Hello everyone. Over the last few years people have asked me how the paper is doing, and my answer is the same. We’re fine for right now, but as I’ve told several folks, just like everyone else we’re feeling the squeeze.
My partner and I sat down and did the math for the next year, and it’s not pretty. We’re not in trouble at this very moment, but we can see the writing on the wall.
The vast majority of the problem is mailing costs. Post Office costs went up outrageously, 76 percent between January 2023 and Sept 2024. So, for no reason whatsoever that we can discover, it costs us more to get you your newspaper every week.
Most of this problem lies with Postmaster General Louis DeJoy and his “Delivering for America” policies. This is the same guy who wants to close mail distribution centers in Sioux Falls and Huron, so that our mail in South Dakota will be organized for distribution in Omaha and Fargo. That’s been put on hold for now because of a vast public outcry, but it’s still the plan.
Far more insidiously, the USPS is allowed to raise rates without direct approval by the Postal Regulatory Commission, with only some review by the Commission for illegalities and errors. The most recent postal price hike, in July 2024, follows a pattern of twice-a-year price hikes under Postmaster General DeJoy with his Delivering for America plan and like many government policies, it does the exact opposite of what its name implies.
The Delivering for American plan certainly hit the newspaper industry hard with price hikes for periodicals that are objectively punitive.
This same sad and upsetting story I’m telling you here is the same one I’m hearing from other newspaper editors and owners across the state. Everybody has had to raise prices to cope and just do business.
In the newspaper business, our main costs are the three "P"s: people, printing and postage. Printing costs went up 9 percent in 2022 and another 8 percent in 2023. We raised advertising rates 20 percent for 2023 and will be going up another 11 percent for 2025. Our subscription increases of 12 percent from 2023 to 2024 helped, but were unable to cover the cost of printing and postage increases.
We raised prices, but have not given ourselves any cost-of-living or salary increase, and have actually cut back in as many other areas of the business as possible. Bluntly, I’ve had the same base pay for the last 9 years, with no raise. Neither has Carrie since she joined full time. Our advertising income has actually been decent, slightly better than the last two years, and that has offset the damage the postal increases have caused. However, when we look at the hard numbers we’re simply bleeding out slowly, and will burn through our reserves by spring if something isn’t done. In order to continue to grow, get better, and ensure the future of the newspaper, this needs to change.
So, we’re announcing the following price increases.
Effective November 1, 2024, new subscription pricing will be $60 for in-state mailed and $65 for out-of-state mailed.
To help reduce the burden of that increase, we're opening up monthly subscription options. Monthly subscriptions will be available for $5.50 (in-state; $5.80 out-of-state). Monthly payments are only available on our website and are recurring payments. The extra amounts in the monthly payments help pay for fees.
On-line-only subscriptions will increase to $60. Mail+Online subscriptions (folks who get both the mailed paper and a full on-line account) will increase to $70 ($6.10 per month).
Counter Sales will be $2.00 per issue ($2.50 for one-week online).
Sustaining member subscriptions will now be offered for $250 (annual) or $21/mo (recurring). Sustaining members are covering their actual costs of producing a newspaper, without advertising or other revenue factored in. As a thank you, sustaining members will receive a Mail+Online subscription, your name / business name in our "crew" box, and a commemorative gift once per year.
If you are unable to cover the cost of the increase, we will offer a "Hardship" option that will keep annual pricing at $45 until November 2025. Please only use this if you truly are unable to cover the increase due to fixed income or other hardship.
When I cashed in my life savings to buy this business, I knew there were no guarantees. Again, we’ve quite literally done everything we can and put this decision off as long as possible to avoid increasing costs to our community, friends, and neighbors. We’re not doing this job to get rich. We’re doing it because we love it, we care and we believe in service to the public, our readers, and the highest American ideals of the Free Press. We’re the little guys, independent and independently-minded like most South Dakotans, and we want to stay that way. So, I’m asking for your help to do so.
Thank you for your support for the past nine years. We can't do this without you!
-Garrick Moritz, Editor
