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When it comes to the latest postal rules and regulations that can maximize your savings, you need to turn to an expert. We have the knowledge and the information you need to make your mail more efficient and process it to arrive at the lowest possible rate.
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If you are planning a Standard mailing after the May 11 transition period ends, your addresses must meet the new standards. Starting on January 4, 2010, a 7 cent penalty is expected on each piece that fails to meet the new standard. Call us early in the process to make sure your mailing gets in the mail stream when it is supposed to at the best money-saving rate possible.
Discussing your campaign objectives, design, and approach with us long before it reaches print is the surest way we know to help you take advantage of current postal rules and regulations that can maximize your savings.
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Rate changes and new rules and regulations go into effect May 11th
As announced by the Postal Service this past February, postage rates and regulation changes for dominant mail products go into affect on May 11 of this year.
As with last year’s rate, the increase is capped by the Consumer Price Index (CPI) which was 3.5% on February 20th of this year. This is not an across the board increase, but one that varies with mail class level. For example, the price of a first class stamp increased by 4.616% and Presort letters and cards increased by 3.080%. Rates for shipping services remain unchanged from their increase in January.
Expect the prices for other mailing services, such as Standard Mail, Periodicals, Package Services (including Parcel Post), and Extra Services to change as well.
The Postal Service also announced the closing of administrative offices, eliminating positions, and offering early retirements to counter the lingering effects of the economic recession. It is estimated to save the Postal Service $100 million annually from its budget
How Does This Affect You, the Mailer?
As we experienced last year, the new law is intended to create a more predictable annual pricing. Expect to see an annual pricing increase proposed in February and the new rates taking effect in May every year. Rates are capped by the rate of inflation as measured by CPI (Consumer Price Increase). This year, there are exceptions. Visit the News Page for a brief summary.
In addition to rate increases, prepare to see changes each year to rules and regulations. Last year to save money or at least, keep the increase to a minimum, we were introduced to changes in design of the mail piece and their preparation.
This past year since the 2008 increases, you experienced changes in move update, automation flats, intelligent mail preparation and flats addressing, just naming a few of the most significant changes. Expect more fine-tuning as we move forward from May of this year.
Additional changes and testing of proposed changes in Intelligent Mail, Automation Flats, Parcels, and Saturation Mail Volume Incentive Program for Standard Mail. So stay tuned and remain in contact.
As we move forward in an unsteady economy, expect to see more financial distress arise from the USPS and put them in the crosshairs of Congress. A combination of a weak economy and rate increases drove down the mail volumes further compounding the financial problems. Maybe there is a price relief in the near future? Will the annual CPI increase stay in its present condition or will a somewhat different model emerge?
The continually changing rates and regulations require us to work more closely together on any mailing, from concept to completion, to make sure your mail moves as efficiently and cost-effectively as possible.
Move update is now in effect
Although the new Move Update requirements are in effect, mailers will have approximately 6 months to become compliant.
The new measure, in effect for First-Class Mail and Standard Mail, requires businesses to update their bulk-mailing lists every 95 days.
The new requirements are intended to reduce costs and waste from undeliverable mail by about one-half by 2010, according to the USPS. (See article “Are your customers missing the message” below).
The latest news from the USPS gives mailers a transition period until May 11th, 2009. The USPS transition period is intended for Standard Mailers who do not use a USPS Move Update method, or who are unfamiliar with the new ruling, to ensure they do comply before the May 11 date.
Mail Moves America and Do Not Mail Doesn’t
Source: Direct Marketing Association says Do Not Mail Bills are bad public policy
A top Direct Marketing Association policy priority is keeping the mail channel open for marketers. This focus comes at a time when advertising mail finds itself under threat. An increasing number of states are proposing the creation of state Do Not Mail registries, similar to the national do not call registry, or are considering other limitations on advertising mail. In 2007, 15 states proposed Do Not Mail legislation, a significant increase in the number of bills seen in previous years; three in 2005 and four in 2006. The 2008 legislative year began with nine bills carrying over in seven states, but has already grown from there. These bills are a cause for concern to the mailing community not only because of the increase in numbers, but the standards and requirements proposed vary greatly from state to state.
Why Do Not Mail Bills Are Bad Public Policy
To many consumers and policymakers, Do Not Mail bills may sound like an idea whose time has come. However, learning even a little about advertising mail and direct marketing quickly reveals the many problems that Do Not Mail registries would create.
- Advertising mail is a large and diverse economic engine creating $686 billion of economic activity annually that would be adversely affected by even just one bill becoming law. Businesses both large and small rely on advertising mail to provide consumers with information, announcements and savings opportunities. Additionally, millions of jobs are dependent on advertising mail and direct marketing—from copywriters in ad agencies to rural letter carriers in remote corners of a sparsely populated state.
- Advertising mail provides consumers with a convenient marketplace and an easy connection to local goods and services. As well, it provides significant necessary revenues that help fund the services offered by local post offices.
- Advertising mail provides consumers with a convenient marketplace and an easy connection to local goods and services. As well, it provides significant necessary revenues that help fund the services offered by local post offices.
- Advertising mail often can level the playing field between large and small business. It offers a cost-effective entry into new markets for small businesses looking to introduce themselves to local customers. These businesses would be seriously disadvantaged without access to advertising mail to reach potential customers. Further, advertising mail offers larger businesses, which often bring jobs to small towns and rural areas, a way to reach broader audiences.
- Legislation is not needed to provide consumers with options for removing their names from marketing lists. Consumers have a variety of choices ranging from contacting an individual company, to registering their name with DMA’s Mail Preference Service.
- Keeping a strong and vital postal system is a great advantage to consumers by maintaining competition in the package delivery market. On-line commerce is reliant on package delivery and a competitive postal system helps keep shipping rates affordable.
Why the Mailing Community Should Care
The U.S. Postal Service® has been among the most trusted of Federal services for years. Yet, many people see advertising mail as intrusive, while at the same time opening and using advertising mail at very high rates. Roughly one-third of the Postal Service's annual revenue depends on advertising mail. Do Not Mail bills threaten the viability of the postal system through a loss of revenue and volume from advertising mail, potentially leading to reduced services, convenience, options or choices to the American consumer and harming US businesses.
Source: Direct Marketing Association (http://www.the-dma.org/mailmovesamerica/). October 7, 2008
Are your Customers Missing the Message?
Prospects and customers are becoming more receptive to traditional mail. But what happens when that mail is undeliverable? Is your message lost forever?
Yes it is, but the USPS is out to change that possibility. Incorrect or outdated addresses provide a path for your mail that is, quite frankly, costly. It costs you because your message is not read and not acted upon. And it costs the USPS big bucks ($1.8 billion per year) to go down that path with you. Postmaster General Jack Potter’s goal is to reduce UAA (Undeliverable-As-Addressed) by 50% by 2010.
The next postal change affects Standard Mail mailers…
Beginning on November 23, 2008, mailers must begin using addresses that were updated within the previous 95 days. The operative word here is previous. Mailers do not begin their updating process on November 23, but on this date, mailers must begin using addresses that were updated within the previous 95 days.
Entire lists do not have to be updated at once. The update requirement applies to individual addresses, not to the entire lists. Only those addresses that will be used in a mailing need to meet the Move Update standard. The list could not be used with an ancillary service endorsement since the addresses would not have been updated within 95 days.
An address can be updated anytime so long as it is within 95 days before the address is actually used for a mailing. For example, if a mailer mails using a list once every year, that list would have to be updated using one of the authorized Move Update methods no more than 95 days before the mailing.
Even a mail piece that bears the ancillary service endorsement, “Change Service Requested,” does not by itself satisfy the standard. A Standard mail piece mailed on or after November 23 does not meet the standard if no approved Move Update process was used in the prior 95 days.
For Additional Information
Without a proactive strategy to plan and prepare mail properly, you could wind up paying considerably more for postage than is necessary.
With the new yearly rates and regulations now in place, there are price changes, surcharges, and regulations that can take effect at various times throughout the year. It’s now more important than ever to maintain an open dialogue with us regarding your mailing needs.
Discussing your campaign objectives, design, and approach with us well before it reaches print is the surest way we know to help you take advantage of current postal rules and regulations that can maximize your savings and reduce your headaches.
Click here to Contact us for more info |