1. Schedule Your Mailings; Be proactive and share your fiscal year mail plan with your Account Manager. This will enable us to plan and schedule machine time accordingly, which can quickly book up during the busy season, and avoid any rush charges or costs to bump another job off press.
2. Edits to Proofs; Notify your Account Manager if you plan on releasing art that will require changes during the proof stage to allow for scheduling enough time for AA edit rounds.
3. Priority for Personalized; Focus on the personalized components first if you are experiencing delays in releasing/approving final artwork. They require more production time during the mailshop stage and typically are printed prior to generic components.
4. Lead Time; Make sure to account for those special items in your direct mail that take a longer time to produce;
   1. Paper Stock (colored & high post consumer waste)
   2. Foil & Label Dies
   3. Custom Envelope Window Dies
   4. Embossing & Debossing (can add up to 2-3 weeks!)
5. Estimated Quantities; Release the artwork for production even if you do not have final quantities – they just need to be confirmed during the proofing stage.
6. Special Data Processing; Plan on an additional 1-2 days of data processing work should any special processes be required (i.e., appends, NCOA, special segmentation, etc.)
7. More Info = More Flexibility; Keep communication open and notify your production manager as soon as possible if a deadline will be missed. The more time available to create contingency plans, the more likely the consequences will be manageable.

Below is a brief overview of the proposed Exigency Price Increase that was filed with the Postal Regulatory Commission on July 6, 2010. Details of the exigency rate increase are posted at the USPS website: http://www.usps.com/communications/newsroom/deliveringfuture/prices.htm

Quick Rate Increase Overview

• First Class Mail Increase
  • Average of 5.4% with single piece
  • Increasing from $0.44 per piece to $0.46 per piece
  • Additional ounce increase from $0.17 to $0.18 per ounce
• Standard Mail Increase
  • Average overall increase of 5.6%;
  • Letter mail increases range from 0% to 7% depending on piece weight and presort classification
  • Flat mail increases range from 4% to 13% depending on piece weight and presort classification

Please note the above estimates are average increases with percentages ranging depending upon whether the product covers its costs.

What is the timeline for the proposed price changes?

• USPS files exigent rate increases July 6, 2010
• Postal Regulatory Commission Decision expected by Oct 4, 2010
• Implementation of Postal Increase by Jan 2, 2011

The USPS is on course to lose $7 Billion Dollars in 2011. The exigency rate increase (exigent as it is above CPI) will help to reduce the loss by $2.3 Billion. The balance of the proposed USPS cost cutting/efficiency suggestions as detailed by Jack Potter on March 2, 2010 will further help to reduce the loss (e.g. the suggested reduction in mail delivery to individual addresses from 6 days to 5 days a week).

For more information or questions regarding how this will affect your 2011 budget, please contact the Production Solutions Client Services Department at psi-clientservices@psmail.com

Production Solutions wants you to have the latest news, compliments of our attendance at the recent Mailers’ Technical Advisory Committee (MTAC) Meeting.

It seems that the Postal Regulatory Commission (PRC) is firmly on track to vet the exigent postage rate case, which allows for quick action from the date of the announcement. If the Board files with the PRC in the June/July time frame as expected and approval is given within 150 days in November or December, we can anticipate the increase taking effect in late January or early February 2011.

The USPS representative at the MTAC meeting also stated that there will be no Consumer Price Index-related increase slated for May 2011. Instead, the exigent rate increase will include an emergency increase plus at least a portion of the CPI increase originally scheduled for May 2011. This raises the likelihood that the exigent rate increase slated for the 1st Quarter of 2011 will be above 5%, although the USPS continues to use the phrase “moderate increase.”

In another development, there are stories of local postal facilities not being able to supply mailers with needed stamps, including the coil standard mail pre-cancelled Non-Profit stamps. This is part of the efficiency effort being undertaken at the USPS—saving costs by having less inventory to manage. Technically, all USPS sites should carry the same amount of postage as they did for that quarter during the year prior, but mail shops are reporting that this is not the case, and in many instances are being told stamps are not available for sale or can take anywhere from 3 – 8 days to locate and ship, seriously affecting mail dates.

PS will continue to keep you informed as things develop, as part of our commitment to support your direct mail production needs during these challenging times. Contact your Account Manager or email PSI–ClientServices@psmail.com to learn more.

1. Reducing the weight of paper can really help reduce paper costs without changing the look or functionality of the final piece. If your item is a self mailer, a slightly heavier paper might be needed to arrive looking its best, but if your item is in an envelope it can be on lighter paper because the envelope will protect it.
Note: 80# paper may cost up to 12 percent more than 70# paper.
2. Reducing paper weight can also reduce your mailing costs.

Size and Page Count Matter!

1. Changing the final trim size by even 1/8 inch can save you money by helping your printer fit your piece on smaller paper.
2. Reducing the page count of your piece even slightly can sometimes reduce the amount of paper you need to purchase.

Plan Smart—Gang Print

1. Reduce the cost of getting the press ready each time a new piece is printed.
2. Buy paper in bulk, reducing your actual paper cost.
Note: Buying 16 cartons of paper can sometimes save you as much as 20%.

Specify Digital Printing

1. Specify digital printing for short run pieces with lots of color. There is no make-ready (machine preparation), no plates, no press alignments and no cleanups.
2. Save even more by printing part of a piece with offset and the rest digitally. With longer print runs involving variable data, this can really help reduce your costs.

Avoid Bleeds

A “bleed” is printer lingo for a page with ink that goes all the way to the edge of the sheet. In other words, there is no margin between the printed image and the edge of the sheet—the ink goes right off the page. You will have to purchase a larger sheet so that the printing press can have room to pull the paper through the machine.

Update Mailing Lists Often

Keep your mailing list accurate, deliverable and targeted. Send only one copy per household wherever possible. The reduction in print quantity will save you money on paper and postage. NCOA and CASS are standard cleaning processes, but consider also using 2nd Generation Delivery Sequence File Processing and aggressive Change of Address reviews.

Talk to Your PS Account Managers!

They stay on top of the latest printing innovations including paper selections and specifications.

Greg has made a concerted effort to attract more commercial marketers to the conference by recruiting two new education co-sponsors, The Ad Club of Metropolitan Washington and the Chicago Association of Direct Marketing (CADM). The DC Ad Club and CADM join the Philadelphia Direct Marketing Association (PDMA), Direct Marketing Fundraisers Association (DMFA), National Capital Gift Planning Council (NCGPC), National Catholic Development Conference (NCDC) and Nonprofit Technology Network (NTEN) as the 2010 Education Co-Sponsors.

This collaboration of 7 organizations has enabled the conference to offer the highest- profile educational program. Some of the most innovative top-name speakers have been confirmed to address the hottest topics, creating an opportunity for marketers and fundraisers to learn how to effectively use integrated marketing approaches, as well as new techniques, tools and technologies to capture and engage their audience.

At the 2010 Bridge Conference you’ll experience: • 6 pre-conference workshops • 5 plenary speakers • 70 educational sessions • 7 education co-sponsors • 2 social networking receptions • hundreds of providers exhibiting in the Solutions Showcase • countless opportunities to learn new techniques, improve skills and generate more ideas.

Production Solutions encourages our clients, colleagues and partners to attend this year’s Bridge Conference. Don’t miss your opportunity to learn how to maximize results in your direct marketing and fundraising programs from the best in the business.

To learn more about what the Bridge Conference can offer you or to register, go to http://www.bridgeconf.org.

See you in July!

Last month Potter stated his intent to use an exigent rate increase as part of a larger plan to help close a portion of the gap, effective in 2011. According to postal law, the USPS has the ability to raise prices beyond the rate of inflation due to ”extraordinary circumstances.” In order to put such an increase into effect, the USPS must file a proposal and have it approved by the Postal Regulatory Commission. There has been much debate whether a poor performing economy actually constitutes an “extraordinary” circumstance.

Although Potter indicated last month that “we are not talking about anywhere near double-digit increases,” most feel that an increase of any amount will only exacerbate the declining mail volume issue. According to Jerry Cerasale, senior vice president of governmental affairs for the Direct Marketing Association, “DMA believes that a greater than CPI increase will harm all direct marketers who use the mail, especially cataloguers.”

The request to increase postage won’t be submitted until the early fall, so there is time to stand up against this proposition. If you have concerns about how this possible increase would affect your direct mail plan, e-mail us your apprehensions and join our coalition so we can protest as a united front.

On March 30^th, The United States Postal Service submitted its five-day delivery proposal to its regulator, The Postal Regulatory Commission, in an effort to close the gap on the loss trend that began in 2008. According to the USPS, this plan will save a projected $3.8 billion annually.

The Commission will review and provide its input by June 30^th. Some of the key points include:

• Mail will neither be delivered to street addresses nor picked up from blue boxes on Saturday.
• Post Offices will remain open on Saturday for counter service.
• PO Box and Express Mail delivery will carry on as they do today.
• Saturday and Sunday bulk mail acceptance will continue, but with possible reduced hours of operation.
• Any mail submitted to the USPS on Saturday will be processed on Monday.
• The plan could commence as early as the start of the 2011 fiscal year.

If approved, the three- to five-day delivery window could expand to as much as five to seven days, which could both reduce delivery time and lengthen response time to direct mail packages, negatively impacting fundraising organizations’ cash flow.

While the need for USPS reform is not disputed, the move to cut service is, especially when considering the bigger picture. This plan only accounts for 5% of the entire budget deficit, so the USPS will still need to explore additional cost saving measures, such as additional postage increases and labor cuts. For example, there are more than 35,000 post offices across the United States—more than Walmart, Starbucks, and McDonald’s combined— and each one only sees 600 customers a day on average. It is becoming clear that a plan to cut delivery service is only scratching the surface of a much larger issue.

Production Solutions’ clients that enrolled in the Summer Sale program last year combined to save over $100,000!

The basic outline of the sale — any mailer with over 1 million pieces of annual volume is entitled to a 30 percent rebate on the incremental increase in volume mailed between July 1 and September 30, over previous years. These numbers are subject to a series of calculations that adjust for current mailing trends and any shift in October volume. According to a USPS news release, eligible mailers will have to meet a threshold minimum of 5 percent over what they mailed in the same period last year, or at least 350,000 standard mail letters or flats. The USPS claimed that 960 customers participated in last summer’s program, with almost half of them increasing their volume. The sale produced about 1 billion incremental pieces netting $24 million in revenue.

To inquire about your company’s eligibility, email summersale@usps.gov. Please click here to view the PRC Summer Sale approval.

Hard copy, round-stamped and signed 3602 postage certifications will no longer be available @ PostalOne! compatible Post Offices.

In an effort to improve efficiency within the Postal Service, the USPS will no longer fill out by hand or round-stamp a postage statement or 3602 document. INSTEAD, and upon request, the Postal Service will provide a copy of the finalized postage statement or a mailing transaction receipt (PS Form 3607-R) after the mail is received and verified by a clerk. The USPS hopes this procedural change will improve service and reduce the amount of paper generated. Who doesn’t like saving paper!

How will it affect you?

Production Solutions does not anticipate this change to affect your documenting and reporting processes for confirmed mailings. A hard copy postage receipt will still be available – it just won’t be round-stamped or filled out by hand by a USPS rep.

One thing to note is that postal acceptance sites that are not on the PostalOne! system will continue to process hard copy postage statements as they do today by completing the USPS section of the postage statement and round-dating the form. For the next few months you should expect to receive a combination of both round-stamped certs and non round-stamped certs as more and more mailers become PostalOne! compliant.

Should you have any additional questions or need clarification regarding this Postal change please email PSI-ClientServices@psmail.com and a member from our Client Services Department will promptly respond.

Above image represents old form/method

Above image represents new form/method and will only be filled out at non-PostalOne! sites.

Okay, now on to the items that will be changing and rather quickly!  Besides the deflection standards mentioned above, here are some highlights that warrant your attention:

• January 4, 2010:  Move Update penalties begin.  A fee of $.07 per non-compliant standard or nonprofit piece will be charged to your mailing for the quantity which does not meet the 70% threshold.
• January 4, 2010:  Shipping prices for Express Mail, Priority Mail, Parcel Select (Destination Entry only), Parcel Return Service, Global Express Guaranteed, Express Mail International and Priority Mail International are increasing.  (For more details please click here.)
• March 15, 2010:  Streamlining Hard Copy Postage Statements.  When a Postal One! facility receives hard copy postage statements, the Postal Service will no longer fill out the USPS section and round stamp the document.  Instead, mailers are being directed online to visit the Business Customer Gateway to access the system of record.
• March 15, 2010:  Barcode readability threshold increases from 80% to 90% (after increasing from 70% in November).  Mailings that do not meet the threshold will not be eligible for automation discounts!

Stay tuned to the PS Insider in the months ahead for all the details!