Trends in Print and Mail

On Sunday, January 27, 2019, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to take action to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 28, 2019.

As a mailer, you took the right steps to select a service provider for your documents. The Request for Proposals (RFP) process helped you select the vendor with the best services at the best prices. Careful contract negotiations locked in pricing and service levels.

As a service provider, you bring on customers that best match your capabilities. A contract is signed that provides value for the customer, while providing a reasonable profit for the company. The next step is to complete the onboarding process.

Client and provider work together to transition work. Following a project plan with ample testing, documents are reviewed and approved. On schedule, the mail is moved into production.

This is only the beginning of the relationship. Just like a relationship between two people, there must be trust between the two parties. Establishing trust isn’t a one-time event, but an ongoing activity with the customer and the service provider taking active roles.
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Just in time to approve the 2019 postal rate increase, the Senate confirmed two members of the U.S. Postal Service (USPS) Board of Governors. One of the new governor’s term expired in December, other nominees didn’t even receive a hearing, so the administration will have to resubmit their names in 2019. Postal Legislation is still mired down in subcommittees of both houses.

After one White House report caused an uproar by recommending privatizing the USPS, the long-delayed Task Force report side-stepped that option while providing few other ideas. The Postal Regulatory Commission (PRC) has taken no action on their own proposed changes to the rate-making process.

W.H. Fallon - US Army Air Corps - US Postal Service

Last week, I attended the Mailers Technical Advisory Committee (MTAC) open session. David Williams, US Postal Service (USPS) Chief Operating Officer gave his quarterly operations update. In addition to the good news of performance during the recent election cycle and planning for the upcoming holiday season, Mr. Williams talked about USPS actions during two recent disasters – Hurricane Michael and the wildfires in California.

On Wednesday. November 14, 2018, the U.S. Postal Service (USPS) reported the financial results for Fiscal Year 2018 (October 2017 – September 2018). As expected, the USPS reported an operating loss. The reported controllable loss was $1.95 billion, or approximately 2.62% of controllable expenses.

The day before, the Postal Regulatory Commission (PRC) approved the new postage rates for 2019. The new rates represent about a 2.5% overall increase over the current prices for mailing, or “Market Dominant” products. In other words, next year’s increase won’t even cover the previous year’s operating loss.

In October 2001, an unknown terrorist sent envelopes containing anthrax through the US Postal Service (USPS). The intended targets were news broadcasters and elected officials. One envelope was misdirected, and ended up at the State Department, where several employees were seriously injured.

17 years later, another terrorist is using the mail to attack people. Instead of anthrax, pipe bombs were sent to a cable news company, past presidents and elected officials. One package was misdelivered to the return address on the envelope – the local office of a congresswoman.

On Thursday, October 11, 2018, the U.S. Postal Service (USPS) filed the rate case for Market Dominant products with the Postal Regulatory Commission (PRC). Set to go into effect on January 27, 2019, the new rates represent about a 2.5% overall increase over the current prices for mailing, or “Market Dominant” products.

Despite the headlines appearing on news websites, this isn’t “the biggest rate increase”. For many mailers the increase is lower than expected. While retail customers may have “sticker shock” on the 10% increase on stamps, the nickel increase allows the USPS to achieve the “simplicity of structure” of pricing. Plus, second ounce rates go down, flats pricing stays flat, as do postcards.

Thanks to technology, we have more ways to communicate than ever before. Then why do we still have a problem getting our message across?

The most common problem is choosing the right medium for your message. Instead of capitalizing on technology's ability to foster closer relationships, we use technology to distance ourselves from others: leaving voicemails instead of having a conversation; sending broadcast emails instead of holding a meeting; or posting a notice on a website instead of distributing the information to everyone concerned.

Are you using the wrong medium for your messages?

“Plans are useless after the first shot is fired.” – Military Adage (attributed to Napoleon Bonaparte)

I’m a strong proponent of planning – project plans, budget plans, travel plans. Even weekend plans. Schedules and plans help me accomplish my goals. However, most plans have to be changed as soon as the action begins.

So, if I can’t always follow the plans I develop, then why plan at all?

Good plans include key elements that remain in place even when the plan changes, due to unforeseen events. These key elements are: