Postage cost increase: Nothing to get upset about …

There are some things you can’t change – you just have to suffer through them instead. Sometimes, however, you may find there are alternatives. Might be something to think about, for instance, before getting bent out of shape over the most recent increase in postage costs.

 

Largest price increase in many years

It’s true, the price increase for postage in 2016 isn’t exactly great news. Eight cents more for every standard letter, an even bigger increase of 20 cents on every oversized letter, and 35 cents more for a registered letter. It’s not just a price increase – it’s the highest price increase of any we’ve seen in the recent past. At least we can be comforted by the fact that the new prices will stay the same until 2018.

 

A few cents can add up

There are plenty of sayings in this vein: “A penny saved is a penny earned,” or “Every little bit helps.” They’re more than rustic wisdom for an entrepreneur – a few pennies can cut deep into a company’s bottom line. Companies that send large volumes of mail, or still work with paper invoices, will need to give the problem some serious thought. A few pennies here and there can add up to significant costs by the end of the year, costs that will be visible in a company’s bottom line and have a noticeable effect on annual profits.

 

Four increases since 2012

Of course, the most recent upcharge is just the latest chapter in a long series of postage and shipping cost increases. A standard letter was 55 cents for many years. Three cents were added in 2013, then two cents in 2014, and the same amount again in 2015. Compared to 2012, postage costs increased by more than 27 percent. Most companies in competitive markets can only dream of that kind of revenue growth rate.

 

Time to act

Not to fear – there is something companies can do to respond to these increased. Many managers have resolved to start off the new year by sending electronic invoices from here on out. For any companies that haven’t yet thought through the issue, the price increase is a perfect opportunity to do so. If they don’t, they could be letting quite a bit of revenue just slip through their fingers …