Postage due to go up 1 cent

By Jessica Legge
Times West Virginian

FAIRMONT March 23, 2008 01:29 am

— With the cost of first-class postage stamps scheduled to soon increase, some businesses may feel an impact or begin to market a little differently.
Postmaster Kenneth Owens said many customers at the Fairmont Post Office have been asking when the change will take place. On May 12, first-class postage stamps will rise one penny — from 41 to 42 cents. The costs for other mailing and shipping services will also face adjustments, and consumers can visit usps.com/prices for more information.
The Postal Act of 2006 established that mailing prices would shift each May. According to Owens, much of the price increase is due to fuel costs. Every time fuel goes up 1 cent, the United States Postal Service (USPS) faces additional expenses in order to run its vehicles.
“They try to hold off as much as they can, but it’s just keeping up with the Consumer Price Index,” he said.
Owens said the Fairmont Post Office is experiencing a high demand for the Forever Stamp, a non-denominated stamp now available for 41 cents and “good forever” in sending 1 oz. first-class mail. The USPS developed the Forever Stamp in April 2007 and has sold 5 billion of the stamps since.
First-class stamps from the USPS cost 2 cents in the early 1900s. Compared to the considerable increase in groceries and other products over the last 100 years, the change in stamp prices hasn’t been that bad, Owens said.
People may complain about receiving too much mail, but they always call the post office if they don’t get their mail for some reason, he said.
“There’s nothing like getting a letter in the mail,” Owens said. “People like to open mail. They always like to receive something.”
Presort Plus Inc., which has two locations on Morgantown Avenue in Fairmont, picks up first-class mail and does bulk mailing and barcoding. The business’ services also include printing, selling postage meters and other equipment, and making signs and banners.
Jerry Ragen is the owner of Presort Plus, which has been open for a little more than 20 years. While postage used to go up every three or four years, now it’s increasing annually. He expects his business and first-class mail in general to continue feeling the relative effects.
“Every time postage goes up, people think about it and think about how to save money and contact us,” Ragen said.
While businesses used to transmit all their statements to customers using direct mail, some may begin to use e-mail more, he said.
“People are paying online with online services instead of writing checks,” Ragen said. “I’m doing it, too.”
Thomas Harpointner, CEO of AIS Media, an interactive marketing and Web services company headquartered in Atlanta, Ga., said the increase in postage has to do with inflation.
“They’re going to keep up with the rising costs of doing business in general,” he said. “It just so happens that the rate increase is scheduled in May at the same time Americans are going to benefit from the economic stimulus package.”
The Internal Revenue Service expects more than 130 million people in the country to receive tax rebates of at least $300 starting in May. While the 2008 economic stimulus payments provide incentives to businesses, owners will in turn have to deal with the additional charges on postage, Harpointner said. Some smaller business are feeling somewhat slighted because of this.
Professional e-mail marketing is one of AIS Media’s key services, and the company works with businesses to help them find creative ways to profit from the Internet. Harpointner said his company is seeing a trend of businesses shifting from traditional marketing to digital marketing. Some businesses are starting to lean toward “more measurable marketing results,” such as marketing through Web sites, Internet search engines, and e-mails.
“It’s a little harder to measure the results of a billboard or a mail piece or an ad in a magazine,” he said. “(The Internet) gives the advertiser the ability to insert links directly into the e-mail. Some messages are just smarter when they can be delivered via e-mail.”
Plus, e-mail marketing only costs a penny on average per message sent and can be more efficient, Harpointner said.
Many of AIS Media’s clients already have traditional marketing plans in place and are adding an interactive marketing element. A “multi-channel approach” works effectively for many businesses, he said.
Harpointner pointed out that some messages are better delivered via e-mail, while others are better sent through direct mail. It depends on the focus of the message being delivered and what is most appropriate. For instance, e-mail is often less secure in regards to privacy or security. Documents like legal notices and medical records should be delivered through hard copies, he said.
“There’s higher perceived value in a hand-delivered letter than an e-mail letter,” he said.
But Harpointner also noted, “The cost of the stamp, the envelope, printing charges, all of that adds up quickly.”
E-mail Jessica Legge at jlegge@timeswv.com.