Arandell Corporation

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.

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

Don Landis, VP, Postal Affairs

As 2009 approaches the end, it appears the USPS is seriously considering the earlier-proposed Winter Postage Sale. The USPS’s final decision should be announced in the upcoming weeks. Like the USPS Summer Sale, the proposed Winter Postage Sale will provide yet another incentive for catalogers and direct mailers to increase their mail volume. In my opinion, the Winter Postage Sale will be an improvement from the previous postage incentives offered.

Unlike previous postage incentives, the Winter Sale will have a less complicate formula to calculate qualifications and savings. (The proposal is to simply base qualifications and savings on  any mail volume increase over the same period last year for the months of January 2010 through March 2010.)  It will also offer the largest incentive (proposed 30% discount) for direct mailers that qualify.

Earlier this week Hamilton Davison, Executive Director of the American Catalog Mailers Association, posted an update on the USPS proposed Winter Postal Sale. Within the article he shares the impact that ACMA has had with the proposed incentive, deadlines and additional details on the postage rebate.

Don Landis, VP, Postal Affairs

This week will be an exciting one for some first-class mailers. On August 21, letters were mailed to all First-Class mailers who qualify for the upcoming First-Class Mail (FCM) Incentive Program. (Think you qualify, but didn’t receive a letter? Click here to contact the USPS.) The sale on First-Class mail is going to be structured similarly the USPS Summer Sale (which will last through September 30) that was rolled out for standard mailers earlier this year.

 And, so you ask:

What qualifications do I need to meet in order to participate in the First-Class Mail Sale?

• Minimum of 500,000 non-parcel First-Class pieces mailed through your Permit account between October 1 and December 31 of both 2007 and 2008.
• Undergo a 45-day approval period by the Postal Regulatory Commission (PRC).

What Incentive is being offered for participants in the First-Class Mail Sale?

• 20% postage rebate (credited to your postal Permit account) for qualifying presort letters, flats and cards mailed between October 1 and December 31, 2009.
• After the rebates are applied, the discounted price, on average, will land somewhere between the First-Class Mail and Standard Mail rates.

Act now!

If you received your participation letter, be sure to visit the program registration Web site. You’ll also need to work with your mail service providers to obtain accurate 2007 and 2008 counts to provide documentation to the USPS Participants. The difference between those two years’ mailing quantities will determine your incentive threshold.

If you have NOT received a participation letter but you think you qualify, click here to contact the USPS directly. Remember…this particular program is for First-Class mail ONLY.

Standard mailers, stay tuned!

These incentive programs may be here to stay. A potential winter sale is being considered, with even more features than the Standard Mail summer sale. My personal perspective is that until the USPS turns itself around, the organization will continue to find new ways to incentivize mailing quantity increases. And, even when the postal service does end up back in “the black,” I can fully see them continuing to offer these incentives during non-peak mailing seasons as long as they continue to see results. So mailers, keep on mailing!

For additional information, please contact Don Landis or Susan Pinter; they can both be reached at 800-558-8724. You can also contact the USPS directly regarding the First Class Mail Incentive Program at firstclassmailincentive@usps.gov.