From the USPS:

DMM Advisory

Pricing and Classification — keeping you
informed about the prices and mailing standards of the United States Postal
Service

We updated our proposed mailing standards that accompany the price change proposal currently before the Postal Regulatory Commission (PRC). The revised standards, published at www.usps.com/ratecase, respond to comments we received on previous versions.

In addition to the updated proposal, you can find our earlier proposals and side-by-side comparisons of today’s prices and those that are currently under review by the Commission. Our Web site also provides helpful information for mailers, including frequently asked questions, press releases, and Mailers Companion and MailPro articles related to the pricing change. We encourage you to review our proposed mailing standards and use our electronic tools as you prepare for the pricing change.

Press release from Window Book:

Cambridge, MA February 15, 2007 — USPS Regulation changes in the Spring of 2007 will be transforming the mail preparation method once again. In 1996, Mail Classification Reform was implemented, with new categories and mail classes introduced to meet customers’ needs and simplify postal operations. These categories described the type of communication, delivery speed and the extent of sorting. The cost structure for these various services encouraged mailers to prepare proper addresses, use barcodes and presort their mailpieces for faster processing and lower costs. Mailers who were running the most efficient mailing operation possible were able to save more on postage with worksharing discounts and smart addressing.

With the upcoming 2007 Rate Case, the Postal Service will be placing more emphasis on mailpiece shape in setting new rates. 2007 rates have not been finalized at this time, and mailers are still in the dark as to what the final new qualification and preparation rules will be. It is more critical than ever for mailers and shippers to rethink their packaging choices, and to make changes to current systems to maximize efficiency.

Preparation is key, but that doesn’t mean that mailers will have to spend more time on manual labor, if they utilize the right software. The need for quality mailing software has increased dramatically over the last several years, and will continue to do so with future rate cases planned by the USPS. Mailing software that manages all postage payment methods, reduces labor, and increases transactional speed and accuracy is no longer a luxury, but now necessary to help organizations avoid the profit leaks that can compromise successful businesses.

Until processing categories are defined by the USPS, any rate estimates would be purely speculative, but you need to inspect both the new requirements and your system to make sure your software has capabilities to easily adept to upcoming changes in the industry. Software should have the capability to calculate the new rates and generate updated PAVE-approved USPS forms. This information is essential to improve management of your postage funds in preparation for the new rates. Invest in software that has these features integrated. Don’t settle for a short term solution because you will end up spending more time and money in the long run.

Make certain that your software choice has the capability to change preparation methods to meet the incentives of the new rate case. Check to see that you can automate your mailing system for getting the best drop ship discounts at the correct delivery point, barcode, and able to make last minute changes including removal of spoilage. Automating these operations will benefit both you and the postal service by maintaining low cost for everyone.

Expedite mail acceptance and verification with USPS. Utilize programs such as drop ship scheduling via FAST, and electronic postage payment with PostalOne!®. These programs are designed to make mailing and drop shipping more efficient, and to save mailers time.

Examining your software to see if it can adept to the new changes will reveal your operational strengths and weaknesses, helping you make better management decisions for greater productivity. Software that has the capability of handling all mailing activities and lets you exchange postal data among in-house systems and end-users for acceptance and transportation planning makes it easier for your organization to deal with an ever-changing workforce and postal regulatory and rate changes. Be prepared.

National Postal Forum
Window Book will be showcasing at the National Postal Forum again this year. If you plan on coming, make sure to visit our booth #623 and learn about how you can stay ahead of the postal changes in 2007. Window Book participates on many committees, advisory boards, and mailing associations, including MTAC (Mailers Technical Advisory Committee), and is in the position of providing you with the latest and the best practices to help you keep on top of the ever-changing mailing landscape.

About Window Book
Window Book (www.windowbook.com) is the premier mailing and shipping software partner to lettershops, corporate mailers, and fulfillment houses. Window Book’s best-in-class postal solutions include: Mail.dat®, post-presort data management, entry planning, drop shipping, postal documentation & statements, postage accounting, meter and stamp management, delivery confirmation, manifesting shipping system, FAST, and PostalOne!.

Contact information
Lisa Bowes, 617-395-4570
Sooyoung Han, 617-395-4573

The upcoming changes in rates present challenges for mailers, but also opportunities- one obvious response to shape-based rates will be changes to the way mailers package their product- see the press release below for one company’s strategy suggestions:

Proposed Postage-Rate Increase Pushes Mailing Efficiency

Creative packaging solutions offer significant savings
The U.S. Postal Service recently filed to raise postal rates in spring 2007. The proposed rates, driven by rising operational costs, follow a more complex pricing structure than the flat 5.4% increase implemented last January. For the first time, the rate structure will rely on shape, as well as weight. The proposed rates include price incentives to promote mailing efficiency.

Under the new system, flats and parcels face higher increases because of their higher handling costs. Now, for example, consumers can mail a three-ounce letter, flat or parcel for $0.87. The shape-based rates will lower mailing costs for the same three-ounce letter to $0.82. However, postage rates for the three-ounce flat will increase to $1.02, and the rate for the three-ounce parcel will jump 61% to $1.40.

“The proposed pricing structure encourages use of flat and letter mailings whenever possible to take advantage of automated processing,” says Marvin Makofsky, president of Conformer® Expansion Products, a Long Island-based company that maximizes mailing efficiency with its patented line of expanding envelopes. “Organizations that rely heavily on mass mailings can save thousands of dollars by converting flat mailings to letter mailings and parcel mailings to flat mailings.”

DVDs, for instance, typically ship in padded mailers as parcels. Innovative products like the Conformer Expansion Envelope enable the post office to process DVDs as flats. For companies that mail these items in quantity, the savings add up quickly: $10,000 on a mailing of 50,000.

In some cases, organizations can reap huge savings by literally thinking out of the box. For example, a national bank that mails personal checkbooks to 500,000 clients per month can cut annual postage costs by $2.3 million, simply by switching to expandable envelopes from traditional check boxes.

“Conformer Expansion Products (CEP) remains committed to helping our clients overcome the challenge of rising postage rates by providing creative, cost-effective mailing options,” says Bob Makofsky, General Manager of CEP.

Conformer Expansion Products offers creative marketing solutions—including envelopes, portfolios and presentation folders—that feature the company’s award-winning, patented designs. These multifunctional products use revolutionary expansion technology and are compatible with industry-standard mailing systems.

CONTACT:
Bob Makofsky
Conformer Expansion Products, Inc.
516-504-6300 - Ext. 307
bmakofsky@conformerinc.com 
 

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