Mailers Perplexed by USPS Decision to Move Forward on Postal exigency Request
Filed under: mailers, postal, postal news, rate increase, usps
The following has been sent by the Alliance of Nonprofit Mailers, the Association for Postal Commerce, the Direct Marketing Association, and the Association of Magazine Media to the Postmaster General of the United States regarding the Postal Service’s decision to move forward with a postal exigency request.
We are perplexed. In your presentations to the mailing community in recent months, we have heard you say repeatedly that you do not want an exigent price increase; an exigent increase will not occur; and mailers should budget for 2012 price increases at the CPI level, because a larger increase would be self-defeating due to its negative effects on mail volume. Simultaneously, however, the Postal Service has continued to file pleadings and signed statements with the Postal Regulatory Commission in Docket No. R2010-4 claiming that the Service still seeks a $2.3 billion exigent increase.
Under the current circumstances, the only prudent course for mailers is to assume that the Postal Service is still seeking Commission approval of an exigent rate increase in this docket, and that an increase approved by the Commission may very well be implemented by the Board of Governors. As long as the Postal Service’s exigent increase request remains in active litigation, the Commission must consider the request and issue a decision on it. Moreover, if the Commission ultimately authorizes any part of the requested increase, any portion of the authorized increase not implemented by the Postal Service could still end up as banked rate authority—rate authority that would force your customers to plan for above-CPI postage increases for the next five years, and adjust their mailing plans accordingly.
For these reasons, the mailing industry must continue to oppose the exigent rate request as long as it remains pending before the Commission. The resulting litigation will force both the Postal Service and the mailing community to divert precious time, energy, and resources to litigating an increase that you profess not to want – time, energy, and resources that would be far better deployed constructively collaborating to solve the Postal Service’s financial problems and pushing for Congressional action in our common interest. Further, the continuing pendency of this litigation—and the mere possibility that mailers may face an above-CPI rate increase in 2012 or 2013—has cast a pall of uncertainty over the industry’s budgeting and mailing plans. This business uncertainty almost certainly will cost the Postal Service mail volume and revenue.
These harmful consequences can be easily avoided. If you do not want an exigent increase and you do not want mailers to plan for one, withdraw the case. Actions speak louder than words.
Unless and until the Postal Service publicly withdraws its formal request for Commission approval of exigent rate increases, mailers must assume that the Postal Service is serious about seeking them. For the good of the Postal Service and the mailing community, we urge you to pull the exigent request.
source: PostCom.org
Postal Service to integrate with PayPal in October, launch TV campaign this month
From Direct Marketing news
The U.S. Postal Service will let consumers make purchases on USPS.com with PayPal beginning next month. The organization will also streamline users’ site accounts into one umbrella login and make site pages available in Chinese and Spanish, said USPS spokesperson Patricia Licata. The USPS will also launch a TV ad campaign on Sept. 24 to promote its First-Class mail products.The campaign will also include direct mail, Web banners, print ads and social-media components that will drive consumers to USPS.com/mail.
Full story from DM News
DMA Applauds Postal Service’s New Cost-Cutting Proposals
Filed under: mailers, postal, postal news, press releases, usps
Press Release from the Direct Marketing Association
August 12, 2011 – The Direct Marketing Association (DMA) applauds Postmaster General Patrick R. Donahoe for proposing new cost-cutting ideas for the US Postal Service (USPS) for Congress and the postal community to examine. To return to financial stability, the Postal Service has stated that it is seeking legislative changes to allow for network and workforce adjustments.
The Postal Service faces imminent insolvency due to declining mail volume. Insolvency of the USPS will harm the $1 trillion “mail” segment of our nation’s economy and the millions of jobs it supports. Mailers can no longer fund the excess capacity in the USPS network and its corresponding employee complement through postage. USPS must right-size its network to match the new reality of lower mail volume.
“Every effort to bring the postal service back from the brink of insolvency must be examined,” said Jerry Cerasale, DMA’s senior vice president of government affairs. “We applaud the Postmaster General for expanding that dialogue.”
Editorial Response: Issa-Ross Bill Would Hurt Nonprofits, Says DMA
August 2, 2011 — In response to an editorial published July 28 by the Washington Post entitled, “A Better Route for USPS,” the Direct Marketing Association (DMA) comments: The editorial, “A Better Route for USPS,” supporting the postal legislation introduced by Representatives Issa and Ross, correctly highlights the financial situation facing the US Postal Service (USPS) is much worse than most Americans and legislators realize.
The editorial correctly states that USPS must downsize its network, employee complement, and cost structure to meet the reality of lower mail volume. Mailers cannot afford to fund excess capacity through their postage. Every potential solution must be on the table, including the provisions of the Issa-Ross bill and the $50+ billion pension overpayment mailers have paid as found by the Postal Regulatory Commission and USPS Inspector General.
The editorial did not mention the provision concerning mail sent by nonprofit organizations. The bill would decrease significantly the nonprofit preferred rate differential, which is not taxpayer supported. The result would be a dramatic and unsustainable postage increase for many nonprofits at a time when charities are being called upon to increase their efforts to provide a safety net throughout America and the world. Most of the donations that these charities receive come via the USPS. We hope that this provision is one of the bill’s imperfections and not one the Post endorses.
National Association of Presort Mailers Hires Retired USPS Manager as Executive Director
Filed under: mailers, postal, postal managers, postal news, press releases, usps
The National Association of Presort Mailers announced today that Robert Galaher has accepted the position of Executive Director for the association starting August 1, 2011. Bob recently retired from the United States Postal Service after 37 years of dedicated service. Bob has always been a change agent for the Postal Service. Starting out as distribution clerk, Bob moved up the ranks to Manager of Business Mail Acceptance, where he was responsible for the oversight of the national acceptance network processing approximately 12 million mailings yearly with $36 billion in annual revenue. Most recently Bob worked as Manager of Special Projects responsible for developing a plan to identify business and technical solutions to modernize the mail acceptance process, and develop a strategic vision and tactical roadmap for the Mail Entry and Payment Technology organization.
Rich Gebbie, President of NAPM said “Bob brings an invaluable set of skills and experience with business mail acceptance along with a real passion. Bob’s knowledge and experience will be a great asset as NAPM continues to work actively with the USPS and the mailing industry to develop a new intelligent Streamlined Acceptance process.”
The current NAPM Executive Director Joel Thomas will be retiring after many years of dedicated service. Rich said “NAPM thanks Joel for his leadership and guidance and we wish him the best in the years to come.”
source: National Association of Presort Mailers
Sen. Carper Statement on Rep. Issa’s Postal Reform Act
WASHINGTON – Today, Sen. Tom Carper (D-Del.), Chairman of the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, released a statement in response to the introduction of the Postal Reform Act by Rep. Darrell Issa (R-Calif.), Chairman of the House Committee on Oversight and Government Reform. Sen. Carper introduced the Postal Operations Sustainment and Transformation (POST) Act last month.
“While I welcome Congressman Issa’s interest in finding solutions to the Postal Service’s serious financial challenges, I, unfortunately, have deep concerns about the approach taken in the legislation put forward today,” said Sen. Carper. “This bill appears to assume that the Postal Service will undergo a complete financial collapse in the coming months. Instead of preventing a catastrophic collapse from happening, this bill would abdicate responsibility for cleaning up what would be a colossal financial disaster both for the Postal Service and the broader economy to a newly-created government entity. This is unacceptable. No practical solution for the Postal Services’ serious financial woes should allow them to go belly up and jeopardize our fragile economic recovery, along with the jobs of some 7 million employees in the mailing industry who depend on a healthy Postal Service.
“We know what needs to happen to put the Postal Service on the right path. Congress just needs to have the courage to do what is necessary to make that happen. Namely, Congress needs to stop acting like a 535-member Board of Directors – each protecting their individual parochial prerogatives – and finally give the Postal Service the freedom and flexibility we always say they should have to make the tough, but necessary, businesses decisions needed to survive and even thrive in the long term. We are just beginning the process of finding a legislative solution to the Postal Service’s problems, but we must act quickly to address this dire situation. I look forward to working with Congressman Issa and Senator Collins to find common ground on this issue.”
USPS offers marketers discount with mobile barcode promotion
Mobile Barcodes Help Direct Mailers Enter the Age of Interactive Mail
WASHINGTON —To help propel the mailing industry into the age of mobile interactivity, the U.S. Postal Service today announced a promotion designed to complement the enduring ability of direct mail to target customers and deliver results for marketers.
During July and August, the Postal Service will offer a Mobile Barcode Promotion that rewards mailers launching campaigns incorporating two-dimensional, smartphone-friendly barcodes with an upfront 3 percent postage discount on qualifying Standard and First-Class Mail letters, flats or cards.
Customers receiving these special mailpieces will be able to use smartphones to scan Quick Response (QR) barcodes to obtain more information or qualify for additional offers posted on mobile-enabled websites.
“This promotion is another step in our long-term strategy to ensure mail remains relevant as a key element in the overall advertising mix for an increasingly interactive marketplace,” said Tom Foti, manager, Marketing Mail. “By creating a promotion for placing mobile barcodes on mailpieces, we’re providing marketers with a compelling way to reach an internet-savvy customer base.”
Foti says the two-month Mobile Barcode Promotion marks the first mailing industry promotion based on a multimedia approach, and is designed to demonstrate how the value of mail is increased by interfacing with technology to engage customers.
“Consumers have become more comfortable with digital devices and online technologies, and the industry should consider incorporating elements that reflect these trends into direct mail campaigns,” says Foti.
The Mobile Barcode Promotion is open to mailers — including non-profit mailers — who submit qualifying First-Class or Standard Mail letters, flats or cards electronically using a permit imprint payment method. All mailpieces must include a mobile two-dimensional barcode on the outside of the mailpiece or within the mailpiece. The marketing information relayed in the mobile barcode must be relevant to the contents of the mailpiece. A separate postage statement is required for all mailpieces with mobile barcodes. Complete details can be found online at delivermagazine.com/mobilebarcodepromotion/.
House Subcommittee holds hearing on mailing industry May 12
The House Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy has scheduled a hearing entitled “Where Have All The Letters Gone? – The Mailing Industry And Its Future” at 9:30am Thursday May 12, in room 2247 of Rayburn House Office Building.
Witnesses
Dave Riebe
President of Logistics and Distribution
Quad/Graphics
Jerry Cerasale
Senior Vice President, Government Affairs
Direct Marketing Association
Rob Melton
Vice President of Specialty Paper
Domtar
Todd Haycock
Director, Postal Services
3i Infotech, North America
Postal Service Offers Big Savings in Small Package Shipping
Filed under: mailers, postal, postal news, press releases, usps
New Regional Ground Service for Commercial Shippers
WASHINGTON — Commercial shippers seeking an economical solution for delivery of small packages now have a new service available from the U.S. Postal Service. Introduced April 17, Parcel Select Regional Ground offers competitive pricing for high-volume business-to-consumer shippers. With an attractive value proposition for delivery of small packages within short-range destinations, Parcel Select Regional Ground can provide big savings for qualified commercial shippers.
“This new service is designed as a solution for e-commerce merchants looking to boost sales by offering free or discounted shipping charges for online purchases,” said Gary Reblin, vice president, Domestic Products. “It has tremendous appeal for commercial shippers requiring a cost-effective ground service for delivery of packages over shorter distances.”
Shippers choosing Parcel Select Regional Ground must have a customer commitment agreement with the Postal Service and meet annual volume commitments of 10,000 mailpieces. Mailpieces must weigh 5 pounds or less and measure 0.35 cubic foot or less. Packages must be machinable and use an Intelligent Mail package barcode or Confirmation Services barcode.
Delivery Confirmation service is included at no additional cost. Insurance, Signature Confirmation and Hold For Pickup services also are available.
Pricing is based on entry at designated Postal Service Sectional Center Facilities or Network Distribution Centers . Parcel Select Regional Ground is available for commercial customers who use electronic manifesting and pay postage through permit imprint.
Additional details and pricing for Parcel Select Regional Ground are available at usps.com/parcelselectregionalground. Commercial customers also can contact their Postal Service account manager or the Office of Commercial Pricing at commercialpricing@usps.gov.
USPS To Test Postage-Back Guarantee For Top Advertisers Direct Mail Campaigns
USPS filed on Friday a notice to the Postal Regulatory Commission to test market “Mail Works Guarantee”.
Her are excerpts from the notice:
The United States Postal Service hereby gives notice that it intends to conduct a test of an experimental market-dominant product. The experimental product is the “Mail Works Guarantee.” The top advertisers in America represent $90 Billion in total expenditures for media advertising. The USPS share is currently 3.1% or about $3 Billion annually which represents a huge revenue potential for the Postal Service. Thus, this new product will be offered to a group of companies who spend a minimum of $250 Million annually on advertising as identified by Advertising Age magazine and for whom mail is not currently a large part of their advertising mix (postage is less than 0.36 percent of the company’s total spending on advertising). These companies will be offered a postage-back guarantee to test advertisements for their products through First-Class Mail and Standard Mail. The market test will begin on or shortly after May 16, 2011.
Description of Nature and Scope of Experimental Product Proposal
During the Mail Works Guarantee market test, 16 initial companies will be offered a postage-back guarantee to test the effectiveness of advertisements for their products using First-Class Mail and Standard Mail.
For each selected mailer, a set of unique metrics will be developed jointly with the Postal Service against which to evaluate the performance of a test Direct Mail campaign. For example, a retail company’s Direct Mail offer could be designed to increase store traffic, an e-commerce company’s offer could be designed to drive Web traffic, or a product goods company’s offer could be designed to promote increasing sales of a specific product. The threshold for determining success will be an agreed-upon percentage of increase in the uniquely established metric. Each participating mailer will be expected to mail a minimum of 500,000 pieces up to a maximum of 1 million pieces of First-Class Mail or Standard Mail. The Postal Service will provide assistance in developing the Direct Mail campaigns during the market test, as well as in the benchmarking and measuring the test metric.
If the Direct Mail campaign fails to meet the established metrics, as verified by a Postal Service representative, the Postal Service would only refund the postage paid during the market test, up to a total of $250,000, issued as a credit to the company’s Centralized Account Payment System account. Production and printing costs for the Direct Mail campaign would not be refundable.
Unlikely Market Disruption The Mail Works Guarantee is intended to generate additional volume from potential customers who do not currently use the mail. The new product will not affect current marketing-mail customers, and non-mail options for advertising also will remain competitive. Because users of the Mail Works Guarantee whose campaigns are successful will pay list prices for current products, the new product is unlikely to cause disruption within the advertising-mail market as these new advertisers will be facing the same terms as existing advertisers. Refunds of postage paid will only be made if a campaign is unsuccessful, in which case, current users of the mail will not have been
harmed.Depending on the results of the test, the Postal Service may file a request with the Commission for approval to offer the Mail Works Guarantee to additional companies under the market test.