POSTAL SERVICE MOVES TO LOWER MAILING COSTS

If it costs less for the U.S Postal Service to process and deliver, it should cost less to mail.

That's the thinking of U.S. Postmaster Marvin Runyon in introducing the Postal Service's Classification Reform, a complete new means of preparation options designed to make business mail a better value.

"Everything changed July 1," said Cape Girardeau Postmaster Mike Keefe in explaining how the new system works. "Basically what has happened is that the post office has implemented a system where businesses which automate mail will get discounts."

The only thing that hasn't changed is the 32-cent cost of mailing a single piece of first-class mail.

All other rates are up...unless businesses "Max It."

"Actually we've added an automated rate," said Keefe. "Maxing it" offers an opportunity for heavy mailers to earn better discounts, said Keefe. Whether it's first-class, periodicals or standard mail (formerly third class), businesses will find mailings less costly by barcoding.

Keefe cites an example.

"Before July 1, the basic rate for third-class mail was 22.6 cents," he said. "That rate is now 25.6 cents, a three-cent increase. Even with presorted, barcoded mail, the previous cost was 20.4 cents."

Today, with basic barcoding, the cost will be 18.3 cents.

"That's a good savings when a company or business is sending out mail in groups of 500 pieces," said Keefe.

The Postal Service, said Keefe, will help businesses capitalize on these new efficiencies.

A special information seminar concerning Classification Reform is scheduled Sept. 17 at the Cape Girardeau Chamber of Commerce office, 1267 N. Mount Auburn Road.

The post office, said Keefe, is determined to provide better communications products and services. The Postal Service is installing automated equipment which will reduce manual labor processing costs. By the end of 1996, more than $3.6 billion worth of equipment will be in place.

"We want mailers to have their mail automated so we don't have to use as many people to sort it," said Keefe.

Some businesses may have to purchase equipment to provide barcoding, but some computers have a barcoding program which may be used.

If a company already barcodes its mail, it's a simple matter to convert to the new procedures to save even more money, said Keefe.

The automated rates are for businesses with first-class mailings of 500 pieces and standard businesses with more than 200 pieces. Also involved in the automated rates are mail rates for periodicals and flats.