Postal Service Proposes New Postage Rates for 2011
Current Postage Rates Link
(Repeated from usps here)
WASHINGTON — A new Forever Stamp image will be available as part of a pricing package that would add less than 13 cents a month to the average American household’s budget.
The U.S. Postal Service Governors recommended increasing the price of a First-Class stamp 2 cents to 46 cents and authorized the production of a pane of four evergreen tree branches as the newest image for Forever Stamps. The price of a postcard would increase 2 cents to 30 cents.
The Postal Regulatory Commission must approve the recommended price changes. The increases would not go into effect until January 2, 2011. It would be the first stamp price increase in almost two years.
Holiday Evergreen Forever Stamps will be available to the public in October at the current rate of 44 cents. Once purchased, the stamps are valid literally forever – despite any future price changes. No additional postage will ever be needed.
Faced with plummeting mail volume traced to the recession and increased use of the Internet, the Postal Service is projecting a deficit of nearly $7 billion for the next fiscal year. Despite eliminating millions of work hours and reducing expenses by more than $1 billion every year since 2001, a budget gap remains.
The proposed price changes, if approved, will raise about $2.3 billion for the first nine months of 2011. Postmaster General John E. Potter said he does not want customers to bear the burden of dramatic price increases. Instead, Potter announced in March that pricing would be one in a series of solutions the Postal Service is pursuing to become financially sound.
“There is no one single solution to the dire financial situation that the Postal Service faces,” Potter said. “These proposed rate adjustments are moderate and part of a fair and balanced approach to insuring mail service for all Americans well into the future.”
Other actions outlined in March included changes to delivery frequency, restructuring prepayments of retiree health benefits, creating a more flexible workforce and expanding access to products and services to places more convenient to customers.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
Complete details of today’s filing can be found on
usps.com . No prices will change before 2011
No Postage Rate Increases for 2010
Repeated from the USPS Website Here:
------------------
October 15, 2009
To Postal Service
Customers:
Many of you have
expressed concerns regarding mailing costs for 2010. The tough
economic climate has presented significant challenges to all of us and
pessimistic speculation has suggested that postal prices could increase by
as much as 10 percent.
As we begin a new
fiscal year and as many of you, our business clients, are preparing your
2010 operating budgets, we want to end all speculation.
The Postal Service
will not increase prices for market dominant products in calendar year 2010.
Simply stated,
there will not be a price increase for market dominant products including
First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post.
There will be no exigent price increase for these products.
This is the right
decision at the right time for the right reason. Promoting the value
of mail and encouraging its continued use is essential for jobs, the
economy, and the future of both the Postal Service and the mailing industry.
While increasing
prices might have generated revenue for the Postal Service in the short
term, the long term effect could drive additional mail out of the system.
We want mailers to continue to invest in mail to grow their business,
communicate with valued customers, and maintain a strong presence in the
marketplace. Changes in pricing for our competitive products—Priority
Mail, Express Mail, Parcel Select, and most international products—are under
consideration. We expect to announce a decision in November.
We are
committed to working with customers to find ways to grow the mail through
innovative incentives like the Summer Sale and contract pricing. Mail
is the most effective means of communication and advertising and we will
continue to work together to increase the value of the mail. Mail is a
smart investment for the future.
John E. Potter
------------------
Nice information to have. Thanks John!
We just received final written confirmation from the US Postal Service that any mailing that has not had addresses move-updated will be charged a $0.07 per piece more.
Scan of letter here
The Deadline is January 4th, 2010.
Move Updating is the process of comparing your database to all the change-of-address forms on file with the US Postal Service. This is done electronically by CSG Direct during the mailing process. However, we are not able to process it for you if you have not submitted the required PAF form to us.
We help our customers earn discounts all the way from .44 each down to .067 per piece. All Direct Mailers are now required to Move-Update their mailing list within 95 days of mailing to get these discounts. We can help you with that process!
We've been an National Change of Address vendor for over 5 years now. These requirements have been coming for a long time now and they are finally upon us.
From the text of the letter: "On January 4th, 2010, we will treat both First-Class and Standard Mail to the same assessment for non-compliance. Both classes will be assessed a $0.07 per piece additional charge on pieces determined at acceptance to have an error rate above a 30% tolerance level, based on sampling."
More NCOA information
even more NCOA information
All things being what they are, I am normally one of the first people to bash large bureaucratic entities such as the US Postal Service. The monopoly that they hold over the industry, the civil service mentality and attitude as well as the constant increases in the cost of doing business leave them as a wide-open target.
In thinking about the new Postage Rates, however, I also feel compelled to compliment the postal service for the latest developments that they have introduced. It has been quite an undertaking! Don’t get me wrong, there is a lot of room for improvement and a many areas that they can improve on. Today let’s look at some of the positives, because they deserve to be recognized.
One of the most amazing new developments with the US Postal Service is the implementation of the intelligent mail barcode systems. It is mind-boggling to think of the amount of data retrieval, data collection and data distribution that this system is capable of. This helps the post office to track delivery times and pinpoint problematic areas within their system.
It has also been a great tool for mail service providers such as CSG Direct to build systems around for individual US Mail tracking. This is a dream come true for Direct Marketing professionals to be able to track their mailings online. It allows them to gauge delivery times, track individual pieces and better plan their projects.
Another item that I believe bears consideration is the expense of fuel that has spiked and dropped several times in recent memory. As a transportation and delivery entity, the postal service is sharply affected by fuel costs. I know in my household fuel prices have strained the budget considerably. These costs cannot be absorbed for long periods of time – especially at the volumes that the USPS consumes.
I believe that the postal service is working diligently to improve service and delivery times. With some of the new requirements for NCOA standards, enhanced barcoding and ongoing customer relationship building. I am seeing great strides of improvement in a large entity that is slow to change.
If we can only get them to work in a more customer friendly atmosphere in regard to the incessant changes and rules for mailpiece design and construction. They change the rules – industry adjusts – then they change the rules because they do not like the industry adjustments. The recent flat changes are a good example of this.
In May of 2007, the flat rate increase was harsh, so the industry started changing to smaller booklets and slimjims that were subject to the letter rate category. Now the post office is implementing new rules on these types of mailers that will cost the preparers more money to process and slow down the production. This should have been taken into consideration in 2007 when the USPS raised the flat rates to get mailers to change their formats and remove some of the burden from the flat sorters.
OOPS… I am going off on a rant – not the intention here.
Let’s take a moment to appreciate some of the positive changes that the post office and the mailing industry are encountering. The new technologies are very cool, and very useful. If you are not taking advantage of these new technologies, then you are missing the boat! If you would like to learn more about US Mail Tracking, give one of the Direct Mail Specialists at CSG Direct a call. We are here to help!
...and how our clients avoid them and save thousands
Finally we can confront Sin #7:
Direct Mail Sin #7
Proof sign-offs taken too casually
Every job that we receive with electronic files requires some kind of manipulation or adjustment prior to mailing. RGB to CMYK, resizing, recropping, data merging, font replacement etc...
When your project requires a final signoff we hope that you take this opportunity seriously!
By the time it gets to this stage you have seen it many many times. Take a moment and read every line of your offer and confirm that everything is exactly the way it should be. This is your final opportunity to adjust dates, copy or data before your clients or prospects see the piece.
This is also the moment in time when the mistakes slide though and become major issues when the customers start calling.
We know that you are probably tired of reading at this point but you need to try to read the piece like it was your very first time looking at it. Study the text, confirm the data, dates, phone numbers, call-to-actions and all other components.
Common errors found at this point:
* Right date/wrong day (is it really a Thursday on that date?)
* Brand colors off
* Wrong or missing telephone numbers
* Newest art changes not sent (were we sent the most recent version of artwork?)
* Wrong offers, or error in disclaimers
* Spelling errors/typos
We know this is cumbersome but it also one of the unavoidable steps. We highly recommend you let someone else look at it and sign off with you. This identifies more errors and changes the dynamic if something is missed.
On a personal note, it doesn't leave you standing alone as responsible for errors if more people on the team miss the same detail. If many people missed it than it must not have been obvious. If only one person signs off it is easy for everyone to just point at you and steer clear of responsibility. This is human nature.
Either way, the signoff process and authorization for us to proceed is your decision only. We will not proceed without it and we are responsible to print and mail it exactly as the proof you signed off on.
Added Note about all 7 Deadly Sins of Direct Mail:
Allow the time needed for the quality and price you desire. This time gives you the breathing room needed to be flexible if things you plan go wrong. No human process or timing is perfect, however much you try!
You cannot be consistently successful when you are expecting everyone involved to "jump from miracle to miracle"! You'll save money in the end by not paying for rushed and fixed jobs. Being rushed always creates additional errors as you skip details to meet timeframes.
Our most successful customers have learned to work backwards from deadlines, successfully creating a smooth process from start to finish.
This is a new feature from the Post Office that was originally slated as a requirement starting May 2009. So many mailshops and software vendors freaked out that the USPS has decided to delay that requirement for one more year. The program is alive and well, however, just not yet required.
We have been using and developing systems around the Intelligent Mail barcode since January 2008 and have had extensive experience in Planet codes before that.
Have you seen our new US Mail Tracking tools?
We are ready for this and have actually lead the way. Is your mailshop using this technology? How many other things are coming that your current mailshop is going to wait for, before learning on your project? Why do they put your mailings at risk as they "figure it out" near deadlines? It's because most shops are reactive instead of proactive.
You deserve to be kept at the front of the direct mail revolution, not in the backseat. These new systems create dynamic advantages for the people that partner with us. What if your competition is using these advanced services and you are not? Mailing with CSG Direct ensures that you are staying at the front of the pack.
This is another core reason to work with a company that is a mailshop first, printer second. It just makes sense!
...and how our clients avoid them and save thousands
We continue along with Sin #6:
Direct Mail Sin #6
Excel sucks for databases. I don’t know how else to put it. Sure, everybody has it and it is one of the easiest ways to display your database visually, but it doesn’t hold record integrity and it plays with the numbers in your database. The worst horror stories ever in our business have Excel in them. We like MS Excel for spreadsheets and mathematics, not for databases.
There is no describing the feeling that comes over you when you find out (after the mailing) that your customer had sorted the [Last Name] field of an Excel spreadsheet before sending it to you. It's like a bomb goes off and everyone involved gets hit with the collateral damage.
These "bombs" are always from excel. Every single time over the decades I have been doing database marketing, Excel is the culprit. Yes there are ways to use it properly to avoid these mistakes. But, the fact that sortation is possible in this manner means excel is NOT a database program.
You've been warned. This is a Direct Mail Sin.
What do you get when you take the heaviest piece of mail possible and force it to either jump through hoops or pay huge postage increases? You get the single largest opportunity for the US Postal Service to increase its income quickly.
As someone who has processed flats and catalogs, I can't say I blame them due to the backbreaking nature of these heavy cumbersome pieces. But we like to help you save postage at each turn. So I am here to guide you through this new information.
USPS Poster 182, January 2009 Specifically Reads:
New Address Standards for Commercial Flat-Size Mail
Effective March 29th 2009
Since you can download the document I won't copy it verbatim. But I do want to talk about what I see and how it relates to all of you.
The first and most obvious aspect of this entire change of mail processing category is the conversation about the "top" of the mailpiece and specifically if it is on the right or on the left of the publication. Let me repeat that because it sounds so odd (so postal). The TOP is on the RIGHT or LEFT. *chuckling to myself*
Anyway, once you get oriented about RIGHT, LEFT, TOP and "bound edge" this gets easier to understand.
Look at this example:
Notice the Magazine is upside down to us and the address is vertical and parallel to the bound edge. To us this makes the most sense because if you rotated this 90 degrees to the right it would be envelope shaped and the address would be in the correct area. Unfortunately, this is with an address block on the front cover. However, "front cover" is not required but the orientation is. This is not the same place all of you are addressing right now so this was the most important change to look at. Be aware of the address block to the bound edge.
Here is another example:
This is where it goes from obvious to bizarre. First, you now see the "top half" is the bottom half of the magazine. You also see that the address is no longer in the top half and the address block is also inverted. Interestingly enough this is considered with a "loose enclosure" which means it can slide around, however they want it in a specific location. I have to imagine this was built very specifically to a certain project or projects because it doesn't make much sense at first glance.
Here is another example:
This format seems like it makes sense to the Post Office but I imagine they just don't realize that this is one of the biggest money spots on a magazine. A back cover ad is real estate that we do not want to give up. It is very common to address on the lower half of the back cover, but rarely ever on the top.
I see this example as the most common money maker for the post office as they struggle to make you give up the largest money makers for you. You're just going to have to move your customers' ads to the bottom half and make them happy about it somehow. It is the same square footage ad space but it does feel submissive to the addressing itself. Remember, this heavy magazine mails at first-class rates without it. $1 or more each.
Perhaps it is time to start addressing on the cover to save this valuable ad space.
Put it where you would put the newsstand UPC for non-mailed versions.
Last Example:
I think the most important part to observe on the large envelopes is that in either example the return address is on the left. The "top half" appears to be whichever side the mail-to address is on. These two formats have the smallest change and the option at the right is already the standard in all the large envelopes we mail.
In summary, the biggest concern from our perspective is magazines. There are so many of them out there that are mailed in the first week of each month. I imagine that April 1st is going to be April Fools Day to so many of the Post Office's largest customers. But this time you won't be laughing.
National Change of Address is now mandatory.
Something VERY IMPORTANT to consider is that almost every mailshop in the country SENDS YOUR DATABASE OUT to have NCOA done. Yes, your mailshop does too. In my neck of the gaming world this throws up huge red flags. A big no no.
Currently, CSG Direct is the only mailshop in the state of Nevada directly licensed by the USPS as an NCOALink Limited Service Provider. [Link] We have been providing this service for casinos for many years and have perfected the process to make your job of cleaning up your in-house database easier.
Of course, we specialize in database marketing and gaming.
We've worked closely with Oasis Systems and others to help you find ways to upload your data back into your master database and save yourself weeks of data entry.
...and how our clients avoid them and save thousands
We continue along with Sin #5:
Direct Mail Sin #5
Permits, postage and endorsements
The US Postal Service requires your postage to be paid at the time they accept your mailing. Here at CSG Direct we help you in advance by estimating postage based on what we know about the project and database.
Work closely with your CSG Direct rep to ensure you have the right permit on your piece as well as the proper return service endorsements for the kind of services required. In order to eliminate any last minute delays, have your postage ready and available.
When customers don't get us involved we see a wide array of oddities show up already printed and too late to fix. It is so much easier to fix them prior to printing and it looks nicer than the odd fixes we are often required to do in order to get it through the post office.
Our mailpiece analysis is a free service for our clients. If you avoid using it you do so at your own risk. Heck - it's free and we have 25 people on staff certified to do it.
Take the time and save yourself a lot of grief and co-worker finger pointing.