As catalogers are preparing budgets for 2018, there are a few elements that need to be considered.
Postage increases
New rates take effect: January 21, 2018
The average increase:
Standard Flats 2.118%
Carrier Route 2.031%
High Density 1.086%
Actual increases will vary, depending on the characteristics of your mail
Postal Promotions
No promotions currently exist for 2018. We encourage mailers to factor in any additional savings that were utilized in 2017 circulation plans. If you took advantage of the postal promotions in the latter half of 2017, expect postage to increase 4.1% overall.
Paper industry
Both Sappi and Verso announced price increases for November 1st. There are several key factors for the increases: mill closures, increasing price of pulp, increasing cost of chemical additives and transportation costs.
Due to the 2 mill closures, the capacity of free sheet paper decreased by 6-7% in North America. The impact is about $2/cwt (per hundred weight), which is about a 4.5% total increase to paper budgets.
Transportation
The demand and costs for trucking and freight are spiking due to the hurricane destruction in Texas and Florida along with the fires in Northern California because of this freight estimates have increased nationwide. FedEx has recently announced a potential increase in their packaging costs, which could be 4.5% more than it has been in the past.
Don’t hesitate to schedule a call with an Arandell representative to ensure that you have made the necessary preparations to maximize your catalog budget dollars for 2018.
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