Bob Makofsky, general manager for Conformer Expansion Products (www.conformerinc.com), Great Neck, N.Y. offers insights and advice to help nonprofits navigate the new postal regulations.
The seven percent increase in standard mail rates is easy enough to understand, but in my conversations with both nonprofit and business executives, I’ve found that many don’t understand the new “shape-based” system. Not surprising, since the new classifications are complex and require a whole new way of thinking about how you package premiums, calendars, annual reports and other large pieces. While you may be confused about the new system, the effect on your budget is crystal clear. And if hefty postage increases are putting a strain on the money you need to meet your organization’s mission, I’ve got some good news: working with the system can actually lower your fees below the old postage rates.
For nonprofits, the new rates went into effect in July 2007. Nonprofits are especially vulnerable to higher costs under the shape-based system because many use direct-mail gifts and premiums. In the past, these strategies have been a successful, cost-effective way to raise money and increase awareness about programs and services. Now, your organization may be wondering whether or not to toss out direct mail appeals that involve premiums.
What can be budget-breaking are new classifications for what used to be distinguished as parcels or flats. Now there are three categories: parcels, flats and a new standard mail category, Non-Flat Machinable (NFM). Premium mailings often fall into this category, and if they don’t qualify as an NFM, they are considered a parcel. Either way, these two classifications are the most expensive way to send your donors greeting cards, CDs, pens or key chains. The NFM category depends on the physical characteristics of the piece and whether it works, or doesn’t work, with postal equipment. To work, the package has to meet flexibility and uniform thickness requirements. If it doesn’t work, the package becomes a parcel. Both will cost you more than in the past.
Within the flat category, classifications include automated and non-automated. Working with the new postage guidelines for automated flats can reduce your mailing costs by up to 50 percent. What are not considered flats are boxes, irregular packages and tight envelopes filled to form box-like pieces. If your flat mailing has bumps, protrusions and irregularities, or varies more than 1/4-inch in thickness, then it is classified as an NFM. In the past, if you’ve sent premiums in padded mailers or small boxes because they were lightweight and inexpensive, these packages now fall into the parcel category.
But, replacing the padded mailer with a paperboard expansion envelope lets you mail these premiums at the automated flat rate, a cost-effective and less-expensive postage category. Another way to save postage is to use 6x9" envelopes rather than 9x12" mailers when sending large documents like annual reports or full-sized brochures. Why? Because a 9x12" envelope mails as a flat, and the 6x9" envelope qualifies as a letter—and nets a substantial per-piece savings. The money saved in postage will outweigh what you give up in aesthetic appeal.
Here are some other suggestions to consider in tackling your mailing expenses:
• Educate everyone in your organization. The new system calls for organization-wide education. Because there are so many variables and classifications to consider, everyone needs to understand and agree on the most cost-effective way to send information to your donors.
• Consider the total impact of postage. Consider every aspect of your mailings to get an accurate cost comparison. For instance, expansion envelopes can do more than traditional envelopes and hold a wider range of content. While they may cost a bit more, you’ll save that much and more in postage.
• Replace inefficient packaging with USPS-friendly mailers. Certain types of packaging incur higher costs by their nature. Boxes, for example, are among the worst offenders. Under the new system, padded mailers are also inherently ineffective due to their thickness. Replacing these types of items with automation-friendly mailers, like our paperboard envelopes, will encourage more efficient mail habits—and minimize postage.
• Work with your creative department. Creative departments can minimize the impact of the rate hike by working within the new postage guidelines. Designers should consider the primary distribution method for each piece.
• Get creative. The shape-based postage system creates challenges that require a new set of solutions. Some nonprofits have moved to repackaging solicitations so they’ll fit in a letter-size standard mail category to reduce expenses. With a bit of creativity, you don’t have to give up valuable direct-mail real estate.
At Conformer, we’re happy to work with you or your direct-mail vendor to help you control your postage budget so you can get back to the business of fulfilling your organization’s mission.
For more information, call (866) 695-4726.
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