iti Direct Mail Outlines How the Increased Cost of Postage Will Affect Direct Mail Industry

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An industry leader in direct mail and printing is warning businesses of the impact the rise in postage could have on their business’ overall profits.

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The postal service has proposed that the cost of first-class postage stamps increase to 49 cents starting in 2014

According to the New York Times's Nov 15 report, the postal service declared "a record $15.9 billion net loss for the fiscal year that ended Sept. 30," and representatives with iti Direct Mail say the continued increase in postage could hurt or even cripple the marketing efforts of businesses across the United States.

In response to the US Postal Service’s shortfall, the postal service has proposed that the cost of first-class postage stamps increase to 49 cents starting in 2014.

“This could have a huge affect on direct mail,” said Alan Barseghian, marketing director of iti Direct Mail, whose specialty product is printing mail merged letters with personalized envelopes that do not resemble junk mail.

Under the proposal by the cash-strapped U.S. Postal Service, the increase in postage would raise about $2 billion in additional revenue annually.

Barseghian pointed out that first-class mail postage would rise 3 cents, or 6.5 percent.

Pricing for other mail, including postcards and packages, would also rise on Jan. 26, 2014.

Backing up Barseghian’s sentiments on how the increase in postage will affect direct mail, Mary Berner, president of the Association of Magazine Media industry trade group, in an article in the USA Today Newspaper, pointed out that higher postage rates are a stop-gap solution that would clip businesses profits and accelerate the Postal Service's losses.

"No private company would increase prices when sales are already plummeting,'' Berner said in the September 30th article. “This will cause significant declines in mail volume and further job losses across the industry without addressing the USPS' core issues. The consequences of this decision will be felt by the entire mailing industry, the Postal Service, businesses and consumers."

Barseghian noted that despite reports that Amazon.com has agreed to an exclusive arrangement with the Postal Service to deliver packages on Sundays beginning this week, the price for postal delivery will continue to rise.

“It’s good from a delivery standpoint for Amazon, and a good agreement to help the Postal Service with revenue, but it does not solve the problem for the increase in cost for postage, which will have a tremendous affect on direct mail and marketing budgets for businesses,” Barseghian said.

The company spokesman went on to stress that his company could help businesses by offering direct mail cost-saving measures.

“We have some of the lowest printing minimums in the industry. Our letter printing services, which is the core of our business, has only a 50 piece minimum per order,” Barseghian said, before adding, “Our e-commerce site has been modified to accommodate smaller clients that place regular orders. Unlike our competition, we spend time with each of our clients to recommend products that will benefit them the most. Regardless of the order size, we consult with each client, initially free of charge to make recommendations for their letter printing package which we feel will benefit them greatly based on our experience from the past 12 years.”

For more information on iti Direct Mail’s services, please visit: letterprinting.net/store/pc/Postcard-printing-c7.htm and letterprinting.net/store/pc/Hand-Addressed-envelopes-d21.htm.

About iti Direct Mail

iti Direct Mail is a dedicated and professional marketing company working to meet the needs of our client's specific printing requirements. We are not a print shop.

We specialize in printing and mailing custom tailored letters for our clients. We save you time, labor and money with your in house printing needs.

We can personalize, print, and mail your sales letters to existing clients, past clients, or potential new clients.

Contact Details:

i.t.i. Direct Mail
115 West California Blvd.
Ste 286
Pasadena, CA 91105
Phone: 866-558-6365
Fax: 866-558-6365
Source: i.t.i. Direct Mail

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Alan Barseghian
@itidirectmail
since: 09/2013
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Iti Direct Mail
since: 11/2013
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