2012 USPS Mobile Barcode Discount

This week at the Mailers Technical Advisory Committee (MTAC) meeting held in Washington, the USPS Domestic Product Vice President Gary Reblin provided additional details of the proposed 2012 Mobile Commerce and Personalization Promotion.  Although the implementation of the incentive is subject to approval by the Postal Regulatory Commission (PRC), here are the most up-to-date details:

 The discount will be available from July 1 through August 31, 2012

  • Registration for the program will begin May 1, 2012
  • 2-percent discount
    • Discount is calculated in PostalOne and applied to the postage statement at the time of mailing.
  • Eligible classes:
    • Standard Mail (Regular and Non-Profit) Letter and Flats
    • First-Class presort and Automation Letters , Cards and Flats
  • The barcode must lead the mailpiece recipient to either:
    • A webpage that allows the mailpiece recipient to purchase a product or service
    • A personalized URL (PURL), which is a web page that is unique to mailpiece recipient
  • Intelligent Mail Barcode required for Automation presorted mailpieces
  • Postage payment must be by permit imprint
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    Remembering Aaron Fadem

    On Thanksgiving, November 24, 2011, Commercial Letter lost a member of our family when Aaron Fadem (85) passed away after a long illness. For over 55 years Aaron represented Commercial Letter with a unique and energetic vigor. As a past president and founding member of the Direct Marketing Association, Aaron truly loved the business of direct mail. Even after multiple retirements it was not unusual to see Aaron around the office or hear that he had been visiting a favorite client.
    As we at Commercial Letter prepare to celebrate our 100th Anniversary, it serves us well to remember, and also celebrate, the valuable contributions of long-term employees such as Aaron. Our industry has seen unprecedented change in both business practices and technology. Oftentimes in the hustle and bustle of the next critical “deadline” it is easy to overlook the importance and comfort of knowing the people who you rely on to meet those deadlines. Aaron always took great pride in knowing, and being known, to our clients. That alone is a significant legacy.

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    USPS Files for Price Changes in January

    The United States Postal Service has recently filed for a price increase that will take effect in January of 2012.  Overall, the price increase averages 2.1%.  Some of the changes include:

    • First class stamps increase a penny to 45-cents
    • First class postcard rates increase 3-cents to 32-cents
    • Standard mail letter & flat rates increase about 1/2-cent
    • Non-profit letter rates increase about 1/2-cent

    Postmaster General Patrick Donahoe had this to say:
    “The overall average price increase is small and is needed to help address our current financial crisis. We continue to take actions within our control to increase revenue in other ways and to aggressively cut costs.  To return to sound financial footing we urgently need enactment of comprehensive, long-term legislation to provide the Postal Service with a more flexible business model.”

    There is some help for first class mailers. The second ounce will now be free for First Class Presort mailers.  This will allow for testing different marketing options especially for statement mailers.

    For more information about the Postal rate changes you can follow this link:
    POSTAL RATE FILING 2012

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    QR Code Postage Rebate

    Save 3% on all of your postage in July and August, 2011

    Commercial Letter will give you an immediate 3% refund on all your postage for the months of July and August.  As a major partner of the United States Postal Service, we are able to pass along this special savings promotion.  Many other mailers will not be able to match this special discount.

    The Postal Service wants to show you how mail can be an effective driver of a multi-media campaign.  If you include a Quick Response Code (known as a QR code) in your mailing, you are eligible for an immediate postage refund.  Not only will you get the 3% back, but your customers and prospects will have an opportunity to find out more about your products and services by scanning the interactive barcode with their mobile device.

    If you are not familiar with QR Codes, or need assistance with how they can tie into your next marketing campaign, we are happy to show you how to take advantage of this new technology.

    There are two qualifiers to this promotion besides including a QR Code:

    1. The postage for a qualifying mailing has to be an indicia (no stamps)
    2. The mailer who prepares your mail has to be able to do it electronically through the Postal One system.  Don’t worry; we have you covered on this one!

    We see this as free money for you, our customer.  Don’t wait until it is too late – contact us now so we can help you implement QR Codes into your next promotion, or scan the QR Code above on your smart phone, fill in the information on the mobile landing page, and we will contact you.

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    No Rate Increase in January

    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

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    USPS Postage Rates to Increase

    The Postal Service recently announced details
    of its upcoming “Summer Sale.”

    All Commercial Letter Customers,

    Late Tuesday the USPS had planned to file an exigent rate case with the Postal Regulatory Commission (PRC). Overall, the planned postage rate increase will average 5.6%. Implementation of the increased postage rates is planned for January 2, 2011.

    First Class:
    First-Class Mail will rise 5.4% on average. The price for retail letters and cards will increase two cents each; presorted letter prices will increase an average of 2.1 cents, with no change in the additional ounce rate. FCM presorted flats will jump about 12%, on average, while a new rate band for FCM parcels will apply the same price through three ounces.

    Standard (Regular and Nonprofit):
    Standard Mail prices will increase an average of 5.6%. The increase for letters and flats will be about 5.0% and 5.1%, respectively, while Carrier Route will go up 4.9%, and High Density/Saturation letters and flats/parcels will increase by 4.8% and 4.4%, respectively. Parcels will jump 23.3% (they currently do not cover their costs.) Other classification changes will be proposed as well.

    Other:
    Periodicals will increase by 8%, less than enough to move them to profitability. Package Services will increase 7%, except for BPM flats that will rise only 5%. Special Services will go up an average of 5.2%.

    The Postal Service acknowledges the price increase will impact customers, but expects the total net benefit of the higher prices to be about $2.3 billion, an amount that will reduce the agency’s anticipated FY2011 loss to about $4.7 billion.

    The formal filing will be later this afternoon, and the PRC has 90 days to respond (i.e., by October 4). More information will be conveyed as it becomes available.

    Sincerely,

    Ken Wartman, CEO

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