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

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.

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…….

Jamie Marquardt, Director, Marketing & Communications

Happy Holidays to you and yours from all of us at Arandell Corporation! Our corporate blog’s innaugural year is nearing its end and we can’t begin to express how much we have enjoyed this addition to our marketing repetoire. Here are the links to your favorite articles to date:

A Flurry of Postal Updates: Droop Test, Move Update, Winter Sale, Dry Release Cards

Do you Pass the Droop Test?

9 Reasons to Mail More in 2010

No Postal Increase in 2010 - Really?

Canada Post Corp. Rate Changes Effective January 11, 2010

If you have any suggestions or requests for future blog posts, please send an email to blogging@arandell.com. We thank you for all of your feedback so far and look forward to adding more in the New Year.

On behalf of all of us at Arandell Corporation, we wish you a happy and safe holiday season.

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.

Jamie Marquardt, Director, Marketing & Communications

Have you heard that line before? If so, I hope you don’t accept it as your “final answer.” Just because something has always been done a certain way, that’s no reason to keep doing it the same way, unless of course the method has no room for improvement. And, I certainly hope you have not been applying the “because it has always been done that way” mentality to your catalog design. You can still maintain brand image while also changing up variables such as layouts, messages, formats, sizes, page counts, in-home dates, etc. In fact, you should be changing things up to measure how response rates fluctuate from one catalog design to the next.

Maybe you’re a cataloger who has always mailed letter-size booklets or “Slim Jims.” How has your response rate changed since the USPS implemented its new tabbing regulations earlier this year? If it has gone down, maybe it’s time to try something new, like a traditional upright format. Have you typically produced a catalog with an oblong format? With the USPS bringing out new Droop Test regulations, now is the perfect time to implement a new format for your catalog because the oblong is not going to survive with the new droop/deflection standards. Could you transition to an upright or square format? Try it! Have you always treated all customers, regardless of purchase history, the same? If so, maybe it’s time to use a more dynamic approach to how you target customers. Do you use database marketing to help you with those efforts? If not, it’s time.

all about ROI recently released its “50 Best Tips of 2009“; I highly recommend reading it, as it gives some great ideas for changing up your current multichannel marketing plan (or offering you reassurance for the one you already have). Regardless of what strategies you decide to implement going forward, don’t apply the same ones as this year just because “that’s the way it has always been done.” That’s a sure fire way to bring your success to a standstill. Change is good. Embrace it!

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!

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 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

Susan Pinter, Director of Postal Systems

Arandell Corporation has printed and mailed many retail and mail-order catalogs. Both have their own unique requirements based on their marketing objectives.  For instance, retail catalogs have particular in-home dates to meet and are planned in meticulous detail with in-store promotions. Our standard mail-order catalogs often have personalized order forms and inserts that need matchback information to correlate in-home dates and Internet traffic.

With the upcoming changes to the USPS method of tracking mail, specifically transitioning to the Intelligent Mail barcode (IMB) system, the needs of our retail and mail-order clients will be adjusted. Click here to learn more about IMB. We have been surveying our customers to determine how they, or if they, plan to use the Full Service IMB option. As of today, only our retail customers have expressed a desire for Full Service IMB to be used for tracking purposes. Additionally, some retailers are toying with the idea of using the Full Service IMB in lieu of printing Point-of-Sale personalized customer barcodes on their direct mail pieces.

I am writing to learn the opinion and perspective of our standard mail-order catalogers. We have already heard several possibilities on how they might use the IMB services, but at this time have not heard of any immediate plans for mail-order catalogers. Our understanding is most catalogers are just looking at “What if?” scenarios.  

Some of the things we have heard being pondered:

• Using IMB in lieu of matchbacks
• Using IMB data for segmentations
• Of course, retail and standard mail-order catalogers are taking in cost considerations with the different IMB options.

It seems the possibilities center around being able to use the IMB for smaller segmentation of files. I would love to learn what you are planning! Do you believe that Full Service IMB will have a large ROI? What information are you most interested in collecting? If you are NOT considering the Full Service, why? Do you fully understand the file requirements to implement your desired IMB service? What possibilities are there for using the IMB in a standard mail-order world other than tracking?

Look forward to hearing from you!