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USPS Plan for Profitability

Posted on February 22, 2012

Last week, the USPS released a five-year plan designed to return the agency to profitability. Inside this 28-page pdf, you may note on page 13 a section called “Key Items for Consideration.” Among them is a proposal to increase the First-Class stamp to 50 cents. Although there’s no indication of a Standard Mail rate hike, that same section also states, “Pending exigent case could secure moderate price increase.” No further specifics on rate increases are included, but I thought the report is worth a look.

USPS’s Exigency Rate Case Appears to be Dead

Posted on December 22, 2011

Yesterday, the Postal Regulatory Commission issued an order requiring the US Postal Service to complete the submission of its entire case to the PRC. Per the PRC order, this includes “all information, materials, and testimony on which the Postal Service would rely to demonstrate that its Exigent Request satisfies the causal nexus of ‘due to,’ as interpreted by the Commission” – “due to” referring to the impact of the 2008 recession.

According to the PRC order, the Commission stated that it would “apply its interpretation of the causal nexus of ‘due to’ to evaluate the remanded Exigent Request if the Postal Service wished to pursue it. The Postal Service, however, “has not provided all of the information necessary for the Commission to evaluate the Exigent Request.” What’s more, Postmaster General Patrick Donahoe yesterday said that the USPS won’t be be providing the requested information.

End of Exigency Once and For All?
So is the exigency case once and for all stone-cold dead? Not quite. It’s still on the table because the PRC has not dismissed it. But it can’t proceed in its current state. So it remains essentially in limbo. And with no intent of filing the required information, the USPS is standing behind its promise to take no further action on the case. As we’ve stated in the past about the case, we must take PMG Donahoe’s word on this, and he continues to say he has no intent to follow through with an exigency increase, but at the same time, doesn’t want the case thrown out altogether, pending what comes out of Congress in legislation to save the USPS.

In its original exigency filing last year, the USPS sought $2.3 billion in additional revenue and an approximately 5%, on average, rate hike.

If you have any questions contact:
Don Landis
VP of Postal and Government Affairs
Arandell Corporation

USPS dilemma

Posted on September 19, 2011

On September 6, 2011, Postmaster General Patrick Donahoe testified before the Senate Committee on Homeland Security and Government Affairs concerning the USPS dire financial dilemma.  He laid out what is needed from Congress to keep the USPS from default. It seems the Senate panel got the message and understood the need for immediate action. Something the mailing industry has known for years. My concern is what we will finally see from Congress knowing there will be winners and losers.

Will Congress have the fortitude to do what is right or give in to special interests groups which will only temporiarly delay default? 

What do you think?

Don’t Look a QR Gift in the Mouth

Posted on June 15, 2011

For whatever reason, the USPS is offering you a 3% discount on your postage over the next two months for simply applying a QR code (mobile barcode) somewhere in your catalog. Huh? For all the reasons they should offer incentives, promotions, etc, I have to tell you, QR codes were not high on my list. But take it and run with it and don’t ask questions. You now have been given more than a postage discount. Now is the perfect opportunity for you to gauge the tech savvy of your customers and prospects, and also to understand how badly they want to be with you. All the technology in the world is meaningless unless your customers embrace it and tell you they want it.

First, let’s get the technical garb out of the way. QR codes have been around for sometime and I’m sure most of you have seen them in magazines, newspapers, billboards, POS, retail stores, etc., enticing you to scan the codes for something more – whatever they want more to be. The codes themselves are easy to build. There are 33 million do-it-yourself websites instructing you how to build them. You can get very creative in the design of them and have them embrace your brand. If that doesn’t do it for you, then let us help! You can contact us to either walk you through the steps or we may even be able to create them for you. However you choose, the technical barriers to creation are so low that my dog Alex produced one for his collar that directs the person who finds him to the nearest Starbucks.

The real issue here is what you want that simple QR code to do for you, and more importantly for your customer. DO NOT take the easy way out by creating this code to steer people to your website. This is a waste of time for them and produces nothing of value for either of you. Don’t you think they can or already have gone to your website if they wanted to? So this code is supposed to save them the time of typing it in…….? Come on – you’re better than that. Here is where direct marketing basics come back to life. The opportunity to engage with your customers is prime and you have an exceptional opportunity to truly add value to your relationship.

WHAT IF the QR code directed people to….?

  • Your loyalty program to learn all the benefits of joining your program?
  • A YouTube video describing the features and benefits of one of your best-selling products?
  • A video on how to apply that perfect anti-aging cream?
  • An offer too good to be passed up, like 40% off plus free shipping? (Think JoS. A. Bank)
  • A recipe that includes one of your best-selling spices?
  • The perfect gift sampler of meats to send to your Dad or better yet…me?
  • Your Facebook page and encouraged them to “Like” ( I still have a hard time with this one) you and by doing so, they would receive an instant discount?
  • A list of reasons as to what differentiates your products and services and why they should buy from you?
  • A survey and upon completion of it they are awarded a significant discount?
  • A listing of your retail stores in their area?
  • An instant coupon that they could take to their local retail store for a discount?

What if…….

My time is up here. But the message here is to use the code to engage your customers and measure the results. From this “gift” you may truly learn more about your customers, and make some money as well….and really isn’t that what direct marketing is all about?

Again use this gift for all it’s worth because you may not have a second chance……….

Call us we’re here to assist.

Gary Sierzchulski
VP, Arandell Marketing Solutions
866-834-5611

Click or scan the code below to send me a message.

PRC Approves USPS 2011 Mobile Barcode Promotion

Posted on May 18, 2011

We love to be the bearer of great news and today we’ve got it! We know you all want to hear about opportunities to save…and the post office is giving you a great opportunity to do that this summer. On May 17, 2011, the PRC approved a USPS proposal to host a Mobile Barcode Promotion in July and August of this year.

What is the USPS Mobile Barcode Promotion?

The goal of the USPS Mobile Barcode Promotion is to build awareness of mobile technology and to demonstrate how mailers can leverage mobile barcodes to increase their ROI on direct mail. The promotion provides business mailers with an upfront 3% discount on Standard and First-Class mail letters and flats that include a two-dimensional (2D) barcode and that can be read and scanned by a smartphone.

The USPS promotion will run from July 1, 2011 through August 31, 2011. All companies who use a permit imprint are eligible to participate and there is no pre-registration required. For this particular promotion, the postal discount is applied immediately (as opposed to previous promotions that required you to submit paperwork to get a “rebate” on your mailings). The mobile barcode discount will be calculated in PostalOne! and applied to the mailing statement at the time of mailing.

USPS Mobile Barcode Promotion Requirements

All of the following must apply in order for you to use a mobile barcode on your mailpiece:

  • All mailpieces in the mailing must include a mobile two-dimensional barcode on the face of the mailpiece or within the mailpiece.
  • The mobile barcode must be used for marketing purposes (for use by the mail recipient).
  • Standard and First-Class Mail letters and flats must be sent with postage paid using a permit imprint and submitted electronically using Postal Wizard, Mail.dat or Mail.XML to qualify for the discount. (Mailings submitted via postal Wizard cannot exceed 9,999 pieces.)
  • The Mobile Barcode Promotion must be affirmatively claimed on the “Incentive Claimed” line in the certification section of the postage statement.
  • Mail must be tendered for acceptance during the promotion period, July 1, 2011 through August 31, 2011.

For your convenience, The USPS has published a Mobile Barcode Promotion Frequently Asked Questions document. It contains general information about the promotion, along with regulations and eligibility requirements. (Note: The original FAQ document indicates that non-profit organizations are not eligible to participate in the mobile barcode promotion but that has changed since the document was published. Non-profits ARE indeed eligible to participate.)

Why wait? You’ve got nothing to lose. The USPS Mobile Barcode Promotion gives direct mailers the perfect opportunity to test the marketing potential of mobile barcodes. The low cost of entry, combined with the summer discount being offered by the USPS makes this the most optimal time for you to speak with us about how you can integrate a mobile barcode into your printed catalog today!

For additional information, Email our postal experts, contact us at 866-675-4054 or scan/click this QR code:

Postal Service Appeals PRC Decision on Exigent Price Request

Posted on October 22, 2010

Don Landis, VP, Postal and Government Affairs(October 22 release from MTAC)
WASHINGTON — The U.S. Postal Service today announced its decision to appeal the Sept. 30 ruling of the Postal Regulatory Commission denying the Postal Service exigent price request.

The Postal Service Governors’ decision means that a petition will be filed in the United States Court of Appeals for the District of Columbia Circuit, seeking a review of the PRC’s interpretation of the law that governs how prices can be set under extraordinary and exceptional circumstances.

The Postal Service position is that the PRC misread the statute and applied an incorrect standard in evaluating the request for an exigent price increase.

“We have a fundamental disagreement with the PRC’s interpretation of the law,” said Postmaster General John E. Potter. “This action is an investment in our future. We need to understand and define the rules under the current law should the Postal Service find itself in a similar situation in the future.”

The Postal Service also asks the Court of Appeals to confirm the Postal Service right to pursue the exigent price increase as originally requested of the PRC.

It is expected that the Court of Appeals will ask for briefs from both the Postal Service and the PRC. Oral arguments also may be scheduled by the court once the petition challenging the PRC ruling is filed.

The Postal Service continues to evaluate other options to address the PRC’s ruling. The exigent price request would have generated about $2.3 billion in much needed revenue for the first nine months of calendar year 2011.

Filing for an exigent price change was the one tool the Postal Service had to use within the confines of the law to help address the impact the recession had on its financial situation. But pricing is only one of a suite of solutions to address the dire financial situation the Postal Service faces. The long-term financial viability of the Postal Service will remain questionable unless the March 2 action plan is fulfilled.

A quick and timely resolution of the appeal is an important part of the Postal Service plan.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of products and services to fund its operations.

USPS Droop Regulations Now Being Enforced

Posted on October 05, 2010

It’s Here!

The Deflection/Droop Requirement went into effect October 3, 2010 for all FLATS! Failing to comply with the Deflection specifications can potentially double or triple  your postage costs. 

If you have questions about how to reduce your catalog’s droop, please contact us today at 800-558-8724.

A Victorious Day for Mailers, as PRC Denies USPS Request for Exigent Postal Rate Increase

Posted on October 01, 2010

Don Landis, VP, Postal and Government AffairsSince the PRC’s announcement about the decision to deny the USPS Exigent Rate Increase yesterday, I have been inundated with some interesting phone calls. I have heard statements like, “elated,” “what a relief,” “this is a morale booster,” and “it feels good to finally win one.” I certainly agree with all of these statements and the mailing industry owes a huge, “THANK YOU” to the American Catalog Mailers Association (ACMA), the Association for Postal Commerce (PostCom), the Affordable Mail Alliance and all associates that challenged that request. Arandell Corporation belongs to and participates in all of the aforementioned associations…and more….not to mention that we are one of the co-founders of the ACMA.

So what now? Now the Postal Service will be obliged to follow the law and keep any rate increase within the legal limit, equal to the rate of inflation (currently about 1.4%, but the actual rate that will affect the postal rates for next year will not be known until December). There are additional issues facing the postal service as well, so the Affordable Mail Alliance will continue to work with the USPS to eliminate excess capacity and costs in the system.

Although we are all excited about today’s announcement, there are sure to be more postal changes that will affect the entire mailing industry. Stay tuned to our blog for updates as those issues evolve. In the meantime, get out and celebrate today’s victory! We can surely rest easily knowing that our postal budgets won’t be stretched to the max next year…that is, at least not more than they are already.

PRC Denies USPS Request for Exigent Postal Increase

Posted on September 30, 2010

Don Landis, Vice President, Postal and Government AffairsIn a news conference today, the Postal Regulatory Commission (PRC) unanimously denied the USPS request for an exigent postal increase in 2011. The USPS still plans to implement an increase equivalent to the CPI, which is currently around 1.4% (as opposed to the increase greater than 5% that would have been imposed with the exigent case).

This is great news for our industry! If you have any questions, please do not hesitate to contact Susan Pinter or me at 800-558-8724.

For the offical press release, click here.

USPS to Propose Exigent Rate Increase

Posted on July 06, 2010

 

Don Landis, VP, Postal and Government AffairsHeads up! The USPS announced this morning that they will present an exigent postage increase to the Postal Regulatory Commission (PRC) later today. Standard Mail will see an average increase of 5.6% with an effective date of January 2, 2011.

We will continue to update the blog as we receive more information.

In the meantime, if you have any questions, please feel free to contact us. Susan Pinter and I can both be reached at 800-558-8724.

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