The Inspector General’s Top 10 Postal Stories of 2013It was a big new year for the Old Post Office. The Office of the Postal Inspector General, a combination policy agency/management consultancy for the USPS, released its list of Top 10 Postal Stores of 2013. Read more here.
The price of a Forever stamp and other mail will rise by 3 cents on January 26, 2014. This represents the largest rate hike in 11 years. The increase will be in effect for two years, giving the USPS a temporary shot of extra revenue. “Allowing the rates to remain in effect indefinitely would result in over recovery of the financial impact of the Great Recession on the Postal Service,” wrote the commission.
The PRC (Postal Rate Commission) approved the exigent increase by a 2 to 1 vote, resulting in a 6% overall jump in postal rates. This is the first extra revenue for the USPS since the 2006 law limited rate increases to the rate of inflation.
In addition to First-Class mail, the higher rates will apply to magazines, newspapers, advertising mail and bills – which together account for most of the 158 billion pieces of mail delivered every year.
A review of the Exigent Rate Case from our partner, Thomas Glassman of Wilen Direct.
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.
Amazon.com unveiled a new partnership with the USPS to deliver online orders from the world’s largest internet retailer on Sunday for the first time. The service started this weekend in Los Angeles and the New York metropolitan areas and Amazon plans to expand it to a large portion of the US population in 2014 including Dallas, Houston, New Orleans and Phoenix.
Amazon is not charging extra for the new service so members of the company’s popular Prime service will be able to buy products on Friday and get them by Sunday for free. The service also applies to non-Prime members, who can get free 5-8 day shipping on orders of at least $35 (up from $25 previously).
As we continue our story on Direct Mail Diamonds from the past, check out this gem we uncovered from December 1970.
Men made up 71% of our national workforce and the marketing message reflects it. Check out the reply card; “Gentlemen: I am interested in discussing…”
This piece was printed on textured card stock using 2 colors (which was leading edge), and the reply card is business reply mail. Note the First Class, 6¢ Stamp with Franklin D Roosevelt’s image on the outgoing envelope.
The content is solid direct marketing that stands the test of time. The marketer discusses the importance of a mail list and reviews how to better target. It reads; “We can even breakdown lists by area, income, automobile, hobbies or club affiliations.” Using demographics to identify your audience is the fundamental marketing principle that holds true today. The complexities of our list compilations have significantly increased, and the messaging has changed to incorporate a more diverse audience. However, the basics of direct mail remain unchanged and are unquestionably one of the most powerful and lasting forms of advertising today.
FUN FACTS FROM 1970: