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FREE Webinar

Postal Rates and Reform - the Experts Offer Solutions

Welcome to this webinar archive. The live event was held on May 9, 2007, but you may still access the content with the resources below.

The easiest way to view the archive is to have it stream just as it did the day of the live event. Please try this option first (available for one year)

Streaming Webinar Archive

The following downloads are also available (beyond one year):

Adobe Acrobat version of the slides (568KB pdf)

List of states considering "Do Not Mail" and status (137 KB pdf)

Downloadable audio archive (6.4MB MP3)

More About this Webinar

This one-hour event – presented as an “open panel discussion” – gave graphic arts, production, and distribution executives insight into opportunities for managing operations for more cost effective mail distribution of printed materials. In addition to host Gail Nickel-Kailing, panelists included:

  • Ben Cooper, Executive Director, Mail Moves America, a coalition organized to deal with the emergence of state and – potentially – Federal “Do Not Mail” legislation.
  • Kate Muth, Vice-President, PostCom, the Association for Postal Commerce, which represents those who use or support the use of mail for business communication and commerce.
  • Jerry Cerasale, Senior Vice. President of Government Affairs, The Direct Marketing Association (DMA).
  • Leo Raymond, Director of Postal Affairs, Mailing and Fulfillment Services Association (MFSA), the national trade association for the mailing and fulfillment services industry.
  • Rita Cohen, Senior VP/Legislative and Regulatory Policy, Magazine Publishers of America (MPA), the trade association for the consumer magazine industry.

 


Post-Webinar Q&A

1. Please explain the new requirements for addresses (DPV, confirmed, etc.). How does DPV affect non-CASS addresses in a mailing? What if I have only a 5 digit barcode?

DPV (delivery point validation) is for CASS mailings only. It will be part of CASS Cycle L, which begins on Aug. 1. Those mailers using CASS software on their mailings will now include a DPV check on the primary number in the address. That is, DPV will check to make sure that the address is an actual delivery point, and not an empty lot or a made up address, etc. If an address is DPV-coded, it receives the 11-digit barcode. If it is not DPV-coded, the address still gets a 5-digit barcode.

2. The USPS has said they are NOT making large coils of the FOREVER stamp, just books and panels. Why won’t they make the stamps available in coils since this would potentially help out mailing houses doing full rate stamped letters?

The USPS is not offering forever stamps in coils. It is meant to be a “consumer” stamp and it is doubtful the USPS will offer it in coils for businesses. Potentially the USPS and the regulatory commission would be concerned about potential loss of revenue if mailing houses could be the stamps in major bulk and then use them for many years, even after the stamp price has gone up two, three or four times in that span. 

3. Can promotional pieces/solicitations be sent in a First Class #10 envelope with a billing statement?

Yes they can.  Of course, if the additional promotional material increases the weight to over 1 ounce, the additional ounce First-Class rate would apply.

4. When do you foresee Periodicals and Standard being able to co-mail together? How will this combo affect delivery time?

Mixed class co-mail is allowed now on a pilot basis but due to the new rate complexity for periodicals, there are a number of issues that need to be resolved before the pilot can really begin.  Once rates are implemented for periodicals in July, finalization of the mixed class co-mail requirements can begin in earnest.  Hopefully, the pilot will be fully functional in the fall.  Periodicals in a mixed class co-mail with standard class will have to accept standard mail service standards.

5. Can you explain the flexibility requirement on flats - such as catalogs or booklets?

The USPS proposed that all discount flats be subject to new flexibility standards. Rigid pieces do not qualify for flat prices. The flexibility test specifies that pieces must not be in boxes because boxes and boxlike pieces do not process well on the AFSM 100.

From final rules on mail preparation:

“We clarified the flexibility test by stating that pieces must be tested first with the longest side parallel to the edge of the surface. If the piece can pass this test and does not contain a rigid insert, further testing is unnecessary. We are confident that our acceptance employees can recognize pieces that could present a flexibility problem and will properly administer the test but, as we noted above, we also will allow customers to test their own pieces while we observe. We will provide illustrations for the flexibility test as well as the test for deflection in the DMM and other publications.”

Deflection (“droopiness”). The USPS had proposed that automation flats must meet maximum deflection standards, and described the requirement and deflection test in proposed DMM 301.3.3.4. The deflection test for automation-rate flats with bound or folded edges was revised to allow the pieces to be tested by “placing the bound or final folded edge perpendicular to the edge of the flat surface.”

6. Why is the Postal Service charging a higher rate for variable/targeted marketing pieces? Only the images are being changed, there is no real change being made to the piece such as weight or size.

This is a question most appropriately asked of the Postal Service.  Right now postal regulations require a Stand Mail mailing to be of 200 or more identical pieces.  Over the years, USPS has allowed some “individualization” within a bulk mailing.  By regulation USPS could redefine the term, identical, to include the variable/targeted pieces.  They are rightfully concerned about revenue loss, but in a time of intense competition among advertising channels and with the new flexibility postal reform has given USPS, this is a subject USPS should be willing to seriously consider.

7. Which large printers are most likely to BENEFIT from the changing rates and which are most likely to be hurt?

Printers serve their clients, who are the actual mailers. The large printers have a broad spectrum of clients, that is, companies that mail at different sizes, weights and subclasses. Printers will improve their efficiencies, as they continually do, but postage rate increases of any kind hurt their clients.

Relatively speaking, printers who can analyze the new postage rates and offer their customers a variety of options – including co-mailing, drop shipping, and other alternatives – to lower the increase will be in the best position.

8. We produce brochures that are roughly 8.5x11, with average weights of 3 ounces. These have been mailing flat at standard rates. Is it better to add pages or to print on a heavier stock to increase the weight and therefore mitigate the postage cost?

This is a good example of where working with your printer would be appropriate. They will probably have a matrix of some kind to help you sort out your best options. They can also plug in how the pieces are sorted, where they are entered and how many are in the mailing to determine what is a good option.

9. What is the DMA doing to promote mail preference service or to fight the do not mail legislation?

DMA is very active in the do-not-mail arena.  We have formed a broad coalition Mail Moves America) of mailers, mailer association and postal employee groups to coordinate the mailing community efforts to keep the mail channel open for marketing.  DMA is funding the vast majority of this effort—over $2 million per year. 

Last year there were do-not-mail bills in 4 states.  This year there are bills in 15 states.  DMA disseminates information of the activities in the State Legislators to Mail Moves America (MMA), and MMA coordinates responses to legislation—be it at hearings or in letters.  Fortunately, to date there is no action planned on any of the bills.  In fact, in four states the bills have been withdraw or action has been suspended on them.

MMA is also working to coordinate communications on the value of mail to the America economy and public.  In this regard (not in the lobbying area) we are in discussions with USPS.

DMA is currently revamping MPS and the requirements for its members to use it.  We have had and will have further discussions with USPS about publicizing MPS.

Finally, DMA, along with Magazine Publishers of America and Envelop Manufactures Association, have worked with the Federal Trade Commission to allow our members to post recycle messages on mail pieces.  DMA will be launching its program, Recycle Please, later this month.  One of the best things any company can do to help keep the mail channel open is to join the recycling programs of DMA, MPA or EMA.

If you need more information on MMA, please contact Jerry Cerasale (jcerasale@the-dma.org)

10. Where do you find the list of the Do Not Mail states?

The list of states involved in opt out legislation is here ( 137 KB pdf) .

Additional information on this effort can be obtained from Ben Cooper at bycooper@wms-jen.com.

11. Is there software available to merge the names of those who have signed up on the Mail Preference mail list?

There is software to do that.  It can be obtained from IMS, the company that distributes the MPS.

12. How is the current "opt-out" program enforced?

DMA has an ethics review board, Ethics Operating Committee, that reviews complaints of violation of any of DMA’s Guidelines, including honoring opt-outs.  Those complaints are filed by consumers, companies and, at times, even governments.  If the Committee finds a company out of compliance, it will work to bring the company back into compliance.  If the company fails, it could be publicly removed from DMA (if not a member, publicly noticed of its violation to ethical rules), and/or referred to law enforcement.

Questions related to the existing "opt out programs" should be directed to Stephanie Hendricks at DMA. Her email address is shendricks@the-dma.org

13. Would it be best that all mailers add information on their pieces on how to "opt-out" and should this be mandatory so that this might prevent legislation for a "Do Not Mail" registry?

The question of who would “require” such information makes a mandatory “opt-out” hard to implement, however it would be in the best interest of all mailers to make it as easy as possible for recipients to request that their name be eliminated from future mailings. Ensuring that every piece of direct mail is delivered to the right person at the right time with the right offer may possibly reduce the move to legislate against promotional mail.

14. What if the service standards required by Postal Reform are not as good as today’s standards?

It is unlikely that service standards will be weaker than they are today. The MTAC (Mailer’s Technical Advisory Council) work group that is working with the Postal Service on this issue has four or five subgroups, broken out by class of mail to come up with service standards. Standard Mailers have long argued that consistency of delivery is more important than speed. The work group is considering all of this. Further, the PRC is expected to open some kind of public comment on service standards at some point in the late summer or early fall.


If you have questions about this webinar, please contact Eric: eric@whattheythink.com


 

 

 

 

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