You knew it was coming; the postage increase is set for Monday, May 11
First class postage will increase by 2 cents and standard mail will increase an
average of 1 cent.
Prices for mailing services are reviewed annually and adjusted each May.
The average increase by class of mail is at or below the rate of inflation as
measured by the Consumer Price Index.
There is one bright spot, effective Nov. 29, 2009, you will be able to subtract $0.001 for each letter that complies with the requirements for the full-service Intelligent Mail option.
There are additional ways to help alleviate some of the burdens of the postage increase.
Here are three simple ways to improve your marketing results and reduce postage cost:
Maximize your marketing efforts by developing new channels!
- E-mail programs are efficient and cost effective vehicles to reach your target market.
- A pod or video cast on your website is a good way to connect directly to your audience.
Reduce postage cost with our co-mingling program!
- Maximize your postal discounts by joining with others to mail.
E-mail and eliminate responders ahead of your direct mail campaign to reduce your mail cost!
- Maximize campaign efficiency through a multi-media approach.
These programs have worked for others and will work for you! By reducing cost and investing in new channels and programs, you will improve your marketing results and stay ahead of the competition.
Call fmi direct today! We are here to support your business from plan development through execution. Why not call us to review these options and how we can help you grow your business! The number is 215-464-0111, or you can email me at LFormica@fmidm.com.
For a full listing of the new postage rates, click here.
The USPS Delivers on Promise for New Rules on Booklets
Well 2009 will certainly go down as the year for change and I’m not referring to the President. MoveUpdate, Addressing for Flats, Price Increases, IMB Full Service, and New Standards for Letter-Size Booklets are just some of the major changes that have come/are coming from the USPS this year.
The new standards for letter-sized booklets is the latest approved regulation coming from the USPS. These new standards will take effect in May 2009. The final rule has yet to be published in the DMM, but this link will give you a good idea of what it will be.
edocket.access.gpo.gov/2008/pdf/E8-30752.pdf
Basically, if you are mailing anything created from multiple sheets of paper, and folded to a “letter-sized” mail piece then you will be directly affected by these new rules. The size of the finished piece will be limited to 6″ in height and 10.5″ in length. If the folded or bound edge is on the bottom then three (yes 3) 1.5″ Tabs (yes 1.5″ tabs!) will be required to attain automated rates for these pieces. The first 2 tabs must be affixed to leading edge (right hand side) and the last tab must be placed on the top of the trailing edge (left hand side). Oh wait, I almost forgot the best part; these larger tabs must NOT be perforated.
I realize that these new regulations will put some new pressures on designers, production buyers and letter shops, but there may be some good that comes from this. Obviously the USPS is sending the message that they prefer to process envelopes or unfolded cards. Maybe mailers can appease them to a certain extent. Perhaps the catalog you are mailing could be changed into a 6×9 card that pushes the recipient to the web to download your catalog. This would have an immediate impact on printing, shipping and postage costs. Another way to go would be using an envelope for your current booklet. You could use this as an opportunity to deliver some additional marketing material to the customer and potentially increase interest or sales for another event or product.
Please take these new requirements into consideration when designing your next campaign because May is just around the corner and non-compliance could cost you hundreds if not thousands of postage dollars.
Stay tuned for more updates as the winds of postal change continue to blow.
For further information about the new regulations or for advice on how to best redesign your campaign to stay in compliance, please email us atÂ
or
Bad press for the USPS
At a recent PCC meeting I had the pleasure of meeting the new District Manager of Philadelphia, Jim Gallagher. He addressed our group regarding the articles published in the Philadelphia Daily News that alleged some improper handling of mail by the Philadelphia main office. The articles painted a pretty dire picture of the Philadelphia processing facility; alleging that mail was being delayed by weeks, rerouted to other facilities and in some cases being destroyed. Mr. Gallagher stated that the mail is moving just fine and that all of their processing goals are being met for the most part.He suggested that the employees and management simply needed to be refocused and that they had to get back to some fundamentals that may have been overlooked in the daily haste to get the job done. Since he has been in place; the plant has been cleaned up both figuratively and literally. He said that one of his first observations was that there was empty postal equipment that was on the plant floor that should not have been. He also suggested that if someone were counting this empty equipment as part of a total count with containers that had mail, then that could account for a misrepresentation of how much unprocessed mail there could be in the plant. He also stated that he has stressed an increase in communications with all departments and with postal customers. Poor communication could have also been a root cause to some of the problems that the facility has experienced in the past. Essentially his point was that there may have been definite problems, but not to the extent of what was reported by the papers. Even though he expressed a satisfaction with the current performance, he did indicate that there was room for improvement. There is some speculation, not from Mr. Gallagher, that the sources used for these articles were disgruntled union employees who were prodded to speak up by union leaders who were unhappy regarding the moratorium placed on overtime by the Post Office. The crux of these articles was that the Philadelphia facility in particular was suffering because they eliminated overtime, thus causing mail to pile up and not be processed in a timely manner. Mr. Gallagher did say that they were not using any more employees or substantial overtime in order to clean up the operations and keep up with or exceed current delivery standards. He attributes this to the hard work on the employee’s behalf and also enhanced procedures that hold everyone accountable at every level for their performance. As a mailer we seed ourselves in all mailings and have seen a definite increase in delivery times for standard mail that was processed through the Philadelphia facility. Hopefully the bad press and regime change will lead to sustained progress for this particular mail facility.
Are you meeting the new Move Update Standards yet?
As we all know by now (or hopefully we all do) the USPS, as of November 23rd, extended the Move Update standards to include Standard Mail as well First Class Mail. As we discussed in the last “News You Need” (http://blog.fmidm.com/?p=23) there are a variety of options to stay in compliance with these new standards.
What happens if you are not meeting these new standards? First Class Mail customers seeking presorted rates are subject to the single piece prices if found not to be using one of the USPS-approved Move Update methods. For Standard Class customers found to be in noncompliance, the penalty is and additional .07¢ per piece. The USPS has established a transition period for Standard Mail ONLY, which extends until May 2009. At that time the penalty will take effect for any mailing submitted not meeting the Move Update requirements.
How will the USPS validate whether my mail is in compliance? The first check point happens when the postage statement is presented to the USPS. There is a section that lists the different Move Update methods and one of those methods must be checked; depending on which was performed on those addresses contained in the mailing. The next step involves checking a sampling of live addresses from the mailing and verifying that they are not UAA (Undeliverable As Addressed) mail. This process is similar to how they verify mailings currently using MERLIN® and PostalOne®. Mail is scanned and checked for presort accuracy, barcode readability and address placement. Checking for deliverability is jsut one more step. The USPS has not yet disclosed specific details of this process, but Going Postal will certianly let everyone know when they do.
If you are a mailer and have not yet started to implement the necessary steps to stay in compliance, then you must start immediately. Here are some postal links to help with the process:
ribbs.usps.gov (click “Move Updateâ€)
New Move Update Requirements
Don’t risk huge penalties or worse because your mailing list is not updated!
New Move Update Requirements are just around the corner. Starting November 23rd, the Post office will require mailers to certify that they have updated their mailing list within 95 days of mailing.
Are you ready?
You need to be! The USPS is serious about cutting down on the approximated 9.7 BILLION undeliverable mail pieces that cost the post office millions of dollars to process. High penalties await those mailers who do not meet MoveUpdate requirements. You could be charged first class rates for your standard mail. Don’t worry, FMI can help!
What are your options?
The USPS has approved the following options to meet the MoveUpdate Requirements:
1. Ancillary Service Endorsements
2. Address Change Service, used in conjunction with the Intelligent Mail Barcode
3. National Change of Address Linkage System (NCOA®)
4. FASTforward®
Watch our Videocast for more information.Â
What does FMI suggest? Be proactive instead of reactive. Marketing dollars are a precious commodity in today’s tough economic climate. We are advising our clients to perform a full 48 month NCOA® on their database if they never executed any previous form of data hygiene. After this we suggest utilizing FMI’s less expensive ExpressCOA™ option, an 18 month NCOA, for future mailings. We believe this processing is preferred because of multiple cost factors. If the processing is done on the front-end, then the mailer will know the exact amount spent on updating their list. The total cost of the other options is unknown until after the mail has been processed by the USPS. Also, if change of address processing is done first, then any undeliverable mail will be detected before precious marketing dollars are spent on postage and printing. At just $1 per thousand with a LOW $100 minimum; you can’t beat the price of ExpressCOA™! Call us today and we will help you put a maintenance plan in place for your data. Contact Lisa Formica at 215-464-0111 or email LFormica@fmidm.com. Don’t wait, this is too important to put off.
USPS Files for QR Code Discounts
If you are on the fence regarding the use of QR Codes on your mailings, the USPS is trying to give you that last push to try them. On Tuesday, the USPS filed a proposal with the Postal Regulatory Council (PRC), which allow customers to receive a 3% discount on any First Class or Standard mailing containing a QR Code within or on the mail piece. This program would run from July 1, 2011 through August 31, 2011. Nonprofit Mail unfortunately will be excluded from this program, and this discount cannot be used in conjunction with any other incentive program.
The use of QR codes is yet another way to link your physical mail to the digital world and when used correctly can have great a impact on the success of a campaign. The QR code can be either a static text message, link to a landing page or a PURL (personalized URL).
The PRC should have a decision on this by the end May, so stay tuned form information about this exciting program. Read the official request here. If you have any questions regarding the use of QR codes; please contact us to get more information.
I am very interested to hear your thoughts as to whether or not this incentive program will actually push marketers to use QR codes more.
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