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Tag Archives: USPS
Postal Rate Hike Approved
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.
Exigent Case Basics
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.
USPS Tests 7-Day Delivery for Packages
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).
HAPPY POSTAL CUSTOMER COUNCIL DAY!
This week is National Postal Customer Council (PCC) week! Our local chapter (HPCC) celebrated with a great event today at the Bayou City Event Center from 10am – 2pm and featured an “all star” line up of speakers, special sessions and a vendor show case.
The conference included a presentation on the USPS Incentives and Promotions for the balance of year and special guest Pritha Mehra spoke about acceptance, payment and delivery using iMB. US Postmaster General, Pat Donahoe addressed all PCC participants nationwide via satellite, and discussed the five-year USPS business plan.
The Future of the Postal Service
Recently I had the pleasure of hearing our current US Postmaster General & CEO of the US Postal Service, Pat Donahoe, give an update on the state of the Postal Service. He noted that the shrinkage of First-Class Mail is driving the continuing trend of operating losses, and even though the USPS shipping & packages segment is growing, it’s not sufficient to replace the previous First-Class profits. Additional operational cuts, efficiency improvements and legislative action are needed to help shrink the gap between expenses and revenue. $19.7 billion in savings from proposed operations and workforce incentives, along with aggressive benefit changes, are on the table to combat the 79% of the total USPS cost base dedicated to labor today.
$11.1 billion of the proposed savings require legislative action that will give the Postal Service authority to generate new revenue and adapt to changing business conditions.
A key legislative point is allowing the USPS to manage their own health care plan which is facing resistance as people on the hill are concerned that health care costs to all other government employees will significantly rise as a result of the USPS’ departure. Items such as refunding the Federal Employee Retirement System (FERS) overpayment and controversial 5-day delivery debate are also crucial to the USPS Business Plan financial projections that show a debt-free entity by fiscal year-end, 2017.
Getting the current group in Washington to act on these points will be a challenge to say the least. The economic and structural hurdles that the USPS faces can be cleared with action from Washington. All of our businesses rely on the USPS’ mission to provide secure, reliable and affordable universal delivery services, and our Representatives must stop stonewalling this imperative legislation and take action now.
By Joy Zerbach – Vice President, Marketing
The New BEBTEXAS.COM
We’ve launched our new website, bebtexas.com, and cordially invite you to take a tour!
It’s a living site that is in a constant state of renewal. In addition to the traditional details of our service offerings, we share our rich and unique 64-year history while offering the latest postal and marketing news through our blog. There are links to our Twitter, LinkedIn, and Facebook pages, and we’ve added a career page too! Most important, we are connected to our clients through this interactive site and appreciate all of the feedback, suggestions and kudos received so far!
Check out some of our more popular blogs below!
The Current State of the Economy
From the August edition of our bi-monthly newsletter, The Bureau
Ron Royall, President
At the start of the third quarter, I’m still uncertain about our current economic climate. Recently I saw a monthly economic index from the NFIB that showed a drop in June indicating confidence among job creators isn’t there. On the other hand, I just read an article about an analysis conducted by Bloomberg BNA that said the US economic recovery is expected to accelerate beginning in the 2nd half of 2013.
The one thing I am certain about is our commitment to you, our clients, vendors and partners. As we continue to weather this economic storm, we have seen a tremendous amount of activity and change and are honored to work for, and with, so many great companies and people.
Our extended issue of our newsletter covers a very exciting 2nd quarter for us. As one of the articles says; BEB has been “On A Roll” winning six awards from local, regional and national organizations, and for a wide variety of items such as our interactive holiday cards, twitter campaigns and our newsletter, The Bureau!
We’ve also launched our new website, bebtexas.com, and cordially invite you to take a tour. It’s a living site that is in a constant state of renewal. In addition to the traditional details of our service offerings, we share our rich and unique 64-year history while offering the latest postal and marketing news through our blog. There are links to our Twitter, LinkedIn, and Facebook pages, and we’ve added a career page too! Most important, we are connected to our clients through this interactive site and appreciate all of the feedback, suggestions and kudos received so far!
Other articles enclosed a summation of stats from a multi-channel marketing campaign, highlights from a meeting with the US Postmaster General Pat Donahoe, and outline of postal promotions for the remaining year and more photos showing our personal side on “The Back Wall”.
The balance of the year holds more excitement and education too. We’ll be at several industry trade shows, we have several client trips slated on the calendar and lots of industry events (including the big PICG Oktoberfest) and soon we’ll be working on our 2014 Calendar.
No matter how bumpy the economic climate is for our businesses, BEB will continue to search for new ways to better serve your needs. Thank you for your continued support and thank you for your business.
Sincerely,
Ron Royall
TECH CREDIT CANCELED
Earlier this year, the USPS sent letters announcing a Technology Credit Promotion. The proposed rebate program would allow companies that met specific volume and timeframe-based criteria the opportunity to receive postage credits, some up to $5,000. The promotion was originally planned to begin on June 1, 2013, and expire on May 31, 2014.
Before moving forward with the rebate program, the USPS needed approval from the Postal Regulatory Commission (PRC), and were not prepared for the split ruling handed down on June 10. Within their Tech Credit Promotion proposal, the USPS also wanted the right to adjust the price cap to recoup potentially lost revenue from this program. Today the PRC determines the rate price cap using an equation based on a 12-month Consumer Price Index average.
During the June hearing, the PRC allowed the USPS to move forward with the promotion. However, it would not approve the plan to adjust the rate price cap. As a result, the USPS recently announced that they will not proceed with the promotion.
USPS Tech Credit a “NO GO”
The Postal Service announced today that in light of the PRC (Postal Regulatory Commission) June 10 decision and the current financial condition of the USPS, they will not proceed with the Technical Credit Promotion.