Trends in Print and Mail

“Information is the currency of democracy” – attributed to Thomas Jefferson

According to the United States Postal Service (USPS), periodicals are: “newspapers, magazines, and other periodical publications whose primary purpose is transmitting information to an established list of subscribers or requesters. Periodicals must be published at regular intervals, at least four times a year from a known office of publication, and be formed of printed sheets.” (Business Mail 101)

The bureaucratic sound of the term “periodicals” belies their rich history and importance. Newspapers and journals were critical to spreading the ideas and ideals that led to the founding of our country. Freedom of press is enshrined in the Constitution and the Postal Act of 1792 included a subsidy for newspapers for over a century.

Any hopes of meaningful legislative reform in this Congress disappeared while watching the Senate hearing on the Presidential Task Force on the United States Postal System. Then the outlook got dimmer during the confirmation hearings for the President’s latest nominees to the U.S. Postal Service (USPS) Board of Governors.

Throughout the hearings, the senators’ lack of knowledge about the USPS was on full display. Members confused ratepayers with taxpayers, claimed losses on systems that were making money, and repeatedly admitted they wish they had more information. They do have staffs that could do research, but that would take real commitment to solving the problems. A cynic might think that our senators are intentionally doing nothing to manufacture a crisis.

It begins 2 months from today, so now’s the time to get tuned up for the starting line of the 2019 National Postal Forum (NPF) – May 5 - 8, 2019 in exciting Indianapolis, IN.

Savvy businesses know that physical mail is a critical component to driving their success. Now more than ever, it’s not “either physical or digital”, it’s “physical AND digital” communication to connect to your customers. Whether statements, direct mail or catalogues, consumers want omnichannel routes, so they can choose the path that works best for them.

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.

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.

At a time when the U.S. Postal Service (USPS) is struggling with declining volumes, someone at that organization has decided that one answer is to create additional restrictions on what could be mailed at Marketing Mail rates.