Real In Business

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Friday, 14 January 2011

The Elephant Has Ears: Some Good News for Mailers Along With the Rate Hikes

Posted on 12:24 by Unknown
In announcing rate increases yesterday, the U.S. Postal Service actually managed to win praise from many mailers.

It’s not that the new rate structures scheduled to take effect April 17 are particularly innovative. In many cases, they are merely less bad than other recent Postal Service price moves, both actual and attempted.

What especially pleased the mailing industry is that "Elephant Plaza", as some refer to the USPS HQ at L'Enfant Plaza showed yesterday that it is actually listening and responding to mailers, especially in regard to the flawed Intelligent Mail program. We got a hint of that last week with Postmaster General Pat Donohoe’s executive reorganization (see Donahoe, No Potter Clone, Quickly Making His Mark), but the signals were even clearer Thursday.

“Recognizing ongoing concerns about mailers’ readiness for broader adoption of the Intelligent Mail barcode (IMb, which Dead Tree Edition has relabeled as the FUBAR code), the USPS has decided that automation discounts for mail with POSTNET barcodes will continue to be offered beyond May 2011,” a USPS announcement said. In other words, mailers will not be severely punished (yet) for sticking with traditional barcodes.

A postal executive also acknowledged to a mailing industry briefing that the PostalOne! information system, which many mailers and mail vendors have to use and suffer through, is a mess. “No s*%t, Sherlock!” one publishing executive responded later. Also, Donahoe originally told mailing industry representatives yesterday morning that the new rates would take effect March 27, but they persuaded him that was too soon to implement.

"Overall, it was an incredible breath of fresh air for the mailing industry," Hamilton Davison, head of the American Catalog Mailers Assocaition, wrote to ACMA members. "The meeting signaled a real willingness on the part of Mr. Donahoe and the USPS to work on substantive issues and customer concerns. This is exactly the right move for a high fixed-cost institution that ultimately must grow its way out of financial difficulties."

The rate filing included two changes from past practice that will put millions of dollars more of mailers’ money into Postal Service coffers. The rates will take effect a month sooner than previous rate increases. For future years, the Postal Service plans to continue implementing new rates in April rather than May.

Also, the price cap was calculated based on annual changes in inflation through November 2010. If the Postal Service had followed its usual practice of waiting for today’s release of the December 2010 Consumer Price Index, the rate cap would have been 1.64% instead of 1.741%. (See USPS Delay Means Smaller Price Increases for Mailers for background on the timing issue.)

The new Periodicals rates don’t really fix any of the problems with the current rate structure, but at least they won’t exacerbate the problems much. The 9.8-cent gap between the Basic Carrier Route and 5-Digit Automated piece rates will be maintained, which is good news for co-mailing publishers (and for the printers than run co-mail operations).

Still, efficient mailers will take a bit more of a hit than average once again, with rate increases for some approaching 2.5%. (Do Postal Execs Want To Lose Money on Periodicals? Tough Question #4 For USPS has more background on this tendency with Periodicals rates.)

The Postal Service has made noises about encouraging the use of pallets and of dropshipping, but that hardly showed up in the new rates. There is still no meaningful discount for using Network Distribution Centers, which would encourage dropshipping by small publishers. And the rate increases for sacks were all below the 1.767% average for Outside County Periodicals.

All individual Outside County Periodicals rate changes will be in the narrow range of 0% to 3%.

Most efficient catalog mailers will also be hit a bit harder than inefficient ones. The average increase for Basic Carrier Route sent via Standard mail will be 1.4%, versus only 0.8% for non-Carrier Route Standard flats. Some catalogs and free publications that use Standard mail will actually see small rate decreases.
Email ThisBlogThis!Share to XShare to Facebook
Posted in Periodicals postage, postal rates, Postmaster General Pat Donahoe, Standard postage | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Confusion, Misinformation Could Hinder USPS's Early-Retirement Push
    Confusion reigns among the 115,000 postal workers who received notices in the past few days about a buyout offer. The confusion could limit ...
  • Are E-Book Sales Reaching a Plateau?
    When the U.S. magazine industry gets hot and bothered about the latest craze, you can usually bet that trend is about to run out of steam. E...
  • Toshiba's No-Print Day As Popular As a Turd in the Punchbowl
    Update: Toshiba pulled the plug on its campaign. See 9 Lessons from Toshiba's No-Print Day Debacle for the full story.   In the last th...
  • Potter Quitting the Worst CEO Job in America
    At the ripe age of 55, Postmaster General Jack Potter announced his retirement today from the worst CEO job in America. Some will no doubt ...
  • How USPS Is Like an Airline, and Why That Matters
    A postal official made a revealing statement last week about the U.S. Postal Service’s attempt to get higher-than-inflation rate increases. ...
  • 17 More Ways USPS Is Not Like a Real Business
    Please see the U.S. Postal Service's response to this article, Layers of Redundant Management Have Been Eliminated, USPS Says . The rece...
  • Is Apple's 30-Percent Solution Really So Bad?
    The new iPad subscription model certainly has its flaws, but for the American magazine industry to complain about Apple's 30% take is th...
  • UPS Praises Postal Service's Improvements, But Not Its Rate Hikes
    United Parcel Service recently praised “impressive efforts by the Postal Service to reduce costs and improve productivity” but criticized US...
  • Layers of Redundant Management Have Been Eliminated, USPS Says
    The U.S. Postal Service's public relations department responded last night to a recent Dead Tree Edition article. We are publishing the ...
  • FSS Postage Pricing Will Affect Magazines, Catalogs, and Printers
    The U.S. Postal Service’s growing confidence in the troubled Flats Sequencing System may lead to an overhaul of postal rates and significant...

Categories

  • AbitibiBowater
  • African American postal workers
  • Amazon
  • American Bankers Association
  • American Postal Workers Union
  • Angry Birds
  • antidumping
  • Apple
  • APWU
  • Area Mail Processing studies
  • Audit Bureau of Circulation (ABC)
  • automation refugees
  • Baldwin Technology Company
  • Barnes and Noble
  • Better Homes and Gardens
  • Bisphenol-A (BPA)
  • Bite me
  • black liquor
  • book industry
  • bookazines
  • Borders
  • boreal forest
  • BoSacks
  • Boston Print Buyers
  • Buckeye Technologies
  • BusinessWeek
  • Candace the Caribou
  • Catalyst Paper
  • Cathie Black
  • Champion Paper
  • Chicago Sun-Times
  • Chicago Tribune
  • co-mailing
  • coated groundwood
  • coated paper
  • coldset printing
  • color printing
  • Conde Nast
  • Congress
  • Consumer Price Index
  • Consumer Reports
  • content marketing
  • Cosmopolitan
  • CPI
  • D. Eadward Tree
  • Da Vinci Code
  • Darrell Issa
  • Dead Tree Edition
  • Deputy Postmaster General Ron Stroman
  • Digital IQ
  • direct mail
  • Discover Financial Services
  • Domtar
  • dropshipping
  • E Ink
  • e-books
  • ecologomania
  • electric vehicles
  • Elle Decor
  • Entertainment Weekly
  • Facebook
  • FedEx
  • First Class postage
  • Flats Sequencing System
  • Folio:
  • Forbes
  • ForestEthics
  • forests
  • Forever Stamps
  • freesheet paper
  • George Will
  • Georgia Pacific
  • Glatfelter
  • Google
  • Gordon Pritchard
  • Green America
  • green printing
  • Greenpeace
  • greenwashing
  • Greeting Card Association
  • Guitar World
  • Hearst
  • heatset printing
  • Idealliance
  • in Touch Weekly
  • Indonesia
  • Inspector General
  • Intelligent Mail Barcode
  • International Paper
  • iPad
  • Joint Committee on Taxation
  • KapStone
  • Kentucky Fried Forest
  • Kimberly-Clark
  • Kindle
  • Koch Industries
  • L.L. Bean
  • Leo Raymond
  • letter carriers
  • Life magazine
  • logging
  • magazine industry
  • Magazine Publishers of America
  • mail transport equipment
  • Mailers Technical Advisory Committee (MTAC)
  • Margie Dana
  • MeadWestvaco
  • Men's Journal
  • Meredith
  • MPA
  • Muscle and Fitness
  • National Association of Letter Carriers
  • National Geographic
  • NewPage
  • newspaper printing
  • newspapers
  • newsstand
  • Newsweek
  • Nook
  • Northrop Grumman
  • Office of Personnel Management
  • OK magazine
  • Packaging Corporation of America
  • paper prices
  • part-timers
  • Patti LaBelle
  • People magazine
  • Periodicals
  • Periodicals postage
  • phased retirement
  • Pitney Bowes
  • Port Hawkesbury
  • post office consolidation
  • postage rates
  • postal clerks
  • postal lottery
  • postal pensions
  • postal rates
  • Postal Regulatory Commission
  • postal salaries
  • Postmaster General Jack Potter
  • Postmaster General Pat Donahoe
  • Print Buyers International
  • print media
  • print prices
  • printing employment
  • Printing Industries of America
  • printing prices
  • Printing's Best Blogs
  • Publishing Executive
  • QR codes
  • Quad/Graphics
  • QuadGraphics
  • Quebecor World
  • R.R. Donnelley
  • Readers Digest Association
  • recycled paper
  • Rep. Dennis Ross
  • Rep. Peter DeFazio
  • Resolute Forest Products
  • retiree health benefits
  • Reuters
  • Richard Nixon
  • RISI
  • Robert W. Mitchell
  • Rock-Tenn
  • Rodale
  • Rolling Stone
  • Rosie magazine
  • Ruth Goldway
  • Samir Husni
  • Sammy Smartphone
  • San Francisco Chronicle
  • SAPPI
  • Saturday delivery
  • search engine optimization
  • Second Ounce Free
  • Sen. Max Baucus
  • Sen. Thomas Carper
  • Sonoco Products
  • Standard postage
  • Star magazine
  • Stern Partners
  • StoraEnso
  • subscriptions
  • supercalendered paper
  • sustainable forestry
  • tablets
  • Temple-Inland
  • The Atlantic Monthly
  • The Wall Street Journal
  • Thurgood Marshall Jr.
  • timber industry
  • Time Inc.
  • Time magazine
  • Toshiba
  • Traditional Home
  • Transcontinental Inc.
  • Twitter
  • Two Sides
  • U.S. News and World Report
  • U.S. Postal Service
  • United Parcel Service
  • UPM
  • USPS bankruptcy
  • USPS employment levels
  • USPS network optimization
  • USPS privatization
  • VERA
  • Verle Sutton
  • Verso
  • Veterans Job Corps
  • Viagra
  • Voluntary Early Retirement (VERA)
  • Washington Post
  • West Linn
  • West Virginia
  • Weyerhaeuser
  • White Birch Paper
  • William Burrus
  • Worldcolor

Blog Archive

  • ►  2014 (2)
    • ►  January (2)
  • ►  2013 (57)
    • ►  December (4)
    • ►  November (4)
    • ►  October (8)
    • ►  September (7)
    • ►  August (3)
    • ►  July (4)
    • ►  June (3)
    • ►  May (4)
    • ►  April (4)
    • ►  March (4)
    • ►  February (6)
    • ►  January (6)
  • ►  2012 (90)
    • ►  December (4)
    • ►  November (8)
    • ►  October (7)
    • ►  September (11)
    • ►  August (6)
    • ►  July (7)
    • ►  June (7)
    • ►  May (6)
    • ►  April (8)
    • ►  March (8)
    • ►  February (6)
    • ►  January (12)
  • ▼  2011 (111)
    • ►  December (5)
    • ►  November (8)
    • ►  October (13)
    • ►  September (9)
    • ►  August (9)
    • ►  July (8)
    • ►  June (12)
    • ►  May (6)
    • ►  April (9)
    • ►  March (10)
    • ►  February (11)
    • ▼  January (11)
      • How Two Words Can Lick What's Ailing Publishers
      • We're Number 5! We're Number 5! -- Recent Honors f...
      • Postal Service ‘Discovers’ A Way To Grow Direct Mail
      • NewPage Gets Some Breathing Room
      • Is That A Flat-Rate Envelope in His Pocket, Or Is ...
      • NewPage, Verso Owners Reportedly Discussing a Deal
      • The Elephant Has Ears: Some Good News for Mailers ...
      • Postal Rates To Rise In April
      • Donahoe, No Potter Clone, Quickly Making His Mark
      • USPS Is Wasting Money on Unwanted Services, Publis...
      • Voulez-Vous Debark Avec Moi? Former Paper Mill Abo...
  • ►  2010 (40)
    • ►  December (6)
    • ►  November (14)
    • ►  October (14)
    • ►  September (6)
Powered by Blogger.

About Me

Unknown
View my complete profile