The Catablog
Posts Tagged ‘postage savings’
No Postal Increase in 2010 – Really?
Since John Potter’s (USPS Postmaster General) recent announcement that there will be no postal increase for 2010, I have been receiving a large volume of calls and e-mails from clients and prospects expressing their extreme delight over the issue. Mr. Potter made the announcement in mid-October that there would be no increase in 2010 for Market-Dominant Products, including Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post. I was somewhat surprised at this decision based on the difficult financial situation facing the USPS, but hopefully, this move will be an encouragement for marketers to get back in the mail or to increase their current circulation. I have seen signs this may be happening as catalogers plan for their 2010 mailings. No postal increase makes that task a lot easier and less stressful.
Throughout the past couple of weeks, there has been some speculation as to whether rates could rise outside of a CPI increase or exigent rate increase. Please rest assured that the USPS has confirmed that there will be absolutely NO rate increase for Market-Dominant Products (again, Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post) in 2010. So, lock in those marketing budgets now…no need to wait for additional postal rate updates from the USPS. Keep your postal budget as is and take advantage of this opportunity to increase your mailings to reach more prospects or to re-activate prior customers.
Questions? Call or email me any time!
Frequently Asked Questions about the Intelligent Mail Barcode (IMB): A Printer’s Perspective
What is the Intelligent Mail Barcode?
The IMB is a new Postal Service barcode used to sort and track letters and flats; it expands the ability to track individual mailpieces and provides customers with greater visibility in the mailstream than the current POSTNET barcode.
When will the IMB be a requirement by the USPS?
Some printers and mailers have already started to implement use of the IMB, but it will not be mandated until May 2011.
Are there different types of the IMB?
Absolutely.
Basic Service: The Basic Service IMB is just like the existing POSTNET barcode, which is simply used for sorting mail.
Full Service: The Full Service IMB will include services such as tracking, free Address Change Service and Start the Clock.
What are the placement requirements for IMB?
The Intelligent Mail Barcode will be printed in the same place as the POSTNET barcode. On flats, the Intelligent Mail barcode can be placed anywhere on the address side as long as it is at least 1/8 inch from any edge of the piece.
Will I receive any sort of discount for applying the IMB to my mailpiece?
Beginning already in November 2009, mailers will start to receive a $1.00/M discount for electing to use the Full Service IMB on their printed pieces. By May 2011, those not printing the Basic or Full Service IMB will not receive automation discounts from the USPS.
Are printers ready to start applying the IMB?
Major printers and mailers started testing the IMB when it was first announced. Arandell started to apply the Basic Service IMB on some of its saddle stitching equipment in August 2009 and will continue to add the capability to all of its binding and mailing lines going forward. We’ll be ready to provide the Full Service option when USPS the discount becomes available in November.
How can printers ensure that they are applying a readable barcode?
The USPS tolerance expectations for the IMB are strict and if printers don’t meet those expectations, the USPS could immediately assess the mail owner (catalogers, retailers, publishers, direct mailers, etc.) for additional postage. The current compliance requirement is 70%, which means that 30% of your Full Service mailpieces could have non-readable Intelligent Mail Barcodes, but still pass USPS acceptance requirements. Do you want to take that risk, though? NO! If I were in a print buyer’s shoes, I would make sure that my printer/mailer of choice can ensure a high readability compliance. At this point in time, Arandell is being proactive by installing IMB evaluation systems on all of its production lines to ensure the IMB will exceed the USPS expectations. We are currently complying at 100%. I would not accept anything less.
Why is the USPS implementing the IMB?
The IMB is intended to benefit you just as much as it will benefit the USPS.
The IMB:
- provides more information than the POSTNET, but consumes no additional space on the mailpiece;
- allows for better marketing decision-making by encoding more detailed information about mailings;
- necessitates the printing of only one barcode on any mailpiece;
- gives mailers who utilize the Full Service option the ability to participate in multiple USPS service programs at no additional cost.
This is a very high-level FAQ about the IMB but hopefully it has you thinking about how this implementation will affect your company. For more technical information, you can click here or contact our Postal Affairs, reps, Don Landis and Susan Pinter at 800-558-8724 to answer any questions you may have.
No Postal Increase for 2010
The following was released from the Postmaster General this afternoon. Some great news for your Thursday afternoon!
For questions regarding this release or other postal issues, please contact Don Landis , Arandell VP of Postal Affairs or Susan Pinter, Director of Postal Affairs at 800-558-8724.
To Postal Service Customers:
Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.
As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.
The Postal Service will not increase prices for market dominant products in calendar year 2010.
Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products.
This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.
While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration. We expect to announce a decision in November.
We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing. Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.
John E. Potter
Stay Tuned: USPS Nearing Final Decision on Winter Postage Sale
As 2009 approaches the end, it appears the USPS is seriously considering the earlier-proposed Winter Postage Sale. The USPS’s final decision should be announced in the upcoming weeks. Like the USPS Summer Sale, the proposed Winter Postage Sale will provide yet another incentive for catalogers and direct mailers to increase their mail volume. In my opinion, the Winter Postage Sale will be an improvement from the previous postage incentives offered.
Unlike previous postage incentives, the Winter Sale will have a less complicate formula to calculate qualifications and savings. (The proposal is to simply base qualifications and savings on any mail volume increase over the same period last year for the months of January 2010 through March 2010.) It will also offer the largest incentive (proposed 30% discount) for direct mailers that qualify.
Earlier this week Hamilton Davison, Executive Director of the American Catalog Mailers Association, posted an update on the USPS proposed Winter Postal Sale. Within the article he shares the impact that ACMA has had with the proposed incentive, deadlines and additional details on the postage rebate.
USPS First-Class Mail Sale Coming Soon
This week will be an exciting one for some first-class mailers. On August 21, letters were mailed to all First-Class mailers who qualify for the upcoming First-Class Mail (FCM) Incentive Program. (Think you qualify, but didn’t receive a letter? Click here to contact the USPS.) The sale on First-Class mail is going to be structured similarly the USPS Summer Sale (which will last through September 30) that was rolled out for standard mailers earlier this year.
And, so you ask:
What qualifications do I need to meet in order to participate in the First-Class Mail Sale?
- Minimum of 500,000 non-parcel First-Class pieces mailed through your Permit account between October 1 and December 31 of both 2007 and 2008.
- Undergo a 45-day approval period by the Postal Regulatory Commission (PRC).
What Incentive is being offered for participants in the First-Class Mail Sale?
- 20% postage rebate (credited to your postal Permit account) for qualifying presort letters, flats and cards mailed between October 1 and December 31, 2009.
- After the rebates are applied, the discounted price, on average, will land somewhere between the First-Class Mail and Standard Mail rates.
Act now!
If you received your participation letter, be sure to visit the program registration Web site. You’ll also need to work with your mail service providers to obtain accurate 2007 and 2008 counts to provide documentation to the USPS Participants. The difference between those two years’ mailing quantities will determine your incentive threshold.
If you have NOT received a participation letter but you think you qualify, click here to contact the USPS directly. Remember…this particular program is for First-Class mail ONLY.
Standard mailers, stay tuned!
These incentive programs may be here to stay. A potential winter sale is being considered, with even more features than the Standard Mail summer sale. My personal perspective is that until the USPS turns itself around, the organization will continue to find new ways to incentivize mailing quantity increases. And, even when the postal service does end up back in “the black,” I can fully see them continuing to offer these incentives during non-peak mailing seasons as long as they continue to see results. So mailers, keep on mailing!
For additional information, please contact Don Landis or Susan Pinter; they can both be reached at 800-558-8724. You can also contact the USPS directly regarding the First Class Mail Incentive Program at firstclassmailincentive@usps.gov.
How Move Update Requirements will Affect YOU the Cataloger
The USPS’s recent announcement to assess charges for mailings that do not comply with the Move Update requirements starting in January should be a non-issue for mailers. The sad truth however is that it still causes many of you confusion, anxiety, and worry.
Very simply put – In today’s environment, there is no reason not to run NCOA on each and every mailing you do regardless of how small they are. To do anything else even though it complies with the USPS’s requirements really defeats the overall purpose and does not provide an efficient / effective mailing campaign. All of the other options approved by the USPS are either done during or after the actual mailing. So why waste dollars when you have the ability to make the changes before the mailing goes out?
To recap – Here is what NCOA provides you with:
- Change of Address
- Address Standardization
- Carrier Route Coding
- Zip Code Correction
- Zip+4 Coding
- DPV Coding
- CASS Certification
- Identification of non-deliverables
What other product can deliver all of this at an extremely low price with almost immediate turnarounds? AND before the mailing goes out?
For additional information on the increase for non-compliant mail piece click here.
I am always available as well via email at GASierzchulski@Arandell.com at 414-248-9151.
Canada Post Corp. Rate Changes Effective January 11, 2010
We received word from Canada Post this morning that rate increases to Canada are expected to occur for all services including new weight band pricing for Oversize LettermailTM items. The proposed increase for Lettermail pieces up to 30 grams (1.05 ounces) is three cents. We will provide an update on the proposed rate increase after official approval by Canada Post.
To see the new Canada Post rates, click on the following links:
Canada Post Publications (PDF)
Canada Post Business Reply Mail (PDF)
Canada Post Lettermail (PDF)
Canada Post Addressed Admail (PDF)
Questions? Contact me at 800-558-8724.
To Tab or Not to Tab Slim Jims
September 8 is quickly approaching and you know what that means…the USPS will require 3 tabs on all letter-size booklets, or “slim jims.” When these regulations take effect, catalogers mailing slim jims under the letter-size postage rate must transition from 2 tabs to 3 non-perforated tabs. (Click here for additional information about the new tabbing specifications.) The industry is well aware of the requirements and testing has been taking place and will continue to determine if the 3-tab requirement reduces slim jim response rates.
Arandell Corporation is prepared for the new letter-size booklet regulations and has been heavily involved in testing 3 tabs versus 2 tabs for our customers. [Although we are not currently equipped to tab the oblong digest format (which is only one type of tabbed Letter-Size mail), to meet the new regulations, if we do see a come-back in demand for it, we will certainly reconsider investing in that technology. To clarify, an oblong digest is a digest catalog that stitches on the short side.]
How FSS will Take Away our Co-mail Savings
I have attended several postal meetings recently where postal officials updated the industry on the status of the FSS. Click here to see the FSS in action. It seems the program is back on track after some start-up delays. I would suspect that in the near future the postal service is going to start asking or requiring U.S. mailers to prepare flats for the FSS.
Why are they implementing FSS?
The FSS sorts flats in Carrier Walk Sequence. (Carrier Walk Sequence is just a fancy term for putting mail in the order that it is delivered). The more the USPS can automate the daily tasks of the carrier, the less expensive it will be for the USPS to deliver the mail. Because the USPS is swimming in hot water, you can imagine it will continue to jump at any opportunity to make money.
How will this affect me?
First, we will start to see the disappearance of the carrier route flat discount. The FSS machines will start to do what mass mailers are doing right now, putting flats in Carrier Walk Sequence. The USPS estimates the FSS will sort about 80% of the flat volume when installation is complete. That will still leave 20% of the flats eligible for the carrier route discount, and therefore only 20% which is eligible for co-mail savings.
How to get the savings back
To compensate for the loss of co-mail savings the USPS has stated they are going to give catalogers a discount if they organize their shipping pallets to fit the FSS machine requirements. This process is called co-palletization.
Now, to be frank, I am not sure if the co-palletization savings is ever really going to happen. We have been told and promised by the USPS that we would have savings before, but nothing ever follows through.
If we lose co-mail savings most catalogers would see a 5-10% increase in postage! Postage continues to increase and savings is decreasing. Can we really afford to pay more for mail?
If you are sick of paying more, and more and MORE for postage email the American Catalogers Mailers Association. Catalogs need to have a voice before our postage savings are taken away.
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