Get Operations on your personalized My Yahoo! page:

Add to My Yahoo

Small Business Newsletter

Sign up for our free email newsletter

Winning at the Postage Game

By Kristin Edelhauser - Entrepreneur.com  
Related Articles in: Management & HR > Operations

On Monday, May 14, the U.S. Postal Service will implement rate changes that could hit small-business owners where it hurts. If your business involves sending out large quantities of packages, you'll probably feel the impact more than other businesses as packages are experiencing the greatest increases. But if you're creative with your mailers and master the new shape-based pricing system, you may be able to cut costs and actually come out ahead.

In March, USPS approved an increase in the price of a first-class stamp from 39 cents to 41 cents to cover operational expenses. Rates were raised just last year, but that increase was required by Congress to fund an escrow account. The implementation of new rates for periodicals, such as newspapers and magazines, has been delayed until July 15 to give the publishing industry time to update computer software and adjust to the complex rate structure.

Here are some examples of postage increases that could affect your business:

Examples of New Prices for Postage
Effective May 14, 2007
CurrentNew
First-Class Mail
Letters, Greeting Cards

$0.39

$0.41
2-Ounce Mailer
Wedding Invitation

$0.63

$0.58
Postcard$0.24$0.26
Priority Mail
Flat Rate Envolope
Flat Rate Box
12-Pound (Chicago to Los Angeles)

$4.05
$8.10
$19.80

$4.60
$9.15 **
$24.10
Express Mail
Flat Rate Envelope
1-Pound package

$14.40
$18.80

$16.25
$19.50
Parcel Post
1-Pound package
5-Pound (Chicago to Los Angeles)

$3.95
$9.11

$4.50
$9.50

** Postal Service Governors are requesting reconsideration for the new price of this item.

RATE THIS ARTICLE
Rate it:
Not Yet Rated:

Additional Articles from Entrepreneur.com
Get Smarter - Get Smart has hit the big screens, and of course, if you're not a fan of the 1960s TV show, you might be ...
The 4 People Every Business Owner Needs - Some 41 years after the Beatles introduced With a Little Help From My Friends , ...
A Barter Economy - Let's face it: 2007 wasn't the best time to start a new business in Miami Beach. The real ...
  Related Articles in "Operations"
Permanent Wholesale Marts a Boon to Retailers - If you've been in the retail business for any length of time, you know ...
Thanks, Mom - Mom is the first mogul you meet. She's the chief birthing officer, the director of operations and the ...
Mom, Can You Find Time? - The number one question I get asked is, how do I balance work and motherhood? But aren't we ...