has not yet handed down its decision in this matter, we do know that the USPS has asked the PRC to pass along some of the highest percentage rate increases to those who market their goods through mail order catalogs. For instance, while the average increase sought from First Class Mail is a relatively modest 3.6 percent, the increases in those rate categories used most