Category Archives: Blog With BEB

Carlson Sues the USPS Over Rate Hike

Self proclaimed Postal Watchdog Douglas Carlson is suing the USPS over the five cent increase on the First Class Stamp.  He sites that the increase will be the largest increase in history for the one postage price that most Americans pay. As a percentage, the 10-percent increase is the largest since 1991, and it is about four times the average increase since 2006.  Read more here.

USPS Q1 RESULTS

WASHINGTON – February 8, 2019 – The U.S. Postal Service reported total revenue of $19.7 billion for the first quarter of fiscal 2019 (Oct. 1, 2018 – Dec. 31, 2018), an increase of $553 million, or 2.9%, compared to the same quarter last year.

First-Class Mail revenue declined by $81 million, or 1.2%, on a volume decline of 428 million pieces, or 2.8%, compared to the same quarter last year. Meanwhile, Marketing Mail revenue increased by $218 million, or 4.9%, on volume growth of 1.0 billion pieces, or 4.8%, compared to the same quarter last year. Shipping and Packages revenue increased by $516 million, or 8.7%, on volume growth of 93 million pieces, or 5.4%, compared to the same quarter last year.

Total operating expenses were $21.2 billion for the quarter, an increase of $1.6 billion, or 7.9%, compared to the same quarter last year. Excluding the impact of the $621 million non-cash workers’ compensation expense increase resulting from changes in interest rates and actuarial assumptions, operating expenses would have been $20.6 billion for the quarter, an increase of $939 million, or 4.8%, compared to the same quarter last year. The remaining operating expense increase was largely driven by increases in compensation and benefits of $657 million, due to additional hours and contractual wage adjustments, and transportation costs of $207 million, due to higher fuel costs and highway contract rate inflation.

The net loss for the quarter totaled $1.5 billion, an increase in net loss of nearly $1.0 billion compared to the same quarter last year.

“We continued to drive growth in our package business and expanded use of the marketing mail channel during the quarter. Nevertheless, we face ongoing financial challenges. We remain focused on aggressive management of the business, legislative reform, and pricing system reform, all of which are necessary to put the Postal Service on firm financial footing,” said Postmaster General and CEO Megan J. Brennan. “Our nation is best served by a financially sustainable Postal Service that can invest in its future and meet the evolving mailing and shipping needs of the American public.”

The controllable loss for the quarter was $103 million, compared to controllable income of $353 million for the same quarter last year.

“Overall volumes increased this quarter driven primarily by growth in Marketing Mail and our package business, which resulted in total revenue growth of $553 million,” said Chief Financial Officer and Executive VP Joseph Corbett. “This growth was offset by increased work hours and related salaries and benefits, increases in transportation costs due to these higher volumes and the continued focus on meeting customers’ needs.”

First Quarter Fiscal 2019 Operating Revenue and Volume by Service Category Compared to Prior Year – READ MORE HERE

Run for Rama 5K

We are going after it again in 2019!  We are gathering a team to walk/run in MD Anderson’s Sprint for Life event on May 4th.  We affectionately refer to this race against Ovarian Cancer as The Run for Rama 5K to honor our 40-year associate, Rama Moore, who lost her battle with this deadly disease on Christmas day in 2017.

Last year we had over 40 participants travelling from as far away as Alaska to take part in this highly emotional and very positive event.  We are trying to raise $1,200 in Rama’s memory to help combat this devastating disease.  Won’t you please join us in our march against Ovarian Cancer?  Join our team and walk with us on Saturday, May 4, 2019 or make a generous donation to our fund.  CLICK HERE or go to runforrama.com for details and donations.

 

TASK FORCE REPORT RELEASED

The Administration released the long-awaited postal task force
report in December.

The Alliance Board met and discussed the report and actions of the task force in detail.  The general reaction was negative.

A primary concern is that the proposed business model is to divide
mail into “essential” and “non-essential” categories.  The task force proposes that the essential types of mail would continue to be protected by price caps, while the non-essential group would be priced at a market rate.

The task force believes the previous business model is outdated and enables urban areas to subsidize rural regions. They want the new model to create a subsidy of essential mail by non-essential mail.

Under the current model, everyone pays uniform rates. The proposal would make “non-essential” mailers pay much higher rates based on someone’s judgment of what is “essential.” The Alliance Board has stated that the “proposed system is not workable, legally, politically or practically.”

Raising prices above inflation without addressing the cost issues will drive away direct mail and package volume which is currently supporting a profitable USPS. As we all know, they have generated operating profits in each of the last six fiscal years and only the miscalculated retiree health benefits charges have dragged the USPS financials into a loss. We will keep you abreast of this as it moves along.

The Story on Stories

200 million Instagram users use Instagram Stories each month. With millions of daily views across multiple social media sites, the stories format is likely to become the primary social sharing feature, overtaking the News Feed layout. This is why social media marketers have to pay attention to the rise of the story feature as a primary way of information circulation.

Mobile usage and shorter attention spans will continue to increase the popularity of short-lived content in the coming year, especially with millennials and Generation Z. Those groups are thriving on relationships with brands.Social media marketing strategies should include short video messaging which encourages the user to engage and help to establish a kind of “fear of missing out” with your audience.

Ash Read of Buffer, (a software program that allows for social media management over multiple platforms), believes that social media content in 2019 will continue to become more personal. Facebook has reported that the Stories format will overtake the News Feed as the default for content consumption soon, which means we’ll see more brands embrace more in-the-moment content vs. prepackaged content. The focus will be on the people and personalities behind the brands. Using video, stories and images to connect your audience with the human – maybe even vulnerable – side of your business is key.

For example, you could “take your audience behind the scenes” by showing the work your company does day-to-day. If you’re a coffee shop, create a story of how to brew the perfect cup. If you’re a service business, take your followers on a tour of the office or show your team working. The key is to experiment. The stories format is still very young and as the content lasts only 24hrs, there are tons of chances to try new things without it lasting forever on your profile.

How Hackers Get Your Information

In the coming year, cybercrime is projected to cost companies and individuals over $2 trillion. These digital assaults include phishing, email hacking, and a plethora of other ways criminals try to obtain your private information.

Phishing is a method of acquiring personal information using deceptive emails and websites.
With phishing, a cybercriminal conveys a counterfeit message to a group of people and requests that they take specific action.

Less than two-weeks ago, we received a notification disguised as an email from Microsoft Office. It said that some of our incoming emails were placed on hold “due to recent activity on our account.” The message instructed us to click onto a link and “login to correct the problem.” The email even had the Microsoft Office logo displayed.

At first glance, it seemed like a legitimate message.  Not using the link provided, we logged into our account and found that there weren’t any issues. This was a phishing email and the link provided was most likely infected.

In the past, these messages were filled with grammar and spelling errors and it was relatively easy to recognize what they were. Cybercriminals today are personalizing messages to the intended targets and using official logos, perfect construction of the “pitch”, and even the names of people you are connected with to lure you into the scam.

Cyber attacks on mobile devices are rapidly Increasing. IDology’s 2018 Fraud Report stated that 63% of organizations saw an expansion in attacks on mobile devices.

In the past, unless you were installing unknown files or .exe’s it was unlikely that your device would get a virus . Malware has become advanced to the point that if you open a contaminated email message, it can install and keep running on the phone’s memory. This makes it harder to identify because antivirus programs only scan your hard drive.

Caller ID spoofing is a massive problem and the FCC has been trying to squash the practice for years. In 2018, it slapped a Miami resident responsible for over 96 million robocalls with a $120 million fine. That operator used a scheme that masked real callers’ numbers with fake ones using the recipients’ area codes to make them think the call is from someone they knew. That’s the biggest fine the FCC has ever imposed.

Be cautious when opening messages from people that don’t normally send emails to you or from people you don’t know.

Here are some pointers to help you stay safe:

  • Apple will NOT call to tell you that your ID has been compromised, nor will you get a call about your iCloud account – ever.
  • Microsoft will not call to tell you that your PC has been compromised.
  • No one can tell if your PC has been compromised on the Internet.
  • The IRS NEVER calls. They send letters. You can make arrangements for a conversation via phone, but you will receive initial notifications through the mail first.
  • If you receive a document from someone you know and your are redirected to a Google Docs site where you are asked to input credentials -DON’T

If you think you are exploited:

  • Stop using your computer and get it off of the Internet. Then, turn off the computer.
  • Contact your IT professional and let them check to make sure that your device was not compromised.
  • Get a backup of your files and disconnect the backup device when not in use.
  • Regularly change your passwords if possible. There are many excellent password management tools on the market.
  • Get your credit report – you can obtain one free report (from all three reporting agencies) each year from the FTC at: www.ftc.gov/faq/consumer-protection/get-my-free-credit-report

Be cautious and stay safe!

Special Thanks to Joe Cantrell of JAZ Services, LLC for his input on this article.

The Bureau – BEB Turns 70


Houston, TX – From all of us at BEB, we wish you a very happy and prosperous New Year.
2019 is very special for us as we celebrate our 70th year in business! San Francisco based Business Extension Bureau opened their Houston division in 1949 and my Dad, Bob Royall, at the age of 23 was hired to run the sales department.  Six years later he was promoted to GM and the business grew. Dad and partner, Jim Tardy, bought the business in the early 1960’s and we have been independently owned and operated ever since.
Business Extension Bureau (BEB) has grown into the most established marketing production company in Houston and we look forward to serving you for another 70+ years. We are proud of our history and appreciate our clients, partners, and staff. Thank you for allowing us the opportunity to work with you and we hope you join us in celebrating this milestone year for us.

As you may already know, the postage rate hike will take effect on January 28th, raising rates approximately 2.5% across the board. Click here for a 2019 Postal Rate Guide.  Click here for  rate comparison charts (by mail class). If you have questions or need additional information, don’t hesitate to contact us. Of course we will continue to keep you abreast of “all things postal” through our blog, social media sites, and upcoming newsletters.

Be sure to check out the Welcome page where we introduce you to several new team members and say “goodbye” to others.  Most of you are already aware that our Diane Bandemer is retiring at the end of the month. She has been working with Angel Vierna and our newest CSR, Veronica Comisso, to ensure a seamless transition. Congratulations to Diane and her husband, Larry, as they embark on their new adventure of retirement.

We hope that you are enjoying our 2019 interactive calendar. If you haven’t received one yet you can click here to place an online order or contact us directly; we will send one to you right away. We broke a record in 2018 with over 2,000 scans of the calendar QR codes. Be sure to scan yours each month as we have fun and informative videos for your enjoyment all through the year.

Our Marketing for Local Business Seminars start up again in February. The last five series have sold out and we have only a few seats remaining for the first round. Be sure to register now while space is still available. Click here for details on all 2019 classes and guest speakers.

This edition of The Bureau includes a pictorial of 2018, and an article on How Hackers Get Your Information. We have also included updates of the results from the President’s USPS Task Force and how the report was received within the direct mailing industry.

Once again, from all of us at BEB, we wish you and yours a very happy and prosperous 2019. We thank you for your business and partnership and look forward to serving you in the coming year.

Sincerely,

 

 

 

 

Ron Royall, President