Contact: Robert E. McLean
703-418-0390
bmclean@mailers.org
www.mailers.org

Postal Facts: Any Postage Increase Is Never 'Just' A Penny to American Business

For American business, postage increases can be the single biggest cost increase in a given year. A one-penny increase in a First-Class stamp costs most Americans only a few dollars a year. But for a business that mails invoices, magazines, newsletters or advertisements, a typical postage increase translates into thousands or millions of dollars in additional expenses for most businesses.

Because few Americans communicate with family and friends by letter, most mail is business-related. Postage is usually one of the single largest expense item on a company' balance sheets. And the money American business spends on postage is much more than a few pennies:

• The North Shore Animal League, a nonprofit animal rescue and adoption organization, spends fifteen percent of its budget on postage.
• Harte-Hanks, a worldwide targeted media company, spent an additional $5.7 million on US postage following the 1999 postage increase.
• The McGraw-Hill Companies, publishers of several magazines, spends over $65 million annually on postage in the United States alone.
• In 1999 alone US banks and thrifts paid the Postal Service $2.6 billion for postage and other fees. A one-cent increase in First-Class postage costs the industry $75 million.

The United States Postal Service is a self-supporting government agency and an essential partner for American business. The Postal Service operates only on postage it collects from individuals and businesses-not on taxpayer dollars. The last year the Postal Service received a public service appropriation was FY 1982.

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