Arandell Corporation

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!

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

First of all, I should clarify WHAT the droop test is. I can only imagine what you all thought of when you read the title of this post….

The droop test measures the flexibility of catalogs. If mail pieces are too flexible they will topple over as they travel through the USPS sorters and scanners. Implementing deflections standards, or droop standards, will greatly reduce the amount of direct mail pieces that fall off the machines. Recently, the USPS extended the deadline for the deflections standard implementation from September 8, 2009 to January 4, 2010.

How to test your catalog

Click here to see a brief three minute instructional video. Otherwise, read on! Read more…

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.

Susan Pinter, Director of Postal Systems

Five-day delivery…it’s been in the news for the past six months and there have been extreme opinions on both sides of the spectrum about how eliminating one day of mail will impact all of us. (Click here for the PROS and here for the CONS of the proposed five-day delivery). At the end of the day, however, most Arandell clients are asking the same question….

How would the change to a five-day delivery affect my retail business and/or mailing program?

The answer is gray at best. Here is what I do know:

The U.S. Postal Service is facing the possibility of losing approximately $7 billion this year alone.  It is taking several steps to try to improve its financial situation, including: reducing workforce, consolidating facilities and most importantly improving productivity. But none of this seems to be enough! The USPS will have to make some big changes to achieve big results. Think of it this way; if it does not decrease to a five-day delivery what other “big” changes would it make? The possibility of an additional postal price increase seems a bit too close for my comfort…

Read more…

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.] 

Read more…

Don Landis, VP, Postal Affairs

As a co-founder of the American Catalog Mailers Association (ACMA) I have to give a shameless plug for the organization. Since its founding in 2007, ACMA has served as a microphone for the catalog industry. This microphone has been pointed directly at the USPS, and I must brag, we have been heard.

Here are some of our accomplishments:

• ACMA members have generated a 6x return on their investment in two years
• The USPS has modified a variety of regulations or programs to better accommodate catalogs, including:
• Address placement location
• Intelligent Mail Barcode
• Summer Sale parameters
• Without ACMA’s advocacy, catalogers would have had higher postal rate hikes in 2008 and 2009
• Greater visibility for catalog issues in Washington and productive dialog around how to “fix” cataloging
• Significantly reduced public relations pressure on catalog brands in the media from “Do Not Mail”

The ACMA was founded in response to the surprise Postal Rate Commissions (PRC) R2006 Standard Flat postage increase. This single event resulted in double digit postage increases for catalogers! When the change was announced, all of the catalog industry scratched their heads and wondered what just happened to them.  It didn’t take long before catalogers, and others in the catalog industry, realized they must get involved in postal matters. We heard the catalogers’ complaints, and we as a catalog printer felt their pain. To ensure that our industry was not caught off guard again, and the USPS had a clear understanding of our needs and wants, the ACMA organization was born.

Today, the brilliant and energetic Hamilton Davison is acting as the Executive Director. As the face of the organization, he is charged with membership growth and retention, catalog education and event organization.

If you would like to learn more about the POWER of the ACMA, email Hamilton at hdavison@catalogmailers.org or visit www.catalogmailers.org.

Thanks for letting me shamelessly plug this organization! I’ll try not to let it happen too often.

Don Landis, VP, Postal Affairs

Since the recent announcement of the approval of the USPS Summer Sale, Arandell’s postal department has been a flurry with questions from customers, prospects and even people with whom we do not do business. This is the first time in history that the USPS is offering mailers an incentive and mailers are very excited about a potential reduction in their postage. In order to proactively address some of the questions that are coming in, Don Landis, VP of Postal Affairs and Susan Pinter, Director of Postal Affairs recorded a podcast of Frequently Asked Questions, which are listed below.

Click below to hear the podcast.

Q: Can you provide a brief explanation of the Summer Sale?

The industry has been asking the postal service for an incentive program for several years now, whether it be a seasonal incentive, a prospecting incentive, etc. The postal service, in return, has been asking mailers how such a system would even work.

With mail volume being down as it is and postal revenue at an all-time low, the post office has come up with a program to gain more volume during periods of time when volume is traditionally low. The hope is that mail that was not originally planned for the fall months will be added. Everyone is happy that the post office is offering the program and is looking forward to similar programs in the future.

Q: Who is eligible? What qualifications need to be met?

Out of 100,000 standard mailers, we anticipate that about 3,000 mailers will be eligible for the summer sale rebate. To be eligible, mailers need to have mailed 1,000,000 pieces through a permit during the period of October 1, 2007 through March 31, 2008. It is important to note that the mail does not have to be from one location…it can be from multiple.

Read more…

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.

Don Landis, VP, Postal Affairs

We are proud to annouce Arandell’s very own Don Landis was recently featured on the MCM Radio wth Jim Tierney. Click on the link below to learn Don’s perspective on:

• the upcoming USPS Summer Sale
• the replacement of the POSTnet Barcode with Intelligent Mail Barcode (IMB),
• the effects Flat Sequence System or FSS will have on co-mail savings,
• and the financial health of the United States Postal Services.