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USPS Rates Hikes Will Follow Reform Bill

Posted by | Nov 15, 2007 | |

It’s official that postal rate increases will follow the Postal Reform bill passed 11 months ago. The U.S. Postal Service’s Board of Governors announced that future price increases will be tied to the Consumer Price Index (CPI), or rate of inflation, for mailing services that include First Class, Standard Mail, and periodicals.

The BOG said future prices would be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. The board’s decision is consistent with the Postal Reform and Accountability Act, which calls for a rate-increase cap that ties future postage increases at or below the rate of inflation. It also has strict criteria regarding conditions for emergency rate increases.

Technically, the BOG could have filed one final rate case under the old regulations in place since 1971, but voted to proceed with the new pricing regulations. “We thank the Postal Regulatory Commission for completing the new rules eight months ahead of the statutory deadline,” Postmaster General John E. Potter said in a release. “This delivers one of the main goals of the new law for business mailers–a predictable price schedule.”

With the new pricing regulations, the Postal Service has more flexibility for shipping services, including bulk parcels and expedited package services such as Priority Mail and Express Mail. “We intend to use this new flexibility to grow our competitive business offering volume discounts and contract pricing,” Potter said. “There are still many details to be worked out, but we look forward to partnering with the PRC and our customers to maximize the advantages of the new pricing rules.”

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Postal Service Governors decide future pricing to follow new regulations (US)

Posted by | Nov 15, 2007 | |

The Postal Service Governors announced today future prices will be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. Consistent with the Postal Accountability and Enhancement Act of 2006, future price increases will be capped at the rate of inflation for mailing services.*

The Governors had the option of filing one last rate case under the regulations used since 1971 but voted to proceed with the new pricing regulations.

“We thank the Postal Regulatory Commission for completing the new rules eight months ahead of the statutory deadline,” said Postmaster General John E. Potter. “This delivers one of the main goals of the new law for business mailers—a predictable price schedule.”

The new pricing regulations give the Postal Service added flexibility for shipping services.** “We intend to use this new flexibility to grow our competitive business,” said Potter, “offering volume discounts and contract pricing.”

“There are still many details to be worked out, but we look forward to partnering with the PRC and our customers to maximize the advantages of the new pricing rules,” Potter said.

*Mailing services include First-Class Mail, Standard Mail and Periodicals.
**Shipping services include bulk parcels and expedited package services such as Priority Mail and Express Mail.

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Pitney Bowes Announces Strategic Actions and Provides Guidance for 2008

Posted by | Nov 15, 2007 | |

First, following a comprehensive review of the company’s business portfolio, the company has decided to explore strategic alternatives to determine the best course of action for its U.S. Management Services business.

Second, the company’s Board of Directors has increased the share repurchase authorization to USD 500 million. The company plans to complete the repurchases within six months. The larger size of the program reflects the company’s strong cash flow as well as its confidence in the stock as an attractive investment opportunity.

Third, the company’s Board of Directors has authorized a 2 cent increase in the quarterly dividend. This represents a 6 percent rate of increase and will apply to the dividend with a record date of February 18, 2008.

Fourth, the company is initiating a program to lower its cost structure, accelerate efforts to improve operational efficiencies, and transition its product line. In connection with these transition initiatives, the company expects to record charges of USD 300 to USD 400 million. The program will include non-cash charges associated with the write-off of inventory and lease residuals of older equipment that the company will stop selling as it transitions to the new generation of fully digital, networked, and remotely-downloadable equipment.

The balance will be cash charges related to efforts to lower the cost structure and accelerate improvements in operational efficiencies. As a result of this program, the company expects a net reduction of about 1,500 positions across business lines and geographies, representing approximately 4 percent of the global employment base.

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Pitney Bowes (US) to Cut 1,500 Jobs

Posted by | Nov 15, 2007 | |

The Stamford-based mail and document-managing company announced it will take a charge of between USD 300 million and USD 400 million to write off inventory and leases of equipment that is discontinued. And it will cut 1,500 jobs, about 4 percent of its work force, as it outsources manufacturing work and streamlines management.

Pitney Bowes, which began its shift to digital mailing technology in 2002, is reacting as much to changes in the U.S. Postal Service on which its business relies as to technological advances such as Internet mail tracking, Web-based postage sales and computer networks.

Shares of Pitney Bowes rose 16 cents to USD 38 Thursday.

The company also announced that it expects results between a loss of 17 cents and a profit of 4 cents per share for the fourth quarter and a profit of USD 1.76 to USD 1.97 for the year. In October, Pitney Bowes forecast net income of 66 cents to 70 cents per share.

Excluding extraordinary items, the company said it still expects to earn 67 cents to 71 cents per share for the fourth quarter. Analysts expected a profit of 69 cents a share, according to a survey by Thomson Financial.

Martin, without being specific, also said Pitney Bowes will consider alternatives to its U.S. management services business. The business, which brings in about USD 1 billion in annual revenue and employs 12,000 workers, provides mailroom and copy center services to large corporations, federal agencies and law firms.

Analyst Shannon Cross of Cross Research said she expected some action by Pitney Bowes following disappointing third-quarter earnings last month. The company’s USD 127.6 million in profits was down about 16.5 percent, from USD 148.6 million in the same quarter last year. Per-share earnings sunk to 58 cents, from 67 cents in the third quarter of 2006.

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Post Office (UK) to launch new Christmas Club

Posted by | Nov 15, 2007 | |

The Post Office today announced plans to launch a new Christmas Club offering customers a secure and convenient way to save for Christmas 2008, with additional membership rewards that will increase their spending power.

The Post Office Christmas Club will fill a gap identified by HM Treasury’s Review of Christmas Saving Schemes by Brian Pomeroy, Chairman of the Financial Inclusion Taskforce, in March this year carried out in the wake of the Farepak collapse.

All funds deposited in the Post Office Christmas Club will be governed by strict E-money regulations and held in a protected account under the control of Bank of Ireland. The funds will only be accessible to Club members.

The scheme will be available at all Post Office branches from January 2008. Customers will be issued with a Christmas Club card which they can use to make deposits over the counter. The minimum single deposit will be GBP 5, and the maximum individual payment GBP 500, up to a total of GBP 1,000 savings per card per annum.

Funds will be locked away until 1 November 2008, when the Christmas Club card can be used as a pre-paid debit card with retailers signed up to the scheme or exchanged for gift vouchers at Post Office branches.* The Post Office has negotiated partnerships with around 200 retailers so far, covering grocery, wine merchants, fashion, travel and leisure, health and beauty companies. Top names include Argos, Boots, Debenhams, Halfords, House of Fraser, Peacocks, Sainsbury’s, Thorntons, Woolworths and WHSmith.

Christmas Club members will be able to benefit from further rewards as the Post Office negotiates discounts and bonuses with retailers. These deals will be announced from January and throughout 2008, and will provide significant benefits compared to current rates available from High Street savings accounts.

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KPLC and Posta sign electricity payments deal

Posted by | Nov 15, 2007 | |

The number of post offices offering electricity bill payment services around the country was on Wednesday increased from 40 to 200.

This followed an agreement between the Kenya Power and Lighting Company (KPLC) and Postal Corporation of Kenya (Posta).

Eventually, up to 300 post offices will be offering the service to KPLC customers at no additional costs, said Postmaster General Fred Odhiambo.

KPLC chief executive Don Priestman said that the rising number of electricity customers had led to the need for the company to have more payment points.

In the last financial year only, new customers connected reached 120,000, twice the number connected annually in previous years.

With the enhanced pace of customer connectivity the power company’s banking halls have become progressively congested.

The ongoing automation and networking of Posta’s countrywide post offices branch network has made the re-engineered Posta electricity payment system possible.

KPLC and PCK first came together in such partnership eight years ago using selected post offices in its network to collect electricity bills on behalf of KPLC for a commission.

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Canada Post Seeks to Help Canadian Businesses Garner More Value for Their Mail at 'Make a Great Statement' Executive Forum

Posted by | Nov 15, 2007 | |

In Canada and the U.S., more than 19 billion paper bills are mailed out by businesses every year. And what many businesses are now realizing is that those 19 billion statements they’ve been mailing out to their customers every month actually present an overlooked wealth of opportunities to build loyal relationships with their customers, and gain an advantage over their competitors so that they can attract new customers.

Speaking to Senior Marketing executives at the Make a Great Statement Executive Forum in Toronto, Cheryl Persad, vice-president of Enterprise Sales at Canada Post said, “85 per cent of Canadians say they prefer to receive bills and invoices by physical mail, and 72 per cent of Canadians feel that mail is the best way to receive important information. And for communicators, mail not only reaches 100 per cent of Canadian households, but 86% of Canadians open and read their mail the same day they receive it.”
Businesses are discovering that statements can be an effective part of their organization’s integrated communications plan… statements are a regularly-scheduled, one-on-one meeting they can have with their customers every month. Each statement can be a personalized, relevant, customized marketing tool that companies can use to retain customers, increase customer satisfaction and even increase revenues, through cross-selling and up-selling opportunities.

To help identify what makes a Great Statement, Canada Post commissioned a study to look at more than a hundred statement designs. The study asked six firms that specialize in statement design to come up with a comprehensive list of best practices and characteristics of what they thought made a well-designed statement. The six firms identified 76 key features, which can be clustered into three broad themes: relationship builders, brand enhancers and cost-savers.

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