Postal rate increase spurs Computech office consolidation

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As postal rates inevitably go up, bulk mailing service companies strategize to combat the increases. In response to the most recent postage hike this summer, Paul Freeman, owner of Computech Mailing Service, is consolidating his company's Hollister and Springfield operations with a new office/warehouse in Ozark. |ret||ret||tab|

The $425,000 facility, at 1072 Liberty Ave. in Ozark, will be complete by Dec. 1. |ret||ret||tab|

With the company's approximately 350 clients nearly split between the two locations, Freeman selected a middle ground in Ozark for more efficient operations. |ret||ret||tab|

"We're bringing it to the middle (in Ozark) where we're 15 to 20 minutes from both Springfield and Branson," Freeman said. "We can service both that way. Springfield is growing south. ... Branson is growing to the north. We needed to get to a place where we could handle the growth and be closer to all of our clients." |ret||ret||tab|

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Postage rate impact |ret||ret||tab|

The postal rate hike that went into effect June 30 signified an across-the-board 7.7 percent increase, according to the Postal Rate Commission. |ret||ret||tab|

"We never like to see postage rate increases," said Tom Barr, owner of Ozark Mailing Service. Barr has been in the business 20 years and built a new facility for his company last year. |ret||ret||tab|

But, increases aren't all that bad for mailers either. |ret||ret||tab|

"As postage rates increase, more and more companies are looking for ways to save on their postage costs," he added. "We act as the mailroom."|ret||ret||tab|

U.S. Postal Service mailroom volume has been flat nationwide in the past couple years. However, through the first eight weeks of fiscal year 2003 volume is up about 4.3 percent over last year at this time, according to Springfield Postmaster Bill Brayman. At the same time, commercial mailing revenues are down by 1.3 percent at the Springfield Post Office. Brayman thinks it will pick up throughout the year. |ret||ret||tab|

"I think the economy is turning around," Brayman said. "We're seeing our volumes increase because of the advertising going out and the merchandising going out. Business leaders are projecting increases in their business and I think that's what we are seeing. We are in the early flow of that business increase. I think that is indicative of the retail and commercial businesses trying to sell their wares and their products and expecting a stronger economy." |ret||ret||tab|

Brayman said another postage increase isn't expected until 2004 because the postal service is projecting revenues of $600 million this year. Historically, rates increase every three years, he said, with the postal service making money the first year, breaking even the second year and losing money the final year. |ret||ret||tab|

"Over that three-year period we will break even because we are mandated to be a break-even, quasi-government agency," Brayman said. |ret||ret||tab|

However, it will break away from the three-year strategy during difficult economic times. |ret||ret||tab|

"The natural things that go into the expenses of any business dictate our rate increases," Brayman said. Factors like fuel, labor and health care costs contribute to the decision, which is made by the independent Postal Rate Commission and the Postal Service Governors. |ret||ret||tab|

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E-mailings |ret||ret||tab|

Freeman thinks e-mail has contributed to the flat postal market of late. For some businesses it has almost replaced traditional direct mail. He suggests doing both.|ret||ret||tab|

"I haven't seen clients stop doing direct mail to go to e-mail," he said, "I've seen people compliment it with e-mail." |ret||ret||tab|

Even though it has picked up in popularity, e-mail will never truly replace direct mailings, he said.|ret||ret||tab|

"If you want to get it into somebody's hands, (direct mail is) still the best way," he said. "It's tangible and gets to their mailbox. ... They have to at least touch it, which is better than e-mail." |ret||ret||tab|

Computech, founded by Robert and Elizabeth Cline in 1988, offers data entry and processing, database marketing, bulk mail processing and direct-mail campaign management, including e-mail.|ret||ret||tab|

Freeman said Computech's largest segment is bulk mail, which comprises half of its business operations. Data entry follows at 35 percent. He said 65 percent of clients are from the Springfield-Branson area and 35 percent are national clients. |ret||ret||tab|

Freeman purchased Computech from the Clines in November 2000 and shortly afterward opened the Springfield location in the Vandivort Center.|ret||ret||tab|

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