Arandell Corporation

Don Landis, VP, Postal Affairs

Heads up! The USPS announced this morning that they will present an exigent postage increase to the Postal Regulatory Commission (PRC) later today. Standard Mail will see an average increase of 5.6% with an effective date of January 2, 2011.

We will continue to update the blog as we receive more information.

In the meantime, if you have any questions, please feel free to contact us. Susan Pinter and I can both be reached at 800-558-8724.

Don Landis, VP, Postal Affairs

In November, we announced that we will be working with BCC Software as our postal solutions provider. Recently, Don Landis, VP of Arandell Postal Affairs testified about the success we have experienced while working with BCC. Click here to check out the video.

For questions regarding Arandell’s postal solutions, contact Don Landis (HDLandis@arandell.com) or Susan Pinter (SGPinter@arandell.com). They can both also be reached at 800.558.8724.

Don Landis, VP, Postal Affairs

Since its inception three years ago, the ACMA (American Catalog Mailers Association) has focused primarily on the very issue for which it was founded: being catalog mailers’ watchdog group for keeping postal rates in check. To date, no organization had gone to bat solely for catalogers when it came to postal matters. ACMA’s mission is to advocate for catalogers where others cannot. They also partner with other organizations where catalog interests are squarely aligned.

ACMA’s such collaboration revolves around the new Colorado sales and use tax reporting requirements for out-of-state sellers who do not collect sales taxes from Colorado residents for their purchases. This law became effective on March 1, 2010.

And with that, the ACMA poses the following: What’s worse than having to pay sales taxes in every state? Having to report to every state every purchase your customers have made so the taxing authorities can start chasing your customers down and ordering them to pay back taxes.

Your Colorado customers now must get a statement recapping their purchases that you will also have to send to the Colorado tax collectors so they can hunt your customers down for the sales tax — and probably with a penalty on top of this. This experience is sure to make Colorado customers think twice about ordering from you, plus you now have an added cost of compliance without any offsetting revenue. It’s a triple whammy.

But wait, there’s more. Tennessee, California and other states are considering this same law or watching Colorado’s closely. Fact is, every state needs more revenue today. Out of state companies, who do not use any state services and who do not elect state politicians, are easy targets.

The Direct Marketing Association is coordinating a multi-industry legal challenge to the new Colorado tax law and will be using acknowledged state tax expert attorney George S. Isaacson to stop this from doing real damage to direct sellers of every type. We fully support DMA efforts.

Per a memo from DMA senior vice president, government affairs Jerry Cerasale, the new reporting law was passed by the legislature and signed by Colorado Governor Bill Ritter Jr., as part of a budget balancing package. DMA and others urged the Governor to veto the bill, but to no avail. It now must be challenged in the courts.

The reporting law requires non-sales-tax-collecting out-of-state marketers to notify Colorado purchasers with every purchase and includes the following stipulations:

• They are not required to collect sales tax;
• Sales or use taxes are owed by the purchaser unless the sale is exempt from sales tax even though purchased remotely, including over the Internet, telephone or catalog;
• The purchaser is required to annually file a sales/use tax return with the Colorado Department of Revenue and pay tax on those purchases on which the resident has not paid sales tax;
• The marketer is required to provide the purchaser with a year-end summary of the purchases the consumer made on which sales taxes were not collected; and,
• The marketer is required to provide the Colorado Department of Revenue an annual report on the total amount of all the purchaser’s purchases on which sales tax was not collected.

More information can be found at www.taxcolorado.com.

Taxing indeed!

The proposed year-end notice to the Colorado purchaser regulations require the following:

• Notice sent by Jan. 31 only via First-Class Mail with “Important tax document enclosed” appearing prominently on the envelope;
• A summary of dates of purchase, description of product purchased and dollar sale amount for each purchase;
• A statement that Colorado requires that the purchaser file a sales/use tax return at the end of the year and pay tax on all Colorado purchases on which no sales tax had been collected;
• Inform for the purchaser that the form and further information is available at www.taxcolorado.com;
• Notification that the marketer is required by Colorado law to provide the Colorado Department of Revenue with the total dollar amount of purchases the purchaser made; and,
• Though not required, it may inform the purchaser whether an item purchased is exempt from Colorado sales tax.

The notice to the Colorado Department of Revenue must include this information:

1. Name of the Colorado purchaser;
2. Billing address of the purchaser if provided to the marketer;
3. Shipping address of each purchaser if provided to the marketer;
4. If the marketer has multiple billing and/or shipping addresses of the Colorado purchaser (Colorado purchaser is a consumer who has product shipped to him/herself in Colorado), provide all such addresses; and,
5. Total amount of Colorado purchases made by the purchaser from the marketer.

For more information, please feel free to contact Don Landis, Arandell’s VP of Postal Affairs, HDLandis@arandell.com.  He can also be reached at 800.558.8724.

Don Landis, VP, Postal Affairs

The American Catalog Mailers Association (ACMA) held its third National Catalog Forum April 13-15 in Nashville, TN. From a personal standpoint, I thought it was one of the best forums of this kind I have attended in a long time. I should know; I have been in the mailing industry 44 years and have attended more events than I can count.  Looking around the room I saw some of the most influential catalogers in the industry. 

The forum started off with Mark Acton, Commissioner, U.S. Postal Regulatory Commission. Mark covered a list of postal issues that may impact catalogers. I was impressed with the quality and thoughtfulness of the questions asked by attendees. Pat Donahoe, Deputy Postmaster General of the United States Postal Service, discussed several topics, the one of the highest level of interest being the Flats Sequencing System (FSS) and how it will affect future postal ECR rates.

Other topics covered include co-mailing, Do Not Mail, prospecting, USPS catalog marketing efforts and growth in catalog mail volume.

The ACMA is THE advocate for catalogers. Its annual forum is packed full of valuable information that will impact all of you. In the future, I highly encourage all catalogers to attend the forum, so that we as mailers have a bigger voice in Washington.

For more information, please feel free to contact Don Landis, HDLandis@arandell.com.  He can also both be reached at 800.558.8724.

“We are pleased to recognize and honor Arandell Corporation for its innovation, creativity and leadership,” said Steven J. Forte, USPS Senior Vice-President of Operations, who nominated the company for the award. “It has produced winning business results and supported the mailing industry.”

Arandell Corp., based in Menomonee Falls, WI, is a family-owned, privately held printer and mailer, producing and distributing high-quality catalogs and custom publications for the world’s leading marketers. It provides service to retail, consumer, business-to-business, brand and custom specialty organizations. Arandell offers single-source production which includes premedia, printing, bindery, personalization, data processing, co-mailing, mailing and distribution, logistics, website development and electronic commerce. 

According to the U.S. Postal Service, Arandell has been on the cutting edge of ecologically preferred methods of turning hazardous materials into productive uses, conserving resources and protecting the environment. Arandell is a test site for products limiting negative impact on air and water quality and misuse of land and makes capital investments in the latest and most-effective pollution control equipment.  Arandell has made a commitment to surpass Federal and State laws regulating water and air quality, and collaborates with suppliers and customers to implement programs limiting the environmental impact of its products throughout its life-cycle from manufacturing to disposal.

Arandell has received tri-certification in forestry management practices from the Forest Stewardship Council, Sustainable Forestry Initiative and Programme for the Endorsement of Forest Certification.  All three of these organizations are non-profit, non-governmental groups recognized globally for promoting responsible forest management. Arandell participates in the Wisconsin Department of Natural Resources’ Green Tier program and is a SmartWay partner with the U.S. Environmental Protection Agency to protect our environment, reduce fuel consumption and improve air quality for future generations. It continues to invest in state-of-the-art pollution control equipment and recycles oil, paper, cartons, pallets, plastics, aluminum and steel. 

Arandell was among a select group of postal customers honored as “best in class” in the “Corporate Business Achievement” award category.

Founded in 1922 and based in Menomonee Falls, WI, Arandell Corporation provides high-quality premedia, printing, mailing, distribution, list management, database marketing strategies, education, logistics and consulting services to America’s premier custom publishers, catalogers and retailers. Arandell is on the cutting edge of ecologically-preferred methods for conserving resources and protecting the environment with its production practices.

Susan Pinter, Director of Postal Systems

Earlier this year, the United States Postal Service (USPS) announced the implementation of revised deflection requirements, which went into effect on January 4^th, 2010.  As a follow up to this implementation, the industry met with the USPS early this week to further discuss the challenges ahead with the droop/deflection requirement.  The revised rule states: if a piece does not comply with the deflection 3 inch rule, the piece drops to the Non-Automated Rates.  According to the USPS, the floppy pieces need to be taken off the machines and manually processed because the flimsy flats do not feed well on the automated equipment. In turn, this is incurring additional manufacturing and processing costs to the postal service. This will be a big impact for ALL mailers!!!  A perfect example is a Standard Mail Flat Catalog weighing less than 3 ounces - The postage will go from .262 cents per piece to .367 cents per piece. This is a 28% increase!!!  WOW, the catalogers are not happy with this rule, especially in today’s world of cutting costs and reducing page counts.

The industry continues to work with the USPS as partners to come up with solutions that benefit the mail owner along with their vendors: the Mailer and the USPS!  More to come…….

Don Landis, VP, Postal Affairs

The postal world is always busy, but this week we have received quite a few updates and wanted to makes sure you were aware of the following:

1. DROOP TEST: As announced earlier this year, the USPS will be implementing revised deflection, or droop standards on January 4, 2010. It was announced today, however, that the penalty for not complying with those standards will not be enforced until June of 2010.

2. MOVE UPDATE: Just a reminder that the USPS will implement the penalty phase on the Move Update Standards on January 4, 2010. Catalogers must use one of these USPS approved methods: NCOALink, FASTforward, OneCode ACS, Address Change Service, Ancillary Service Endorsement without ACS. Those using an alternative addressing format such as “Or Current Resident” are not subject to the Move Update Standards.

3. WINTER SALE: We regretfully report that there will be no USPS Winter Sale. There will be a Spring Sale starting in April. Details to come the week of December 20. As soon as we can report more, we will send an update to all of you.

4. DRY RELEASE CARDS: Effective November 20, 2009, the USPS announced that it will allow dry release cards to be affixed to the outside of a catalog when the specifications defined here are met. (For catalogs, please refer to the section titled, “Flats with Attached Release Cards.”) Arandell Corporation is equipped to affix dry release cards and we are happy to work with you to create a catalog layout that adheres to these specifications.

For questions regarding these announcements or any other postal issues, please feel free to contact myself or Susan Pinter any time. We can also be reached at 800-558-8724.

BCC Software, a BÖWE BELL + HOWELL company and a leading developer of high-performance mailing technology solutions, announces that Arandell Corporation, one of North America’s largest privately held web offset printing companies, has joined the BCC family thanks to the comprehensive capabilities of Mail Manager Full Service™, BCC’s top-tier postal software product.

“We are delighted that Arandell Corporation has chosen to work with BCC Software as their postal solutions provider,” says BCC Executive Vice President Chris Lien. “We are constantly working to add new features and enhanced functionality to the Mail Manager family and all BCC products and services, to offer the best possible tools to drive the success of current and future clients.”

Mail Manager Full Service™ provides integrated support for the Full Service Intelligent Mail® barcode and delivers a comprehensive suite of USPS® CASS™ and PAVE™ certified presorting and list-management functionality including enhanced merge/purge and deluxe 24/7 automation capabilities, and a proprietary address-matching API that delivers dramatically higher processing speeds than the industry-standard USPS matching engine.

Founded in 1922 and based in Menomonee Falls, WI, Arandell Corporation provides high-quality printing, mailing, distribution, list management, data-based marketing strategies, education, logistics and consulting services to America’s premier custom publishers, catalogers and retailers. Arandell is on the cutting edge of ecologically preferred methods for conserving resources and protecting the environment with their production practices.

“Arandell Corporation is excited about our partnership with BCC Software. With challenges like rapidly-evolving market conditions and the ever-changing postal world, it is essential we partner with companies that allow us to stay ahead of the industry. We know that BCC’s products and services will meet those challenges, while also enabling us to maintain customer loyalty,” says Jim Willms, Arandell’s Vice President of Production Planning.

To read more about BCC Software, click here.

For additional information about Arandell Corporation, click here.

Don Landis, VP, Postal Affairs

Since John Potter’s (USPS Postmaster General) recent announcement that there will be no postal increase for 2010, I have been receiving a large volume of calls and e-mails from clients and prospects expressing their extreme delight over the issue. Mr. Potter made the announcement in mid-October that there would be no increase in 2010 for Market-Dominant Products, including Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post. I was somewhat surprised at this decision based on the difficult financial situation facing the USPS, but hopefully, this move will be an encouragement for marketers to get back in the mail or to increase their current circulation. I have seen signs this may be happening as catalogers plan for their 2010 mailings. No postal increase makes that task a lot easier and less stressful.

Throughout the past couple of weeks, there has been some speculation as to whether rates could rise outside of a CPI increase or exigent rate increase. Please rest assured that the USPS has confirmed that there will be absolutely NO rate increase for Market-Dominant Products (again, Standard Mail, First-Class Mail, periodicals and single-piece Parcel Post) in 2010. So, lock in those marketing budgets now…no need to wait for additional postal rate updates from the USPS. Keep your postal budget as is and take advantage of this opportunity to increase your mailings to reach more prospects or to re-activate prior customers.

Questions? Call or email me any time!