Mailing/Fulfillment - Postal Trends

Forever Stamp-ede: Consumers May Hoard Stamps This Week But Stop Buying Next Year
January 19, 2014

The price of a First Class stamp will rise from 46 cents to 49 cents next Sunday, January 26. Someone who buys a Forever Stamp this week, for 46 cents, and uses it a month later in place of a normal First Class stamp will save 3 cents and have an annualized return on investment of 113 percent.

Next Sunday’s price increase for First Class letters has two parts. One cent of the increase is the usual, annual inflation-based postage hike. The other two cents are from a temporary “exigent” price increase that is slated to expire within two years.

PRC's Goldway Tells What was Behind the Exigency Decision
January 15, 2014

On December 24, 2013, the Postal Regulatory Commission approved an exigent increase that shot postal rates up 6 percent and sent direct mail marketers and their accountants back to their strategic models and financial forecasts to remake plans for 2014. Mailers had hoped the PRC would soften the blow with a lower percentage increase and were disappointed by the Commission's ultimate decision to give USPS the rate it asked for.

To learn more about what was behind the PRC's decision, Direct Marketing News spoke with Commission Chairman Ruth Goldway.

Rate Hike Will Harm Postal Service
January 14, 2014

The exigency rate increase on the price of postage, recently approved by the Postal Regulatory Commission, amounts to little more than a short-term stopgap measure. Even worse, it will ultimately cause further damage to the long-term viability of the Postal Service.

Under the law, the Postal Service is not allowed to raise prices above the rate of inflation unless there are serious exigent circumstances. These increases are meant to create better business in times of need, but unfortunately, this increase is not the silver bullet the Postal Service’s budget requires. It won’t solve the financial crisis, nor will it create a

Iggesund Holiday Card: Structural Graphics' Solution of the Week Video
January 10, 2014

This week Structural Graphics highlights a Christmas card that it produced for Swedish company Iggesund Paperboard. Structural Graphics also recently took part in an event in New York City, A Night with Invercote, hosted by Iggesund showcasing remarkable design in print from top designers around the world.

They Got Those Post-Exigency Postal Blues
January 9, 2014

Joe Schick wasn't surprised by the lumps of coal left in mailers' stockings by the Postal Regulatory Commission on Christmas Eve. He'd hoped a reduced number might be put into play by the PRC, but he didn't blink when he learned that the PRC went for the full 4.3 percent increase. Instead, Quad/Graphics' long-time director of postal affairs had the resigned attitude of a man whose wife had run off with his best friend and stole his car to do it.

The fact that the PRC limited the exigency to two years or the collection of $2.8 billion in added revenues

Flexible Workforce Lowers USPS Wages—and Hurts Productivity
January 4, 2014

The U.S. Postal Service hoped to boost deliveries per work hour from 41.0 to 42.7 during FY2013, but the annual report said it fell short partly because so many new employees had to be brought up to speed. Having more mail volume than anticipated (a decline of less than 1 percent, versus 5 percent the previous year) also hurt productivity, despite improving USPS’s finances, the report noted.

The report does not discuss another productivity measure—mail pieces delivered per work hour—but that appears to have changed little during the year.

Downsizing of the workforce, consolidation of facilities and carrier routes, and greater automation