Arandell Corporation

Don Landis, VP, Postal Affairs

We received word from Canada Post this morning that rate increases to Canada are expected to occur for all services including new weight band pricing for Oversize Lettermail^TM items. The proposed increase for Lettermail pieces up to 30 grams (1.05 ounces) is three cents. We will provide an update on the proposed rate increase after official approval by Canada Post.

To see the new Canada Post rates, click on the following links:

Canada Post Publications
Canada Post Business Reply Mail (BRM)
Canada Post Lettermail
Canada Post Addressed Admail

Questions? Contact me at 800-558-8724.

Don Landis, VP, Postal Affairs

September 8 is quickly approaching and you know what that means…the USPS will require 3 tabs on all letter-size booklets, or “slim jims.” When these regulations take effect, catalogers mailing slim jims under the letter-size postage rate must transition from 2 tabs to 3 non-perforated tabs. (Click here for additional information about the new tabbing specifications.) The industry is well aware of the requirements and testing has been taking place and will continue to determine if the 3-tab requirement reduces slim jim response rates.

Arandell Corporation is prepared for the new letter-size booklet regulations and has been heavily involved in testing 3 tabs versus 2 tabs for our customers. [Although we are not currently equipped to tab the oblong digest format (which is only one type of tabbed Letter-Size mail), to meet the new regulations, if we do see a come-back in demand for it, we will certainly reconsider investing in that technology. To clarify, an oblong digest is a digest catalog that stitches on the short side.] 

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Don Landis, VP, Postal Affairs

I have attended several postal meetings recently where postal officials updated the industry on the status of the FSS. Click here to see the FSS in action. It seems the program is back on track after some start-up delays. I would suspect that in the near future the postal service is going to start asking or requiring U.S. mailers to prepare flats for the FSS. 

Why are they implementing FSS?

The FSS sorts flats in Carrier Walk Sequence. (Carrier Walk Sequence is just a fancy term for putting mail in the order that it is delivered). The more the USPS can automate the daily tasks of the carrier, the less expensive it will be for the USPS to deliver the mail. Because the USPS is swimming in hot water, you can imagine it will continue to jump at any opportunity to make money.

How will this affect me?

First, we will start to see the disappearance of the carrier route flat discount. The FSS machines will start to do what mass mailers are doing right now, putting flats in Carrier Walk Sequence. The USPS estimates the FSS will sort about 80% of the flat volume when installation is complete.  That will still leave 20% of the flats eligible for the carrier route discount, and therefore only 20% which is eligible for co-mail savings.

How to get the savings back

To compensate for the loss of co-mail savings the USPS has stated they are going to give catalogers a discount if they organize their shipping pallets to fit the FSS machine requirements. This process is called co-palletization.

Now, to be frank, I am not sure if the co-palletization savings is ever really going to happen. We have been told and promised by the USPS that we would have savings before, but nothing ever follows through.

If we lose co-mail savings most catalogers would see a 5-10% increase in postage! Postage continues to increase and savings is decreasing. Can we really afford to pay more for mail?

If you are sick of paying more, and more and MORE for postage email the American Catalogers Mailers Association. Catalogs need to have a voice before our postage savings are taken away.