Trends in Print and Mail

Since the arrival of the ZIP Code in 1963, mailers have worked hard to meet the addressing and sorting requirements established by the U.S. Postal Service (USPS). Then came the ZIP+4, the Postnet Barcode, the Delivery Point Barcode and the Intelligent Mail Barcode (IMb). Each upgrade promised streamlined processing, consistent delivery and low postage rates. For most mailers, the USPS delivered on those promises.

Many mailers have held out on moving from the Basic IMb to the Full Service IMb, with accompanying mail.dat file and eDocs. Tracking MIDs, CRIDS and mail piece IDs often require a significant investment in software, databases and customer buy-in. For smaller mailers and mail service providers, the extra work required wasn’t worth the $0.003 per piece discount.

That’s about to change. For 2 reasons – Informed Delivery and Informed Visibility.

One of my favorite television personalities is Mike Holmes. A contractor from Canada, Mike has been the star of several renovation series, including Holmes on Holmes, Holmes Inspections and Holmes Makes It Right. He’s most famous for uncovering shoddy work by other contractors, tearing it out, and then completing the construction correctly.

For Mike, the building code is the bare minimum standard for contractors. And the bare minimum isn’t the right way to build. “Even if they are minimum standards, codes matter,” Holmes said. “I’ve said before that I’m not a fan of people who build to code because the building codes are minimum standards. I want to see people build past minimum standards, so that every homeowner has the safest possible living environment.”

I feel the same way about most US Postal Service (USPS) regulations – they’re the minimum standards for mailers to meet. If you want to have your mail accepted by the USPS, then you must follow the regulations. But to be successful, you need to do more than just meet the standard. This is especially true when it comes to addresses.

Under the requirements of the Postage Accountability and Enhancement Act (PAEA) of 2006, the Postal Regulatory Commission (PRC) is reviewing the way the United States Postal Service (USPS) sets postage rates. Under the PAEA, the USPS can’t raise postage rates for market dominant products above the rate of inflation as determined by the Consumer Price Index (CPI). The price cap was a bad idea in 2006, remains a bad idea in 2017, and should be ended by the PRC.

While there have been a lot of stories about companies exploring the use of airborne drones to make deliveries, another form of technology has quietly been making significant inroads – robots.

Last week, Governor Terry McAuliffe signed a law allowing delivery robots to operate on sidewalks and crosswalks in Virginia. From published reports, this is the first legislation in any state explicitly allowing the use of these types of robots. The law has strict limitations – the devices can only weigh up to 50 pounds, must be monitored remotely and are limited to speeds of 10 miles per hour – but this is just the beginning.

This year on Washington’s Birthday, Monday, February 20, 2017, I had the opportunity to attend the John F. Kennedy Forever Stamp First-Day-Of-Issue Dedication. The stamp is being released to celebrate the 100th anniversary of the birth of President Kennedy. The event was held at the JFK Presidential Library and Museum in Boston.

On Tuesday, February 7, the House Oversight and Government Reform Committee will hold a hearing to receive testimony on H.R. 756 – “To restore the financial solvency and improve the governance of the United States Postal Service to ensure the efficient and affordable nationwide delivery of mail, and for other purposes” – also known as the “Postal Reform Act of 2017.”

This weekend, I had to search through some records from the 1990s. Among the papers was the first speech I ever gave for the U.S. Postal Service (USPS). The District Manager for Boston asked me to present to a gathering of his postmasters and station managers. In particular, he wanted to hear about how my company was impacted by the service we received from the USPS.

While I wrote this speech over 2 decades ago, the message holds true today. The industry and the USPS must work together to provide the best possible service to our mutual customers.

The 114th Congress failed to pass any postal reform legislation. Since 2010, President Obama was unable to get any of his nominees to the US Postal Service (USPS) Board of Governors approved by the Senate. That means the USPS is hampered by outdated ratemaking rules, product innovation restrictions and a lack of oversight.

The 115th Congress is now in session, with Republicans in control of both houses. On January 20, 2017, the 45th President of the United States, a Republican, will take the oath of office. Perhaps these changes represent an opportunity to break the logjam on postal issues and Board of Governor appointments. But perhaps not.

On Sunday, January 22, 2017, the new US Postal Service (USPS) postage rates and rules go into effect, so mailers need to take action now to be properly prepared. For most mailers, the first day of mailing under the new rates will be Monday, January 23, 2017.

Even with the increase, postage rates are a great deal. The USPS retail rates for letter mail remain lower than our trading partners – including the countries that have privatized their posts. Take a look at the price for one-ounce stamps:

Exigent postage rate increases were repealed. The upcoming rates changes will have some positive impact for First Class Mailers. Selecting vendor-partners, for technology or outsourcing services, remains a challenge. And legislative reform was seriously considered by Congress – before ultimately deciding to do nothing. These were just a few of the major stories impacting our industry over the last year.

We here at The Berkshire Company can't predict what changes 2017 will bring, but we do know more changes are on the horizon – from the implementation of “USPS Marketing Mail” to new technologies to reinforcing good management practices. We plan on covering those, and other issues, in the coming year. If there’s a particular topic you’d like to see covered, leave a note in the comments, or send me an email at mmf@berkshire-company.com.

In case you missed them, here are the 10 most read posts from 2016: