Postage rates rise today! Even if you "put the check in the mail" it may not get through unless you remembered to add two cents to the envelope. A quick review of postage costs and the small business...
For all the changes and the new rates you can download several reference sheets ahd guides from www.usps.com (the official Post Office website). Some of the changes are significant to small businesses: from now on the size and shape of the mailed article will affect the cost. If you mail large attention-getting pieces or thick envelopes you will have to pay attention to the post office guidelines to avoid additional charges. Using a weight scale alone may not give you the correct postage, a ruler may be needed as well.
How can a small business control mailing expenses? If the amount of mail you send out is large enough (monthly invoices, for example), you can obtain discounts by barcoding and presorting mail. Large advertising mailings can benefit from bulk mail rates although you should be aware that many consumers discard bulk mail without opening it. Because of that it works best for existing customers and leads who already recognize your company name, product or service.
If you send products to customers via parcel post, you are already aware that the dimensions of the box can affect the postage rate. That continues to be the case with the new rate changes. Even if the customer pays,shipping costs can impact profits because at some level the customer will shop elsewhere rather than pay the price plus shipping expense. What can you do? Make sure that you are shipping in the most effective packaging for the item, and that you do not add weight to the package unnecessarilly (your choice of packing materials may affect weight).
What about eliminating postage entirely? Large companies are now asking customers if they want to receive statements electronically, and are paying their vendors electronically as well. If you can save mailing 100 pieces a month (customer invoices and vendor payments), that is $41 a month under the new rates not counting envelope and check costs. That $41 becomes $492 per year, which might buy you one or two advertisements. If your advertising dollar results in new sales and new profits, your real cost of mailing is the postage plus the envelopes plus the profit lost from new customers!
Perhaps the new "buzzword" will become, "the check is in the Internet!"
Do any of you want to share how you control postage expenses?