American Printer.com
American Printer's mission is to be the most reliable and authoritative source of information on integrating tomorrow's technology with today's management...

May 15, 2008

Home » News Articles » /news/syndicate » CEP helps customers cope with USPS overhaul

CEP helps customers cope with USPS overhaul

Nov 28, 2006 4:07 PM

The proposed May 2007 postage increase represents a drastic overhaul in how the United States Postal Service (USPS) prices mail, according to Conformer Expansion Products (CEP) (Great Neck, NY).

“We understand the need to revamp the postage rate structure to reflect the higher costs of handling flats and parcels,” says Marvin Makofsky, president of CEP. “When faced with increased operating costs, something has to give.”

Previous rate hikes simply levied a fixed-percentage increase across all mail categories, assessing so many cents per ounce. But the new system considers shape as well as weight. For the first time, flats and parcels will incur substantially higher postage costs because of the increased handling required by these types of mail.

Last January, postage rates rose 5.4 percent across the board. Under the new system, certain types of packaging will face double-digit increases. A three-ounce letter, flat or parcel currently costs $0.87 to mail. As of May 2007, the letter rate reportedly will decrease to only $0.82 while postage for the flat and parcel will jump to $1.02 and $1.40, respectively.

The new postage system encourages greater mailing efficiency by offering lower postage rates for mail that complies with automated processing equipment.

Starting in December, CEP will explore different aspects of the increase in a monthly series to help customers maximize mailing efficiency and minimize the impact of the rate hike.

This series will address:

Why the new rate change is unlike any other.
Which industries will be hardest hit.
How to assess current postage costs and save money.
Where organizations can trim mailing costs.

“We’re all in this together,” says Bob Makofsky, GM of CEP. “Conformer Expansion Products embraces the challenge of helping clients manage the rate hike with creative, cost-effective mailing options. We also support the USPS goal of increased efficiency through automated processing. In the end, everyone will win.”