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Monday, January 19, 2009

Is a 3.8% postage increase good news?



I guess it is if you compare it to two years ago. But in an economy strapped environment is any increase good? Usually when a service increases their rates they also tout the additional services they will provide the customer with. Like my cable and Internet provider. Along with their increase in price I'm getting a whole slew of new benefits (none of which I asked for nor will I use, but at least they are making a vale attempt at appeasement).

What will mailers get for their money? Better response rates? Larger orders or donations?

I'm sorry, I'm looking at the glass half empty. But I do like what Tom Conway (with the Alliance for Nonprofit Mailers) said in the article in The Nonprofit Times: "I'm not sure which is better, a 6% rate or a 4% rate with a tanking economy." He is referring to the fact that up until a few months ago the Consumer Price Index, which is what the postage increase is tied to, was heading towards 5-6% increase, but with gas prices dropping substantially the CPI is lower.

I'm still waiting to see what extras mailer's get for their increase in May. Maybe they all will get a new car from Oprah?

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