Paper Firms Cashing In Before Loophole Plugged

By Steven Mufson
Washington Post Staff Writer
Saturday, May 2, 2009

Federal government payments to the U.S. paper industry continued to mount during the first quarter, as companies raced to take advantage of a loophole that richly rewards them for a long-established method of burning byproducts of the pulping process.

During the first quarter, the Treasury pumped $540 million in cash and tax credits into the coffers of International Paper, one of several paper companies that qualify for billions of dollars in alternative fuel tax breaks under legislation that experts say was written for other purposes.

The tax benefits reward companies for burning a pulping byproduct known as “black liquor,” a practice that has been common in the paper industry since the 1930s. International Paper said $145 million of its total has been delivered in checks from the Treasury; because the tax credit is “refundable,” it can result in direct payments to companies with no tax liability.

The huge payments are being made under a tax credit clause in the 2005 highway bill that was designed to promote the blending of biofuels with gasoline or diesel for use in vehicles. In an energy bill adopted in late 2007, the clause was altered slightly to help the Alaskan fishing industry in the home state of then-senator Ted Stevens (R).

Late last year, paper companies began to apply for the credits. PricewaterhouseCoopers pushed the idea, according to industry and congressional sources who spoke on condition of anonymity because of their access to confidential conversations. David Nestor, a Pricewaterhouse spokesman, would not comment on guidance provided to clients. The tax credit expires at the end of the year.

Senior lawmakers, including Senate Finance Committee Chairman Max Baucus (D-Mont.), are weighing amending the legislation to put an early end to the lucrative payments. Canadian and Brazilian trade associations have also protested that the payments give U.S. firms an unfair advantage.

“Unless we plug this loophole, the federal government is liable for billions in credits for black liquor in 2009 alone, even though the credit was never intended for this fuel,” Baucus said at a hearing last week. “We are working to undo that unintended consequence.”

Because the Internal Revenue Service deemed that paper companies were eligible for the credit, the Joint Committee on Taxation has had to raise its estimate of the cost of the credit nearly 50-fold, from $61 million to $3.3 billion. Wall Street analysts put the cost as high as $8 billion.

Last week, Doyle R. Simons, chief executive of Temple-Inland, said that the IRS had approved payments to his company. He said Temple-Inland will use 550 million to 650 million gallons of black liquor this year. Because the tax credit is worth 50 cents a gallon, that would yield $275 million to $325 million in credits.

“They ought to change the law, but you can’t blame the paper companies for saying there’s money on the table and we’re going to pick it up,” said Bob McIntyre of Citizens for Tax Justice.

The United Steelworkers and other unions are backing the ailing paper industry. “Many companies are depending on this tax credit to keep mills running. In short, this credit could not come at a more appropriate time,” Michael V. Draper, a vice president of the United Brotherhood of Carpenters and Joiners, wrote to Senate Finance Committee members this week.

Sen. Olympia J. Snowe (R-Maine), a Senate Finance Committee member, defended the credit’s use. “This tax credit is a lifeline,” she said, for an industry “hanging on for survival in this economic crisis through no fault of their own.”

Many economists and environmentalists say that the paper industry shouldn’t reap rewards for old practices. Snowe argued that the paper industry was “ahead of the curve.” But analysts note that the industry burns black liquor because it is toxic to fish. Leaks are punishable by fines.

Some analysts cautioned that in the midst of the auto industry bailout, Congress would block a program resembling another bailout.

But a UBS analyst’s report said: “At the very least, this is creating debate, slowing the process. . . . In the meantime, the industry can continue to claim credits. The longer the delay, the more cash they stand to collect.”

Tags: Advertising, Cost, Direct Mail, Direct Marketing, direct marketing association, junk mail, Letters, Mailing, mailing services, Marketing, Money, new postal regs, non profits direct mail, Philadelphia, Philadelphia Post Office, Post Office, Postage, postage increase, Savings, USPS

Survey: CMOs Not Happy With Digital

April 18, 2009
By Todd Wasserman

CMOs see digital as the medium of choice in this economy, but aren’t getting what they want out of it, according to a new survey from Heidrick & Struggles.

In December, the Atlanta recruiting firm polled 111 senior marketing executives at firms with $1 billion or more in annual revenues about their digital strategies. The impetus, said Lynne Seid, partner in the firm’s global consumer practice, were comments from H&S clients expressing frustration over the fact that so much information exists online about consumers—like their search and social media behavior—and yet marketers felt they were accessing it poorly.

Information on existing customers is especially valuable since in the current down economy, many are focusing on retaining such customers, and cross-selling and up-selling to them, in addition to trying to win over new customers.

Respondents to the survey found their current ability to access ROI and metrics on their digital marketing lacking and rated their companies behind the curve. Many said they would have to look outside the company for help, whether that means hiring new employees or relying on ad agencies—though the marketers said they weren’t happy with their current agencies either.

Time after time in the survey, marketers expressed an awareness of digital’s potential along with a recognition that they weren’t close to tapping it.

For instance, one of the selling points of digital media is its ability to let marketers respond quickly to new opportunities, but only 16 percent of respondents rated themselves “very satisfied” with their ability to do so. Fifty-one percent said they were “somewhat satisfied.”

On a more granular level, the respondents rated marketing ROI, Web behavioral analyses and CRM as the most important parts of their digital marketing mix. Not many marketers thought that they were good at those functions at this point. Only 18 percent said they were “very satisfied” with their ROI analysis, only 13 percent said the same of their CRM program and 19 percent were happy with their search engine optimization.

There was also some debate over who has responsibility for analytics like Web traffic and usage reports. Most marketing departments are currently handling those functions, but they would like to fob it off on IT. Though search marketing also scored high, pulling up the rear on that list were blogs, social networking tools and mobile advertising.

On the bright side, most respondents thought they had Webinars down pat and they were fairly confident in their ability to execute online surveys and contests. On the other hand, most rated their ability to pull off mobile ads and video ads fairly low.

For what ever reason, marketers think their companies are behind the curve on digital marketing, but they don’t see themselves that way. “That’s called ‘irony,’” Seid said. Their agency partners are another story. Fifty-five percent disagree with the statement: “We trust our ad agency partner to provide us with the digital marketing expertise that we need.”

Seid said the big takeaway from the survey is that there’s still enormous room for improvement for most companies’ digital marketing strategies.

“What I’m hearing anecdotally is there are now sometimes half a dozen digital agencies and suppliers specializing in social media and search,” Seid said. “We don’t have anyone managing, integrating and demanding best practices in those areas.” Seid envisions a “digital CMO” taking responsibility for managing those disciplines. Said Seid: “That will be the CMO of the future.”

Tags: Add new tag, Advertising, Cost, delivery times, Direct Mail, Direct Marketing, direct marketing association, intelligent mail barcode, Jack Potter, junk mail, Letters, Mail, Mailing, mailing services, Move Update Requirements, new postal regs, non profits direct mail, Philadelphia, Philadelphia Post Office, Post Office, postage increase, postmaster, Savings, social media, USPS, usps regulations for flats

Lysander Spooner and the United States Postal Monopoly

Published yesterday by â–  Michael Billy
On May 11 the US Post Office is raising the price of stamps by 2¢. Even in the face of increasing prices, many people will argue that the Post Office is necessary because a private organization could never perform these functions for a similar cost.
The story of Lysander Spooner, however, might rekindle the debate over the necessity of a monopoly Post Office.

WHO WAS LYSANDER SPOONER?

Lysander Spooner is an obscure figure in American history. He is so forgotten, in fact, that his voluminous Collected Works has remained out of print for many years. The six-volume collection, which contains 36 works, can be found used on sites like Amazon.com for upwards of $400. This current obscurity, however, does not mean that he was an unimportant figure.

Spooner achieved many great things in his lifetime including his active campaigning against slavery and the publication of his most famous work titled The Unconstitutionality of Slavery (1846), which influenced the likes of Fredrick Douglas. One of his lesser-known ventures, however, was his creation of the American Letter Mail Company, which was a private mail delivery service that was meant to compete directly with the United States Postal Service.

Spooner was born on January 19th 1808 at a farm in Athol, Massachusetts. He studied law under John Davis, who would later serve in the House of Representatives and Senate and as Governor of Massachusetts, and Charles Allen, who would serve in the House of Representatives. Spooner, however, never attended college. Under state law, non-graduates were required to study under attorneys for five years, while graduates were only required to do so for three years. Spooner, however, saw this law as unfair and he therefore flaunted it, setting up his own practice in Worcester, Massachusetts after only three years. He also viewed the regulations as unfair discrimination against poor individuals who might not be able to afford attend school.

Spooner’s legal career turned out to be a disappointment, as his radical writings seemed to have driven customers away. He also attempted to make a living as a real estate speculator, but that venture failed as well. Spooner decided to move back to his father’s farm in 1840. His time spent as lawyer, nevertheless, was not a total waste, as it would eventually aid him in his future court battles over his private mail delivery company.

Spooner’s most well known book, The Unconstitutionality of Slavery, was published in 1846. The book was very influential at the time, inspiring such prominent individuals as Fredrick Douglas. Douglas was originally a disunionist abolitionist who believed that the United States Constitution legally recognized and enforced the oppression of slaves. He would later come to accept the pro-Constitution argument, citing Spooner’s arguments as his rationale.

From the time the book was published to 1861 Spooner actively campaigned against slavery. He provided his legal services to escaped slaves, often free of charge, while also publishing pamphlets on the concept of Jury Nullification. This theory provides that a jury may find a defendant innocent despite their violation of the letter of the law, if they believe that said law is inherently unjust. Spooner presumably believed that informing the public about this idea would allow them to find escaped slaves innocent even though they violated the law.

Previous to the publication of The Unconstitutionality of Slavery Spooner founded the American Letter Mail Company as a direct opposition to the United States Post Office. Today, many Americans believe that it is a necessity to have a government sanctioned monopoly organization, such as the Post Office, deliver the mail. They will argue that a private company could never fulfill such a daunting task as delivering the mail across the entire country without charging outlandish prices. Not only does Lysander Spooner’s saga prove this mentality wrong, it also shows that the government is just as likely over charge for the delivery of mail as a private corporation.

POSTAL RATES IN THE 1940S

By 1843 the cost of postage in the United States was spiraling upward. At the time, the average cost to send a one-page letter was 14.5 cents. It cost nearly 19 cents to deliver a letter from Boston to New York, and 25 cents from Boston to Washington DC. For a comparison, it actually cost less to send a 200-pound barrel from Troy to New York City then it did to send a quarter-ounce letter over the same distance. It has even been claimed that the cost of sending mail was actually 140 times greater than the freight rates in New England per pound-mile. The general consensus among the American population was that these rates were oppressive, especially since the British had recently reformed their postal system, changing the cost to a flat rate of 2 cents per letter.

The rates were so high for a couple of reasons. First, came the obligation of the Post Office to run specific routes on a regular basis. Mail was often delivered in urban areas once or twice per day, but the story was much different, and less cost-effective, in rural areas. Often times a postal worker was dispatched to one of these areas carrying only a handful of letter, which was far from an optimal load. When it was determined that the post office was making too little revenue from one of these routes it was supposed to be shut down, but that was rarely the case. They were often kept open for political reasons, such as a fear of political blowback from angry voters in the area.

The second, and more insidious reason for the high costs was corruption. Thomas Jefferson was weary of a government controlled Post Office saying; “I view it as a source of boundless patronage to the executive, jobbing to members of Congress and their friends and a bottomless abyss of public money. You will begin by only appropriating the surplus of the post-office revenues; but other revenues will soon be called in to their aid and it will be a source of eternal scramble among the members, who can get the most money wasted in their states; and they will always get most who are meanest.” Jefferson was correct, and many of his fears came to fruition by 1843.

In the 1840s, over 80 percent of those who worked for the government and were not members of the military were postmasters and postal clerks. The fact that these positions were often changed when a new politician was elected points to conclusion that they were often overpaid. If you knew a politician in your area then you could likely secure a well-paid postmaster position that likely required very little work.

Businesses — specifically coach contractors, railroads, and steamboats — also benefited greatly from the Post Office’s monopoly. Most of the cost of postage, in fact, went to the rent that was paid for these services. The government, for example, subsidized the building of railroads. This led to a lowered transportation cost in the private sector, but it ironically resulted in higher postal rates. This was because the postage served as a tax to pay for the subsidization of the railways.

The appropriation of coach contracts was also lined with corruption. The coach contractors lobby was very influential in Washington politics and the routes were often given to those companies who had the strongest political connections. There was a façade of competition and auctions for the routes, but strong allegations were made that the process was rigged. The same kind of situation often occurred for steamboat route.

INFORMAL COMPETITION TO THE US POST OFFICE

The corruption and high costs were beginning to anger the general population. This was made evident as individuals began to respond to the high costs through political protests by groups of citizens and even state legislatures. The result was the formation of new and creative ways to transport letters. Even before Spooner’s challenge Americans were finding ways to deliver mail without the use of the Post Office. One specific trick was to send a newspaper, which was cheaper than a letter, with a message indicated in underlined letters of words.

With the increased popularity of the steamboat and railway came a new way to get mail delivered. Often times, individuals with letters would go to the railway station or boat dock and find a respectable looking gentleman going to the same place they wished to send their letter. They would ask him to carry the letter and, if he agreed, he would either drop it off at the post office where it could be picked up for a penny, or drop it at some other previously agreed upon location. This way there was no extra tax to pay and the sender was responsible for sorting the mail.

Hotels and taverns also picked up on this idea as a convenience to their customers. In these case the owners would set out boxes labeled with the names of various cities. If a customer had a letter that needed to be delivered they could drop it in the corresponding box. When a traveler came along that was heading to one of those cities they could take the letters with them and drop them at a post office or other hotel or tavern.

An informal mail delivery system also developed between businessmen in large cities. Owners who were sending an employee to another city would notify others who would bring them their mail. Larger businesses could send mail daily between Boston and New York. Some merchants claimed that nearly four-fifths of the mail they received came from this method.

Government postal rates for mail sent to the Midwest were much higher than the average, costing 25 cents per letter. Since those living in these areas could rarely afford the outlandish Post Office rates, organizations began to pop up that would make the deliveries at a much lower cost to the consumer. These companies, often dubbed “expresses”, were also much quicker than the US Postal Service. One of the most famous of these companies was the Pony Express, which is now often romanticized in the lore of the American West.

The set-up of the Pony Express, which delivered mail to the western frontier, was an ingenious innovation on the current mail carrying system. Stables were set up at intervals of roughly 10 miles apart. This was about the distance one horse could travel at full gallop. At each stable the rider switched horses, and at roughly every ten stables the rider was switched. Each rider was paid $100 per month for his services. This company was much better than what the government had to offer.

Organizations like these were allowed as long as they did not compete directly with Post Office routes. Often times, people in scarcely populated rural areas were forced to hire private contractors, else they would not receive mail at all. So, if private organizations were allowed, then why is Spooner’s Company so important?

THE AMERICAN LETTER MAIL COMPANY

In 1844 Lysander Spooner created the American Letter Mail Company. He set up the service to run between New York, Boston, Philadelphia, and Baltimore, in direct competition with Post Office routes. His main goal, however, was not to make money, though he hoped that he would, but to challenge the constitutionality of the United States Post Office’s government enforced monopoly on the delivery of mail.

Spooner ran a front page ad in the New York Daily Tribune announcing the creation of the company, while stating that his rates would be 6.25 cents per half-ounce letter, or 20 stamps for a dollar. He also stated that delivery would be daily, or twice daily between New York and Philadelphia. The most audacious part of the ad, however, was his direct challenge to the Constitutionality of the Post Office: “The Company design also (if sustained by the public) is to thoroughly agitate the questions, and test the Constitutional right of the competition in the business of carrying letters – the ground on which they assert this right are published and for sale at the post offices in pamphlet form.” Spooner wanted competition to be legal.

He even went as far as to send a personal letter to the Postmaster General informing him of his intent to form a letter delivery company. In the letter Spooner said that he proposed, “soon to establish a letter mail [company] from Boston to Baltimore. I shall myself remain in this city, where I shall be ready at any time to answer to any suit…” Accompanying the letter was a copy of his pamphlet, The Unconstitutionality of the Laws of Congress Prohibiting Private Mails.

The Constitution, he argued, granted the United States Government the ability to create postal roads and post offices, but he doubted that it was intended for them to have a monopoly on mail delivery. Spooner was so convinced that preventing competition was unconstitutional that he agreed to cooperate with the government if the issue were brought in front of the Supreme Court. He also requested that his company remain unmolested by the government until the issue of constitutionality was dealt with.

Indeed, it was only a few short months before the Post Office felt the pain of competition. As they refused to lower their rates they began to lose significant profits to the American Letter Mail Company and other private mail companies that were less likely to flaunt their activities in front of the Post Office. The government, of course, was not going to back down without a fight.

THE GOVERNMENT FIGHTS BACK

While the general public approved of Spooner’s venture, the government was not so easily swayed. How dare he try to compete with their elaborate money making scheme? Lawsuits against Spooner and many of his employees began to pile up and it was not long before the government hit the company with their first blow. One of Spooner’s carriers was found guilty and fined for transporting mail on a railway that was part of a postal road of the United States.

The government also took extra legal means to hurt the American Letter Mail Company. They did this by threatening railroad companies and other transport businesses with their lucrative government contracts if they dare allow mail from the American Letter Mail Company on their vehicles. It would become increasingly difficult for Spooner to find ways to deliver his mails.

Spooner, however, was not going to give up easily either. He continued to press on with the company, even in the face of increased pressure from the government. Spooner’s business, nonetheless, was becoming harder for him to maintain. Sure, he had cheap rates, but his delivery was becoming inconsistent due to the confiscation of his letters by the United States government.

SPOONER’S SUCCESSES AND FAILURES

Spooner’s quixotic quest faced a constant barrage of fierce opposition from the government. He knew he could win, if only the court system would hear his arguments. They, however, were not interested. The postal monopoly was established through precedent, and those benefiting from that precedent had no desire to question it. In one specific Circuit Court case, nonetheless, Supreme Court Justice Story ruled that the question remained open “whether the United States had an exclusive right to establish post offices and post routes.”

The Post Office’s revenues continued to decline and the Postmaster General was forced to beg Congress to take action, and they listened to reason. In an act passed on March 3, 1845 Congress reduced postal rates to 5 cents to send a letter less than 300 miles. This was a small victory for Spooner, but the decreased rate ultimately led to increased use of the US Postal Service. This, combined with increased pressure from the government, eventually brought an end to the American Letter Mail Company.

Spooner stayed out of the postal business for nearly three years before joining a campaign in 1848 to further reduce the postal rates. This venture also led to success and by 1851 Congress lowered rates to 3 cents per letter giving Spooner his title of “Father of the Three Cent Stamp.” This victory, however, also came with a devastating loss. The act contained a provision that legally protected the government’s monopoly on the distribution of mail. This new law made Spooner’s original arguments on the illegality of the postal system basically moot. It was a huge moral blow.

Spooner’s fight was ultimately a failure to himself, as one of his main goals was to, “test the Constitutional right of the competition in the business of carrying letters.” The outcome of this test, however, was not to his liking as the government secured the US Post Office’s monopoly on the business of carrying through a legal act from Congress. He had lost his personal fight, but not before playing a major role in a victory for the average citizen. He had helped to lower the Post Office’s oppressively high rates.

Postal rates, however, increased in the following years and have continued to climb ever since. Spooner passed away on May 14th, 1887 at the age of 79. Benjamin Tucker arranged his funeral and wrote his obituary titled “Our Nestor Taken From Us”, which appeared in the magazine Liberty on May 28th. Since Spooner’s odyssey no one else has tried to take on the behemoth that is the United States Postal Service.

In the face of increased prices maybe the United States needs another Lysander Spooner; someone who is willing to take on the bureaucratic behemoth that is the US Postal Service. That law — the one that gives the USPS a monopoly in First Class mail — however, is a major roadblock preventing any competition. With FedEx and UPS prospering as well as they do, it would be interesting to see what such a company could do with First Class Mail.

Tags: Direct Mail, direct mail marketing, Direct Marketing, Post Office, postal service, USPS

Stick It, Flanders! Simpsons’ Stamps Unveiled

by Claudine Zap

April 9, 2009 11:41:27 AM

First there was the top-rated TV show. Then there was the blockbuster movie. Now there’s, wait for it, stamps. Stamps? That’s right. The Simpons‘ are finally getting the recognition they deserve. In thumbprint-sized, adhesive form. Mmmm, adhesive.

You may remember stamps from previous activities like bill paying. Thank-you note writing. Wedding RSVP-ing. The Simpons’ stamps are the perfect way to say: I could have gone for something classy, but didn’t. D’oh!

The 44-cent stamps of sticky goodness have each of the five electric-yellow faces of the animated family. You can even vote for your preferred character at the post office website. (More of a Homer fan? Bart may want a word with you).

America‘s favorite dysfunctional family may be getting this honor for outlasting, outplaying, and out-annoying viewers for 20 long years. Maybe in another 20 they’ll get their own molecule. Excellent.

Tags: Direct Marketing, Post Office, postage stamps. direct mail, stamps

Interesting…savings accounts through the postal service

Postal sector feeling the pinch, but financial crisis not all doom and gloom
(Press release from the Universal Postal Union)

High-level conference reveals risks and opportunities for the sector and the world economy

The results of a recent Universal Postal Union (UPU) survey indicate that postal networks are increasingly trusted to further the growth of e-commerce and provide financial services. This trust is keeping this postal sector’s head above water as the financial crisis wreaks havoc on the global economy.

While operators are feeling the pinch, especially in the letter-post and express business segments, financial services and some areas of parcel post are showing signs of growth.

This is what the UPU reported today during a high-level conference on the impact of the financial and economic crisis on the postal sector, held at its Berne headquarters. More than 200 participants from 100 countries, including about 40 of the world’s postal CEOs and leading sector stakeholders operating in e-commerce, direct marketing, consulting and equipment and technology manufacturing, attended the special debate.

Results of the survey conducted among 15 of the world’s largest Posts and private courier companies show that the sector is certainly feeling the effects of the crisis, but it is not showing signs of an economic depression like other sectors. Surveyed operators account for 66% of total worldwide letter-post volumes, 88% of parcel-post traffic, and up to 75% of express volumes, providing a statistically valid sample to analyze market evolutions, according to UPU experts.

The worldwide postal sector employs more than 5.5 million employees and operates 660,000 post offices, making it one of the largest industry workforces and the world’s largest physical distribution network.

Strong competition in the parcels and express business segments prevents the UPU from sharing detailed information about country-specific mail volumes, but analysis of survey results provides positive and negative growth rates and thus a good overview of the worldwide postal sector’s situation.

Here are the key findings by business segment (unless otherwise indicated, all figures reflect same-quarter comparisons in 2007 and 2008):

Financial services

Postal financial institutions are experiencing tremendous growth since the crisis began. Some European operators, such as Swiss Post and Deutsche Post, are experiencing annual growth rates above 50% in the number of postal deposits and savings accounts opened in 2008. Interestingly, a similar phenomenon occurred during the Great Depression, according to UPU statistics.

Parcels

After dropping from 0.5% in the first quarter of 2008 to 3.4% in the third quarter, compared to the same periods in 2007, domestic parcel volumes recovered 1.1% on a year-to-year basis in the fourth quarter. Experts say the increase could be due to record e-commerce sales during the last quarter of 2008 or strong resilience of online sales to the crisis observed in several countries.
The news is not so positive, however, on the international parcels front. After experiencing growth in the first three quarters of 2008, volumes decreased by 4.5% in the last quarter among surveyed operators. Experts again believe that international parcels are not benefiting from e-commerce as cross-border sales remain challenging.

Letter post

Domestic letter post is feeling the brunt of the crisis’ impact. In a year-over-year comparison, operators reported a 5.9% decrease in volumes in the last quarter of 2008, due in part to less direct mail being generated, especially by the financial sector as credit thresholds have increased, experts believe.

As direct mail is less developed in the international arena, international letter post is showing more signs of stability. In a year-to-year comparison, Posts reported volumes varying between 3.7% and – 2.8% in the last quarter of 2008 in terms of quarterly growth rates.

Express services

Survey respondents reported a 4.4% decrease of domestic express service volumes in the last quarter of 2008, compared to the same quarter in 2007, while international volumes went from a 7.1% increase in the second quarter of 2008 to a 2.2% decrease in the last quarter.
In last-quarter comparisons of 2008 and 2007, express revenues declined by 7.9% worldwide. Experts explain this drop as a consequence of consumers and businesses moving more towards low-end express services.

Stock-exchange listed Posts

Five Posts – from Austria, Germany, Malaysia, the Netherlands and Singapore – are listed on stock exchanges as well as two express courier companies, Fedex and UPS. A comparison of the evolution of their share price with their reference index from August 2008 to January 2009, the six months covering the worsening financial crisis, shows that, while the share prices of some operators were closely correlated with their reference index, those of others evolved much more positively than the market (see graphic in main report; link indicated below). Considered defensive stocks, listed postal services’ shares tend to resist better during a crisis and can even gain value, say UPU experts.

Comparison with the Great Depression

To compare the effects of this crisis with the worst performances achieved during the Great Depression, UPU experts also looked at historical postal statistics from the 1930s. Here’s what they found (all statistics from the UPU, unless otherwise indicated):

• So far, the sector has not reached performance levels recorded during the Great Depression, when postal revenues decreased by 12.3% in the United States between 1931 and 1932.

• Between 1928 and 1934, franking revenues in the United States decreased by 21.9%, with the highest drop (12.3%) occurring between 1931 and 1932; postal employment dropped by 17.6%; and the number of post offices fell by 7.8%.

• Postal savings account deposits multiplied eight-fold in the United States in the 1930s, reaching 1.2 billion USD (United Nations Department of Economic and Social Affairs).

• In France, the sharpest decrease in franking revenues (24.8%) occurred between 1931 and 1932, following a 15.5% drop between 1929 and 1930.

• In Germany, the largest decrease in letter-post traffic reached 16.6% between 1930 and 1931.

Tags: Add new tag, Address Change Service, Ancillary Service Endorsements, Booklets, Cost, Direct Mail, Direct Marketing, direct marketing association, flats, flats regulations, intelligent mail barcode, Jack Potter, Jack Potter congressional testimony, junk mail, Letters, Mailing, Money, new postal regs, non profits direct mail, PCC, Philadelphia, Post Office, Postage, postage increase, postmaster, Savings, social media, usps regulations for flats

America’s Worst Lunches

“This article has nothing to do with the postal issues, but check out the amount of fat and calorie in fast food favorites-it’s more astounding than the national debt.”

By Dave Zinczenko and Matt Goulding, Men’s Health

If you’re like two-thirds of working Americans, you pick up lunch from a fast-food joint or restaurant at least once a week. Sure, it’s not as healthy as packing your own celery sticks, but eating out every once in a while can’t hurt, right?

Not so fast: There might be trouble in the drive-through lane.

Not only could the window worker pile an entire day’s worth of calories through your car window, but you might also be sapping your energy and productivity: Carb overloads lead to energy spikes and crashes, and studies have shown that the bigger your waistline, the lower your cognitive functioning and the more sick days you take. Kind of ironic, considering “convenience” is the most common reason people give for buying lunch during the workday. In this economy, it’s hardly convenient to snore through the 2 o’clock meeting, or miss a few crucial days when the boss is looking for you.

A healthy lunch can help you maximize your afternoon performance, but if you’re in a hurry to grab and go, you might not take the time to sort through the menu hits and misses. Let the Eat This, Not That! folks be your efficiency experts: DON’T order the items we warn you about, below. Opt instead for less outrageous alternatives (also below), and reap the benefits at bonus time.

QUIZNO’S

Large Prime Rib Cheesesteak Sub

• 1,490 calories
• 92 g fat (22.5 g saturated, 2 g trans)
• 2,620 mg sodium

Fat equivalent: Like eating four Dunkin Donuts cheese danishes!

It’s hard enough to make the argument for one cheese Danish, but four? And we’re just talking fat, here—with more than 800 calories of the stuff in just one sandwich. You’re also be filling up with more than a day’s worth of sodium and saturated fat. While this is one of the worst items you could choose, the rest of the Quizno’s menu has hazards, as well. But if your co-workers insist on eating there, order this instead:

Small Turkey Ranch and Swiss Sub

• 410 calories
• 17 g fat (2.5 g saturated)
• 1,230 mg sodium

CHILI’S

• Crispy Sweet Chile Glazed Chicken Crispers
• 1,930 calories
• 112 g fat (17 g saturated)
• 4,190 mg sodium

Calorie equivalent: Like eating an entire medium Pizza Hut 12″ pepperoni pizza!

If you have the time for a sit-down meal, you have the time to think this through. Chicken Crispers are fun, but account for almost a whole day’s worth of calories and almost two days’ worth of sodium. Your smarter choice is to eat this instead:

Classic Chicken Fajitas

• 370 calories
• 11 g fat (1.5 saturated)
• 2,000 mg sodium

And another hint for a healthy sit-down lunch: forgo the appetizers. Chili’s Texas Cheese Fries with Jalapeno Ranch Dressing made the top of our list when we rounded up the worst appetizers money can buy. Check out the other appetizer land-mines here. You’ll be shocked.

ARBY’S

Roast Turkey Ranch and Bacon Sandwich

• 817 calories
• 37 g fat (11 g saturated, 0.5 g trans)
• 2,146 mg sodium

Calorie equivalent: Like eating 23 Thin Mints (one whole sleeve)!

Just because you could prepare it at home doesn’t mean it’s good for you when you order it away from home—the Roast Turkey Ranch and Bacon Sandwich packs nearly half of your daily allowance of calories and almost an entire day’s dose of sodium. Doesn’t leave much room for anything else, does it?

Eat this instead:

Sourdough Roast Beef Melt

• 351 calories
• 14 g fat (4 g saturated)
• 1,048 mg of sodium

DAIRY QUEEN

Chicken Strip Basket with Country Gravy (6 piece)

• 1,640 calories
• 74 g fat (12 g saturated, 1 g trans)
• 3,690 mg sodium

Sodium equivalent: Like eating 11 large orders of McDonald’s French fries!

Talk about a value meal: One Chicken Strip Basket gives you almost two days’ payload of sodium! If thinking about it doesn’t elevate your blood pressure, eating it might. Don’t become a statistic.

Eat this instead:

Crispy Chicken Sandwich

• 560 calories
• 28 g fat (3.5 g saturated)
• 980 mg sodium

PANERA

• Italian Combo on Ciabatta sandwich
• 1,050 calories
• 47 g fat (18 g saturated, 1 g trans)
• 3,050 mg of sodium

Fat equivalent: Like eating 6 slices of Papa John’s cheese pizza!

You were on the right track in choosing Panera, but don’t be sidelined by the allure of the Italian Combo. Ciabatta bread may sound sophisticated, but you won’t look so refined when you’re lugging that spare Pirelli around your midsection.

Eat this instead:

Smoked Turkey Breast on Sourdough sandwich

• 470 calories
• 17 g fat (2.5 g saturated)
• 1,680 mg sodium

CHIPOTLE

• 13” tortilla with steak, black beans, rice, cheese, sour cream and lettuce
• 955 calories
• 38 g fat (18 g saturated)
• 1,600 mg sodium

Calorie equivalent: Like eating 37 Hershey’s Kisses!

The good news about this tortilla is that it contains 56 grams of protein, but that’s hardly worth the outrageous calorie and carbohydrate load—with 94 grams of carbs, you’ve already covered a third of your recommended daily intake, plus you’re taking in nearly a day’s worth of sodium and saturated fat. Downsize to drop pounds.

Eat this instead:

Three hard tacos with steak, pinto beans, sour cream and lettuce

• 615 calories
• 24 g fat (11 g saturated)
• 710 mg sodium

(Another hint: When it comes to Chipotle chips, just say “no.” They add an outrageous 570 calories and 73 extra grams of carbs.)

HARDEE’S

2/3-lb Monster Thickburger

• 1,420 calories
• 108 g fat (43 g saturated)
• 2,770 mg sodium

Saturated fat equivalent: Like eating 43 strips of Oscar Mayer bacon!

It’s called Monster for a reason. It’s a monster load of saturated fat (more than two days’ worth). The good news is that it has a friendlier, healthier cousin in the 1/3-lb Low-Carb Thickburger, with 1,000 fewer calories and a third the amount of fat. Even better, the Low-Carb Thickburger is true to its name—it only has 5 grams of quick-burning carbohydrates, compared to 46 grams in the Monster.

Eat this instead:

1/3-lb Low-Carb Thickburger

• 420 calories
• 32 g fat (12 g saturated)
• 1,010 mg sodium

BURGER KING

Triple Whopper Sandwich with cheese and mayo

• 1,250 calories
• 84 g fat (32 g saturated, 2.5 g trans)
• 1,600 mg sodium

Fat equivalent: Like eating 10 slices of Papa John’s cheese pizza!

You should know by now not to order a triple anything. In this case you’re getting egregious calorie, fat, and sodium overloads. It’s not bad, though, compared to the shockers on our list of the trans-fattiest foods in America. Choose a regular cheeseburger instead and slash 920 calories, 68 g of fat, and save yourself from the judgmental stares of your co-workers, who are three times as likely to be grossed out!

Eat this instead:

Cheeseburger

• 330 calories
• 16 g fat (7 g saturated, 0.5 g trans)
• 780 mg sodium

And once you’ve navigated lunch’s landmines, don’t blow your day with a bad dinner.

Tags: Address Change Service, addressing regs, Advertising, Ancillary Service Endorsements, Booklets, coutesy reply mail, Direct Mail, Direct Marketing, fast food, going postal, Jack Potter congressional testimony, Letters, Mailing, new postal regs, non profits direct mail, Philadelphia, Philadelphia Post Office, Post Office, USPS, usps regulations for flats

What do the cuts in tax deductions for charitable donations have to do with direct marketing?

Everything of course!

This is an opportune time for non profits to reach out beyond their traditional donor base toward a new pool of contributors. Just how can this be done? With a well rounded direct marketing campaign of course. Non Profits face the task of creating new – and younger donor bases -, expressing to current contributors their message and now to educate the public about the new administration’s policies so they can eliminate the “fear factor” now ensconcing charitable giving. The worst thing that non profits can do is to start reducing communication, or immediately switch to a less effective strategy of communicating; this kind of thinking cannot be beneficial to anyone.

I recently spoke with a marketing director who has been directed to switch from direct mail to all email campaigns to save money.  She cited some very low response rates from emails. This organization is going to be in some serious trouble if they don’t change the way they are viewing marketing expense. They should use some very targeted direct mail, along with email and video to really drive up response rates and to start reaching out to new markets that they want to crack.

The coming years will be a challenge to be sure, but organizations that employ a well though out strategy to deliver their message and mission to their public, will benefit in the short and long term.

Am I just being an opportunist here-maybe-but I truly believe what I am saying and that great opportunities do exist!

As Marc Ambinder of the Atlantic put it, “If wealthy people want to give money, then they should give, regardless of tax benefits.” Suggesting that the wealthy should not use charities as a tax dodge, he added, “If tax reform down the line were to gut all deductions, would charitable contributions totally dry up?“

 

 

 

Tags: Direct Mail, direct mail strategies, Direct Marketing, direct marketing strategies, Letters, Mailing, Money, new postal regs, non profits direct mail, Post Office, postmaster, Savings, social media, USPS, usps regulations for flats

Cadillac to offer Wi-Fi, bring YouTube to cars

Leslie J. Allen
Automotive News
March 19, 2009 – 7:00 am ET

I am not sure when the thrill of taking control of a 2000 pound, high speed-not to mention potentially lethal machine-became an afterthought, but GM is certainly taking the idea of an automobile to new heights. The idea of a car becoming an entertainment machine, instead of, sorry to quote BMW here, a driving machine, is a bit frightening considering the number of distracted drivers already on the road. One wonders whether or not GM would be more successful if the focus was more on the drive and reliability, rather than the entertainment offerings, but I must admit as an advertiser, this does bring forth a myriad of opportunities-if anyone survives. It is with this that I present to you the article below.

 

Starting next month, General Motors’ luxury brand will offer optional dealer-installed equipment that allows people in and around the vehicle to use laptop computers and other devices to connect to the Internet, equipment provider Autonet Mobile Inc. said today.

Rear-seat passengers are the target users, said Autonet CEO Sterling Pratz.

“In the back seat they’re basically going to YouTube, where they once watched DVD players,” Pratz said. “Now every Cadillac CTS will come with the capability to have YouTube and Facebook in the car.”

The system is built around a mobile router from Autonet, the same company that provides Uconnect Web, a wireless Internet service available in Chrysler LLC vehicles. It receives Internet signals through cellular data networks. It then creates a Wi-Fi hotspot in and around the car.

Autonet and Cadillac plan to show the device in a Cadillac CTS Sport at next month’s New York auto show.

One major difference from the Chrysler device is that the Cadillac router will be portable. It will connect to the vehicle through a docking port. A driver can have the docking port installed in more than one GM vehicle.

“We did that because about 40 percent of our customers have asked for the ability to move it from their weekly car to their weekend car,” Pratz said.

Autonet made the router smaller and sleeker for Cadillac. It will carry a Cadillac emblem and will be sold under the name “Cadillac WiFi by Autonet Mobile.”

Customers will buy it from a dealer or online for about $499. Monthly subscriptions to Autonet’s Internet service start at $29.

Pratz said front-seat passengers are likely to use the Internet to stream music from such popular radio sites as Pandora or Flycast.

The technology raises a thorny issue: driver distraction. Because the Internet signal extends throughout the car, a person theoretically could surf the Internet while driving.

The only defense against that: the honor system.

Pratz said the customer has to agree to “terms of use” policies when signing up for the Internet service and before linking any devices to the Wi-Fi network.

“When they sign up for it, they have to agree that that’s not what this is for,” Pratz said. “We find customers are staying with it. We’re not really seeing any problems out in the field.”

Tags: Add new tag, Advertising, cadillac, cars, Cost, Direct Mail, Direct Marketing, GM, internet, Letters, Mailing, Marketing, marketing with videos, Money, new marketing opportunities, Post Office, video marketing, videos, youtube

I hate when people write about junk mail

Tags: Direct Mail, Direct Marketing, direct marketing association, DMA, junk mail, Mailing, Money, non profits direct mail, Post Office, USPS

May 11 Pricing Change – Update

DMM Advisory

Pricing and Classification — keeping you informed about the prices and mailing standards of the United States Postal Service

Today the Postal Regulatory Commission confirmed that our new Mailing Services prices are consistent with the Postal Act of 2006, except for the annual mailing fees for Confirm mailing agents. You can find the new prices, and other information to help you prepare for the May 11 pricing change, at usps.com/prices/pricechanges.htm.

We will use the DMM Advisory to keep you informed.

The Domestic Mail Manual (DMM) is available on Postal Explorer (pe.usps.com). To subscribe to the DMM Advisory, send an e-mail to dmmadvisory@usps.com. Simply indicate “subscribe” in the subject line.

Tags: Direct Mail, Direct Marketing, dmm, Letters, Mailing, mailings, Money, new postal regs, Post Office, Postage, postage increase, postal, postmaster, rate increase, Savings, USPS, usps regulations for flats