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USPS Rate Hike Remanded Again
Two weeks ago the Postal Regulatory Commission sent the Postal Service’s rate and classification proposals for Periodicals, Standard Mail, and Package Services back for corrections and amendment. Last week the revised proposed rates were resubmitted, and for a second time, the PRC remanded the rate case stating the Postal Service has not complied fully with applicable statutory and regulatory requirements. Once the rate proposal is updated, the PRC will allow 7-days for public comment. In a statement released last week, the PRC also noted; “The Postal Service states that the revised prices are scheduled to go into effect on April 26, 2015. … Pursuant to [statute], no rate shall take effect until 45 days after the Postal Service files a notice specifying that rate.”
Our good friend and postal expert, Leo Raymond of Epicomm wrote; “Though I’m not a lawyer, that last sentence seems to sink the Postal Service’s plans for an April 26 implementation date — at least for Periodicals, Standard Mail, and Package Services. (The proposed rates and classification changes for First-Class Mail, and competitive products were approved earlier, and there’s no legal reason why implementation of those rates would have to be delayed, though implementing them separately would be a major headache for mailing companies and their software providers.)”
If the USPS HQ can update and resubmit by Monday, and allowing for the seven days for comment, add another few days for the PRC to deliberate, and assuming it doesn’t remand the filing a third time, it’s reasonable to not expect an order on final rates in April. This means that it is possible that the 45-day clock won’t start until the date of the PRC order putting rate implementation (for the three classes involved at least) into mid-May.
We’ll keep you posted as things unfold.
Happy St. Patrick’s Day!
An Old Irish Blessing
May the road rise up to meet you, may the wind be always at your back.
May the sun shine warm upon your face, and the rain fall soft upon your fields.And until we meet again, may God hold you in the palm of His hand.
May the luck of the Irish be with you always!
Happy St. Patrick’s Day from all of us at BEB-Business Extension Bureau!
The Bureau – A Letter from our CEO
President & CEO, Ron Royall
Houston, TX- We are already over half-way through the first quarter of 2015 and the year seems to be moving at lightning speed.
As our executive team planned for the coming year, we determined that our business must become even more nimble and adapt to the changing economic climate, quickly. In fact, I believe that the only consistency in our economy today, is change.
Texas has a new governor for the first time in 14 years, and the price of oil is dropping at accelerated rates. Houston led the country with 125,300 new jobs created in December, while the Federal Reserve announced in January that the state will lose approximately 125,000 jobs due to lower oil prices by mid-2015.
Social media marketing was a primary marketing strategy for several clients last year, and netted amazing results.
As the economy is ever changing, we see that our client’s needs are consistently changing too. As a result, our service offerings and skill sets are evolving to ensure we continue to serve our customers well.
Last year we expanded deeper into social media marketing, websites, wide format printing, and created several marketing strategies for a wide variety of companies.
Our primary focus for this year is to continue to develop new ways to help our clients market smarter. We’ll execute with greater agility and speed, and keep you informed of the latest industry happenings.
And so, in this edition of The Bureau, we review details of the recent USPS postal increase request, offer information on upcoming Marketing for Small Business classes, and share results of some of our marketing campaigns from 2014.
As always, we sincerely thank you for your business and partnership and look forward to serving your needs in the coming year.
Sincerely,
BEB WINS 2 Graphic Excellence Awards
We are (so) excited to learn that The Printing Industries of the Gulf Coast has honored Business Extension Bureau with 2 Graphic Excellence Awards.
We are pleased to announce that our interactive Calendars received an Award of Merit, and our postcard for the City Houston, Enroll Gulf Coast won an Award of Excellence! The Award of Excellence allows us to be entered into the running for a “Best of” Category trophy. We won’t know the winners of the “Best Of” honors until the night of the big reception, on April 22nd at the Doubletree Greenway Plaza.
We hope to see you there, as it will be an extra special night for all of us. Our Angel Wiener is on the committee that will debut the new Printing Industries of the Gulf Coast Young Professional Group, and our Joy Zehrbach is co-hosting the awards ceremony.
Go to the PIGC website for more details, or click here to register.
Standard Rates Sent Back
Washington, DC – Today the Postal Regulatory Commission returned proposed rate adjustments for Standard Mail, Periodicals, and Package Services classes to the Postal Service to allow for modifications that comply with applicable legal requirements. The rate increases are proposed to be implemented April 26, 2015.
The Postal Accountability and Enhancement Act of 2006 provides for ratemaking flexibility and allows the Postal Service to adjust rates for Market Dominant products as long as the increase for each class of mail meets certain statutory and regulatory requirements, the most prominent of which is that such increases are kept under the rate of inflation, as determined by the Consumer Price Index.
A Commission review of the Postal Service’s proposal to adjust rates for Standard Mail, Periodicals, and Package Services found that:
• In Standard Mail, certain unequal commercial and nonprofit discounts, certain workshare discounts, and the Postal Service’s methodology for calculating certain billing determinants do not comply with applicable legal requirements.
• The Commission was unable to make statutorily required findings to determine price cap compliance due to incorrect adjusted billing determinants relating to the Postal Service’s new FSS prices for Periodicals bundles, sacks, and pallets.
• The Commission was unable to make statutorily required findings to determine price cap compliance for Package Services products due to incorrect adjusted billing determinants and incorrect price cap calculations.
PRC Approves Rate Hike effective Apr 26
The Postal Regulatory Commission (PRC) has issued orders approving some of the price changes proposed earlier by the Postal Service. After its review of the USPS filing, discussion of the input from commenters, and its own analysis, the PRC found that “the planned” prices for First-Class Mail do not violate the price cap.
The PRC has also approved the price increase for competitive products (proposed on January 26), except for some rates associated with products whose transfer from “market dominant” to “competitive” remain under review.
Rate increases will take effect on April 26, 2015. You can view the new rates by clicking below:
March 2015 – QR Code
Have you scanned your March QR Code from BEB Business Extension Bureau’s NEW 2015 calendar?
We have a special message for you!
You can also click here to see it!
Downtown Houston Permit Holders
If you currently hold a mailing permit number that is issued from the Downtown Houston Post Office, you will need to make some changes.
As closure of the Downtown Post Office completes, all permit numbers issued from there must be re-issued from the North Houston office.
To make the transition, you are required to re-apply (at no additional charge) for a North Houston permit number. However, North Houston may not be able to assign the same number you were given from the Downtown Post Office. If the number issued from Downtown is not currently taken by another mailer in North Houston, you will be assigned the same number. Otherwise, you will be issued a new number.
This process must be completed no later than June 15, 2015
Inventory of items already printed with the Houston permit information will be accepted throughout the balance of this year. If you currently use a permit with the verbiage “Houston”; when creating new inventory, you will need to use the verbiage, “N. Houston” going forward. A sample for your review is below.
You can see detailed standards for mailing permit verbiage by clicking here or you can contact the North Houston Post Office at 713-226-3032.
If you need additional information or assistance, don’t hesitate to contact us at 713-528-5568.