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Mailing Industry News

PCC Insider Report MAY, 2009


For business mailers, especially package mailers, what will the May 11 price change mean?

Savings on bulk and Standard Mail boils down to price alignment with cost necessary to ship. Basically, it means If you do more, you save more.

USPS has announced its first growth incentive program for saturation mail customers.

The program gives credits for annual volume that exceeds the number of mailpieces sent during the previous year.

a.. 3.7 cents per piece for regular letters.

b.. 2.2 cents per piece for nonprofit letters.

c.. 4 cents per piece for regular flats.

d.. 2.4 cents per piece for nonprofit flats.

To qualify, mailers must be able to demonstrate a two-year history of saturation mail, either nationally or in a specific market. Customers can apply through their local manager of Business Mail Entry.

Find a fact sheet and application forms at: or contact any BME office. Deadline for applying is June 11.

The overall average increase for Package Services is 3.8 percent. Package Services mail consists of retail Parcel Post, Bound Printed Matter (BPM), Library Mail and Media Mail. USPS claims it is well below the competitors' published ground shipping increase of 5.9 percent.

BPM packages will increase more than 2 percent but with lowered the cost to ship BPM flats by 2 percent to make it more consistent with the Standard Mail catalog pricing because we recognize the value that these items - mostly catalogs - have on a business and how they can help increase your orders and grow your business.

Media Mail and Library Mail - two of the least expensive shipping options - increase by more than 7 percent. This is to better align costs to process these items and make them more comparable to BPM mail, which has similar characteristics.

Parcel Post is increasing more than 4 percent eliminating the Parcel Post nonmachinable surcharge. They're replacing the separate price category for inter-BMC/ASF (auxiliary service facility) and intra-BMC/ASF with a single Parcel Post category based on weight and zone.

Revised price categories and qualifications for irregular parcels and NFM pieces weighing less than 6 ounces:

allow you to reduce the number of containers in a mailing and better align the price categories with efficient processing for parcel-shaped pieces.

provide increased opportunities for mailers, including DDU prices and additional mail volumes that qualify for destination sectional center facility (SCF) and destination bulk mail center (DBMC) prices. New SCF prices are replacing single 3-digit prices. Replacing area distribution center (ADC) and mixed ADC prices with BMC and mixed BMC prices.

Origin entry mailings of 200 pounds or more prepared on BMC pallets and entered at origin will be eligible for the BMC prices.

Mailings prepared in sacks for entry at origin will be eligible only for our mixed BMC prices.

Mailings prepared in sacks with 5-digit, SCF and BMC prices will need to be prepared for and claimed using the DBMC, DSCF and DDU entry prices.

NATIONAL POSTAL FORUM DEBUTS SMALL BUSINESS SEMINAR Businesses large and small will find tools for success by attending the National Postal Forum May 17-20 in Washington, DC. For the first time, the forum is offering a special seminar for small-business owners looking to use the mail to grow their business globally.

The special session on Sunday, May 17, will offer "A Small Business Perspective on How to Compete in the Emerging Marketplace."

Small-business owners who attend also can network with other entrepreneurs at the forum's opening reception and tour the NPF exhibit hall - without having to miss a day of work.The stand-alone seminar is $89.

"The Postal Service understands these are challenging times for all businesses, particularly small business owners," said Steve Kearney, senior vice president, Customer Relations. "This seminar equips small and mid-size businesses with the tools they need to weather the current economy and achieve long-term business growth."

For more information and to register, go to or call 703-218-5015.


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