The USPS postal increase in May 2007 raised distribution costs by as much as 40% for mail order catalogers in the “Standard A Flats” category. Paper price increases of 20-25% on coated stocks from June through December ‘07 only made the situation worse. Another postal rate hike mid year 2008 and further paper price increases of 20-25% through the end of the year will leave many mail order catalogers with spiraling costs that are, to say the least, difficult to bring under control.

The combination of above circumstances has changed the typical 500,000 copy 48-page, 45# gloss coated consumer mail order catalog cost structure...

While there are many ways to make slight improvements in press efficiencies and paper selections, there remains only one way to improve the cost structure dramatically without curtailing prospecting – changing postal classifications. Postal rates were increased sharply in May for lightweight flats pieces, but the USPS did remain consistent with its long term philosophy of enhanced automation. Much lower rates were offered to mailpieces that are able to be machine sorted on current and future USPS automated sorting equipment. The new “letter rate” allows a properly prepared catalog to mail for as little as $0.199 each. See what our customers say about letter-rate:

After the postal rate increase hit our postal budget by more than 30% in May of 2007 we were hard pressed to continue to grow the catalog and to hit our circulation numbers. While working with Catalogs America, we were able to develop two specific offerings that sharply reduced our overall postal cost. By using two different catalog sizes–one standard and one letter rate–we have been able to reduce our postage to prospects and reallocate that money to our customer books. Which, in turn, has allowed us to increase page count and circulation.

   Jamie Conetta
   Competition Accessories

We switched to the new format for our first drop of 2007, and used the opportunity to introduce a new style to the catalog overall that helped to refresh the brand. We’ve continued to see our business expand over the past year, giving us every indication that our new format, look, and feel are all positive factors for us.

   Sally Partridge
   PBS

We produce a high-end organic bedding and apparel catalog. Switching to slim-jim with Catalogs America was a great move for us. We took the savings in postage and upgraded our paper, and still had money left over to increase our print run! It is the best-looking catalog we have had so far, with more square-inches than our previous size, and our sales ratios are consistent with last year’s full-sized piece. We have committed to producing the next three titles in this format.

   Cheryl Hahn
   Organic Comfort Zone

We produce a monthly catalog that is primarily a house list, and the switch to slim-jim allowed us to print and mail 20% more books per month than before for the same price.

   Cindy Larcombe
   Kingdom Company

We like the new slim-jim format and feel that the one-time effort to change trim-size was worth the postal savings realized. It has allowed us to continue to offer a 68-page catalog without increasing our costs. We don't feel tabbing the catalog has discouraged customers from opening the book.

   Pam Thompson
   Smith Thomas and Friends Railroad Gifts Catalog

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