Geoff Wolf, EVP Client Strategy
Understanding what goes into the adjustment of postage rates is like watching a computer wizard remotely dial into your computer to fix something. Until we go through the initial stage of total confusion, slog our way through understanding the basic things that make the machine run properly, and finally narrow it down to the few elements that really matter, it is all a blur.
Understanding what is wrong with the USPS (other than the size of the checks we write) and what needs to happen to fix it is the same experience. Here is a primer on the few things you need to understand and keep track of that can help you keep those USPS checks to a minimum.
To do nothing about this is really not an option!
The postal rates we must live with inevitably hit your bottom line where it hurts.
SPEAK UP! There is more movement regarding Postal Reform right now than ever before. Now is the time to speak with your Senator and Congressman and get that relationship jump-started. Make sure they know that you do vote, employ people in their districts and care A LOT about postal reform. Basic talking points can be found here. You do not need to be able to dive into the nuts and bolts of the FSS (Flat Sequencing Systems) rate structure, carrier route rates or Medicare solutions that the postal unions care about. You only need to voice a very simple fact: the higher your postage is, the less you will mail, the fewer people you will employ, the less taxes you will pay, and the less likely it is that you will vote for them unless they are proactive about Postal Reform and support reasonable rates.
NOW, IS THE TIME. The 10-year Postal Rate Review will begin at the end of this year. There is still massive red ink at the USPS and this rate review allows the postal regulator to adjust rates mightily or remove the CPI rate cap that has held postage in check. If you are only going to get involved once in your life, this would be a good time to do it. The industry is building a war-chest in preparation. Also, be sure to let your representatives know you are watching this review, what’s at stake for you and your company, and what comes out of it closely.
WRITE OP-EDS in your local paper and any national ones you can get into. Our representatives in Congress keep close tabs on these voices. You do not even have to write the op-eds yourself. The American Catalog Mailers Association will send you content to submit or will submit a draft you approve for you. http://www.catalogmailers.org
THREE ELEMENTS IN PLAY. If you have any “activist” interest, there is a lot you can do. The ACMA can help direct this energy to very productive uses. Here are the three elements that are in play right now and you can learn more about them.
- Getting rid of the “new” FSS rates and return to the old rate structure without the FSS premium.
- There is finally openness at the USPS to increasing the 3.3 ounce threshold to 4 ounces. Make sure your USPS representatives know that mailing the additional .7 ounce without the more expensive pound rate kicking in is a good thing for you.
- The catalog “Growth for Both” promotion, first discussed at the May 2016 ACMA National Catalog Forum, involves a reduced catalog rate for incremental mail volume. It is gathering momentum and represents the path toward a more permanent approach to increasing catalog prospecting volume.
JOIN ACMA. As founding members, we believe in this organization. If you are not already a member, consider joining the ACMA now. The check you write to the ACMA today will reduce the much larger checks you will write to the USPS over the next ten years or more. The impact the ACMA has to keep catalog postal rates down has been significant for nearly ten years now and the math is simple: A membership to the ACMA is a tiny fraction of what catalogers pay in postage year after year. In fact, ACMA members for years have achieved a 10%+ ROI on their membership dues. This is a wise investment and there really is strength in numbers.
ATTEND THE ACMA FORUM IN 2017. It’s unlike any other business conference, and will change your business life. Experience the opportunity to be heard and make a difference to postal policy.
Postage checks are among the largest ones you write and the upcoming decisions our Senators and Congressman will make are among the most important of this decade. Stayed tuned for updates from the ACMA and get involved if you are able to.
Do you have more questions about the USPS and how it affects your business? Call me at 913-236-2401 or email me at geoffw@jschmid.com
Tags: catalog industry, catalog marketing, direct marketing, Geoff Wolf