Arandell Corporation

Don Landis, VP, Postal Affairs

What is the Intelligent Mail Barcode?
The IMB is a new Postal Service barcode used to sort and track letters and flats; it expands the ability to track individual mailpieces and provides customers with greater visibility in the mailstream than the current POSTNET barcode.

When will the IMB be a requirement by the USPS?
Some printers and mailers have already started to implement use of the IMB, but it will not be mandated until May 2011.

Are there different types of the IMB?
Absolutely.

Basic Service: The Basic Service IMB is just like the existing POSTNET barcode, which is simply used for sorting mail.

Full Service: The Full Service IMB will include services such as tracking, free Address Change Service and Start the Clock.

What are the placement requirements for IMB?
The Intelligent Mail Barcode will be printed in the same place as the POSTNET barcode. On flats, the Intelligent Mail barcode can be placed anywhere on the address side as long as it is at least 1/8 inch from any edge of the piece.

Will I receive any sort of discount for applying the IMB to my mailpiece?
Beginning already in November 2009, mailers will start to receive a $1.00/M discount for electing to use the Full Service IMB on their printed pieces. By May 2011, those not printing the Basic or Full Service IMB will not receive automation discounts from the USPS.

Are printers ready to start applying the IMB?
Major printers and mailers started testing the IMB when it was first announced. Arandell started to apply the Basic Service IMB on some of its saddle stitching equipment in August 2009 and will continue to add the capability to all of its binding and mailing lines going forward. We’ll be ready to provide the Full Service option when USPS the discount becomes available in November.

How can printers ensure that they are applying a readable barcode?
The USPS tolerance expectations for the IMB are strict and if printers don’t meet those expectations, the USPS could immediately assess the mail owner (catalogers, retailers, publishers, direct mailers, etc.) for additional postage. The current compliance requirement is 70%, which means that 30% of your Full Service mailpieces could have non-readable Intelligent Mail Barcodes, but still pass USPS acceptance requirements. Do you want to take that risk, though? NO! If I were in a print buyer’s shoes, I would make sure that my printer/mailer of choice can ensure a high readability compliance. At this point in time, Arandell is being proactive by installing IMB evaluation systems on all of its production lines to ensure the IMB will exceed the USPS expectations. We are currently complying at 100%. I would not accept anything less.

Why is the USPS implementing the IMB?
The IMB is intended to benefit you just as much as it will benefit the USPS.

The IMB:

• provides more information than the POSTNET, but consumes no additional space on the mailpiece;
• allows for better marketing decision-making by encoding more detailed information about mailings;
• necessitates the printing of only one barcode on any mailpiece;
• gives mailers who utilize the Full Service option the ability to participate in multiple USPS service programs at no additional cost.

This is a very high-level FAQ about the IMB but hopefully it has you thinking about how this implementation will affect your company. For more technical information, you can click here or contact our Postal Affairs, reps, Don Landis and Susan Pinter at 800-558-8724 to answer any questions you may have.

Don Treis, CEO

It sure is hard to believe it’s already October 19 and we’re starting to think about the holidays!

Each year, as a way of embracing the holiday spirit and to show our gratitude, Arandell Corporation donates to the Make-a-Wish Foundation at year’s end. In the past, we have arbitrarily chosen the amount to be donated and this year we’re going to try to change things up. This year, YOU will be driving how much we donate. In fact, if you’re reading this blog post, you have already made an impact on the campaign.

For every unique hit that we receive on the Arandell Blog between today (October 19) and December 15, Arandell will donate $1 to the Make-a-Wish Foundation. We’ll be driving these hits by updating our blog posts even more frequently than we normally do. And not only do the blog posts appear here, they will also be linked on social media sites like Twitter, Facebook and LinkedIn.

Also, to thank you for visiting us and to prepare you for the year ahead, you can request a copy of our corporate calendar. Simply send an email to blogging@arandell.com with your name and mailing address and we’ll mail it directly to you.

Help us make this our most generous Make-a-Wish donation yet by visiting the blog from wherever you may be. The hits are based on IP address, so visit us from home, work or on the road. And don’t forget to forward the link to your friends and co-workers!

Our wish for you this holiday season is that the New Year brings you happiness, health and prosperity. On behalf of all of us at Arandell, we thank you for participating in this charitable giving campaign, and look forward to keeping you informed in the years ahead.

Blake Hutchison, Director of Purchasing

I recently read an article in Multichannel Merchant that detailed some ideas about how a cataloger can gain control of their paper spend for 2010 and how these ideas will always result in lower costs.  In reviewing these ideas, I found some of them to contain the truth, but not “the whole truth” as they say in court.  So I thought I would provide some perspective from a printer who supplies paper for many of our clients.

Idea #1:  Establish long term pricing now

Pricing levels have decreased some 20% YTD.  And while the buyers of paper have had the upper hand throughout the year, that will change in 2010.  The producers will be able to pass along some increases.

Printers have the upper hand when it comes to negotiating pricing caps.  When an end user is negotiating their prices with a mill (through a merchant), their only negotiating tool is their annual tonnage.  A printer has the ability to take the annual tonnage of all of their paper clients, combine them and use the whole as leverage with their mill partners, thereby increasing the paper buying power of their clients.  By being part of the whole, you can significantly limit your exposure to these increases.

Ideas #2 & #3:  Challenge your printer to reduce waste and use paper calculators

Paper waste is a natural part of the printing process. A printer is not only challenged on their waste factors by end users, but also by the industry as a whole.  The more they can reduce their waste factors, the better position they are in to reduce paper consumption costs.  A “paper calculator” is a very generic tool that some merchants have put together to try to challenge the printer on their waste and create an “in” with an end user. 

The printer knows their presses. They know the most efficient way produce a job on press.  They know what grades, basis weights, finishes and specific brands of paper perform the best on their presses.  They work everyday on ways to reduce paper waste factors.  Yes, it is important to consider waste.  But to use a very generic calculator to come up with tonnage numbers that really have no basis in reality is a good way to create contention. Trust me; the printer is doing their very best on your behalf.

Ideas #4 & #5:  Reduce your cover and text weights

Always a good thing to consider when looking for ways to reduce paper costs.  But BE CAREFUL.  It might not always be the best idea.  The USPS has just announced new “droop test” regulations that have a lot of end users scrambling to HIGHER basis weights in order for their pieces to pass the test.   

You also might want to consider how your printed piece will look.  As you decrease your basis weight, you are sacrificing opacity and creating “show through”.  Your printer should have plenty of printed samples of what downgrading in basis weight will look like.

Idea #6:  Ship rail

Remember the idea of combining purchases to leverage paper prices?  The same can be done with shipping costs.  The more paper you are ordering as a whole will dictate whether or not you are able to ship rail.  An end-user who prints three or four times annually only gets to combine those tons in a shipment.  But a printer who may have three or four other paper clients printing right around the same time can combine those tons and get them to ship rail.  A printer has the ability to forecast, well in advance, and is in a much better position to work with mills to achieve maximum transit cost savings.

Some other ideas not mentioned in the article:

• For those end users who purchase their own paper: pay close attention to your consumption reports. The leftover inventory that is listed on your report is REAL MONEY and should be utilized as quickly as possible. Make sure you work with your printer to find a home for it as quickly as possible.
• If an opportunity to use it isn’t readily available, work with your printer to get rid of the paper. They might have an opportunity to use it on another printing for another client and might buy it from you.
• Do you know what the storage and handling charges are at your printer? If not, you should. The storage and handling of paper is a real cost to a printer. If they aren’t supplying the paper, they are going to need to charge for those services.
• In many cases, if the printer is able to supply the paper, they will waive those charges.

Questions? Please feel free to contact me any time at 800-558-8724, ext. 165 or BJHutchison@arandell.com.

Don Landis, VP, Postal Affairs

The following was released from the Postmaster General this afternoon. Some great news for your Thursday afternoon!

For questions regarding this release or other postal issues, please contact Don Landis , Arandell VP of Postal Affairs or Susan Pinter, Director of Postal Affairs at 800-558-8724.

To Postal Service Customers:

Many of you have expressed concerns regarding mailing costs for 2010.  The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.

As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.

The Postal Service will not increase prices for market dominant products in calendar year 2010.

Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post.  There will be no exigent price increase for these products.

This is the right decision at the right time for the right reason.  Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.

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.  We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace.  Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration.  We expect to announce a decision in November.

We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing.  Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail.  Mail is a smart investment for the future.

John E. Potter

Blake Hutchison, Director of Purchasing

As a catalog printer, from time-to-time, Arandell will receive concerns from environmentalists about the products we produce and the materials used to produce them. (You can imagine, as the one charged with purchasing all o f our paper, I take an interest in these concerns because most of them revolve around paper!)  In a previous article I addressed the “greenness” of catalogs and direct mail pieces. As I continue to research the environmental impact of direct mail pieces I am finding helpful tools to calculate the positive and negative impact of direct mail.

A tool that I found most interesting was created by the paper suppler West Linn. The tool helps calculate the impact of using PCW (Post-Consumer Waste) paper. Click here to use the tool. This is a impressive calculator because users are given the opportunity to change multiple variables, such as PCW percentage and paper tonnage and basis weight on their paper grades.

At Arandell, we implement best practice green initiatives in both the office and manufacturing facilities. We are certified to produce catalogs on FSC (Forest Stewardship Council), SFI (Sustainable Forestry Initiative) and PEFC (Programme for the Endorsement of Forest Certification schemes) certified papers.

If you are interested in using “green” certified papers let us know! Along with aforementioned calculator we have various tools at Arandell that can help you calculate the positive environmental impact your paper choice will create.

Don Treis, CEO

As Americans prepare to carve pumpkins, Trick or Treat, join friends and family in a time of giving thanks and purchase presents for loved ones, the catalog and direct mail world awakens. We in the direct mail business understand the rush of excitement of preparing files for catalog layouts, fine tuning mail files, controlling order fulfillment and optimizing marketing strategies.  A direct mailer’s world is turned topsy-turvy this time of year to ensure we utilize every ounce of what the holiday season has to offer.

Arandell Corporation understands that catalogers and direct mailers are in the midst of an exciting, stress-filled and demanding season.  Earlier in the year, we were preparing for YOUR busy season. During the summer months we performed LEAN initiatives to ensure our equipment was prepared to produce top-quality materials. Early this autumn we met with our sales representatives and sales support to educate them on the latest industry technologies and trends. We are prepared to assist you in all of your catalog and direct mail needs, not limited to just printing and distributing mail.

Perhaps your catalog is not receiving the expected ROI. We can help you inspire solutions such as updating your mail lists or changing formats to better suit your target market. Perhaps you are receiving large returns on an item. Our prepress experts can evaluate the printed color quality to determine precise color matching.  Are you having difficulties understanding the effect your catalog and direct mail piece has on sales? Our data guru can work with your company to optimize your matchback program.

I would like to stress that we at Arandell Corporation can consult in best practice catalog solutions. We have been in the catalog business for decades, proudly working with leading companies to increase their profitability. Our job is to help your “busy season” complete successfully.  Give us a call while there is still time to enjoy the season!