December 2000
Postal Rate Commission's Recommended Increases Accepted
The PRC sent its recommendations to the USPS Board of Governors for next year's
postage rate increases.
The USPS had originally asked for a 6.4 percent overall increase in rates. Most
of the PRC's recommendations were lower than the USPS had originally requested
which resulted in only a 4.6 percent overall increase, more in line with a
forecasted inflation rate of 4.7 percent.
Increases for enhanced carrier mail will be 4.5 percent and 8.8 percent for all
other Standard-A mail. On of the larger increases was 17.6 percent for bound
printed matter. The smallest, 1.8 percent for First Class.
The new recommendations were accepted by the Board of Governors under
protest. This sends the matter back to the PRC for final acceptance. Although
there is no time table for the PRC's next step, the USPS expects the new postage
increases to take affect January 7, 2001.
The PRC also suggested new rates for two types of First Class mail: One for
barcoded courtesy reply envelopes used to pay bills, and the other for letters
using computer-generated postage. These changes were flatly rejected by the USPS
Board of Governors.
More On The Deceptive Mail Law
In October I told you about the Deceptive Mail Prevention and Enforcement Act.
If you missed that issue, read it at http://www.mailcci.com/past_issues/102000.asp
Most of the new rules for direct mail went into effect April 13 except for one
which becomes effective Dec 12. Marketers must establish a system that allows
consumers to easily remove their name from the mailing list used for
sweepstakes type mailings. Instructions how to use the
system must be clearly displayed on the mail piece. Marketers also are
prohibited from selling the names of those that request to be removed.
Penalties for not meeting the new laws requirements can reach up to $1 million.
Mailing Accuracy Testing Results
In August I reported that the USPS was set to begin testing in a new program
that would automate some of the manual reviewing that must be done prior to
acceptance of bulk mail. At four test sites, over 1500 mailings have
been reviewed using the Mailing Evaluation Readability Lookup
Instrument (MERLIn). The results may suggest that MERLIn is finding more
errors than manual verification.
** 8.6 percent had incorrect counts. 10 percent of these also had presorting
errors greater than the allowed 5 percent.
** Under 9 percent failed barcode readability tests.
Two hundred more MERLIn machines are due to be deployed mainly in the South. The
USPS plans to request 2000 more over the next 2 years.
BULK RATE Indicia Deadline Nears
Beginning January 10, 2001, the USPS will no longer accept indicia that includes
the "BULK RATE" designation. Make sure to change your indicia to read
"PRESORTED STANDARD" or "PRSRT STD".
If you still have some preprinted indicia with "BULK RATE", call
you CCI representative. We have devised a way to fix your indicia. Call CCI at
316-265-0879 or 800-279-2505.
Stamps As Currency
In October I told you the USPS was implementing a program that would allow
consumers to pay for inexpensive items with stamps. The retailer would then turn
in the stamps for cash at their local post office. One of the benefits of
this service would be an increased response as it would be easier for
buyers to pay with stamps than cash, check or credit card.
A company called Fans United has participated in a test of this program. They
sell a brochure that is requested by sending in a response card with the
correct number of stamps. Fans United has reported a response 22
percent higher than asking buyers to send their payments in an envelope.
USPS News
** Still No Contract
The USPS has failed to reach settlements with all three labor unions before
their respective contracts expired. The American Postal Workers Union and The
National Postal Mail Handlers Union are each continuing negotiations with the
USPS after contracts expired Nov 20.
NRLCA and the USPS broke off negotiations after they failed to reach a
settlement by the contract expiration, also Nov. 20. The National Rural Letter
Carriers Association and the USPS are proceeding with statutory dispute
procedures.
The APWU represents 355,000 clerks, maintenance employees and vehicle drivers.
The NPMHU represents 61,000 mail handlers. The NRLCA represents 114,000 rural
letter carriers.
** Defending Internet Services
The USPS sent 535 letters to Congress recently defending their internet services
endeavours. Some internet companies and other organisations cried
"government monopoly" when the post office began unveiling plans for
future e-services like e-bill payment.
The USPS has responded with the letters in which Deborah
Willhite, VP of Government Affairs wrote that similar attitudes would have
kept the post office from offering parcel delivery, post office boxes and
mail orders.
The letter also specifically denied claims that the USPS's eBillPay service is
competing with private sector companies.
Direct Marketing vs. Internet Marketing
Mailing Systems Technology recently concluded its annual Wage & Operations
Survey of direct mail centers. Here are some highlights from that survey:
** 53 percent of mailers reported a 15 percent increase in
mail volume related to the internet.
** Standard mail volume increased 14 percent and First Class grew 15 percent.
** Many operations related to the direct mail industry reported increases
due to the internet including lettershops which saw a 12 percent increase.
More on this topic can be found in the September, October and November issues.
Read past issues at http://www.mailcci.com/past_issues/.
News Poll
Results of the November poll: Where will you spend the most on gifts?
70% answered Store purchases
14% Catalog and Mail Order purchases
16% Internet purchases
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