Print remains key element of marketing despite rate increase On January 8, 2006, the U.S. Postal Service increased the postage rate by approximately 5.4% across all classifications. The rate increase, prompted by a federal law requiring additional escrow funding for the Postal Service, is the first one since 2002. In addition, an increase for 2007 has already been proposed to add another 3 cents to the first-class stamp. The Postage-rate increases and the perception of decreased direct mail in marketing may leave businesses questioning the role of printed marketing material. When determining future budgets, several important factors should be considered. The first is that direct mail has a proven response rate. In addition, print mailings are normally considered less intrusive by consumers than telemarketing and not subject to the recent electronic CAN-SPAM legislation like e-mail marketing.   Where's Your Postage Going? First-Class Letter (1 oz.) 37¢ 39¢ First-Class Letter (2 oz.) 60¢ 63¢ Postcard 23¢ 24¢ Priority Mail (1 lb.) $3.85 $4.05 Express Mail (1/1 lb.) $13.65 $14.40 Express Mail (2 oz.) $17.85 $18.80 Most importantly, research is showing that direct mail has not significantly decreased in recent years as predicted. In their 2005 study, Fouad Nader and Luis Jimenez found that technology hasn’t created one-for-one substitutions for print material but instead offers a complimentary channel. (“Substitution Patterns” April, 2005) The postage increases should encourage businesses to focus on the highest return on investment with their mailings by following a few easy steps. One is validating mailing lists for accuracy. High amounts of mail that is undeliverable, over 15%, should prompt a review of the data as well as a review of the source if it is obtained from a third party. The type of mail should also be examined for impact on postal cost. For example, is the size of the postcard being mailed causing a higher rate of postage? By changing some of the physical characteristics such as dimensions or weight, a lower postal rate may be achievable. Lastly, question whether or not the visual design is still fresh and appealing. A new look, graphics, or color scheme may be what is needed to drive up the response rate.