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Postage Cramp

How entrepreneurs are coping with the new postal rates.

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This story appears in the July 2007 issue of Entrepreneur. Subscribe »

How are entrepreneurs handling the average 7.6 percent postal rate increase that took effect May 14? On average, first-class letters and cards increased 6.9 percent; standard advertising mail, 9.5 percent; parcel post, 16.6 percent; priority mail, 13.6 percent; and express mail, 12.5 percent.

The U.S. Postal Service is encouraging mailers to consider cost-saving options, and one entrepreneur who has taken that advice to heart is Renee Miller. As president and creative director of the Miller Group, a Los Angeles-based advertising agency with annual billings of over $1 million, Miller does a lot of direct-mail programs for her national clients. Due to the rate increase, she's changing plans. "We're limiting some mailings to oversize postcards and maximizing the creative messaging," she says. "We're also using targeted e-mails to supplement mailings and sending non-time-sensitive mailings standard instead of first-class."

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