Tag: North America

U.S. Catalogers plagued by the rising postage costs

Posted by | Jun 13, 2007 | |

With the increase in postage rates in effect for nearly a month, some businesses are feeling the heat more than others. While many companies that mainly use catalogs as marketing are being scorched by the new restrictions and costs, companies who use postcards haven’t been affected enough to feel singed. Indeed, all postage prices went up, including the inexpensive postcard that went up from USD 0.24 to USD 0.26 per card. The postcard, however, isn’t nearly as affected due to the weight and size of a postcard being consistent, whereas catalogs are of varying weights and sizes.

Several big catalog companies—including J.C. Penney, Spiegel and Brighton—have for some time mailed out postcard campaigns in order to get prospects to call them or visit their website. Once a prospect is interested and requests a catalog, one is sent. This is a more cost effective way for businesses as each postcard costs less USD 0.35 to design, print, address, etc. A catalog can cost up to USD 2. Then when is comes to sending the promotion to the prospect, a postcard costs a flat rate, as opposed to a catalog that has to be weighed prior to being stamped.

Postcards were found to have the highest read rates of all direct mail media, compared to other media such as letters, flyers and magazines. Considering consumers are hit with over 3,000 advertising messages on a daily basis, having the highest-read-rate percentage speaks for itself.

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UPS Store owners are angry – Franchisees file a complaint, saying the business model keeps them in the red

Posted by | Jun 13, 2007 | |

More than 200 owners of UPS Stores across the country have filed a complaint against UPS and its franchiser, Mail Boxes Etc.

The franchise owners said in a filing in U.S. District Court in Los Angeles that they haven’t been able to make money because UPS undermined them by using the branded stores as drop-off points for prepaid packages and forcing the owners to focus on providing document and printing services.

“For a large group of us, it has been very difficult to make this work,” said Larry Bowdoin, the Alabama-based president of the Brown Shield Association, a group of UPS Store franchise owners. “Who would’ve thought that UPS would’ve created this franchise and wanted to see it do anything except succeed?”

The complaint, filed in April, claims the business model of the UPS Stores has been disastrous to franchisees’ bottom lines.

UPS bought Mail Boxes Etc. in 2001, and many franchises converted to UPS Stores about two years later.

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DM News webcast addresses postal rate increase

Posted by | Jun 13, 2007 | |

Converting flat mail to letter size is just one way for mailers to reduce the burden of the new postal rates, said Elizabeth Lombard, USPS rate specialist at Pitney Bowes.

“Consolidate mailings,” Ms. Lombard said. “For example, mail fewer but heavier pieces. This is ideal for households and consumers.” One could mail a statement and offer in the same envelope rather than mail them separately.

Ms. Lombard also suggested that mailers consider First-Class Mail postcards as an alternative to letters. She said that it is not only cheaper but also a guarantee that the consumer will at least see a message since it is out in the open. Envelopes are not always opened.

“Eliminate non-machinable characteristics to avoid the 17-cent surcharge for First-Class letters,” Ms. Lombard said. “Also avoid parcel rates by designing flats to meet new regulations.”

She said mail pieces should be uniformly thick so that any bumps, protrusions or other irregularities do not cause more than a quarter-inch variance in thickness.

Exclude the outside edges of a mail piece when determining variance in thickness.

Mail pieces should be flexible, too. If it can bend at least one inch vertically without being damaged and does not contain a rigid inset, no further testing is necessary.

The rate increase for periodicals will go into effect July 15, 2007.

“Bundle rates will be based on sort level and container level,” said Mike Plunkett, acting vice president, pricing and classification at the United States Postal Service. “Container rates will be based on container type, level and entry.”

He also said that the rates hike for periodicals was put on hold by USPS Governors to allow time for software development.

When talking about the rate hike that is already in effect, Mr. Plunkett said the increase reflects changes in operations and the marketplace, offers more choices, includes incentives, reduces undeliverable-as-addressed mail and better reflects shape effects.

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Pitney Bowes’ Group 1 Software Receives USPS® PAVE™ Certification

Posted by | Jun 13, 2007 | |

Group 1 Software, Inc., a Pitney Bowes Company, today announced that the latest release of its MailStream Plus® mail preparation and presort software has received U.S. Postal Service® PAVE certification for PAVE Cycle I.

MailStream Plus was among the first mail preparation and presort software solutions to receive certification for PAVE Cycle I, which took effect on May 14, 2007.

MailStream Plus sorts mailing lists according to USPS standards for every class (First-Class Mail®, Periodicals, Standard and Package Services) and type of mail (letters, flats and parcels) at all allowable levels. MailStream Plus also incorporates comprehensive documentation that speeds mail preparation and USPS acceptance, facilitating prompt and accurate delivery. Options include palletization, support for drop shipping, Mail.dat Viewer, Mail.dat, Confirm®, POSTALOne®!, PLANET Code®, and manifest reporting.

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Canada Post defeats NAFTA unfair competition challenge from UPS

Posted by | Jun 12, 2007 | |

Canada Post has defeated a NAFTA challenge from United Parcel Service of America Inc., that alleged the Crown corporation engaged in unfair competition, bringing an end to a seven year-old dispute between the two delivery companies.

UPS, the world’s largest package delivery firm, launched a claim for US$160 million against the Canadian government in April 2000 under the North American Free Trade Agreement.

UPS contended Canada Post has an unfair advantage because its services such as Express Post and Priority Courier draw on an infrastructure of sorting facilities, mailboxes and post offices that private companies must provide for themselves.

But Canada Post CEO Moya Greene told the company’s annual meeting Tuesday that the NAFTA tribunal hearing the challenge had dismissed it.

The company, which has been operating in Canada for more than 30 years, is still reviewing the decision, Kane said.

Officials with NAFTA, the International Trade Department and the two companies said copies of the decision weren’t yet publicly available.

Union officials representing Canada Post workers said the case represented the first time Ottawa was being pressured to withdraw from an established government program or service, and if it had succeeded, may have forced the company to get out of the courier business altogether.

Earlier at the Canada Post meeting, Greene said the company will likely raise postage rates for certain categories of mail such as parcel delivery.

A decision whether stamp rates will change for letter mail is expected by the end of the month.

The Crown corporation generated $7.3 billion in operating revenue last year, up 4.6 per cent from the previous year, and earned $119 million in net income, down 40 per cent from 2005.

With 72,000 staff, Canada Post is the country’s sixth largest employer. It delivers 40 million pieces of mail daily.

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