Category Archives: Blog With BEB

Another USPS Holiday Heist

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For the third year in a row, the United States Postal Service is raising the prices throughout the holidays.

They requested a temporary price increase on mail services used during the peak holiday season. In a statement, the USPS said the temporary rate adjustments are similar to ones in past years aimed at  helping them cover extra handling costs and to ensure a successful peak season.

Price increases range from 25 cents to upwards of $6 per package, are planned to go into effect on October 2, 2022 and last through January 22, 2023 for mailings that include Priority Mail, Priority Mail Express and First-Class Package Service.

The Postal Regulatory Commission still has to approve the higher rates.

Last month, the cost of a US postage stamp increased by 2 cents, raising the cost of mailing a first-class letter by 3.4%, to 60 cents. Parcels and packages are where the Postal Service is really making its money today. The USPS handles final delivery of many packages shipped by online retailers such as Amazon, with items delivered in bulk to the post office nearest to the buyer’s home.

Facebook Losing Teens

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The social media landscape has shifted
The Pew Institute asked whether U.S. teens use 10 specific online platforms: YouTube, TikTok, Instagram, Snapchat, Facebook, Twitter, Twitch, WhatsApp, Reddit and Tumblr.

YouTube stands out as the most common online platform teens use out of the platforms measured, with 95% saying they use the site/app. Majorities also say they use TikTok (67%), Instagram (62%) and Snapchat (59%). Instagram and Snapchat use has grown since asked about in 2014-15, when roughly half of teens said they used Instagram (52%) and about four-in-ten said they used Snapchat (41%).

Today, 32% of teens report using Facebook, down 39 points since 2014-15, when 71% said they used the platform. Although today’s teens do not use Facebook as extensively as teens in previous years, the platform still enjoys widespread usage among adults, as seen in other recent Center studies.

Other social media platforms have also seen decreases in usage among teens since 2014-15. Some 23% of teens now say they use Twitter, compared with 33% in 2014-15. Tumblr has seen a similar decline. While 14% of teens in 2014-15 reported using Tumblr, just 5% of teens today say they use this platform.

The online platforms teens flock to differ slightly based on gender. Teen girls are more likely than teen boys to say they ever use TikTok, Instagram and Snapchat, while boys are more likely to use Twitch and Reddit. Boys also report using YouTube at higher rates than girls, although the vast majority of teens use this platform regardless of gender.

The Holidays Are Now!

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The current paper shortage is changing mailing schedules for the upcoming mailing season. Everyone is affected:
Political
Retail
Health Insurance/Open Enrollment
Nonprofits
Seasonal Events
Nobody is immune

For mailings 50,000 or more, you will need to order paper early!
Paper mills are asking for 6-8 week lead times to provide paper. Envelope manufacturers are taking a little longer. That means our already hectic holiday schedules have been pushed forward by almost two months.

The Time To Plan Your Holiday Mailings is NOW!

Click here to download four (4) mailing calendars to give you a quick reference on when to order based on your targeted in home dates.

 

The Punch for Paper

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Nobody is certain how to best manage the current commercial paper shortage. With the open enrollment, holiday, and political mailing season only a couple of months away, we are encouraging our clients to to order paper now. Prices continue to climb (faster than gasoline), and delivery times continue to extend! Worse yet, there is no guarantee that the paper we order today and expect delivery by August will actually arrive!

The problem started a while ago. Even before the pandemic, restrictive environmental regulations, aging/expensive equipment, and skyrocketing labor costs contributed to many mills closing because they were unable to compete. Also, many mills quit producing commercial printing paper and began manufacturing board stock as the packaging industry flourished. That’s when the U.S. paper shortage began. We weren’t too worried because mills from overseas were able to fill the void.

Companies adopted the “Just In Time” operative to allow for decreased amounts of inventory saving valuable space and reducing costs. JIT works great when the supply chain is whole. Thanks to the pandemic, the supply chain today is broken and on many levels.

U.S. Ports are still scrambling to catch up and are a primary source of disruption. There is also a container problem in on the other side of the ocean. Lou Caron, President of The Printing Industries Association of Southern California (PIASC) blogged that he was told that the Korean paper mills are producing at max capacity but couldn’t find enough containers to ship their inventory. Most likely because there are so many here waiting to be unloaded. Remember, the paper mills are competing for the same container space that giants like Amazon and Walmart need.

Another hurdle is that it takes a long period of time for a paper mill to come back online.  It can take up to six-months. As the pandemic cycles in waves, mills have shutdown, re-opened, shutdown, and re-opened causing significant delays and reducing available inventory nationwide.

In short, we are all vying for paper and trying to prepare for the upcoming mailing season. We strongly recommend that you order paper early. If you are planning to mail in the fall, order your paper now. Unfortunately, costs are higher than we have ever seen before, and as mentioned earlier, the mills aren’t guaranteeing complete delivery.

We need to be flexible and adapt to the current situation. Be open to using different types of paper or trying a different type of mailer. The paper shortage has dramatically affected the envelope industry as well. You may want to consider self-mailers or postcards in lieu of envelope mailings this fall.  Most importantly, start your plan and paper as soon as possible.

 

 

New Postage Rates Effective July 9, 2022

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The Postal Regulatory Commission (PRC) has approved the recent request for price changes to take effect on July 10, 2022.

Price increases on First-Class Mail range from 3.4% up to 9.7%.  Forever stamps go up to .60/ea, metered mail increased .04 to .57/ea , and postcards on average increased by 9.7%.

Nonprofit mailers were hit “hard” with increases averaging between 6.4% – 8.5% on letter sized mail, and up to 11.9% on flats. Marketing Mail will deal with increases between 6.6% and 8.8%.

Why is the USPS raising rates again? They say that the increase is generally based on the consumer price index and will help to maintain competitiveness in the market. As inflation and operating expenses continue to rise, the price adjustments will help with the implementation of “Delivering for America”, a plan that includes a $40 billion investment in their infrastructure over the next ten years.

It’s important to remember that direct mail is effective. The Data & Marketing Association reports that up to 90% of direct mail gets opened, compared to only 20-30% of emails. It’s a refreshing change from on-screen advertising, and has a lot less competition than digital. According to the United States Postal Service, the average American household receives only 454 marketing mail pieces per year compared to 3.6 million digital ads delivered (on average) per person, per year! Even more, reasons to use direct mail. Epsilon reported that 73% of U.S. consumers prefer direct mail because they can read it whenever they want. Direct mail delivers and offers powerful punch with amazing ROI.

Click here to download the new BEB Postal Rate Card taking effect July 9, 2022.

Spring Shopping

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As winter turns into to spring, people start to pack away coats, return patio furniture to the backyard, and shake off their winter shut-in mentality. They also start to shop. A lot.

Of course, consumers stock up on essentials such as garden equipment, spring-cleaning supplies, and warm weather clothing. They also spend lots of money on items that may surprise you!

Bazaarvoice, a software tech company, conducted an analysis of shopper’s behaviors using data from their 5,700+ brand & retail clients and interesting statistics took shape. In 2021, people spent $5.4 billion on St Patrick’s day. That’s an average of $40.71 per consumer.

Website traffic for dresses rose 16% higher in spring over summer. Traffic increased even more in late April as high school students began to prep for graduation parties and proms.

Lawn and garden traffic grew by 61% during the week of spring break.

Christmas spending generates around $800 billion in sales, and $9 billion of it is from Black Friday. Spring holidays generate around $55 billion in sales:

$ 5.4 billion    St Patrick’s Day
$21.6 billion    Easter
$28.0 billion    Mother’s Day
$55.0 billion    Total

Let us not forget April 15th – Tax Day. The IRS issued 128 million refunds for the 2021 tax filing season (2020 tax year), which totaled $355 billion. What’s more, nearly 8 out of 10 people who receive a refund will spend it rather than put in into savings.

Reviews from your customers are essential. The Bazaarvoice analysis showed that 75% of online vacuum-cleaner shoppers read a review before making a purchase. Similar numbers were found in lawn care (69%), tools (61%), and dresses (60%) categories.

When outlining your spring retail strategy, be sure to plan for seasonal behavior surges. Plot the timing of when to offer the right products and services so you can be ahead of your competitors and create incentives for your satisfied customers to review your business.