What Can We Expect From the 2012 Rate Adjustments? Part III

My two previous posts discussed the expected and unexpected elements to the 2012 Consumer Pricing Index increase. Now I would like explain how I think this may affect you and how Bell and Howell will help you through these changes.

What All of This Means to Our Customers

In the end, the adjustments in any rate case are going to be unique to each mailer because each mailing is unique. I assure you that we will be by your side to help you adjust to any impact these rates may have on your operations. We will also be here to help you leverage the potential of offerings such as the Second Ounce Free program. And, as always, one thing our customers can continue to count on is our dedication and our deliverance of rate case ready technology in order to make each mailpiece count.

You can learn more about the 2012 Rate Changes by reviewing the BCC Solutions November eBulletin.  Read this article in its entirety on the BCC Solutions web site.

What Can We Expect From the 2012 Rate Adjustments? Part II

In my previous post I discussed some of the expected elements to the 2012 Consumer Price Index increase. In this post, I will discuss some of the elements I did not expect.

The Unexpected

There was one important element to the rate adjustment proposal that was very welcomed, and that is the Second Ounce Free plan for First-Class Mail®. Even though this might not make much sense when one focuses on the pure profit-growing objective that the Postal Service is trying to reach, there is great potential in this. In talking to some major First-Class™ mailers, they are approaching it with caution but are also optimistic because it could mean expanded business opportunities.

Having access to a second ounce at no additional fee can be extremely beneficial to mailers. For example, they can use the extra ounce to include additional marketing materials that will help them bring in additional revenue. In turn, given the return they are seeing on their investment, there’s a chance those mailers will invest extra money in more mailpieces. Furthermore, with this extra space, mailers will have more opportunities to experiment with ways to tie direct mail in with electronic communications, inserting materials that leverage the mobile barcode, personalized URLs, and more. These, too, show great promise in growing business, and can strengthen the value of direct mail as well.

Will it truly slow the accelerated decline in First-Class Mail? The USPS sure hopes it will, as do we, since First-Class Mail is the largest contribution margin to the Postal Service.

Stay tuned to learn how I expect these changes to affect Bell and Howell customers. Until then, you can review some of the expected changes in the BCC Solutions November eBulletin.

What Can We Expect From the 2012 Rate Adjustments? Part I

On October 18, the USPS® issued the anticipated filing with the Postal Regulatory Commission (PRC) for rate adjustments to market dominant mail and services that will take effect on January 22, 2012. This filing calls for a standard Consumer Price Index (CPI) increase, and includes elements that I expected, and others that I did not.

The Expected

First and foremost, the CPI increase is predictable. On the surface, it is a relatively straightforward adjustment across the mail classes, and should not have a major impact on printers’ and mailers’ profit margins. These are not the heavy handed increases that some might have been expecting, especially in regard to classes that are arguably not covering their attributable costs. While the Postal Service™, given their current financial circumstances, would have certainly been justified in filing an exigency rate case, I am glad that they did not. Marked increases in mail class rates would run a potential risk of driving away customers, and have long been a major concern for printers and mailers regarding what they believe would be a negative impact on the success of their businesses.

What does the USPS plan to do in lieu of excessive rate increases to cover costs and increase revenue other than the proposal they submitted? As hoped, they will continue to urge Congress to make public policy adjustments to mitigate the Postal Service’s anticipated losses and provide them with the flexibility they need to get back on track. In particular, this includes returning some (preferably all) the overpayment of the pre-funded retiree healthcare coverage. The USPS is also anticipating the President and Congress to support the five-day delivery request that in itself could save the USPS over $3 billion.

Stay tuned to read about some elements that were unexpected in the 2012 Rate Adjustment. Until then, you can review some of the expected changes in the BCC Solutions November eBulletin.

What Should the USPS Do?

The Wall Street Journal wants to know what you think the Postal Service™ should do to solve their financial problems. A great discussion is underway. See what people have to say and vote in the poll here:

http://online.wsj.com/community/groups/question-day-229/topics/should-us-postal-service-do?commentid=3213732

Graph Expo 2011 Hot Topics: QR Codes and Direct Mail Response Rates

We wrapped up another exciting Graph Expo last week, and we are proud to have again been a contributor and exhibitor at this annual event. While some companies chose not to participate or reduced their size, Bell and Howell continued to show support for the industry by attending this important event. In fact we had so many solutions, services and exciting technology to share that we needed three booths! I spent the majority of my time at our Software IQ booth. This was where we showcased our BCC solutions alongside our Automated Document Factory technology and JETVision technology.

The buzz at this year’s Graph Expo was centered around response – focusing on how to best leverage and use mail to generate business.  In these tough economic times, companies are continuing to use the tried and true methods of direct mail, but are enhancing these methods with today’s technology.  QR barcodes were everywhere at this show, and have been showing up on mailpieces in some exciting and innovative ways. QR barcodes are an integral part of tomorrow’s direct mailpieces. A QR barcode combined with the visibility and predictability of the Intelligent Mail^® barcode truly yields unprecedented control and timing for carefully crafted, customized messages and personalized offers to customers.

Attendees at Graph Expo who stopped by our Software IQ booth heard about our formula for tomorrow’s success: 3C + IMb = ROI.  Complete, Correct, and Current addresses, combined with the visibility and predictability of the Intelligent Mail barcode along with using QR codes to complete the loop and accurately measure the response rates, is where the return on investment is for tomorrow’s mail. It truly is a realization of the merging of the high touch aspect of direct mail with the high-tech world.

We understand address quality and at this year’s Graph Expo, we had the opportunity to discuss various practices and solutions that can help printers and mailers make the most of address quality. We talked about our latest address quality initiative, Accurant, a 3C approach that can be used anywhere data is touched, stored, or moved across an enterprise. We also discussed the new availability of our Track N Trace mailpiece tracking solution for sorting equipment.

And QR barcodes – we definitely discussed that hot topic with booth visitors.  We supported the QR initiative along with the Postal Service™ during the mobile barcode incentive program. Our customers who took advantage of that program yielded significant postage discounts. The Postal Service has already stated they’re looking at bringing that back again.  We’ll be ready for it.  We’re excited about it.  We’re going to continue to expand opportunities to leverage QR barcodes with carefully crafted direct mailpieces. QR barcodes represent plenty of opportunity, and we are focused on taking full advantage of that.

To those who visited our booth this year, thank you for stopping by.  The best thing about these events is the opportunity to talk one on one with industry professionals. It’s the best way to make sure we’re doing everything we can to help our peers succeed. To everyone, I hope to see you at Graph Expo 2012!

The New Hometown Post Office

Ever since the U.S. Postal Service^® announced in January that 1,400 offices were under review for potential closing, both industry professionals and citizens in affected areas alike have questioned what options will be available to people whose Post Offices™ are closed. On Tuesday, the Postmaster General announced a proposed plan, the Village Post Office, that has the potential to both alleviate these concerns and reduce operations expenses incurred by the Postal Service^®.

The Village Post Office concept is based upon the demonstrated success of the expanded access locations currently available in retail establishments such as grocery stores and office supply stores, as well as self-service kiosks, ATMs, and usps.com. According to Postmaster General Patrick Donahoe, over 35 percent of the organization’s retail revenue comes from these types of locations. The proposed solution goes beyond these locations, providing local businesses in areas affected by Post Office closings to operate a Village Post Office, offering many of the same services available in official Post Offices, yet run independently.

More information on the Village Post Office and expanded access locations can be found on the USPS website.

CASS Cycle N SuiteLink Requirement Amended

The USPS^® has announced an amendment to the CASS™ Cycle N Suite^Link® requirement. Originally, the Postal Service stated that in order to qualify for an automation price, addresses printed on each mailpiece must include the suite information provided by Suite^Link. This requirement has been adjusted to make it easier for mailers to receive automation discounts. Under the new guidelines, as long as the mailer has attempted to encode the printed barcode to the Suite level using Suite^Link, it will be eligible for processing at automation rates, regardless of whether the actual suite information is printed on the addressed piece. This adjustment also applies to MASS™-certified equipment, no longer requiring the suite number to be sprayed above the barcode.

2011 MFSA Annual Conference Coming Soon! Visit BCC at Booth 29!

In less than two weeks, the 2011 MFSA Annual Conference will kick off in Colorado Springs, CO, June 15-18. Given the many changes that have occurred within the postal industry over the past year and the volatile economy, this year’s conference will prove to be particularly beneficial. Attendees will have the opportunity to learn how to adapt to this new business climate – and every climate after that.

BCC will be at booth #29, so if you will be attending, stop by to say hello. We’ll be on hand to discuss the conference’s hot topics, industry news, and the ways that BCC can help you adapt to and work within an ever-changing industry environment. We will be discussing:

• How to save on postage and labor
• How to reduce your production by following proven strategies
• How to offer your customers the best service possible by leveraging the broad capabilities of a single software solution package

and much more.

We look forward to seeing you there!

National Postal Forum is Approaching

It’s hard to believe, but in less than two weeks the National Postal Forum will be kicking off. The BCC Software Team will be on hand to discuss its latest innovations and industry trends. Additionally, preregistered attendees will receive a postcard, and if you bring it to booth 1534, the Intelligent Mail barcode will be scanned on the Mail Verifier Plus to determine if you have the winning sequence ID number. If you do, you’ll win a $500 gift card.

Whether you want to learn about the limitless potential of Mail Manager, discuss the Accurant address quality solution, or just say hi, we hope you’ll stop by booth 1534. We look forward to helping you achieve an even brighter postal future!

BCC VP of Software Engineering Receives IDEAlliance Award

BCC Vice President of Software Engineering Bob Schimek was awarded the 2011 IDEAlliance Circle Award at the April 4 IDEAlliance Print Distribution Conference. The IDEAlliance Circle Award was established in 2005 to recognize outstanding and innovative contributions and leadership for work to advance the organization’s committees and working groups. Bob, Mail.dat co-chair, received this honor in recognition of his contributions to the formation and application of this important industry standard.