Postal Rate Update – January 22, 2012

As you many now know the postal rates are going up in a couple weeks. This will affect First-Class Mail, Standard Mail, Periodicals, Package and Extra Services.

On average the increase varies based on the class and presort level, but the by law, it is capped at 2.1%, the rate of inflation as measured by the Consumer Price Index (CPI).

While most of the increase is around 1 cent for first class and standard mail, the Postcard rate is jumping 3 cents. That’s quite a hit considering the state of the economy, but the USPS is struggling with cost over runs and pension issues. They must have felt the old PC rate was too low based on how they have to process it and 1 cent would cover the increase.   Ouch…!

Some Highlights from the USPS:

For First Class

• Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a First-Class Mail stamp since May 2009.
• Single-piece letters additional ounce rate – unchanged at 20 cents.
• Postcards – 3-cent increase to 32 cents
• Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents
• Letters to other international destinations – 7-cent increase to $1.05
• The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.

For Other Services

• The price increase for Standard Mail Letters is slightly below the overall average at less than 1.9 percent
• A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
• Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.

Additional Details can be found at the USPS.com web site.

For your convenience, you can download a detailed DataMart Direct Postal Rate Chart. Click here for Postal Rates

Will the USPS survive 2012? … Cuts and changes are raising eyebrows

With the announcement the USPS has just released dealing with its challenges and cost cutting strategies, how will it impact you and your clients? No more Saturday delivery, slower stamped mail delivery, no more in-home date guarantees, cutting almost 1/2 of their processing facilities. I have to admit, the world is much different than it was when my parents starting this business 40 years ago. The way we communicate is significantly different, and the need for the USPS to be “only” way to get a message out doesn’t hold water the way it used to.

I think there is a need for the USPS to survive and I hope these measures (or whatever is finally agreed upon) make it a stronger and more nimble organization that provides the service and deliverability we need as an industry.

But back to my question. Many of our clients have already accepted these possibilities and asking how we can help manage them. Mail a bit earlier, mailing efficiencies we can suggest, even look at alternatives to mail delivery… This last one is an unfortunate reality – but one we have embraced. Our business is delivering a message on behalf of our clients. The USPS should be one of many tools we use. Our longevity will depend on how we deal with this fact and the opportunities we implement to achieve it. At least that is the direction we have chosen to follow.

What’s yours?

Get it Opened!

What gets consumers to Open and Read YOUR direct mail?? Here is what the consumers said in 2009…

50% From a brand/company that I know

47% Personally addressed to me

38% Can see it contains a free sample/voucher

42% Interested in the product or service

21% Local services or events

19% Because it’s a competition

15% Interesting package

8% Looks fun/humorous

4% Attractive envelope

3% The design

1% The color

14% Other

Source: CCB fast. Map 2009 Marketing-GAP Research

Have these statistics changed in two years? Although there maybe be some different techniques being used in direct marketing, I don’t think what drove the majority of consumers to respond two years ago has changed much.  What do you think?

USPS Approves Summer Mobile Barcode Promotion

Yes, that’s right, the PRC (Postal Rate Commission) today approved
the 3% discount on mailers who use a Mobile Barcode integrated in their mail
piece during July and August 2011.

For some real exciting reading… here is the official doc.

USPS_Mobile_Barcode_Doc_No_731

More to come in the next week…

Mobile Barcode = Postal Savings in Summer 2011

Did you know this could save you postage this summer?

Ok, so first, you recognize this – correct? It is a QR (Quick Response) Code. We have been telling you about the benefits of the QR Code technology for sometime now.

The USPS has recently proposed a 3% discount for mailers who use a QR Code this summer. That’s right, if you use a QR Code on your mail pieces for First or Standard Mail in July or August, you can receive a postage discount.

Why is the Postal Service doing this? Probably they have seen the explosive growth of this technology has had in recent months. It is in many Retail stores (take a look in any Best Buy, Lowes, Home Depot…), TV, Magazines, and printed flyers and postcards. By providing this discount, they are no doubt piling on the band wagon. And why not? It is an easy process for those of us who can create these for clients. And it will benefit their customers who are mobile connected.

You need to have a strategy in place in the next few weeks to take advantage of this discount. Since it is only available from July 1st through August 31, 2011 you need to jump on it, can’t dilly dally here. But it is also a good practice to use these codes and once you see their value, it will no doubt become a routine for you once you start it.

Above is sample of a QR Code incorporated in a postcard that directs the customer to a website designed specifically for mobile users. This is one of the requirements the USPS has to qualify for the incentive program.

Here is a quick plan to follow.

1. Direct the QR Code to your website. It is easy to do and it can be generic… or
2. Direct it to a Mobile ready website. One that has been develop to view at the proper size and resolution of a mobile device… or
3. Develop a variable QR Code that will guide users to a PURL or personalized website for and interactive experience.

Although the USPS has not finalized this offer, once it hits, we can ensure you will be ready. We can build the QR Codes, test them, verify they will meet your needs and the USPS, and even print and mail them if you need us to.

FAQs Mobile Barcode Promotion

So what to do? Call us… Now! 630-307-71010