Friday, October 16, 2009

Thank you PMG Potter!

It appears that the message has finally hit home and the postal service will not be increasing postage rates for calendar year 2010 for market dominant products (first class mail, standard mail, periodicals, and single piece Parcel Post). It has taken a while for the USPS to realized that "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." Thank you PMG Potter!

This is wonderful news for the mailers, and the rest of the industry, who have been negatively effected by the USPS. Lets hope this will be enough of a boost for everyone that in return the USPS will see a lift.

Labels: postage

Thursday, August 13, 2009

Another postage sale?

I read today that the USPS is going to have another "sale" on postage. This time on first class mail. Very similar to the sale this summer, which I believe is still going on.

My question... how is this summer's sale doing? I haven't read any reports as to its effectiveness.

Labels: postage

It's not "junk" if you want it.

What? A slow news day at MSN.com? Do we have to read more dribble about how direct mail is polluting our landfills and angering consumers? 41 Pounds, donotmail.org etc. It's all the same message. But what about water bottles? How about prescription bottles... yogurt containers... pudding containers, toy and microwavable food packaging?

Most importantly, direct mail works. If it didn't mailers wouldn't mail. So somewhere out there, there are loads of people who respond to mail and want to get it. Why punish them?

Secondly, if these writers would do just a little more research they would find out that mail volume has decreased over the past two years... 2.4 billion dollars in lost revenue to the post office. And the reason you're only getting 1.5 pieces of letter type mail is because more and more people get bills etc via email lately to avoid higher postage rates set by the USPS.

It's time for these anti mail organizations to move on to other topics. Like packaging.

Labels: Do Not Mail, postage

Monday, August 10, 2009

USPS in trouble? Oh really...

I think I'm beginning to sound like a broken record. If the PMG rolled back the prices on postage to pre-2007 then mailers could afford to mail more. There needs to be an incentive for mailers to increase their volume in the mail.

This is a serious issue that is largely attributed to the postal service itself. If you want mailers to use the mail it must be affordable. Roll back the rates and mailers will mail more.

The post office will not go out of business. The government will cover the losses and help fund more. But who ultimately pays?

Labels: postage, postal regulation

Wednesday, August 5, 2009

TO BE or NOT TO BE “delivered”. That is the question.

Just read a story off yahoo.com that the word is that the USPS is considering closing some 700 post offices in the coming months to combat their widening deficits. That is just about 2% of the post offices across the country. Doesn’t seem to be a huge amount on the surface, but what will that do to expected delivery time of the mail.

In these already uncertain times can mailers be expected to take much more?? Higher postal, paper, list costs, and now longer expected delivery times. What is next, 5 day delivery schedule? Oops, did I say that out loud?

Labels: postage, postal regulation

Wednesday, January 21, 2009

ACMA letter campaign

I applaud the initiative being put forward by Chris Bradley of Cuddledown and the members of the American Catalog Mailers Association (ACMA). They are putting forth a letter writing campaign to request Congress to roll back the postage rates to pre May 2007 rates.

In the sample letter (which is included in the link sited above) catalogers outline how the roll back would allow mailers to stimulate their businesses in an ever declining economic environment.

My only addition to this would be that we all write letters to our elected officials requesting the same. After all, this would help everyone in our industry. The lower the postage rate the more mailers can afford to mail. The more they mail the more names will be available for everyone to use. This means more rentals and exchanges. So mailers, brokers, managers, and list-owners all benefit.

Labels: catalogs, postage, postal regulation

Monday, January 19, 2009

Is a 3.8% postage increase good news?

I guess it is if you compare it to two years ago. But in an economy strapped environment is any increase good? Usually when a service increases their rates they also tout the additional services they will provide the customer with. Like my cable and Internet provider. Along with their increase in price I'm getting a whole slew of new benefits (none of which I asked for nor will I use, but at least they are making a vale attempt at appeasement).

What will mailers get for their money? Better response rates? Larger orders or donations?

I'm sorry, I'm looking at the glass half empty. But I do like what Tom Conway (with the Alliance for Nonprofit Mailers) said in the article in The Nonprofit Times: "I'm not sure which is better, a 6% rate or a 4% rate with a tanking economy." He is referring to the fact that up until a few months ago the Consumer Price Index, which is what the postage increase is tied to, was heading towards 5-6% increase, but with gas prices dropping substantially the CPI is lower.

I'm still waiting to see what extras mailer's get for their increase in May. Maybe they all will get a new car from Oprah?

Labels: postage, postal regulation

Friday, November 14, 2008

Any similarities here?

The USPS announced today a loss of over 2.8 billion dollars. Among the reasons mentioned was loss of mail volume. Is it any surprise that when the USPS levied not one, but two hefty increases on first class and bulk mailers over the past 18 months and imposed new regulations for mailers to comply with, that mailers would cut back and/or look for alternative means of delivery... or stop mailing entirely? Hello?

When you increase costs to businesses, they cut back. Layoffs, reduced production or pass along price increases to consumers ensue. Worst case, shuttering entirely.

Raising expenses on businesses will not increase profits anywhere. The USPS must examine its business model and begin to revamp all with an eye towards reclaiming the loss of volume from DM. Renegotiate all their programs with an eye towards bringing mailers back with more cost effective mailing processes and lower postal rates.

Lower your expenses, lower your rates, increase your volume, increase your profits.

Labels: postage

Thursday, September 25, 2008

9 billion fewer pieces of mail

Postmaster General John Potter seems surprised at the fact that the Post Office will see this type of short fall. What did he expect? Raise postal rates on first class and 3rd class bulk and you expect a business increase? Let's go through this; more and more individuals are paying bills online. More and more people are using electronic methods to communicate as opposed to posting letters. But I believe this is a small portion of the 9 billion shortfall. The biggest cut comes from the Post Office's best customer, direct mail. We all know what happened there.

What if the post office created various levels of delivery services. Each level would have different costs to consumers and businesses but they would be more in tune with the specific business or consumer need. Example, most businesses don't need Saturday delivery. So that's a five day delivery commercial fee. Many consumers may not need Saturday delivery either. That would be a five day consumer rate. It could go as low as three day delivery.

If they reduce their costs they could reduce their rates thus increasing business.

Certainly this needs work, but it's a thought.

Labels: postage

Friday, October 16, 2009

Thank you PMG Potter!

Thursday, August 13, 2009

Another postage sale?

It's not "junk" if you want it.

Monday, August 10, 2009

USPS in trouble? Oh really...

Wednesday, August 5, 2009

TO BE or NOT TO BE “delivered”. That is the question.

Wednesday, January 21, 2009

ACMA letter campaign

Monday, January 19, 2009

Is a 3.8% postage increase good news?

Friday, November 14, 2008

Any similarities here?

Thursday, September 25, 2008

9 billion fewer pieces of mail

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