USPS
USPS eases on deadline of May 2011 for new barcode
In a shocking announcement the USPS is “relaxing” their deadline of May 2011 to adhere to the use of the IMB to attain automation discount; and in other news the sky is still blue.
Below is the official excerpt from the DMM Advisory: 
Postal Service Relaxes Upcoming Requirements for Automation Prices
Recognizing ongoing concerns about mailers’ readiness for broader adoption of the Intelligent Mail barcode (IMb®), the USPS® has decided that automation discounts for mail with POSTNET barcodes will continue to be offered beyond May 2011.
Today’s announcement, made following consultation with key industry leaders, means that mailers also may continue to use the POSTNET barcode for reply mail (such as Business Reply Mail (BRM), QBRM and Permit Reply Mail) and PLANET Code® for Confirm® Service.
The relaxing of requirements beyond the planned May POSTNET retirement timeframe allows for an easier transition to the full use of the IMb while continuing to receive automation discounts.
The value of the IMb is a proven technological advantage with more than 41 billion pieces of IMb-enabled mail processed by the USPS. As more Industry leaders continue to embrace the IMb, the Postal Service is committed to enhancing the benefits of Intelligent Mail Services.
Pay your taxes, then get ready to pay more postage
Get out the erasers and prepare to rewrite that marketing budget because the USPS made it official today that the rates for their market dominant services will be increasing as of April 17, 2011. Perfect timing, everyone will already be upset over the amount of money they or their company have to fork over to Uncle Sam and then BAM!, a little salt in the wound courtesy of the USPS. Do not be too alarmed however, the average of the increase is a mere 1.741%. We have broken down the new rates by First Class Mail (1 oz pieces) and Standard Mail (under 3.3 ounces) and have come to some interesting conclusions.
First was that the USPS either has gained quite a bit of efficiency regarding Flat processing or they realized they came down a little heavy with the increases last go around. In either case the current increase for Flats averaged only .38% across First Class, Standard, and Nonprofit. The average increase for First Flats was actually -.12% or better put the average cost is less than it was 2 years ago. It appears that the increases is minimal across all of the automation categories, which leaves the non-auto categories bearing the brunt of the price hikes. This is good news for mailers who currently are preparing their mail as automation compatible. The worst part of the rates is that the discount for mail prepared for the NDC will decrease by $.01 or $1 per thousand. This one does not make sense since mailers are taking on the financial burden of preparing and shipping this mail to the specified facility, which saves the USPS processing and transportation expense. Again it is only $.001, but it goes against the concept rewarding work-share by the mailer. The discount for SCF mail will remain the same as before.
The following links will give you my breakdown of the old rates vs. the new rates and the various increase by percentage. The complete table of new rates is available on the Postal Explorer website.
Please weigh in with your thoughts regarding the increase and as always fmi is here to help assist mailers take on this increase with the least possible damage to your marketing budget.
The Intelligent Mail Barcode For Dummies
This is a sad day for me in some ways as it will be my last blog post for Going Postal and fmi as I am leaving the company having accepted a position at another.
I wanted this last post to be somewhat of a handoff as I pass the proverbial baton to Erik Formica, who will be posting here (along with others) going forward.
For my last post I wanted to do some educational and I know a very hot topic right now in the direct mail marketing world is the Intelligent Mail Barcode (IMB), something I know very little about, yes I would be the dummy in question.
So I thought what better way to transition to Erik than by interviewing him on this very topic. See, Erik not only works for fmi, he is also on the Board of the Postal Customer Council and is a certified mail piece design professional. He also sits on the board of the Philadelphia Direct Marketing Association (PDMA). 
SO: Help someone who is clueless, like me, understand just what the IMB is and why it’s important.
EF: First off, the IMB should not be feared, it’s just a barcode like any other barcode. It contains additional information that the current barcode does not. This additional information is what makes the IMB important. It gives mailers the ability to encode specific services such as address change service, and Confirm service which allows mailers to track every single mail piece down to the local post office.
The other reason it’s important is it’s the only barcode accepted for mailers to receive automation discounts come May, 2011.
SO: So a mailer can continue to use the current barcode after May, 2001 if they so choose?
EF: Yes. But they will not be able to receive any of the automation discounts they could previously. There is no really advantage to keep using the current barcode after May, 2011.
SO: So what’s a mailer’s first step in implementing the IMB?
EF: One place to find everything you need to know about the IMB is the Rapid Information Bulletin Board service (RIBBs) provided by the USPS. You’ll find information on Intelligent Mail Barcode Specifications, Online Encoder and Decoder information, Encoder Software and Fonts and much more.
SO: Ok, so from a mailer’s perspective the IMB makes complete sense. How about from a marketing perspective?
EF: There are two distinct advantages. Number 1, the IMB will free up what we call “mail piece real estate” which in layman’s terms means you can add more design elements to your direct mail piece than in the past.
The second advantage comes in the form of tracking and having the mail talk back to you. What I mean by that is you will be able to track every individual piece as it arrives at the post office nearest to the intended recipient.
SO: Under the current barcode, that’s not available?
EF: It is but right now you also have to add various codes to go along with the address in order to track to that level. These additional codes take up that valuable real estate I mentioned previously. The IMB leaves you with a much cleaner looking piece from an aesthetic standpoint while maintaining the functionality of the piece itself.
SO: Are there any other advantages from a marketing standpoint?
EF: Yes. Using the IMB will allow marketers to set up automated triggered events. For example, once a mail piece is scanned for actual delivery, that can trigger an event such as an automated email to arrive in the recipient’s in-box. That email can be nothing more than a “be on the lookout” type message which will allow marketers another opportunity to communicate with their audience.
SO: Thanks Erik. Even a dolt like me could understand that. Where else can people get help when it comes to the IMB?
EF: I’d be glad to help anyone who needs help understanding the IMB. People can call me directly at 215-464-011 or via email at eformica@fmidm.com.
USPS Helps To Protect Against Fraud
A lot of us are quick to come down on the United States Postal Service – multi billion dollar losses from one quarter to the next will cause some to (myself included) to call them on the proverbial carpet.
Today I want to share something good the USPS is doing. The U.S. Postal Inspection Service is mailing brochures to every household in the country with information on the warning signs of fraud. 
Every day, con artists try to victimize millions of American consumers. That’s why postal inspectors — also working with the Federal Trade Commission — want to educate the public.
- Keep a record of all financial offers including ALL direct mail and envelopes. And always get guarantees in writing before acting on any offer
- Never give out your credit card information or bank account information unless you are absolutely sure of who you are dealing with and what exactly you will be receiving
- Never act impulsively to high pressure sales tactics. Take time to think everything over; get advice from trusted family members & friends. If the person on the other end won’t allow you sufficient time to think things over, walk away…
- Ask for call-back numbers and names. Any respectable company will provide this information to you to allow you to think things over and call back with any questions; if they don’t, walk away
If you believe you’ve been targeted by mail fraud, report it online to Postal Inspectors using the Mail Fraud Complaint form, or call Postal Inspectors at 1-877-876-2455. In addition you can report a foreign lottery scam to the Federal Trade Commission by calling 1-877-382-4357 or going to www.ftc.gov.
Here are some more helpful links to help you protect yourself against mail identity theft and mail fraud:
Mail Fraud And How To Protect Yourself
7 Tips to Protect Yourself Against Mail Identity Theft & Fraud
USPS among brands Americans most attached to… and your point?
Did you hear the great news?!?!?!
The United States Postal Service, the USPS to you and me, ranked in the Top 15 of brands consumers are most attached to…
The survey, conducted by NewMediaMetrics, asked 3,500 Americans ages 13-54 with annual income of at least $35,000 earlier this year what brands they are most attracted to… not sure how many Americans aged 13 make at least $35,000 but, let’s not get bogged down on facts now shall we?
The fact remains that the USPS outranked, outscored, whatever the following brands…
- BMW & Toyota (not really surprised they beat out Toyota are we?)
- Walmart
- Target
- Southwest Airlines
- Nike
- Microsoft
- And so on…
Here”s the Top 15…
And of course the folks at the USPS were all giddy over the results…
“The most interesting aspect of this survey is it names brands that consumers say they are the least willing to give up,” said Kent Smith, manager, USPS Strategic Business Planning. “Considering that this was an online survey that included people as young as 13, we may still have opportunities to strengthen our connections with these market segments.”
Now I’m sure Mr. Smith is well intended in his remarks and he is, rightfully so, excited about the findings but let’s keep things in perspective please…
“…it names brands that consumers say they are the least willing to give up.”
Yes, that is true BUT of course they are least willing to give up the USPS because what’s the alternative?!?!?!?
UPS?
No and no…
If you want to mail a letter – you do remember how to send a letter yes? Not a text. Not an IM. Not an email. But a letter or a greeting card, who you gonna call?
The United States Postal Service because there is no other option!
Company X wants to do a mass direct mail campaign to hundreds of thousands of people… who they gonna call?
The United States Postal Service because there is no other option!
So, if you ask us what we’re “least likely to give up” what do you think we’re going to say?!?!?!
Revel in your glory Mr. and Mrs. USPS… but the rest of us know the real truth.
In the past three years, the USPS has lost $12 billion and is expected to lose about $7 billion this year.
The USPS is a monopoly, plain and simple…
Are you attached to the USPS, emotionally or otherwise?
Positively or negatively?
Can the USPS be saved?
Came across this posting the other day on DMNews.com entitled: “How to save the US Postal Service”…
And it got me to thinking – always a dangerous proposition I assure you. But I got to thinking whether the United States Postal Service can actually and truly be saved or… 
- Should they hand it over to the employees as Congressman Dana Rohrabacher (R-CA) wants?
- Tell the the government to get out of the way and do away with antiquated postal monopoly laws?
- Is it time to end the monopoly, to deregulate and privatize the mail delivery in the US?
So I do what I always do and love to do and that is pose this query to the massive Linked In audience to get their thoughts…
Here’s some of the responses I’ve received:
- Privatizing won’t work… Never does… The USPS is actually starting to compete with UPS and FedEx with some very competitive shipping deals… Given time, other aspects of mail service will also change in relationship to the competition…
- UPS, FedEx, and other private mail delivery companies seem to be doing quite well, in spite of “the antiquated postal monopoly laws” to which you refer. If postal service were to be privatized, I shudder to think what would happen to delivery prices and service. (Hint: prices will not decrease.) I do not subscribe to the view that government is always by definition, evil, inefficient, and destroys freedom. Yes, the USPS can be, and should be saved. And if the direct mail industry must pay higher postal rates, then that’s the cost of doing business — no matter how much they might whine about it.
- It’s a double-edged sword. Allowing other companies to deliver mail might well allow competitive prices to develop. That’s a good thing. But this will also lead to postal companies downsizing and firing workers to keep down the costs.
- Like any government run agency, it could stand a good overhaul. But there are numerous options for people available besides the USPS that I hardly consider it a monopoly.
- Saved from what? Why is it bad if people find other avenues and it gets downsized and/or prices raised.
- First of all, saved from what? The USPS actually works. The postal monopoly is essentially a way for people who live in large cities to do something nice for people who live in small towns. Personally, I think it is an impressive display of social solidarity. Dismantling it would be, well, mean to a lot of people.
- Many view the USPS with a great deal of disdain. Wait times, customer service and postal rate increases continue to be distressing topics for most customers. They would benefit greatly from a new management philosophy that focused on the customer’s needs.
- The United States can look north of the 49th Parallel to see a postal system that works. Changes of address in Canada cost money: a minimum of $39 for 6 months in the same province, and much higher for elsewhere — not free as in the US. Will this work in the US? No, not without the elimination of Congress’ interference at the littlest generated amount of public and business whining.
- Their employees need to have an attitude adjustment.
You can share your thoughts by responding to the Linked In question directly or share your thoughts, comments, etc in this forum.
Curious to see if you think the USPS can be saved and if it should be in the first place…
Less mail equals more opportunity
By now you know and have seen the numbers. The number of pieces being processed and mailed by the United States Postal Services (USPS) have been declining steadily and are projected to keep doing so for the foreseeable future.
That’s not exactly breaking news, I understand that… but direct marketers, instead of wallowing in your self-imposed 
misery or cheering the fact that the Postal Regulatory Commission unanimously denied the USPS requests to raise postage rates in January beyond the rate of inflation… wake up and take advantage of the fact that there is now less competition in your customers and prospects mailboxes.
Now is the time to make your message stand out… check that, to REALLY stand out…
Create a truly unique design for your direct mail piece.
Use bright colors, bold fonts, variable printing… come up a with an offer that you’ve never tried before.
Use a multi-marketing channel approach by incorporating emails, purls, video and text messages…
Some may say that since there is no less competition, one doesn’t need to be so daring, so creative… baloney.
Be daring, be different… NOW is the time!
How do you plan on being daring and different?
Do you use direct mail currently as part of your overall marketing strategy?
If so, have you cut back on it?
What other mediums, if any, do you use in your marketing strategy?
Postal Increase Denied – The Day After
By now you’ve heard the news that the Postal Regulatory Commission (PRC) denied… check that, unanimously denied the USPS requests 
to raise postage rates in January beyond the rate
of inflation, ruling that the mail agency’s recent financial woes were caused by a flawed business model and not the recent recession.
So a rise in stamp prices and other postage rates will not take effect in January as the Postal Service had hoped – at least not yet.
Here’s what some are saying about the PRC’s decision…
John E. Potter, Postmaster General of the United States, CEO of the U.S. Postal Service in a statement said:
“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.”
The phrase “Clearly the Postal Service is a viable business…” surely caught my eye. Most viable businesses don’t lose $6 billion in a year, which is what the USPS is projected to lose this year.
Click here to read the full statement from John Potter…
The Direct Marketing Association (DMA) chimed in saying they “praised the decision of the Postal Regulatory Commission (PRC) to reject an excessive postal rate hike proposed by the US Postal Service (USPS).”
“Today’s decision is a great victory for businesses and consumers. The US Mail will remain a viable and affordable communications channel. The knowledge that postage rates will not rise faster than inflation is also an important element for the business community already operating in an extremely challenging business environment,” said Lawrence M. Kimmel, DMA’s CEO. “This, however, is only a first step. USPS customers must continue to work together, and with Congress, to help the Postal Service maintain competitiveness in the marketplace.”
Full DMA response here…
Meanwhile Sen. Tom Carper (D-Del.), Chairman of the Senate subcommittee with jurisdiction over the U.S. Postal Service, released a statement…
“I’d like to thank the members of the Postal Regulatory Commission and their staff for their work. I know this was a hard-fought and complicated case so I appreciate the thought and the long hours that went into producing this important decision.
The Postal Service is clearly in a financial crisis. It lost $4 billion last year and will likely lose as much as $7 billion this year once it closes its books for the 
fiscal year later today. Postmaster General Potter announced this past spring that, if nothing were done, the Postal Service could accumulate as much as $230 billion or more in losses by 2020. This is clearly an unsustainable path. In fact – if these trends continue and no major changes occur – I understand that the Postal Service will actually run out of cash by the end of fiscal year 2011, just a year from today.”
Complete statement from Senator Carper here…
Then we have #U.S. Senator Susan Collins, Ranking Member of the Senate Homeland Security and Governmental Affairs Committee and author of the 2006 Postal Accountability and Enhancement Act…
Her response to the PRC’s decision was not unexpected…
“American consumers and businesses that rely on the Postal Service won a major victory today,” said Senator Collins. “I am pleased with this decision, which I argued was required by the language of the 2006 postal reform law.”
Earlier in the week the same Senator Collins released the findings of three investigations of the Postal Service (USPS) by the Postal Inspector General (IG), which she had requested to determine whether the agency could realize additional efficiencies and cost savings in three areas: employee benefits, purchasing policies, and the area and district field office structure. 
The findings revealed some “incredible perks” for USPS executives.
*the USPS awarded 359 contracts to former Postal Service executives without competition. In three cases that the IG examined most closely, the former employees were hired at nearly twice their former pay to advise new executives, a practice which the IG found raised serious ethical concerns and hurts employee morale;
*the Postal Service pays 100 percent of its senior executives’ health benefits, a perk that is not provided to comparable employees in any federal agency;
*postal employees participate in many of the same health insurance and life insurance programs as federal employees, yet the Postal Services pays a greater share of the premiums
“It is unbelievable to me that the Postal Service – awash in red ink and asking for huge postal rate hikes, service reductions and relief from its financial obligations – is paying the full health care premiums for its top executives,” said Senator Collins.
###
So it’s now been over 24 hours since the decision was handed down.
Do you think this is the last we will hear of a new increase for now?
Will the USPS file an appeal?
Can the USPS ever be a “viable business?”
#Source: Postal News Blog
Post Office Bailout… Not So Fast
If it’s good enough for banks and car makers, why not the United States Postal Service?
I’m talking about Federal Bailouts of course. Is it time for the federal government to bailout the USPS? One high-ranking member of congress thinks so.
Rep. Darrell Issa (R-Calif.), the ranking member of the Oversight and Government Reform Committee, in a letter to the Washington Times on Monday, wrote “the predicament the USPS finds itself is not uncommon.” But unlike other industries affected by the Internet and digital media the “USPS cannot simply go out of business or declare bankruptcy.”
He goes to say that USPS employees “know that a deeply indebted Postal Service leaves the federal government with no real alternative to a taxpayer bailout as the situation approaches insolvency. Indeed, a sheep’s-clothes argument already is being put forward by the postal lobby and some Democratic lawmakers for a $75 billion taxpayer bailout of USPS.”
Issa’s letter (full version here) also contained this chart to the right which shows the demise & decline of the USPS by the numbers from 2000 – 2008.
So, the USPS wants and needs a bailout, right?
Not so fast…
In a response to Rep. Issa’s letter, Fred V. Rolando
President of the National Association of Letter Carriers drafted and delivered a letter to the editor of the Washington Times refuting Issa’s claims.
The letter begins…
To whom it may concern:
It’s election time in an era of extreme political polarization. But that does not excuse misleading the public with false claims that the Postal Service is seeking a taxpayer bailout. Nor does it excuse Congress interfering with collective bargaining between the financially self-sufficient Postal Service and its unions. Unfortunately, the opinion piece by Rep. Darrell Issa (RCA), the Ranking Member of the House Committee on Oversight and Government Reform, fails on both counts.
Click here to read the entire letter from Mr. Rolando to the Washington Times.
Well it seems we have a good old fashioned feud brewing between Mssrs. Issa and Rolando. Should be interesting to see how this all plays out.
But… something just doesn’t seem right.
Oh that’s right… seems that just over a year ago the same Darrell Issa was in favor of just such a measure.
The title on the Postal News Blog says it all…
Darrell Issa was in favor of postal “bailout” before he was against it
As the blog author aptly queries at the end of this post (full version here)…
“Why the sudden about face for a politician who has happily accepted campaign contributions from postal union PACs, and has even addressed meetings of the NALC?”
Why indeed…
So what do you think?
Should the federal government bailout the USPS?
Let me know what you think.
Direct mail blogs…
As a public service to the millions and millions of people who read this here very blog on a daily basis, I want to share some of my favorite direct mail marketing blogs & sites... (it’s not really millions but a guy can dream, right?)
[[in no specific order]] 
Deliver
As per their website, they are “the companion Web site to the award-winning Deliver magazine, is the leading online information resource for marketing professionals.”
The magazine, which is very well laid out - is put out by the USPS and while I have on occasion taken some umbrage with what I’ve read on the site, it is overall a very valuable resource for marketers.
DM News
A veritable potpourri of information when it comes to direct mail and direct marketing. Whitepapers, Buyer’s Guides, Postal info, and much, much more.
Very could be the granddaddy of direct marketing sites…
PreSort.com
Much like DM News, this site is a fabulous repository of articles, news, event info, and much, much more. Also provides links to lettershops, printer and vendors.
Marketing Profs
No, it’s not just for direct marketers but it provides a wealth of information ALL marketers and advertisers can and should utilize on a daily basis.
The Gilbert Direct Marketing Blog
A a former Adjunct Professor, teaching Direct Marketing at Miami International University, Jim Gilbert has lots of insights to share and is more than happy to do so.
Joy of Direct Marketing
Lois Geller and crew offer some fantastic articles and blog posts and are not afraid to push the envelope… literally. A big plus in my book.
Guts of a Burglar
The title alone instantly drew me in and once there, I was not disappointed. A simply fantastic blog… hell a recent post was entitled “Why Direct Marketers should run the country.” Now if that doesn’t make you want to read, I don’t know what will.
Direct Magazine
Part of the Chief Marketer Network, this site covers everything from traditional direct mail to email to mobile marketing to lists and on and on…
As I mentioned initially, this is a list of “some” of my favorite DM sites and blogs. There are plenty more of course but I want to hear from you.
What are some of your favorites? Where do you like to go for News You Can Use re: Direct Mail Marketing? Could be your own blog… that’s fine. Just share it with the rest of us!
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