Tag Archives: Tom Glassman

Postal Partner Appointed to MTAC

Congratulations to our ‘Postal Partner’ and Industry colleague, Tom Glassman.  Tom has been appointed to serve on the U.S. Postmaster General’s Mailers’ Technical Advisory Committee (MTAC), for a six-year term.

Tom will be representing Idealliance.  David Steinhardt, Idealliance President said, “Tom’s insight and extensive experience in mailing, as well as his service with the association’s mailing Working Groups, give him a wealth of knowledge he can draw from to contribute to the important work of MTAC.”

“I am excited about the opportunity to serve as a representative to MTAC,” says Glassman. “To have the chance to be involved in the activities of the two core working groups in the mailing industry—Idealliance and MTAC—provides the power to really move the mailing industry forward.”

Glassman is Director of Data Services & Postal Affairs at Wilen Direct, serves on the Idealliance Postal Operations & Technologies Council, and is Chair of the association’s Education Working Group, which last year launched MailPro®, a mail and postal education certification program with more than 1,000 enrollees. He has also been actively involved with MTAC working and user groups for some years. A graduate of Babson College, he is a USPS certified Mailpiece Design Consultant (MDC) and Mail Design Professional (MDP) and has earned Idealliance Mail Professional certification.

Tom has worked closely with BEB for the past 5-years and we consider him a ‘member of the BEB family’.  Congratulations, Tom.



January USPS Rate Increase

BEB UP ON THE HILL LOGOThe Postal Service has signaled for months that it will be filing for GUEST BLOGGER TOM GLASSMAN 2a general price increase later this year (calendar below). Publication of revised mailing standards (some below) that would also take effect in January.  Much of this follows a pattern the Postal Service sought to establish years ago: regular price changes announced in the fall and effective in January. The question of consequence for Customers, is less whether there will be a price change as how much an increase will be. The amount that prices for market-dominant mail can increase is tied to the CPI-based price cap, including how much “rate authority” from previous rate filings remains unused. As of the July CPI (based on the June CPI), was at an annualized cap of 0.676%. However, under the rules for calculating the CPI cap, because it’s been more than a year since the last general price increase (filed in January 2015 based on the November 2014 CPI), the applicable formula yields a higher cap (0.713%). To this would be added any unused authority (0.308% for First-Class Mail, 0.403% for Standard Mail, and 1.430% for Special Services) to determine the limit on any rate increase at the class level.   OK NOW, In English, take the CPI plus unused CPI would come to around 1.5 to 2 percent as I noted last night. Two big issues that I can NOT get my hands around would be, Flats are not covering their cost and drop ship discounts are not covering the cost so I anticipate a slightly greater increase in flats and a decrease in the drop ship discount by .5 to 1 cent.  If I “mail geeked” you and want help translating just give me a buzz.  Below is the expected time frame and a list of structural changes that I am anticipating.

Time Frame expected to be used by USPS

August: share technical changes and draft postage statements (without pricing) with developers

August: share draft mailing standards

September/October: Final PRC Market Dominant

November: Competitive filings

November/December: Publish final prices, mailing standards

1/8/17: target implement pre-release

1/22/17: targeting price effective date


Structural changes under consideration are as follows:


First Class

o Combine AADC and 3D auto letters for First-Class Presort (currently the same price)

o 3rd Ounce free for First-Class commercial letters

o First-Class Mail Promotions


Standard Mail

o Combine AADC and 3D auto letters for Standard Mail presort

o Simply Standard Auto letters by eliminating the per-pound rate between 3.3 and 3.5 ounces. Letters would be the same price from 0 up to 3.5 ounces.

o Increase Standard Mail flats piece price weight break from 3.3 to 4.0 ounces

o Standard Mail promotions (sent you the proposed changes about two weeks ago)

o FSS Standard Mail revert to previous structure


Also noted at the MTAC meeting was the issue with DSCF letter Mail. There was a change in DSCF pass-through calculation from FY14 to FY15. DSCF letter pass-through went from 57.4% in the FY14 ACD to 225% in FY15 ADC. FY15 discount $.043. The FY15 Cost avoidance – $.02 per piece.  Meaning the USPS is giving us a 4.3 cent discount for drop ship where it should have been 2 cents

The plan instead is to have modest increases over a number of price changes.

Exigent Case Basics

A review of the Exigent Rate Case from our partner, Thomas Glassman of Wilen Direct.

2012-Tom Glassman

Mr. Tom Glassman of Wilen Direct

In general, the Postal Rate Commission granted the USPS request for additional revenue as a result of recession related losses.  Even though the mailing industry argued that the losses were from diversion to other marketing methods.  As a result, the rates contained in its exigent price filing would be allowed to take effect on January 26th.  However, the PRC did not agree that the rate increase should be permanent and so directed that the rates should be implemented as a “surcharge”.  The USPS was further directed to submit a plan for the eventual removal of that surcharge.  I believe that you will see them in place for a long time.