June 2002

New Postage Rates Effective June 30
View a comparison chart of postage rates for the past few rate increases at http://www.mailcci.com/past_issues/042002a.asp.

We started the table in Dec 2000 (http://www.mailcci.com/past_issues/122000p.asp). It contains only a sampling of the various classes, sortation levels and fees included in this latest increase. Remember, the USPS is the only authorized source of postal information.

Valpak: The Window Is Not The Holy Grail
Valpak has redesigned their coupon mailings to appeal to both upscale recipients and more national advertisers. Valpak delivers coupon mailings to more than 46 million homes each month. Valpak CEO Bill Disbrow, in USA Today, said they "found out [the window] actually hurt the rate of people opening the envelopes."

Valpak estimates that 70 percent of recipients open the coupon-filled envelopes. With the redesign the company hopes to increase that to 80 percent.

The Numbers Are In
Some of the costs for the USPS recovery from the terrorists' attacks on September 11 and the anthrax contamination of the mail:

• Transportation costs rose $150 million after new commercial airliner rules for the transportation of certain packages increased USPS's dependence on Federal Express to move packages.
• Cost to de-contaminate and re-open the anthrax contaminated facilities in New Jersey and Washington will be $35 million.
• The Church Street Post Office, near the World Trade Center in Manhattan, was partially damaged in the terrorists' attacks. Repairs are estimated at $10 million.
• Over the next 12 months, to protect its employees and the public from future biological attacks, the USPS will begin retrofitting sorting machinery with biological filters and vacuum systems at a cost of nearly $500 million.

There are other costs to consider, like the rising costs of fuel and labor, which affect the USPS's financial status.

Postmaster General Defends Salary Bonuses
The USPS recently changed the way it distributes employee bonuses to a merit system that rewards workers for increasing productivity. This year the system paid out $170 million, a number that has lawmakers worried.

Legislators on Capitol Hill and other concerned parties are questioning the USPS's decision to award $170 million in bonuses in the light of last year's $1.68 billion loss and the expected $2 billion loss in 2002.

Postmaster General, John E. Potter, defended the bonuses, citing the $1 billion saved over the past 3 years while using the new system. He reported to lawmakers that the $1 billion would have been paid out under the old system in cost-of-living and other automatic pay raises.

News Poll
Send your vote to mailto:webmaster@mailcci.com or vote online. Visit http://www.mailCCI.com and click Direct Mail Survey.

Do you prefer addresses to show through a window or printed 
on the outside of the envelope?

____ Window
____ Addressed on the outside

We'll post the poll results here in next month's 
e-newsletter.
------------------------------------------------------------
Results of last month's poll: 
Have you ever used direct mail to encourage web site 
traffic?

58% Yes
42% No

See the results of other surveys CCI has conducted online at 
http://www.mailcci.com/data/surveys.asp.

www.mailCCI.com
Is it possible to improve response to your variable data direct mail? It is now with our Match/Insert/Inkjet all-in-one process. We offer unrivalled flexibility in customized mailings including 100% perfect matching without a match number and inkjet text and graphics at up to 3 colors and high resolution.

Learn more at http://www.mailcci.com/inserting/perfect_matching.asp or just call CCI at 800-279-2505.