Offsetting Huge Postage Increases

Answered by Dick Gorelick

I can live with the recent, relatively minor, increase in postal rates. However, I understand that double-digit increases in Standard A rates are probable in 2002. There's no way my organization can absorb that type of increase without making substantial changes in the product, quantities, or even the "marketing mix." What should I do?

That's a simple question requiring a complicated answer. Your information is correct. The U.S. Postal Service is in a rapidly deteriorating financial condition. Even if operating expenses are reduced, a substantial rate increase is coming. Only details about the timing and extent of the increase are in question.

You need to work on several fronts to offset the increased distribution costs. Depending on the product(s), you should consider: