Postal News You Can Use

New Tabbing Requirements for Self Mailers

2011-12-02T14:00:00.001-08:00

The Post Office has released the final standards for folded self-mailers ( FSM ) this afternoon in a federal register posting. The Post Office has spent two years working with the mailing community to develop these new standards and there are not to many surprises. I will summarize the key changes:

1. New size and weight standards
2. New definition of what is a FSM, for example items containing a disk is treated differently
3. Can no longer use tabs with perforations
4. Can no longer use tabs on the bottom panel
5. All FSM's now require a minimum of two tabs
6. There is now a limit to the number of panels in a FSM
7. Postal customers will be encouraged to comply with the new standards right away with final deadline
Jan 5, 2013. For Std mail customers, failure to comply will mean having to pay full fare FCM rates.

If you have any concerns how this new change may effect your operation, and if your business is within San Diego or Imperial Counties, please give us a call at 800.545.0437, otherwise please contact your local Neopost or Hasler Dealer for an addressing specialist to assist you.

Here are some of the critical items in the Federal Register Posting: (All of this will be available in the DMM and Quick Service Guide, including pictures detailing tab placement guidelines.)

Physical Characteristics

    The maximum height for all automation and machinable FSMs is 6 
inches and the maximum length is 10\1/2\ inches, with a maximum 
thickness of \1/4\ inch. The maximum weight of three ounces is 
applicable to all mailpieces prepared without envelopes.
    The paper basis weight for folded self-mailers is based on book-
grade paper unless otherwise specified and varies depending on the 
total weight of the mailpiece and/or optional elements that are 
incorporated in the design. The final fold must be at the bottom for 
all designs except oblong style pieces. For oblong-style FSMs the final 
fold is on the leading edge. Tabs cannot be placed on the bottom open 
edge of an oblong-style FSM.
    A minimum of two tabs will be required to seal all FSMs when tabs 
are used as the sealing method. Tabs used as seals may not have 
perforations. Glue may be used as an alternate sealing

[[Page 74705]]

method when applied according to the standards for FSMs.
    After January 5, 2013, folded self-mailers that do not meet these 
requirements will be assessed postage as follows: First-Class 
Mail[supreg] and Standard Mail[supreg] customers will pay nonmachinable 
prices; Periodicals mailers will pay nonbarcoded prices.

Note: They refer to "Book Weight" Paper.  If you consult paper weight comparison charts you will likely not see "Book Weight" listed.  Book Weight is a form of "Offset"  Most of us are used to "Bond" weights.  Here is the basic conversion:

Bond weight = Offset weight

20 = 50

24 = 60

28 = 70

h. Quarter-folded self-mailers made of a minimum of 100 pound book 
grade paper may have as few as 4 panels. Quarter-folded self-mailers 
made of 55 pound or greater newsprint must have at least 8 panels and 
may contain up to 24 panels.

3.14.3 Panels

    Panels are created when a sheet of paper is folded. Each two-sided 
section (front and back) created by the fold is considered one panel. 
When a folded self-mailer is made of multiple sheets, multiply the 
number of sheets by the number of panels created when folding a single 
sheet to determine the total number of panels. The following conditions 
apply:
    a. External panels created by folding must be equal or nearly equal 
in size.
    b. The final folded panel creates the back (non-address) side of 
the mailpiece. The open edge of the back panel must be at the top or 
within 1 inch of the top or trailing edge of the mailpiece.
    c. The final folded edge must be the bottom of a folded self-mailer 
unless prepared as an oblong. The final folded edge of an oblong folded 
self-mailer must be the leading (right) edge.
    d. Internal shorter panels must be covered by a full-size panel, 
and count toward the maximum number of panels.
    e. Folding methods and the subsequent number of panels created when 
folding a single sheet of paper are:
    1. Bi-fold: Folded once forming two panels.
    2. Tri-fold: Folded twice forming three panels.
    3. Oblong: Paper folded once to form two rectangular panels with 
one elongated dimension and parallel opposite sides. The final folded 
edge is on the leading (shorter) edge.
    4. Quarter-fold: Folded twice with each fold at a right angle 
(perpendicular) to the preceding fold. One sheet of paper quarter-
folded creates four panels.

Twisted government accounting behind Postal Service woes By Bob Sullivan

2011-10-12T16:35:00.000-07:00

Twisted government accounting behind Postal Service woes

By Bob Sullivan

You might have heard that the United States Postal Service is in trouble: that it's losing billions, that it will have to end Saturday service and close branches — and most inflammatory, that it might need a government bailout. Perhaps you heard that the Postal Service couldn't pay $5.5 billion bill that came due Sept. 30 and that only an emergency postponement saved it from the government's equivalent of default.

In fact, it's the Postal Service that’s currently bailing out the U.S. government. Politicians have been raiding Postal Service revenues for years, using them to make the federal deficit appear smaller than it really is. The fiscal gyrations are so twisted that the Postal Service is right now forced to pre-pay health care benefits for employees the agency hasn't even hired yet — in fact, for many future employees who haven't even been born yet — all to artificially shrink the federal deficit.

It's these crushing accounting tricks, not the cost of delivering mail, that has pushed this 200-year-old institution to the brink.

Welcome to the wacky world of Washington, D.C., accounting.

There's a long and a short story to the tragic tale of Postal Service financial trouble. I'll start with the short one. Right now, the Postal Service is being forced to pre-pay health benefits for the next 75 years during a 10-year stretch. In the past four years, those prepayments have totaled $21 billion. The agency's deficit during that time is about $20 billion. Remove these crazy pre-payments — a requirement that no other government agency endures and no private industry would even consider — and the Postal Service would be in the black.

Of course, it's not quite that simple. And no one denies that the rise of e-mail has meant the fall of first-class mail, creating a real long-term challenge to USPS relevancy. But the current fiscal "crisis" is entirely manufactured by the Washington way — in fact, the payment missed on Sept. 30 represents this year's tithe to the federal deficit, disguised as health care benefits layaway for a mail carrier the agency might not hire until the year 2060.

The controversy over the future of the post office has been slowly coming to a head, and it reached a fever pitch around the Sept. 30 payment, meant to satisfy this year’s health care pre-payment costs. The agency begged for a delay, which it received — but that led to detractors’ calling for immediate reforms, such as post office closings and the elimination of Saturday delivery. But supporters have rallied to the agency’s side — about 500 rallies were held last week all around the country in support of the agency.

Meanwhile, some advocates are desperately trying to call attention to the USPS’s unique budget situation, which is not quite the crisis it appears.

“It is clear that these prepayments for future retiree health care benefits are — at this point — the primary reason for the U.S. Postal Service's financial crisis,” Ralph Nader wrote in a letter to Congress last week. “In fact, simply looking at the numbers reveals that the Postal Service's ‘financial crisis’ is in fact an entirely manufactured crisis.”

Why would the Postal Service find itself in this crazy arrangement, bleeding red ink today so it can pay for employees’ health benefits 50, 60, or 75 years from now? Believe it or not, there is an explanation, but it's not so simple — delivered with fair warning from Jim Sauber, chief of staff of the National Association of Letter Carriers.

"It takes a long time to explain how crazy and complicated it is," he said.

But a quick tour into this fiscal crisis is incredibly instructive as to the ways of Washington, and failing to understand it might mean someday soon you won’t get mail at your house any longer.

First, it's important to note that the USPS is financially self-sufficient. Since the 1970s, it has been mandated by Congress to operate entirely on its own revenue, with no taxpayer money. It's an enormous agency — with $65 billion in annual revenue, it would be a Fortune 50 company if it were a private entity. As a quasi-government agency, it enjoys privileged fiscal status — its revenue and expenses are "off budget," meaning Congress isn't supposed to be able to toy with them. It shares this privileged state with only one other government entity: the Social Security Trust Fund. But as you know, Congress finds a way to toy with everything.

In 2006, Congress passed the "Postal Accountability and Enhancement Act" to modernize the agency's stamp-price-setting tools and a host of other elements of mail delivery. That law set up this seemingly crazy health care prepayment fund.

To bean counters at the U.S. Treasury Department, however, the fund made perfect sense. It was a crazy arrangement to cover for another crazy arrangement the Postal Service escaped in 2006.

When former members of the U.S. military take a government job, their military service counts as annual credits toward pension eligibility. This holds true when service members take postal jobs — but who pays for the value of those credits? In 2006, the Postal Service was shouldering that cost on its balance sheet, even though there was general agreement that the Treasury Department should be responsible for pension credit earned prior to employment with the Postal Service. The 2006 law shifted the burden from the USPS, but that meant an addition burden on the Treasury — that is, it would have added to the federal deficit. So to balance out that negative on Treasury's balance sheet, the Postal Service was ordered to make health care pre-payments equivalent to the cost of the pension cost shift.

The problem of military pension credits itself was a creation of just such a deficit-hiding accounting trick. In 2002, an audit of the USPS budget found it had overpaid into the federal government's pension plan by roughly $80 billion. Postal Service officials lobbied hard have its pension payments readjusted. They were, in 2003, but in order to make the shift revenue neutral, military pension credit costs were shifted from Treasury to the USPS.

The 2006 law passed by Congress was designed to put an end to this fiscal football.

In the middle part of the last decade, the Postal Service was so awash in operating cash that the 10-year tithe to the federal government seemed a small price to pay for a promise that the crazy cost shifting would be over in a decade. In the meantime, the cash played a small but measurable part in reducing the federal deficit.

"But it became very clear that these payments were unaffordable once the economy tanked," Sauber said. In short order, the health care prepayments became “a million-pound weight” on the Postal Service budget.

Sauber and other Postal Service advocates say the Postal Service would have no trouble balancing its own budget if Congress and the Treasury Department stopped adding billions to its annual expenses through fiscal maneuvering.

Still, powerful forces have gathered in an attempt to use this budget bickering as an excuse to reform the post office dramatically. Rep. Darrell Issa (R-Calif.), the Republicans’ top government cost-cutting advocate in the House and head of the powerful Committee on Oversight, has introduced legislation that would dramatically alter the agency. His Postal Reform Act of 2011 would end Saturday delivery, create a commission to study post office closings and create a Solvency Authority that could break union contracts if the agency fell into the red.

Last month, President Barack Obama proposed that the Post Office end Saturday delivery. His proposal offered some relief from health care prepayments, but it merely by spreading the costs out over a longer period of time. Issa responded by calling Obama's plan a "thinly veiled attempt to offset continued operating losses with a taxpayer-funded bailout."

Others have advocated complete dismantling of the service, turning mail delivery over entirely to private industry. Rarely do those arguing against mention that the Postal Service starts its year in a hole designed to hide a portion of the federal deficit.

A Heritage Foundation report published last month called "You've Got (No) Mail: Is the End Near for the Post Service?" indicated that the agency "barely avoided default" and was down to "a week's worth of cash."

"Congress should act quickly to address this not-so-slow-motion postal train wreck. The goal, however, should not be to ‘save’ USPS or even to save mail delivery," the report said. It mentioned the pension overpayments but made no mention of the health care costs prepayment, and it concluded that the USPS cannot survive unless supported by "tens of billions of dollars in subsidy."

Sauber says it’s hard to counter such arguments with a long discussion of Washington accounting tricks.

"It's so much easier to say, ‘Oh, it’s the Internet.’ That seems obvious, but that's not really what's going on,” he said. “It is frustrating for letter carriers to have to deal with all this misinformation. … It’s easy to demagogue on this, for people who don’t like government workers to say the Postal Service is failing because it’s a government agency. But in this case the easy explanation isn’t the right explanation."

The postal workers' union favors legislation proposed by Reps. Elijah Cummings, D-Md., and Stephen Lynch, D-Mass., that would allow the agency to access overpayments to the federal pension system, and to restructure its health care prepayments, to solve its immediate budget woes.

It's also hitting back at critics with an aggressive TV ad campaign that began running last month.

"Congress created this problem, and Congress can fix it," the ads say.

Sauber doesn't deny that the Postal Service has problems. Revenue shrank from $74 billion to $67 billion from 2008 to 2010. Mail volume plummeted from 202 billion to 170 billion pieces during that same stretch, a 22 percent fall. While the drop parallels the recession, common sense dictates that even a robust economic recovery probably won't lead to an increase in handwritten love letters.

But Sauber says the rise of the Internet has created almost as many opportunities as problems for the Post Office — package delivery from online shopping has soared, for example. Meanwhile, the agency has shrunk full-time employee ranks from 663,000 to 583,000.

The Postal Service hasn’t always done itself any favors — long lines, unhelpful employees and stories of double-dipping by pensioners feed the public’s notion that change is needed.

"We know we have to change. But the right way to do that is to clear up this artificial fiscal crisis now, survive the recession and then see where we are," he said, "not to gut the Postal Service now based on misinformation and budget politics."

Follow Bob Sullivan on Facebook or Twitter.

Ralph Nader: cutting postal services is “suicidal” for USPS

2011-09-28T14:11:00.000-07:00

Monday, September 26th, 2011
Ralph Nader, the renowned consumer advocate and five-time candidate for President of the United States, has warned key US Congressmen that cutting postal services is a “suicidal prescription for further decline” at the US Postal Service.

Nader wrote to the chairmen of the US Senate and House government oversight committees last week declaring that the financial troubles at USPS were an “entirely manufactured crisis”.

In particular, he urged Senator Joseph Lieberman and Representative Darrell Issa to sort out the “perverse” annual healthcare payments required of USPS by Congress in the Postal Accountability and Enhancement Act (PAEA) of 2006.

The Postal Service’s current $19.5bn debt could be entirely blamed on the $20.95bn that Congress has so far required the Postal Service to pay into the fund to cover healthcare benefits for its retirees for the next 75 years, he suggested.

Nader said it was an “incredibly unreasonable burden” for Congress, via its 2006 postal reform legislation, to require USPS to pay $103.7bn for 75 years’ worth of future retiree benefits in just a 10-year period – “something that no other government or private corporation is required to do”.

The letter from Nader voiced sentiments that have been expressed repeatedly over the past two years by postal management, unions and customers – as well as US Congressmen from both parties, though it would appear not enough in the House of Representatives to overturn the situation.

“Not unexpected”
Nader, who is politically a progressive independent, suggested that the decline in mail volumes was a less important factor in the Postal Service’s present troubles than the PAEA benefit payments, stating that the largest volume declines had coincided with the peak of the global financial downturn.

“Critics of the U.S. Postal Service will say that declining mail volume has been a result of the internet age and a move toward digital communications,” he wrote, adding that energy costs and an expanding US population were also factors impacting USPS revenues. “But they aren’t the chief drain on the USPS’s financial resources.”

He said the 10% drop in USPS revenue from 2007 to 2010 was “significant”, but “not to be unexpected”, given that other corporate giants saw revenues dropping by even greater margins during the same time.

Nader also demanded a return of $82bn in funds overpaid into USPS civil and federal retirement funds, as he warned that USPS efforts to rebalance its books with service cutbacks would inflict the “harshest” impact on the most vulnerable in society.

Cutbacks
Nader cast doubt on whether further USPS cutbacks were even needed from here on, with 110,000 jobs already cut in the last four years since the peak of US mail volumes in 2006.

With mail volumes reducing by 22% since Peak Mail, USPS is currently seeking to cut costs by shuttering nearly 3,700 post offices and more than half its processing plants, as well as slowing its First Class Mail service.

But Nader said such a move, along with the prospect of postal rate increases, would prompt a “suicidal” further decline.

“What is the sense in closing such a large number of post offices and cutting back on the service and the sense of community to millions of U.S. citizens in exchange for such a pittance of cost savings – especially when there are other much larger ways that can be adopted to put the Postal Service back on financially sound footing?” said Nader.

He insisted that Congress now needed to focus on maintaining the Postal Service’s universal service mandate, suggesting that the requirements of remaining self-sufficient and fiscally sound while continuing universal service were not necessarily compatible.

Support
The letter to the oversight chairmen last week came as various factions in Congress attempted to garner support for separate postal reform proposals, with a key difference at the moment being between a Republican-led proposal that refuses to sort out the retiree benefits and pension overpayments situation, and Democrat-led proposals that do.

On Friday, the House Republicans’ proposal stepped into the Senate, with Senator John McCain introducing the Postal Reform Act of 2011.

However, as it is the McCain bill stands little chance in the Democrat-controlled Senate, just as the Democrat proposals at present stand little chance in the Republican-controlled House.

Last week Republican Senator Scott Brown, who represents Massachusetts, revealed that he has been involved in meetings with House Democrats seeking bipartisan support in the Senate for their proposals, notably Massachusetts Representative Stephen Lynch, who has been leading House Democrat attempts at postal reform.

Senator Brown said on Thursday that there was “common ground” between the proposals on the table at the meeting, saying: “I was encouraged by a bicameral meeting that took place today with Congressman Lynch and others to forge a bipartisan plan to put the Postal Service on a sustainable financial path. With the Postal Service close to insolvency, we can’t afford to delay some difficult, but necessary, decisions.”

Source: James Cartledge, Post&Parcel

Earn your Professional Certification

2011-09-28T09:21:00.000-07:00

The San Diego Postal Customer Council and MSMA San Diego will co-host a one-day Professional Mail Certificate Conference. Conference attendees will be able to earn the Mailpiece Design Professional (MDP) Certification from the United States Postal Service and/or the Mailpiece Design Consultant (MDC) Certification from the Mail Systems Management Association. Gordon Glazer, President of San Diego Postal and Shipping Equipment, will be our instructor with the assistance of USPS officials.

Conference Details:

Date: October 14, 2011

Time: 9:00 AM to 2:30 PM (registration begins at 8:30 AM)

Location: USPS, MLS P&DC, 11251 Rancho Carmel Dr., San Diego, CA 92199

Conference attendees will be able to earn the Mailpiece Design Professional (MDP) Certification from the United States Postal Service and the Mailpiece Design Consultant (MDC) Certification from the Mail Systems Management Association.

The MDP is a written test that can be taken onsite after the instruction is completed. The MDC exam is only available online from the MSMA and won't be offered onsite.

Cost for the conference is $30.00 and includes a continental breakfast, lunch and all study materials needed to take both the MDP & MDC test. When registering for the conference, attendees can also be pre-registered for one or both exams. The additional costs to take the individual test are: MDP -$75.00, MDC - $35.00

Register at www.sdpcc.org

New Marketing Case study - 45% Improved Return

2011-07-21T15:19:00.000-07:00

By adding low denomination stamps to a pre-cancelled stamp and adding the optional Mailer's Postmark (cancellation) the Wildlife Conservation Society achieved dramatic increase in both response and return. San Diego Postal and Shipping Equipment can help your organization achieve similar results by providing you with the equipment and know how. Give us a call. Here are the key findings as reported by the Ballantine Corporation

"Test Strategy"

"Wildlife Conservation Society knows they have about 1.3 seconds to persuade someone to open their mail piece, and they figured anything they could do to make it look more like a personal piece of mail rather than a mass-market communication would give them an advantage in capturing the recipient’s attention."

"Test Results"

"The additional stamps definitely gave them the edge they were seeking. Their response rate and average gift amount both jumped 20% versus the control, and the revenue generated by the test panel was 45% greater than the control."

For the complete Story and pictures http://www.ballantine.com/2011/07/19/july-case-study/

Sometimes it’s hard to be a Republican.

2011-06-30T11:09:00.000-07:00

Darrell Issa (R) from north San Diego county is pushing legislation to help "bail out" the Post office. He doesn't have a clue what is needed, and it is very un-Republican to add more un-needed bureaucracy to an agency that is already suffocating from regulation. Government needs to get out of the way and remove the straps that are holding the USPS back. Allow them to right size their production and distribution networks as the market needs dictate and take the politics out of it. Relieve them of ridiculous pre-funding of their retirement burden mandated by the PAEA. Give them back the 75 BILLION the GAO has reported that they have already overfunded.

Postal Rate Increase confirmed for Jan 2012

2011-05-23T10:35:00.000-07:00

Just Announced: The Postal Service has made it known that the next price increase will be implemented on January 22, 2012. It will include both the competitive and market dominant price change together.

We do not know if this will eliminate the need for the May time frame that has been the traditional time for Market Dominate product price adjustments since the PAEA went into effect in 2007.

This increase / adjustment will be filed sometime in October 2011, and will most likely contain the CPI figure through September 2011. If the economy tanks, then there is a possibility that the USPS would file on Oct 14, to avoid the September figure and use the August 2011 figure.

Less than 12 months will have passed since the last price increase and there is a slight difference in the available price cap.

“Top 10 Ways to Reduce Postal Spend”

2011-03-25T09:26:00.000-07:00

If you are like most of our customers, you are probably trying to look for ways to reduce costs for doing mail. For instance, postage costs seem like they are only going up, however in some cases there are significant discounts available to the commercial mailer that can actually help you reduce your postal spend.

I would like to invite you to register for the upcoming MSMA educational Luncheon event on April 21. There will be a brief presentation on the different postal rate changes by the USPS and then I will share over the next 40 minutes the

“Top 10 Ways to Reduce Postal Spend”

Besides getting a great Tri-Tip lunch, you are sure to take away key ideas and strategies to save your organization time and money. These include:
1. Choosing the right class
2. How to make Standard perform like First Class
3. Shaped based pricing, and how to use it to reduce costs
4. Automation to reduce mail center labor costs
5. Address quality = better results, less money
6. How to reduce mailings, not content
7. Empower and hold accountable
8. Key postal compliance changes and strategies to avoid hidden costs
9. Benchmarking performance
10. How to calculate Return on Investment (ROI) to justify labor and technology investments

To register: www.msma-sd.org click on events

I will also be presenting a much more comprehensive presentation called “What You Need to Know for your Mail Center Operation” on Sunday, May 1st at the National Postal Forum held at the San Diego Convention Center. This is a 4 day conference that has over 130 workshops and more than 100 exhibitors. For more information visit www.npf.org

In Addition, you have access to our MDC certified (Mailpiece Design Consultant) sales and service staff any time. (800)545-0437 Please call us for a personal consultation to learn how you can reduce your costs and improve your productivity for your mail and shipping operations. We look forward to helping you get the most out of your postal spend in 2011!

April 21, 2011, 11:30am - 1:30pm
Sheraton Mission Valley
1433 Camino Del Rio S
San Diego, CA 92108

Register www.msma-sd.org

Postmaster General Continues Efficiency Improvements

2011-03-25T09:24:00.000-07:00

March 24, 2011
WASHINGTON — Postmaster General Patrick R. Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented, will help realize approximately $750 million of annual cost savings.

“I am confident that we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure. One that is fair to our employees and one that will meet the future needs of our customers and the mailing industry,” Donahoe said.

About 7,500 positions will be eliminated across the organization through the redesign that also includes the closing of seven district offices and offers limited financial incentives to those who meet specific qualifications.

The seven district offices that are closing are Columbus, South East Michigan, Northern Illinois, South East New England, South Georgia, Big Sky and Albuquerque. District offices house only administrative functions and do not affect customer service, mail delivery, Post Office operations or ZIP codes. The functions of these seven districts will be assumed by district offices within close proximity.

A Voluntary Early Retirement and financial incentive programs will be offered to eligible employees. Employees must be 50 years old, with at least 20 years of service; or any age with at least 25 years of service to qualify for the incentive. Employees who accept the VER offer or already meet existing retirement qualifications will receive $20,000 paid over two fiscal years to separate from the Postal Service.

“It’s critical that we adjust our workforce to match America’s changing communications trends as mail volumes continue to decline,” Donahoe said. “At every step and with every change, our focus remains on our customers and continuing to provide outstanding customer service.”

Today’s announcement focused on the administrative and executive corps. Additional staff reductions will occur as the Postal Service makes necessary changes to its network and retail operations. The full scope and financial impact of these personnel actions should be realized in one calendar year – March 2012.

While cost savings will be realized, the main objective of the restructuring is to enhance and strengthen customer service and relationships. The realignment flattens the organization, enabling flexibility to more quickly adapt to changing market forces and continuing mail volume decline.

The Postal Service is streamlining operations and improving efficiencies across the organization in order to protect its ability to provide affordable, universal mail service. By modifying networks, consolidating functions and restructuring administrative and processing operations, the Postal Service is adapting to meet the evolving needs, demands and activities of its customers.

“Mail remains valuable. It is at the heart of a $900 billion industry that continues to drive commerce and the American economy,” Donahoe said. “We will continue to work with Congress and our employees to achieve the long-term, structural and legislative changes we know we need to remain a viable organization.”

Regulators OK modest postal rate increases

2011-02-23T12:57:00.000-08:00

February 22, 2011 - 12:31 pm EDT

Washington, D.C.—The U.S. Postal Service's request for a postal rate increase in line with the rate of inflation has been approved, with new prices to go into effect April 17.
As approved by the Postal Regulatory Commission, first-class mail will still cost 44 cents for the first ounce, but heavier first-class letters will cost more, rising from 17 cents per additional ounce to 20 cents. Other rate boosts include bound printed matter parcels (0.7%); carrier route flats (1.4%); first class flats (3.8%); first-class mail to Canada (6.7%); high-density flats (0.4%); standard flats (0.8%); and standard parcels (11.3%).

Overall, postal rates will rise 1.7%. The postal service had requested these increases in January after an earlier request for a 5.6% rate hike was rejected by the PRC. That decision is being appealed.

New Postal Service Pricing Announced

2011-01-13T15:51:00.000-08:00

WASHINGTON — Postmaster General Patrick R. Donahoe today signaled a new direction in continuing to improve customer relations within the mailing industry by consulting with industry representatives on the effective date for new prices and by relaxing some guidelines on implementing Intelligent Mail services.

“Working together as an industry we can address continuing economic challenges in a way that allows the Postal Service to generate much needed revenue while being more responsive to ongoing customer needs,” Donahoe said.

The Postal Service filed new mailing service prices with the Postal Regulatory Commission (PRC). Price increases are limited to the Consumer Price Index (CPI) cap of 1.7 percent, consistent with the Postal Law of 2006. Actual percentage price increases for various products and services will vary. It has been nearly two years since the last increase.

After consulting with key industry association representatives, the new prices would become effective on April 17, giving the mailing community more than 90 days to make the necessary technology and system changes to accurately handle the new prices.

“We heard concerns that we were moving too fast on discontinuing POSTNET coding, and we will continue to offer the automation prices for mail with POSTNET barcodes beyond May 2011,” Donahoe said.

Donahoe emphasized the value of the Intelligent Mail barcode (IMb) to mailers and reiterating the Postal Service commitment to implementing the IMb. To date, more than 41 billion pieces of mail have been processed using the IMb.

Recognizing ongoing industry concerns with challenges associated with implementing the IMb, Donahoe announced that mailers can continue to use POSTNET barcodes to qualify for automation discounts. The POSTNET code was to sunset this May to enable broad adoption and use of the IMb. There will be no Full Service Address Change Service (ACS) charges.

Single-piece, 1-ounce First-Class letters will remain 44 cents with additional ounces increased to 20 cents. The price for mailing a postcard will increase one cent. The overall increase is capped at 1.741 percent – at or below the rate of inflation as measured by the Consumer Price Index. More detailed pricing information will be available later today online at www.usps.com/prices. Today’s announcement does not affect Express Mail and Priority Mail prices.

Prices for other mailing services, including Standard Mail, Periodicals, Package Services, and Extra Services, also will change. Business mailers will see price increases in a variety of categories.

Summary of Percentage Changes by Product Category
Product % Change
First-Class Mail
Single-piece Letters & Cards 0.5
Flats 5.3
Parcels 3.8
Presort Letters & Cards 1.8
International (Outbound and Inbound) 4.0

Standard Mail
Letters 1.8
Flats 0.8
Carrier Route Letters, Flats, and Parcels 1.4
High Density / Saturation Letters 0.6
High Density / Saturation Flats and Parcels 0.4
Parcels (NFM’s / Parcels) 11.3

Periodicals
Outside County 1.8
Inside County 1.1

The proposed price changes are expected to generate $340 million for the balance of the fiscal year and $720 million if implemented for a 12-month period.

In July 2010, the Postal Service filed an exigent price proposal that was rejected by the Postal Regulatory Commission in September. The Postal Service filed an appeal of that decision with the United States Court of Appeals for the District of Columbia Circuit in November and awaits a decision.

The urgency of the Postal Service’s current financial challenges requires this price change even as it waits for a decision from the federal courts on the exigent case.

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

U.S. Postal Service to Expand Simplified Addressing for Businesses

2010-12-30T11:39:00.000-08:00

Helping Small Businesses Grow, Millions in Postal Revenue Expected
WASHINGTON — In a move that is expected to help businesses grow — especially small businesses who currently don’t use the mail because they can’t afford it — and garner millions of dollars in new revenue for the U.S. Postal Service, the agency announced today that it is easing the rules on simplified addressing to allow businesses to begin using the format on city delivery routes.

Simplified addressing enables business mailers to use mail delivery route information, instead of names and exact addresses, to reach target customer groups in specific areas. It has long been an accepted addressing option on rural routes and for government mailings.

Effective Jan. 2, 2011, simplified addressing will be expanded for use on saturation flat-size mailpieces and irregular parcels delivered on city routes. (Saturation mail is mail that is delivered to every address within a geographic area, and flat-size mail includes large envelopes and fliers often used for advertising. Irregular parcels, such as rolls and tubes, are parcels that cannot be processed on automated equipment because of their unique shape.)

While the expansion of simplified addressing does not change existing prices or classification standards for Standard Mail flats, it can lower costs by reducing mail preparation time and eliminating the need to purchase address lists and on-press printing. (Standard Mail offers a lower price on postage in return for the commercial mailer doing extra preparation work, such as presorting the mailing.)

“Simplified addressing will help local small and midsize businesses as well as large businesses drive more traffic and attract new customers,” said Paul Vogel, president and chief marketing/sales officer. “This can help strengthen the U.S. economy as well as our organization, the U.S. Postal Service, which is doing everything it can to drive revenue growth.”

The simplified addressing option enables business mailers, in most instances, to conveniently address mailpieces to "Postal Customer” when complete coverage on any designated delivery route is intended.

”Simplified addressing will serve as the on-ramp for many small businesses trying to reach their audiences within a specific geographic range,” said Vogel. “It will allow them for the first time to take advantage of the most effective marketing channel there is — direct mail.”

2011 Shipping Services Prices and Incentive Program

2010-11-02T15:26:00.000-07:00

From the DMM Advisory: Today we submitted two filings to the Postal Regulatory Commission (PRC), one for price changes for our competitive products, and another for mailing standards changes that include new incentive programs.

The competitive products filing includes new Shipping Services prices which – following PRC review – will take effect on January 2, 2011.

Overall, Shipping Services prices will increase an average of 3.6 percent. This includes prices for Express Mail®, Priority Mail®, Parcel Select®, Parcel Return Service, Global Express Guaranteed®, Express Mail International®, and Priority Mail International®.

Innovations introduced in the competitive products filing include a new Padded Flat Rate Envelope for all Priority Mail categories and Legal Flat Rate Envelopes for Priority Mail and for Express Mail.

For commercial base and commercial plus Priority Mail customers, an economical new Regional Rate Box will be available in two sizes. Prices are based on box size and zone—Regional Rate Box A maximum weight limit is 15 pounds and Box B maximum weight limit is 20 pounds.

Critical Mail™ is another new product innovation for Priority Mail commercial plus customers. It is offered at flat rate prices for letters and flats and USPS-supplied packaging is required. Critical Mail travels in the First-Class Mail® stream and First-Class Mail service standards apply.

Included in proposed mailing standards changes filed at the PRC today were two incentive programs that were originally filed with the price changes proposed in July:

§ Reply Rides Free — encourages the inclusion of marketing messages in bill and statement mailings, and payment of bills using the mail. For qualifying customers, a 1.2-ounce piece is charged the 1-ounce price if a reply envelope or card is included in the mailing.

§ The Saturation Mail/High Density Incentive Program — provides rebates for volume growth over 5 percent for frequent mailers of Saturation or High Density Standard Mail letters and flats.

Proposed mailing standards changes also include a small increase in the threshold below which the Move Update assessment charge applies. If approved by the PRC, the measures outlined in the filing take effect January 2, 2011.

Note that the January 2, 2011, versions of postage statements must be used due to the numerous types of changes that were required to meet financial and data reporting requirements, including Sarbanes-Oxley.

The new 2011 prices are available online on the Postal Explorer® website at pe.usps.com. Federal Register notices for both filings will also be available soon on Postal Explorer. We will notify you through DMM Advisory.

POSTAL SERVICE APPEALS EXIGENT RATE CASE DECISION

2010-10-22T10:49:00.000-07:00

On October 22, 2010, the Postal Service filed an appeal with the U.S. Court of Appeals for the D.C. Circuit regarding the September 30, 2010 ruling of the Postal Regulatory Commission (PRC) denying the Postal Service exigent price request.

The Postal Service is requesting a review of the PRC’s interpretation of the law that governs how prices can be set under “extraordinary and exceptional” circumstances – an exigent” price increase. The Postal Service is also requesting that the Court of Appeals confirm that the Postal Service has the right to the exigent price increase, as originally filed with the PRC.

The Postal Service disagrees with the PRC’s interpretation of the statutory language and believes that the PRC applied an incorrect standard in evaluating the request for an exigent price increase.

The Postal Service believes we need clarity regarding the exigent price increase rules under current law should the Postal Service find itself in a similar situation in the future.

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.

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.

As laid out in the Postal Service’s March 2nd Action plan, requesting an exigent price increase was the one option the Postal Service could exercise under current law to help address its current dire financial situation.

Increasing revenue is only one part of the solution. The long-term financial viability of the Postal Service will remain questionable unless the actions recommended on March 2nd are implemented. These include:

· Addressing the statutory retiree health benefit pre-funding requirement,averaging $5.5 billion;

· Allowing the Postal Board of Governors to direct the Postal Service to move to five day delivery;

· Requiring an arbitrator to consider the financial health of the Postal Service when making a determination;

· Allowing the Postal Service greater freedom to close Post Offices;

· Permitting the Postal Service to offer new products and services; and

· Giving the Postal Service greater pricing flexibility.

Statement by PMG Jack Potter on PRC Ruling

2010-09-30T12:35:00.000-07:00

We are disappointed to learn that the Postal Regulatory Commission (PRC) has denied our price filing. But we are encouraged by their acknowledgment and understanding of the larger financial risk we face through the mandated prefunding of Retiree Health Benefits.

Clearly, the Postal Service is a viable business. Maintaining that status requires elimination of several legislatively-imposed constraints that hamper our ability to operate efficiently and profitably.

Specifically: 1) enable us to alter frequency of delivery consistent with use of the mail; 2) allow us to close unprofitable post offices; 3) restructure our obligation under a 2006 law to prefund retiree health benefits, an obligation not applicable to any other private or government entity; 4) permit us to create and offer products and services beyond mail; 5) assure that arbitrators consider the financial health of the Postal Service when agreement cannot be reached with our labor unions; and 6) resolve overfunding of our pension systems. Legislation has been introduced in Congress to address these issues.

We will need to take a much closer look at the ruling from the PRC in order to make an informed decision about what options we have and what may be the best course of action for our customers, our employees, our stakeholders and the American public.

The Postal Service ends the current fiscal year with approximately $2 billion cash and available credit, meeting all our end-of-year financial obligations, including a $5.5 billion payment to the Retiree Health Benefit Fund as required by law.

As we have stated repeatedly throughout the year, the Postal Service sought a deferral of this $5.5 billion payment to minimize the risk of defaulting on our financial obligations in Fiscal Year 2011. Unfortunately, no legislative action has been taken at this time.

The financial risk remains. We will carefully manage every dollar we spend in the upcoming fiscal year. Our current forecast shows that we will not have sufficient cash to make the $5.5 billion payment due on Sept. 30, 2011, and any major disruption, whether in volume loss or unforeseen circumstances, could cause us to default on financial obligations earlier in FY11.

In the midst of financial and regulatory challenges, the Postal Service achieved record productivity gains in 2010 and a reduction of over 100,000 career employees and cost savings of over $10 billion during the last three years.

As always, service to our customers remains our number one priority. No financial challenge or uncertainty will change that. We will continue to work with Congress and our stakeholders to implement necessary changes to ensure a viable Postal Service for decades to come.

John E. Potter
Postmaster General of the United States
CEO of the U.S. Postal Service

PRG Denies Postal Service Exigent Rate Request

2010-09-30T11:59:00.000-07:00

Washington, DC - The Postal Regulatory Commission today issued Order No. 547 in Docket
R2010-4 denying a Postal Service request for an average 5.6 percent rate increase. The Commission found that the Postal Service failed to justiff rate increases in excess of its statutory CPI price cap.

"The Commission finds that the Postal Service has shown the recent recession to be an exigent circumstance but it has failed both to quantifo the impact of the recession on its finances and to show how its rate request relates to the resulting loss of mailvolume; therefore, we unanimously deny its exigent rate request," said Chairman Ruth Y. Goldway.

The law requires the Postal Service to demonstrate that any exigent rate adjustments are due to the identified exceptional circumstances. This prevents a bona fide extraordinary or exceptional circumstance from being used as a general rate increase mechanism that would circumvent the price cap system.

The Postal Service's recent volume losses and multi-billion dollar shortfalls are recognized. However, Commission analysis confirms that the Postal Service's cash flow problem is not a result of the recession and would have occurred whether or not the recession took place. lt is the result of other,unrelated structural problems and the proposed exigent rate adjustments would neither solve nor delay those problems.

The Postal Service may be unable to continue to meet a statutory 1O-year payment schedule -
averaging roughly $5.5 billion per year - to create a fund to pay future retiree health benefit premiums. lt has been unable to fund this obligation from operations, and has instead used up all of its retained earnings and drawn down from its $15 billion borrowing authority. Even with therequested increase, the Postal Service would be unable to meet this annual obligation either in 2011,or in succeeding years.

The Postal Service achieved over $6 billion in cost reductions in 2009. While volume declinesoutstripped cost reductions during the actual recession, Postal Service cost containment programsare producing results and work hours have declined faster than volumes in 2010.

The Postal Regulatory Comm¡ssion is an independent federal agency that provides regulatory oversight over the U.S. Postal Servtbe to ensure the transparcncy and accountability of the Postal Sevice and foster a vital and efficient universal mail system. The Commission is comprised of five Presidentially-appointed and Senate-confrrmed Commissioners, each serving terms of six years. The Chairman is designated by the Prcsident. ln addition to Chairman Goldway, the other Commissioners are Vice Chairman Tony Hammond, Dan Blair, Nanci Langley, and Maù Acton

Mailpiece Design Consultant (MDC) Certification Oct. 8th

2010-09-15T16:48:00.000-07:00

San Diego Postal & Shipping Equipment to host a
Mail Systems Management Association - San Diego Chapter Event

Gordon Glazer, CMDSM, CMDSS, MDC will be leading a one day MDC Certification Training workshop on behalf of Mail Systems Management Association.

Every company and mailer should employ an expert to make sure that mailpieces qualify for Automation and Workshare discounts. Learn the information you need to pass the MDC test and become certified.

Who Should Attend:
Mail Industry front-line to mid-level Managers
Designers
Mailers
Marketing Professionals
Printers
Suppliers to the mailing industry

Learn how to:
Avoid the costs of bad address quality.
Comply with USPS regulations to minimize postage costs.
Identify mailpiece design problems and save money.

The MDC exam consists of 100 multiple choice questions and requires a passing grade of 90%.
Pass the exam and receive your certification immediately! Proudly proclaim your achievement by adding your MDC certification to your title.
If you require a retest, you may take the exam one additional time at no extra charge. (at the end of the exam, you will be notified of the questions you missed, along with the actual response you gave).

Friday, October 8, 2010
9:00 am to 2:00pm
at San Diego Postal & Shipping Equipment classroom
12255 Crosthwaite Circle
Poway CA 92064

$65 for MSMA members
$75 for non-members
- Includes Registration, Course Study Program, Lunch and meeting refreshments
- Study only (Actual Test will not be taken onsite).
- Limited to 40 maximum participants

Make sure you're included. REGISTER TODAY

Postal Service Outlines 10-Year Plan

2010-03-02T16:38:00.000-08:00

Postal Service Outlines 10-Year Plan to Address Declining Revenue, Volume
Seeks Flexibility on Operations, Delivery; Possible 2011 Price Increase

WASHINGTON — Facing unprecedented volume declines and a projected, cumulative $238 billion shortfall during the next decade, Postmaster General John E. Potter today outlined an aggressive plan of cost cutting, increased productivity, and an array of legislative and regulatory changes necessary to maintain a viable United States Postal Service.

“The crisis we’re facing gives us an historic opportunity to make changes that will lay the foundation for a leaner, more market responsive Postal Service that can thrive far into the future,” Potter said, stressing that there is no one single answer or quick fix to the crisis.

The Postal Service examined revenue, volume and consumer trends; analyzed revenue and product opportunities employed by foreign posts; and examined more than 50 possible actions to realistically address volume declines that will not return, increasing health care and delivery costs, and dramatic changes to consumer behavior.

“The future depends on a suite of solutions that takes a balanced and reasonable approach, one that cuts across every aspect of our industry but one that, in the end, does the greatest possible good for our stakeholders and the American public,” Potter said.

Mail volume is projected to fall from 177 billion in 2009 to 150 billion in 2020. That represents a 37 percent decline in First-Class Mail alone. Revenue contributed by First-Class Mail will plummet from 51 percent today to about 35 percent in 2020.

“Ensuring a Viable Postal Service for America,” the Postal Service business plan, addresses these challenges, and describes a flexible, agile Postal Service that can adapt to America’s changing mailing habits and preferences.

If the Postal Service takes no action, it will face a cumulative shortfall of $238 billion by 2020. But Potter outlined a number of actions that could amount to as much as $123 billion in savings during that same time period. These actions build on the Postal Service’s record of saving more than $1 billion every year since 2001 and include continuing to aggressively control costs and eliminating hundreds of millions of work hours.

Despite these efforts, an estimated $115 billion shortfall will remain. The business plan identifies actions to close that gap:

Restructure retiree health benefits payments to be consistent with what is used by the rest of the federal government and the majority of the private sector and address overpayments to the Postal Service Civil Service Retirement System pension fund.

Adjust delivery days to better reflect current mail volumes and customer habits.
Continue to modernize customer access by providing services at locations that are more convenient to customers, such as grocery stores, pharmacies, retail centers, and office supply stores. Increase and enhance customer access through partnerships, self-service kiosks and a world-class Website.

Establish a more flexible workforce that is better positioned to respond to changing demand patterns, as more than 300,000 employees become eligible to retire in the coming decade.

Ensure that prices of Market Dominant mailing products are based on demand for each individual product and its costs, rather than capping prices for every class at the rate of inflation.

A modest exigent price increase will be proposed, effective in 2011.

Permit the Postal Service to evaluate and introduce more new products consistent with its mission, allowing it to better respond to changing customer needs and compete more effectively in the marketplace.

“Lifestyles and ways of doing business have changed dramatically in the last 40 years, but some of the laws that govern the Postal Service have not. These laws need to be modernized to reflect today’s economic and business challenges and the dramatic impact the Internet has had on American life,” Potter said.

The business plan is a path to the future, the Postmaster General said, a future where the Postal Service remains a vital driver of the American economy, an integral part of every American community and continues to deliver the greatest value of any comparable post in the world.

“If given the flexibility to respond to an evolving marketplace, the Postal service will continue to be an integral part of the fabric of American life,” Potter said.

For more information, fact sheets, soundbites and graphics, please visit www.usps.com/strategicplanning/futurepostalservice.

USPS Has Been Overcharged 75 Billion, per OIG Study

2010-01-21T10:24:00.000-08:00

January 20, 2010
New OIG Study Estimates USPS Has Been Overcharged for the
CSRS Pension Fund by $75 Billion
A study just released by the U.S. Postal Service’s Office of Inspector General (OIG)
shows that the current system of funding the Postal Service’s Civil Service Retirement
System pension responsibility is inequitable and has resulted in the Postal Service
overpaying $75 billion to the pension fund. The OIG estimates that if the overcharge
was used to prepay the Postal Service’s health benefits fund, it would fully meet all of
the Postal Service’s accrued retiree health care liabilities and eliminate the need for the
required annual payments of more than $5 billion. Also, the health benefits fund could
immediately start meeting its intended purpose -- paying the annual payment for
current retirees, which was $2 billion in 2009.
This marks the third time the Postal Service has been overcharged. In 2002 it was
determined the Postal Service would overfund CSRS by $78 billion. Legislation in 2003
corrected this overfunding. Then it was determined the Postal Service was overcharged
$27 billion for CSRS military service credits. In 2006 these funds were returned to the
Postal Service by Congress, and the surplus was used to fund retiree health care
liabilities.
This study, The Postal Service’s Share of CSRS Pension Responsibility, undertaken in
conjunction with the Hay Group, is the third paper sponsored by the OIG that delves
into the financial entanglements between the Postal Service and the federal
government -- generally at the expense of the Postal Service. The latest study describes
the inequitable allocation of CSRS costs between the federal government and the Postal
Service. The other two reports focus on the Postal Service’s congressionally-mandated
retiree health care prefunding payments (Estimates of Postal Service Liability for Retiree
Health Care Benefits), and the Postal Service’s interaction with the federal budget
(Federal Budget Treatment of the Postal Service).
In this newly released paper, the OIG and Hay Group’s analysis demonstrates that the
method used to determine how CSRS pension costs for postal employees with service
before 1971 are split between the Postal Service and the federal government is
inequitable. As a result, the Postal Service was overcharged by $75 billion for payments
to CSRS retirees from 1972 to 2009. The OIG suggests that this amount be returned to
the Postal Service’s CSRS pension fund. Any excess above what is needed to fund CSRS
liabilities could then be transferred to the Postal Service’s retiree health care fund,
which would fully fund its health care liability and eliminate the need for further
congressionally-required payments to the fund. All of the Postal Service’s current
pension and health care obligations to its employees would then be fully funded.
The report further illustrates the inequity in the methodology used to determine the
Postal Service’s contribution to the CSRS fund. Key findings from the report:
• Hay Group demonstrates that the method of splitting CSRS pension costs for postal
employees with service before 1971 between the Postal Service and the federal
government is inequitable, because the Postal Service is made responsible for all
salary increases after 1971.
• In effect, OPM calculates the federal government’s share for these employees as if
they retired in 1971 at their much lower 1971 salaries. An allocation methodology
that burdens the Postal Service with all post-1971 pay increases is not reasonable.
• As an example, Hay Group shows that the Postal Service could be charged
70 percent instead of 50 percent of the pension costs for employees who worked
half their careers with the Post Office Department and half with the Postal Service.
• Because of the inequitable split, the Postal Service was overcharged $75 billion from
1972 to 2009.
The report also offers solutions:
• Fixing the split by using a more equitable years-of-service approach would leave the
Postal Service with $75 billion more in assets as of the end of 2009. The CSRS
pension fund is currently underfunded by $10 billion, so the resulting pension
surplus would equal $65 billion.
• The $65 billion pension surplus could be added to $35 billion already set aside in the
retiree health benefits fund for a total retiree health fund balance of $100 billion.
• A fund balance of $100 billion is more than enough to fully fund accrued retiree
health benefit liabilities of $87 billion. No further payments to the fund would be
needed to cover this liability.
• The current annual payments of more than $5 billion mandated by the Postal
Accountability and Enhancement Act (PAEA) could end.
• Payments for the premiums of current retirees could start to come from the fund
immediately.
• The annual evaluation of the Postal Service’s retiree health benefit assets and
liabilities would continue, and the Postal Service could be assessed if there were
any unfunded liability.
This report takes on increasing significance as the Postal Service faces a challenging
future. When the Postal Service was established, it was intended to be self-sufficient.
Clearly delineating and separating the Postal Service’s responsibilities from those of the
federal government will help in determining the true costs of funding postal operations.
Citizens and businesses should pay no less and no more than what is required to fund
the Postal Service’s operations.

Here is the link to the OIG: http://www.uspsoig.gov/ (it is on their front page)

Full report: http://www.uspsoig.gov/foia_files/RARC-WP-10-001.pdf

Confusion and Fear re: Move Update Compliance

2010-01-19T17:49:00.000-08:00

Still confused about the Move Update requirement? Wondering what the consequences for not complying might be? This article will attempt to remove the confusion and fear that is gripping many over the Move Update requirement.

Move Update:
Think of it like your Mom or Dad telling you to eat your vegetables, you may not want to eat them, but you now realize that they are good for you. It’s the same thing here!

Move Update is the requirement that forces mailers of Automation Standard and Commercial First Class Mail™ to do something to make sure that your address lists are up to date when you mail.

Why?• Costs the USPS 2 Billion /Yr to Return/Dispose of Undeliverable mail
• 17% of Consumers and Businesses move every year – 45 Million!
• 24% of all mail have some kind of address problem
• 2.72% of mail is never delivered
• 17% of all mail is delayed
Or, to put this into hard numbers:
• 10 Billion Pieces are affected each year.
• 1.6 Billion are Returned
• 1.985 billion are Forwarded
• 6.0 Billion are Discarded

OK – So how do I comply?
You need to comply with a Pre-Mailing method within 95 days of your mailing and then you can keep your list current by utilizing a Post-Mailing method.

For most of us, the easiest way is to use an NCOA-Link product that will satisfy it quickly and easily. Most Mail management software packages have a NCOA-link solution.

For our Satori Bulk Mailer customers, when they run their lists thru this process, it actually does 5 things to improve the deliverability, all without the hassle of exporting and re-importing the data. Satori is a full service NCOA Provider and will update registered move data up to 48 months old.

Satori’s “Move Update” features:
CASS – 1st step to break the address down to its component parts, Standardizes and corrects the Physical part of the address to USPS specifications
DPV – Delivery Point Validation – Further corrects the address to the actual delivery point and reports back if the secondary address info (Suite #, Unit #, Apt #) is accurate, missing or wrong.
LACS-Link – Changes old Rural Routes into physical delivery address –Helps emergency service providers locate rural addresses.
Suite-Link – Adds or changes Secondary address information for Businesses – (Suite #, Unit #)

Move Update – Fixes the Personal portion of the address by changing the addresses based upon moves registered with the USPS.

Are there other ways I can satisfy the Move Update requirement?
Yes, there are “Post-Mailing” methods such as using Ancillary Service Endorsements, ACS, or One Code ACS (IMB). All of these Post Mailing methods require that the list has gone thru some other “Pre-Mailing” method within 95 days of the mailing, and then you can use these “Post-Mailing” methods to keep the list current.

Pre-Mailing Methods:
NCOA or NCOAlink
Directly Acquired addresses
First-Class Mail used with approved Ancillary Service Endorsement
Fast-Forward

Post-Mailing Methods:
Ancillary Service Endorsements – Correct your data after the fact
ACS
One-Code ACS (IMB)

Exceptions:
Using Alternative Address Formats like “Current Resident/Occupant” are exempt, but not very personal. If the data came directly to you within 95 days of the mailing, like thru your call center, BRM or web site, those addresses would be OK. There are also exceptions if you can prove that your lists are 99% accurate or that you have a "Legal Restriction" prohibiting you from updating the address without authorization.

If you are using a Presort service, they offer a service called Fast-Forward that can apply the DPBC and forwarding address while co-mingling your mail allowing you some presort savings. The drawback is that the information is applied after your mail piece has been created so the corrected information doesn’t directly update your records.

Is there a way for me to take advantage of Better Address Quality without big changes to our I.T. processes?
Yes Document Control Software, can capture your Print Image Files and manipulate them prior to printing. It is mind boggling to see all of the things DCS can be designed to do. Not only can DCS improve address quality but it can merge multiple print streams, change background overlays, add OMR marks for automation processing by a Folder Inserter, add the postage Indicia into the address block and can even include Mail Piece Verification to ensure that every piece makes it into the mailstream.

What are the consequences for not complying with Move Update?
The key thing to realize is that the penalty will be applied to the entire mailing, not just those addresses that fail Move Update. When you sign the 3602 Mailing statement acknowledges that … “who omits information requested on this form may be subject to criminal and/or civil penalties, including fines and imprisonment.” The calculations for failure to comply are a little confusing. It is based upon the percentage of your mail that exceeds the minimum 30%compliance threshold. This percentage is applied to the entire mailing at $.07 per piece.

For example: 5000 piece mailing with 500 COAs (change of address on file with the USPS NCOA system) only 20% (100) were up to date, leaving 400 (80%) un-corrected. In order to comply with Move Update no more than 30% of COAs (150) can have un-corrected addresses. Penalty rate is calculated by subtracting USPS threshold 30% from the 80% not corrected to arrive at percent of mailing subject to a penalty, in this case its 50%.

Apply 50% penalty rate to entire 5000 piece mailing to determine number of pieces subject to .07 penalty in this case 2500 or $175.00

What are the chances of getting caught?
It is getting easier all the time for the USPS to catch this as their focus is absolutely on reducing costs. UAA (Undeliverable as Addressed) and FOE (Forwarding Order has Expired) mail are the biggest areas they have identified to save money. The mail today is becoming “Intelligent” with mailer identification embedded in the IMB (intelligent Mail Barcode) and IBIP (Information Based Indicia Program) meter indicia (All Phase 6 meters) it won’t be hard to find or account for as computers will do the hard work.

So stay compliant with Move Update and your mailing performance will improve, just like a healthy body that eats right and exercises should. Hopefully this has diminished your fears and confusion regarding Move Update requirement, so eat your vegetables, they’re good for you!

MQC Certification Program being discontinued and replaced with MDP

2009-10-19T11:49:00.000-07:00

The Mailpiece Quality Control (MQC) Specialist certification has been around for a very long time. It was an open book, 100 question multiple choice, on-line examination that was inexpensive, comprehensive and challenging to achieve. It was good for two years and has thousands amongst its ranks. The test was pulled in April with the understanding that it would be up-dated and back on line in July. Turns out it was more than the USPS could handle as the folks in that department were 100% committed to IMB implementation. They simply did not have the resources to update the program, even when I and others offered to do the service for free.

They chose instead to transition another existing in-house certification program called the MDP - Mailpiece Design Professional to an On-Line format. We are told that their goal is to have this on-line by the National Postal Forum in April.

Looking over the curriculum, it is very comprehensive, with more emphasis on Letters and Flats than with Publications or Parcels. The MDP program, from what I could see still needs work to include information on IMB, Flat Addressing Standards, Tabbing Changes for Booklets and more.

So although I am very disappointed in the manner in which this transition is occurring, there is nothing I can do to change it. Change is after all the one constant in our industry, so I look forward to embracing it. My intentions are to be able to deliver training to you, our customers and colleagues, to streamline your ability to earn the MDP certification.

May Rate Change - Good News - No overall increase!

2009-10-19T11:38:00.000-07:00

Jack Potter, (our Postmaster General) announced last week that there will not be an exigent rate increase for the Market Dominant products that are normally adjusted in May. Normally these products that you know as First Class Mail, Standard Mail, Periodicals and single piece Parcel Post have their prices adjusted by an amount that does not exceed the increase in the national CPI. In extreme or “exigent” circumstances the Post Office can still increase the rates beyond the CPI. You could certainly argue that the USPS has a good case to do so with tremendous year over year declines in mail volumes and financial losses.
Mr. Potter puts forth his reasoning quite eloquently: “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.”

Postal Fun Facts

2009-06-05T09:48:00.000-07:00

Everyone needs alittle fun fact here and there. Did You Know that the Postal Service...
* Contrary to popular belief, the United States Post Office has no official motto. However, a number of postal buildings contain inscriptions, the most familiar of which appear on postal buildings in New York City and Washington D.C. General Post Office, New York City, 8th Avenue and 33rd. Street. "Neither snow nor rain nor gloom of night stays these couriers from the swift completion of their appointed rounds." This inscription was supplied by William Mitchell Kendall of the firm of McKim, Mead & White, The Architects who designed the New York General Post Office. Kendall said the sentence appears in the works of Herodotus and describes the expeditions of the Greeks against the Persians under Cyrus, about 500 B.C. The Persians operated a system of mounted postal couriers, and the sentence decribes the fidelity with which their work was done.
* Handles more than 43% of the world's mail. It's nearest competitor is Japan with only 6%. * Depends exclusively on postage and fees rather than tax payer revenue for it's operations.
* Serves more than 8 million small business customers.
* Operates the nations largest alternate fuel delivery fleet with more than 7,000 vehicles powered by natural gas, electridity, and ethanol in 1996.
* The postal service is listed by Fortune Magazine as 29th on a list of the world's largest companies. Working with an annual budget of nearly 1% of the United States economy.
* Recycles more than one million tons of materials annually. * Handles more than 41 million change-of-address cards each year as a free service to the 17% of the nation's population that moves each year.
* Serves as the largest credit/debit card acceptor in the nation with nearly 50,000 terminals at 33,000 postal locations throughout the country. * Experiences an increase of one million dollars in costs when the price of gasoline increases by one cent nationwide.
* Delivers more in one day than FedEx does in a year, and more in three days than UPS does in a year.
Posting courtesy of Roseanne Capaccio
Project Manager at fmi direct inc.

New Ruling for "Self-Mailers" - Tabbing Pays Big!

2009-04-30T16:15:00.000-07:00

For the last few years the P.O. has not given much of a financial incentive for "Self-Mailers" to Tab, they could simply mail at the "Non Automation" (Machinable) rate and pay a measly $.003 more. Effective May 11, Self Mailers that don't tab or otherwise seal their pieces must mail at the "Non-Machinable" rate and the difference is $.238 (based upon AADC sort) EACH piece! The Non Profit savings/penalty is the same. It now won't take much volume to justify an automatic Tabbing Machine and Bulk Mail software. As little as 1070 pieces (AADC) per month will pay for the investment based upon a 3 year lease of a Hasler HT 12 Tabber and Satori Bulk Mailer 5 Standard software. (If your mailing list is not concentrated to a particular area, Mixed AADC, the savings are even greater)

There are new Tabbing requirements for Booklets that will be effective Sept 8, 2009. The main difference between a Booklet and a Self Mailer is that Booklets are "Perfect Bound" or "Stapled". Link to the new requirements at the end of this Post.

Here is the ruling that came out today from the DMM Advisory:

May 11 Pricing Change – First-Class Mail and Standard Mail Machinable Letters

We are changing the mail preparation standards for First-Class Mail and Standard Mail machinable letters as published in the January 29 Federal Register. Beginning May 11, machinable letters must meet all of the standards for automation letters, except for the barcode requirement. This change will enable us to process more machinable mail on automated letter sorting machines, especially unenveloped pieces like booklets and folded self-mailers. When these pieces lack adequate tabs or seals they frequently become damaged or jam the letter-sorting equipment.

Our changes include the following:
All folded self-mailers and booklets mailed at the machinable prices must be sealed with tabs, tape, glue spots, or glue lines. Follow the tabbing instructions in Quick Service Guide 201b, Using Tabs, Wafer Seals, and Glue Spots.
The maximum weight for machinable and automation letter-size booklets and folded self-mailers is 3 ounces.
Letters closed with staples and letters without closures are nonmachinable and eligible only for the nonmachinable prices.

On September 8, 2009, new tabbing and construction standards for machinable and automation letter-size booklets become effective. To learn more about the new standards, visit Postal Explorer and click on “Federal Register Notices.” Scroll down to the notice titled, “New Standards for Letter-Sized Booklets.”

Penalty for Move Update Enforcement Delayed

2009-04-03T12:02:00.001-07:00

The Post Office has bowed to pressure from consumers and acknowledges that they are not yet ready to enforce the penalties for Standard Mailer compliance with the Move Update requirement. The $.07 penalty will be implemented on January 4, 2010. Check out this posting for complete info: http://postalnewsyoucanuse.blogspot.com/2009/02/confusion-and-fear-re-imb-and-move.html

First-of-Its-Kind Production Postage Printing Solution

2009-03-24T11:10:00.000-07:00

Neopost / Hasler Introduces First-of-Its-Kind Production Postage Printing Solution. Innovative, High-Speed System Prints Postage Directly Onto Documents. Introducing the new PE-150, a “direct onto documents” Production Postage Printing solution. The PE-150 is a unique, high-speed metering system that literally transforms mailing procedures by applying postage and the Intelligent Mail® Barcode (IMB) directly onto letters and documents after the file has been created. The resulting postage can be displayed either through the address window or an extended return address window.
Designed for production mailing environments, the new postage printing system delivers a significant increase in productivity. It moves mail into the mailstream faster and more efficiently by eliminating conventional time-consuming metering, typically a sequential step in the mailing process. Installed as an optional software module within a mail output management solution, the PE-150 delivers improved reliability and cost savings by eliminating the use of traditional equipment and the associated operating and supplies costs, as well as any spoiled postage.
The advanced technology of the PE-150 offers an industry first: adding postage that includes an Information Based Indicia (IBI) with mailing date, and an IMB to a document print file. All of these components result in the highest level of mail security, a consistently professional “metered” look for mailing documents and a reliable alternative to permit mail or traditional metering. The system is able to co-mingle jobs for better presort discounts, and combine postage and the IMB printing for sorting, tracking and USPS® compliance.
The PE-150 Production Postage Printing Solution is the perfect technology for those with printing requirements up to 10,000 documents/hour. The PE-150 eliminates speed limitations between the mailing machine and folder/inserter, allowing maximum throughput of the folder/inserter to be realized. It is an extremely cost-effective alternative for transaction mailers, commercial print and fulfillment houses, third-party mailers, mailers with print and insert functions, and mailers who perform mixed weight processing.

Has the whole world gone Postal?

2009-03-19T09:46:00.000-07:00

Some days it feels that way, with the fear that is gripping Main Street and Wall Street. Trying to make the best of this challenging environment is hard. In the mailing world it is a lot more complicated. Some of the recent proposed USPS changes have made me question my sanity and that of the Post Office. To put these issues in perspective lets take a short stroll down memory lane.

In 2007 our world was turned upside down with the roll-out of Shape Based Pricing in May and just a few short months later the DPV (Delivery Point Validation) requirement for CASS produced mailings for Automation discounts came and went. Intelligent Mail Barcode was beginning to appear on our radar screens as 2008 got closer.

Right as the country was entering this economic downturn in the Fall of 2007, here in San Diego, we faced another terrible firestorm causing the evacuation of a half million people with over 1000 homes and many lives lost. But we pressed on, as the bad news continued to roll in with the New Year. Businesses were focused on doing more with less, looking for maximum value from their mail and we were there to help.

Saving money thru automation of labor intensive processes was one way we saved company’s time and money. By improving their address quality and document integrity we helped them maximize the value proposition that mail provides.

Oh, but it didn’t end there! 2008 saw the introduction of “Commercial” rate discounts for Priority and Express Mail. Another Rate Change in May and new requirements for “Move Update” compliance was implemented in November 2008. Just when we thought we could relax for the holidays, a shift in USPS rate change strategy was announced for competitive products like Priority and Express Mail to be adjusted in January along with FedEx and UPS.

Pressing on, we started 2009 completing the largest January rate change ever when the Postal Gods proposed sweeping changes to how Self Mailers and Booklets were to be prepared (these were mostly all subsequently dropped). Before we even finished digesting this postal gut buster another announcement from the great and powerful wizard behind the curtain, the window location on letter mail must change (thankfully, that only lasted a couple days and the initiative was dropped).

So all is OK now? You wish. There are new address placement guidelines for Flat Mail and we have enforcement of the Move Update requirement in May. Oh and don’t forget we have another Postal rate change On May 11th, get used to them. Speaking of multiple rate changes, our newest systems generally include rate changes at no extra charge, use less ink and are compliant to earn the new discounted Commercial rates.

Just announced - the long anticipated discount for “Full Service IMB” is going to be… Are you sitting down, drum roll please…. $.003 for Automation First Class Mail and $.001 for Automation Standard…yawn. OK so the money may not motivate you, but the value proposition of tracking the mail and keeping addresses current should. Another bonus of Full Service IMB will keep the marketing folks happy with all the extra real estate on the mail piece.

Denying or ignoring these new Postal realities will not make them go away. There are ways to reduce your postal spend, improve your mail’s performance while staying compliant. Use SD Postal as a postal knowledge resource, our sales and service staff is up on this stuff, all are MQC (Mail Quality Control Specialists) certified and they are here to help you find solutions to the world gone Postal.

PCC Education Series

2009-02-19T15:52:00.000-08:00

San Diego Postal is proud to host the following sessions from the San Diego Postal Customer Council:

April 22, 2009 10:00 am to Noon

Managing a Growing Mail Center

Gordon Glazer, CMDSM, CMDSS, MQC,

President

S.D. Postal & Shipping Equipment

This NPF hit session is jam packed with useful ideas and guidelines to better Manage your Growing Mail Center. Covered Topics include: Resources, Postal Compliance, Tips to improve Mail Performance, Latest must know technology, Performance Benchmarks, Product cycle speeds vs. Reality, Cost Savings analysis, Payback vs. ROI calculations, and also covers Mail Center design tips and techniques.

May 13, 2009 10:00 am to Noon

Address Hygiene and List Optimization

Arnie Cohen and Dan Anglin, Modern Postcard

What's the most important element in your direct mail effort? It's the mailing list - because it doesn't matter how irresistible your offer, or how great your creative sells - if you are not in the right mailboxes, your direct mail will fail. Also, make sure your mailpiece is being delivered. If you have not performed Address Hygiene on your mailing list you could be throwing money away. In this session, you'll learn:
Selecting the right list for you.
The critical difference between acquisitions versus retention based data use.
What list hygiene & file enhancement options.
NCOA, ACS, Move Update etc.
Prospect list rental processes and procedures.
What kinds of lists are available?
How to really understand the information on a list rental "data card"
Web based list rental access.
Managing the inevitable scenario of undeliverable mail.
Proper communication and recommendations to those that want "off your list".

June 10, 2009 10:00 am to Noon

Mail Automation Made Easy Using Desktop Software

Gordon Glazer, CMDSM, CMDSS, MQC,

President

S.D. Postal & Shipping Equipment

This session covers both Mail Management Software (Data Management, Address Quality, Presort and Output) and Business Automation Software for 3rd Party Mailers (Estimating, Work Orders, Inventory Tracking, Scheduling, Benchmarking, Profit Analysis and tie into Accounting)Automation Mailings can be a real puzzle without desktop mailing software. It will compare techniques to perform these steps as a stand alone product or integrated into your host application. Common software features are explored so you can decide what is most important for your operation.

July 15 10:00 am to Noon

Non Profit

Jim Elliott
In order to succeed non-profits need to recruit, maintain and grow donors. This seminar will give you tools to find new donors and grow them into substantial ones. We will cover lists, copy, art, production and timing, Join us July 15. Become more successful with your direct mail.

August 19, 2009 10:00 am to Noon

Mailpiece Design

Paula Bigornia,

Mailpiece Design Analyst US Postal Service

Before you put the finishing touches on your direct mail project or send your file to the printer, stop to consider whether your finished piece will meet US Postal Service requirements for automated mail. Better yet, start with the requirements in mind before you miss a key element that could cost you big dollars or a big headache. Paula Bigornia will cover the design requirements for automation mailings, including the new Intelligent Mail Barcode.

October 14, 2009 (All day event) 9:00am to 4:30pm

Lunch included

$50.00

Mailpiece Quality Control (MQC) Program (test involved for certification)

Gordon Glazer, CMDSM, CMDSS, MQC, President S.D. Postal & Shipping Equipment

The Mailpiece Quality Control (MQC) Specialist Certification is a USPS sanctioned certification good for 2 years, it consists of an easy to read study guide with review questions. The test itself is Open Book and you will have multiple chances to submit and pass by the end of the day. Participants should review the Study Guide prior to session date and should bring their own laptop as we will take portions of the test by section. Includes the NPF hit session: "Qualifying and Producing Automation Standard and Presorted First Class Mail". Participants that complete the class should come away with a good understanding on how to do Automation Mailings with a firm understanding of the rules and proper use of USPS templates.

Complete any 6 sessions and receive certificate from US Postal Service Headquarters. (Does not include MQC)

1 session $25.00 Any 6 sessions $125.00 (for certificate) (Does not include MQC)

5 registrations from the same company for the same session $100.00

To register click HereSDPCC Educational Series
Or Contact: Angela Lopez

Phone (858) 577-3561 Fax (858) 577-3551

mailto:angela.m.lopez@usps.gov

How to NOT make your mail look like junk!

2009-02-19T10:18:00.000-08:00

Mail has value. For the most part people realize that the sender spent money to put their message in front of them. Because time is so precious, the recipient of your mail piece may only spend about 3 seconds to make a decision to open or toss it.

A well designed mail piece can be very effective - regardless of how much it cost to get it there. Now I am not proposing that you convert all of your mail to Standard Mail, some mail may need to go First Class either because of content, timeliness, or not having at least 200 identical pieces. Over 17% of what is sent First Class today can be converted to “Automated” Standard Mail or what used to be called “Bulk Mail”

Mail in the Real World. When someone goes thru their mail, pieces that the recipient considers junk are quickly culled out – ok, thrown away. Your goal as a mailer is to minimize the number of your marketing pieces that end up in the trash. Do I have your interest? Good. The trick is to first avoid the pitfalls that can make your mail appear dumpster worthy. The other is to make sure that the envelope conveys a reason to open. Below is one of my favorite examples of a company doing everything right.

For purposes of this article I am going to be talking about envelopes, but before I do, it is important to realize that “Self Mailers” (newsletters, flyers etc) and “Post Cards” are “already opened” and the recipient doesn’t need to make a decision to risk a paper cut to see what is inside. So for those types of mail, it generally doesn’t matter how it was addressed or what form of postage was used.

For envelopes however, the method of postage is critical. There are 3 choices:

Preprinted Indicia is a favorite of many because it can be printed at little to no cost but it conveys a message of “Junk Mail”. I think that its use has its place on some envelopes, especially on pieces that are expected or welcomed because of the return address, or if the look or nature of the piece compels them to open it regardless.

Stamped mail should be used primarily in consumer to consumer appeals, Invitation style mailings for example. Be aware that because mailings submitted thru the Bulk Mail Entry Unit (BMEU) don’t need to be faced and cancelled, that stamp will arrive as a virgin, naked without the cancellation. Many recognize this instantly as “Junk Mail”. Did you know that you are allowed to cancel your own stamps using the Mailers Postmark? It is a very effective tool that will fool even a seasoned mail chucker. Stamps on business mail screams out – “I am a small time business that can’t afford a meter”. Is that the impression you want? Here are 2 examples of Stamped Invitations

Metered Mail shows that the mailpiece is an official piece of business mail. It clearly shows that money was spent to get it to them and demonstrates value. Even the Post Office is routinely fooled, as “non endorsed” Standard Mail is frequently returned for free, as if it were First Class. It simply looks like First Class and folks don’t tend to notice that the amount paid was about half the cost of a First Class stamp.

Other Pitfalls:
Duplicate Pieces – Receiving more than one of the same piece conveys a negative message:

1. Material and Postage waste.

2. Obvious lack of attention. And the killer ~

3. “This must be Junk Mail” realization.

Take the time to de-dupe your list as part of the address cleansing process: CASS (now includes DPV and LACS Link) – now all of the addresses will be standardized making finding duplicates easier.
De-Dupe – Try several passes eliminating the most obvious ones first using a fine/exact match criteria, then try less fine/exact screen and manually step thru the matched groups to make sure the software is doing what you expect before processing entire group.

Process your list thru an NCOA service like Move Update – at least every 3 months.

**********************AUTOCR**C-047

Optional Endorsement Lines – Get rid of the Junk. Carrier Route Standard Mail requires them on every piece, but Automation Standard doesn’t. You really only need them on the first piece of a “package” or “tray” and only on AADC or Mixed AADC. It is one more “flag” you can remove to not make your mail look like Junk. Mail Houses use them to sort by, but with a little bit of practice you can sort by “package” (“bundle”) marks and “tray” marks. These can be placed anywhere in any sized font and are rarely noticed by the novice. I like them on the edge so when sorting you can easily catch the break while flipping thru a handful. “Break marks” are another way to sort without using endorsement lines. Many pieces of processing equipment can be programmed to recognize these marks and create sortation breaks on the collection belt or pause the printer.

Ancillary Service Endorsements – Are an excellent way to help keep your list up to date. Make sure you choose the right one for the class of mail you are using. Choosing the wrong one reminds me of “Indiana Jones and the Last Crusade” and his “Search for the Holy Grail” when the old knight says “He chose poorly” and the guy turns to dust. I have heard first hand of examples of choosing poorly that cost the company hundreds of thousands of dollars.

No reason to open – Give them a reason to open! Unless the reason is pure mystery, (which won’t work well for you in the long term) the envelope needs to be your messenger. Think of the outside of the envelope as a canvas. Certain areas are required for the address, return address, Barcode Clear Zone and postage, the rest is limited only by your imagination as even the required elements have flexibility on size and placement.

Best Practices
Test different message lines or appeals (test only one element at a time) and gauge the results. Test mail to a small portion of your list before committing to a huge mailing campaign and fine tune as needed to achieve the desired results.

Use the Right List – This is probably self evident but needs mentioning. If you are trying to sell Air Conditioners, maybe your best list shouldn’t contain the demographics of Eskimos.

Use Variable Data – The use of Variable data can dramatically improves results – as much as 500%.

It can be as simple as customizing the offer message on the envelope or you can try some more sophisticated methods like: Print the variable data on RPN(s) Repositionable Notes to give your piece a stand out appeal. Try using PURLS (Personalized URLs) to gain the marketing power of the internet combined with the targeting strength of direct mail and see the results in real time.

Learn from your mailbox - I consider myself a student of this industry because there is always more to learn. The mail I receive at home and at work is one of the best teachers! There is so much you can learn from looking at the work of others. Examine how it was addressed – What kind of printer did they use, what type of postage, if it was a stamp – was it cancelled. Did they use an optional endorsement line, planet code, ACS line, Intelligent Barcode, Sortation #, package mark, tray mark, break mark or Ancillary Endorsement? What was the marketing appeal? Was there a message or tag line to make the recipient want to open it?

In my office I have kept hundreds of examples: “The Good, The Bad and The Ugly”, everyone a teacher. Marketing via the mail can be a science it can also be extremely successful with doing just a few things right, but you will never know if the envelope is thrown away.

Confusion and Fear re: IMB and Move Update

2009-02-18T11:05:00.000-08:00

Still confused about the Move Update requirement? Wondering what the consequences for not complying might be? Do you have lingering questions about the IMB deadlines? This article will attempt to remove the confusion and fear that is gripping many over the Move Update requirement and the USPS Intelligent Mail Barcode rollout.
Move Update:
Think of it like your Mom or Dad telling you to eat your vegetables, you may not want to eat them, but you now realize that they are good for you. It’s the same thing here! Move Update is the requirement that forces mailers of Automation Standard and Presorted/Automation First Class Mail™ to do something to make sure that your address lists are up to date when you mail.
Why?
• Costs the USPS 2 Billion /Yr to Return/Dispose of Undeliverable mail
• 17% of Consumers and Businesses move every year – 45 Million!
• 24% of all mail have some kind of address problem
• 2.72% of mail is never delivered
• 17% of all mail is delayed
Or, to put this into hard numbers:
• 10 Billion Pieces are affected each year.
• 1.6 Billion are Returned
• 1.985 billion are Forwarded
• 6.0 Billion are Discarded
OK – So how do I comply?
For most of us, the easiest way is to use an NCOA-Link product that will satisfy it quickly and easily. Most Mail management software packages have a NCOA-link solution. For our Satori Bulk Mailer customers, when they run their lists thru this process, it actually does 5 things to improve the deliverability, all without the hassle of exporting and re-importing the data. With Mailroom Toolkit, it takes place right within our customer’s “Host Application”.
Satori’s “Move Update” features:
CASS – 1st step to break the address down to its component parts, Standardizes and corrects the Physical part of the address to USPS specifications
DPV – Delivery Point Validation – Further corrects the address to the actual delivery point and reports back if the secondary address info (Suite #, Unit #, Apt #) is accurate, missing or wrong.
LACS- Link – Changes old Rural Routes into physical delivery address –Helps emergency service providers locate rural addresses.
Suite-Link – Adds or changes Secondary address information for Businesses – (Suite #, Unit #)
Move Update – Fixes the Personal portion of the address by changing the addresses based upon moves registered with the USPS. Satori is a full service NCOA Provider and will update registered move data up to 48 months old.

Are there other ways I can satisfy the Move Update requirement?
Yes, there are “Post-Mailing” methods such as using Ancillary Service Endorsements, ACS, or One Code ACS (IMB). All of these Post Mailing methods require that the list has gone thru some other “Pre-Mailing” method within 95 days of the mailing, and then you can use these “Post-Mailing” methods to keep the list current. Another “Pre-Mailing” method is to first mail the list at full First Class with an approved Ancillary Service Endorsement.
Using Alternative Address Formats like “Current Resident/Occupant” are exempt, but not very personal. If the data came directly to you within 95 days of the mailing, like thru your call center, BRM or web site, those addresses would be OK.
If you are using a Presort service, they offer a service called Fast-Forward that can apply the DPBC and forwarding address while co-mingling your mail allowing you some presort savings. The drawback is that the information is applied after your mail piece has been created so the corrected information doesn’t update your records.
Is there a way for me to take advantage of Better Address Quality without big changes to our I.T. processes?
Yes Document Control Software, by Hasler (DCS), can capture your Print Image Files and manipulate them prior to printing. It is mind boggling to see all of the things DCS can be designed to do. Not only can DCS improve address quality but it can merge multiple print streams, change background overlays, add OMR marks for automation processing by a Folder Inserter, add the postage Indicia into the address block and can even include Mail Piece Verification to ensure that every piece makes it into the mailstream.
What are the consequences for not complying with Move Update?
When you sign the 3602 Mailing statement acknowledges that … “who omits information requested on this form may be subject to criminal and/or civil penalties, including fines and imprisonment.” At the least, you will be required to pay $.07 for every piece in the mailing for Standard and the entire discount is forfeit for First Class mailers. As of April 1, 2009, the Post Office has bowed to pressure from consumers and acknowledges that they are not yet ready to enforce the penalties for Standard Mailer compliance with the Move Update requirement. The $.07 penalty will be implemented on January 4, 2010.
What are the chances of getting caught?
It is getting easier all the time for the USPS to catch this as their focus is absolutely on reducing costs. UAA (Undeliverable as Addressed) and FOE (Forwarding Order has Expired) mail are the biggest areas they have identified to save money. The mail today is becoming “Intelligent” with mailer identification embedded in the IMB (intelligent Mail Barcode) and IBIP (Information Based Indicia Program) meter indicia (All Phase 6 meters) it won’t be hard to find or account for as computers will do the hard work.
What about the IMB (Intelligent Mail Barcode) Mandate?
The deadline for IMB implementation was rolled back to May 2009 with two years for mailers to conform. This means that you do not have to change until May 2011. There are plenty of reasons to implement IMB now to take advantage of the new features IMB makes available.

What is the discount going to be for using IMB?
For Full Service IMB there is a $.003 per piece reduction for (Discounted) First Class Mail and $.001 for Standard. “Basic IMB” and DPBC share the same rate. The clear reason to make this change will be for “business reasons”, not postage savings!
The “business reasons” to implement IMB are many:
• More room on the mail piece to do other things as the IMB replaces the DPBC, Planet Codes, and most Optional Endorsement Lines.
• Tracking of the mail thru “One Code Confirm”
• Updating of the Address Quality thru “One Code ACS” (Electronic Address Correction Service – a “post-mailing” method of satisfying the Move Update requirement)
• For Full Service IMB customers, less time at the BMEU, all paperwork is sent electronically and the mailing will be verified as it is being processed.
• Improved USPS performance and tracking with Full Service IMB as “Start the Clock” performance measurements will change from just sampling the mail to a broad spectrum of real world statistics that will help the USPS improve their delivery times for all classes of mail.
As a mailer you have a choice of whether to stay with the older DPBC until May 2011 or you can easily implement the “Basic IMB” to get the normal Automation discounts. For larger and more sophisticated mailers – Full Service IMB offers some great rewards. Mailer’s should know that effective with the May 2009 rate change, you don’t have to go “Full Service” to get One Code ACS or One Code Confirm, you can do this with the Basic IMB option! You will also be able to incorporate Ancillary Service Endorsements and Optional Endorsement lines and the height of the new IMB can be made as small as the current DPBC (.125”).
So even though the IMB monetary savings may not drive you to change, the business reasons should and it will be good to have your processes in place before the deadline. Combine IMB with Move Update and your mailing performance will improve, just like a healthy body that eats right and exercises should.
Hopefully this has diminished your fears and confusion regarding IMB and the Move Update requirement, so eat your vegetables, they’re good for you!