No Rate Increase in January!
The Postal Service (USPS) filed an Exigent Rate Increase Request this summer that would have gone into effect in January if passed. An Exigent Rate Increase is a special rate increase the USPS can propose if it feels it cannot meet its cash flow and financial obligations under law. Thankfully, the Postal Regulatory Commission (PRC) turned it down. What does this mean for you? The current postage rates will not go up in January. That is the good news. What does this mean for rates in the future? By law the USPS can still file for a rate increase in 2011. The rate increase is based on the 12 month average Consumer Price Index. This increase is anticipated to be in the 2% range, and would not go into effect until May. Stay Tuned.
Intelligent Mail Barcode becomes Mandatory in May
Beginning in May 2011, the Postnet Barcode cannot be used to achieve automated postal rates. Mail will have to have an Intelligent Mail Barcode (known as an IMB) to qualify for the lowest rates. So what exactly is the IMB and why the change? The IMB barcode is designed to hold much more information than the old Postnet Barcode. By utilizing the new barcode, the USPS can track your mail from entry to destination, it can record address updates for you, it can measure mail delivery performance over different classes of mail, and it allows for more efficient processing of mail through automation systems. All of this is possible, but before you panic, you don’t have to do anything to continue to mail outgoing mail at automated rates if you work with Commercial Letter. Currently, all automated mail we produce uses the IMB. Rest assured your outgoing mail will not skip a beat when this new rule goes into effect in May. Don’t let the new rules sneak up on you! Even though we have your outgoing mail covered, we are finding companies are dragging their feet to get their reply mail up to speed. Your old inventory of Business Reply Mail or Automated Courtesy Reply Mail may be obsolete come May 2011 if it has the old Postnet Barcode. In order to be ready when May gets here, you will need to update your automated reply mail with an IMB. Part of this process will be applying for a Mailer ID. It is not a difficult process, and your Commercial Letter representative can help you with the application process.
IMB Additional Services:
The IMB makes it much easier to participate in mail tracking and move update services.
- Ever wonder exactly when your mail will deliver? Find out how you can follow along online as your mail is delivered locally or across the country.
- Tired of wasted mail? Receive address updates electronically for only pennies each on both first class and standard mail with One Code ACS.
The USPS is constantly changing how mail is processed. Commercial Letter works closely with the Postal Service and our software partners to make sure the mail we process meets the needed regulations so it is delivered efficiently and economically
For more information about anything postal, contact your sales representative or Brad Chrysler at 314-231-6006