Should You Rely on the Mail for Your Newspaper Delivery?

For the last several years newspapers using the mail for delivery have been watching rates and service carefully and with growing alarm. However, after the events of September 11th, they have been on "high alert."

According to December’s DM News, the USPS loss for 2001 is $1.7 billion, which is unprecedented in a year with rate increases.

Weekly newspapers usually are mailed either as periodicals or Standard A (formerly 3rd Class).While one is decreasing in numbers, the other has seen an increase.

What’s happened to periodicals? In 1970 there were 50 pieces per adult annually versus 38.8 in 1999. This category has seen an increase in regulations and price over the years. In addition, magazines would like newspapers out of this category.

What about Standard A? In 1970 there were 125 pieces per adult annually. In 1999 that amount increased to 206 pieces per adult annually. Volume is growing dramatically from direct mailers.

The reason that newspapers currently using the mail are making alternative delivery choices is what happens to the bottom line. Dimitri Galestsis, Inland Press Association business research manager, shared some statistics on weeklies’ circulation as a percent of revenue and cost per copy compared with the type of delivery.

Here are some examples from various weekly groups around the country from Inland’s 1999 Weekly Cost and Revenue Study:

• Where 87% of the delivery was by mail, circulation was 42% of the revenue and the cost per copy was .21.

• When 86% of the delivery was done in bulk drops, circulation was 4% of the revenue and cost per copy was .105.

• At 53% of delivery by mail and 42% in bulk, circulation was 22% of the revenue and cost per copy was .26.

Now let’s look at weeklies that use carriers to deliver. Circulation is an average of 12% of revenue and the average cost per copy is .13.

There are many business reasons to choose one form of delivery over another but those who use the mail must seriously consider if their customers might be served as well or better with another form of delivery.

Cost is now only part of the reason for taking control of delivery and not depending upon an outside agency. Relying on the mail nowadays may be like playing Russian Roulette. The danger of self-destruction is always present.

Casey is circulation director for Gazette Newspapers in Gaithersburg. She is a member of the MDDC Circulation Committee.