Distribution Directions Vol 9 No 12 Postage Rate Increase, Full-Service IMb, USPS GAO High Risk, Hallmark Card Barcodes Replace Stamps

The Postal Regulatory Commission has approved the Postal Service’s planned rate increases for its market dominant products, including first class and standard (advertising) mail. There would be no increase for a one ounce first class letter, but other rates would raise an average of 1.7%. The new rates will take effect on April 17. While finding that the rate changes were within the authority granted to the USPS by the 2006 PAEA Act, the commission was critical of some of the Postal Service’s methods of calculating worksharing discounts: In some instances, the Postal Service calculates worksharing pass-through utilizing unapproved methodologies that currently are under review with the Commission. The Postal Service asserts that the methodologies it employs are superior to the established methodologies; therefore, it contends that use of the unapproved methodologies is appropriate.

Source: PRC Order_No_675

Full-Service IMb Concerns Addressed

Jim Cochrane, USPS VP Product Information, acknowledged the industry’s concerns regarding Full Service ACS and the challenges faced by both the industry and the USPS. Jim told the Mailers Technical Advisory Committee (MTAC) members beginning March 1, 2011, the USPS will adjust the Full Service ACS charge proportional to the barcode scan for the mailing (i.e. if a mailing has a 80% read rate on the IMb, based on a national level, the mailer will not be charged more than 20% in electronic fees for ACS scans). As for the past Full Service ACS charges the USPS will go back to October 1, 2010 (USPS FY 2010), the USPS will provide those charges as free. Details are forthcoming.

USPS Still on GAO’s High Risk List

The Government Accountability Office’s (GAO) released its biennial “High Risk Series” report. The report identifies those agencies most at risk of waste, fraud, abuse, mismanagement, or in need of reform. The U.S. Postal Service’s long-term outlook remains on the GAO’s high-risk list. The GAO first placed USPS on the high-risk list in April 2001 because of the growing risk that it would be unable to continue providing universal postal service at reasonable rates while staying self-supporting through postal revenue. In 2007, GAO removed USPS from the High-Risk List in part due to its implementation of Strategic Transformation strategies and passage of the Postal Accountability and Enhancement Act of 2006. However, two years later “In July 2009, GAO added the USPS’s financial condition to the list of high-risk areas needing attention by Congress and the executive branch to achieve broad-based restructuring. Amid challenging economic conditions, a changing business environment, and declining mail volumes, USPS is facing a deteriorating financial situation which it does not have sufficient revenues to cover its expenses and financial obligations.”

Source: PostalReporter

Barcodes Replace Stamps on New Hallmark Cards

Barcodes may now be playing a role in all life's major occasions. Hallmark has just launched a line of cards that include the U.S. Postal Service's Intelligent Mail barcode, a barcode that replaces a stamp on a Hallmark Envelope. The barcode represents paid postage, allowing consumers to just sign, seal and send. This collaboration between Hallmark and the USPS is an innovative use of barcodes that provide convenience and improved productivity to busy consumers. The Intelligent Mail barcode is on the front of the envelope. When the cards are processed at a Postal Service facility, the barcode automatically indicates to the Postal Service the postage is paid. The postage is treated like a Forever stamp, and its value will always be equal to the price of a standard First-Class stamp, regardless of when it's mailed. (Could this be the future of Flat-Size mail?)

Source: Barcode News

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MyraLe19

14 July 2011

freelance writer

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