The new U.S. Postal Service rates and rules set to take effect Monday, May 14, (READ MORE) have “serious implications for business,” said Murray Martin, president and chief operating officer of Pitney Bowes Inc.
“Smart companies” will react by “reengineering their mailstream, to make it less costly and far more effective than it has been in the past,” Martin said.
He listed four steps companies can take to cope with the new rate structure:
Plan the Mailpiece: The new rates include opportunities as well as expenses, he said. For example, the second ounce of a first-class letter will cost less than the first, so companies who combine two items in a single mailing can save money.
Pay Attention to Shape: The new shape-based rates create a strong financial incentive to switch from 9-inch by 12-inch flat envelopes to standard #10 envelopes. Folding and inserting machines to capitalize on this incentive will make sense for more organizations under the new rules, Martin said. Parcels are similarly affected by shape-based pricing and create additional opportunities to save through proper planning. Plan the Mailpiece: The expected rates would create an opportunity for savings through proper mailpiece planning. For example, as proposed, the second ounce of a first-class letter will be less expensive than the first ounce, so mailers who combine information from two different mailings into a single mailpiece can save money. “A high-quality mailing presorter can help companies capture the lion’s share of this great incentive,” Martin said.
Capitalize on Discounts: Presorting the mail before it enters the USPS network can result in double-digit percentage discounts under the new rates. A number of software programs allow users presort mail in the production process, Martin noted.
Cleanse Addresses: Looking to pare the nearly $2 billion per year it spends handling mail that cannot be delivered as addressed, the USPS is becoming much stricter about discounts for companies that fail to maintain accurate address lists.
“No one likes to see postage rate increases,” Martin said, “but the proposed price changes are a good opportunity to take a fresh look at the entire mailstream process …. For most companies, there are untapped opportunities to minimize the costs and maximize the effectiveness of every communication.”
Pitney Bowes is a $5.6 billion company that provides mailstream software, hardware and services to more than 2 million businesses worldwide, through direct and dealer operations. More information can be found at www.pb.com.
