Oct 23, 2007
Postal Point of View for Mail Piece Design
By Mary Ann Bennett
If you could find a way to save 10% on your Federal income tax bill, you would move heaven and earth to save that money. Reducing your company’s energy costs 5% through an energy efficiency plan is heralded as a huge accomplishment. Yet, postage savings of over 50% are overlooked by many First class mailers of the direct mailing industry and by the vast majority of the mailing public. Standard class mailers can save $117 per thousand (5Dgt Auto) on regular Standard Mail rates and non-profits could enjoy $85 per thousand (5Dgt Auto) in savings with a single fold to a mailpiece.
Every company that utilizes the USPS to communicate with its customers should change its thinking about the entire mailing process. In my last column, I discussed how mailing automation got its start; the what and why of the USPS processes, procedures and available discounts. In the good old days (before automation incentives of the early 1990’s), the postal considerations were the last stop for a mailing piece before it reached the customer. You explained the basic direction of your advertising campaign to your ad agency, ordered a mailing list, called the printer, called your lettershop to schedule processing, and the mailing went to the post office, which delivered it to your customer. Today, postal issues must be considered at the very earliest stages of the evolution of a mail piece---as soon as you identify the idea and it is determined that the method of delivery is going to involve the US postal mailstream.
Historic Postage Rate Incentives
The US Postal Service’s postage rate increase of May 2007 was historic with respect to incentives and mailpiece design. The USPS changed the way we calculate the postage that we pay on First Class mail. Prior to May 2007, the postage rates were based on the weight of the piece. One ounce; two ounces, etc. On May 17, 2007, the First Class postage rates began to be calculated using a combination of weight AND shape.
Now, this is not a new concept coming from the USPS. In fact, weight/shape based rate calculations have been in place for Standard mail since 1992. Essentially, the USPS and the mailing industry have categorized mailpieces into three shapes---Letters / Flats / Parcels and a full schedule of Standard Class rates exists for all three shapes. Letter shaped mailpieces remain the champions of processing and the USPS is simply extending the incentives and the discounts onto First Class rates.
Where Do You Start?
The first step is to make every effort to design your piece so it can be categorized as a letter. There are additional physical criteria that must be met (of course) for total USPS automation compatibility but you should worry about the issues (and costs) of tabbing, folding, sealing, spot-gluing, etc. AFTER you have paid attention to size & shape and identified the postage incentives for your mail class. Then you will be in a position to determine if meeting the additional criteria for total mailpiece automation-compatibility is worth pursuing. Today, postal issues must be considered at the very earliest stages of the evolution of a mailpiece---whether you are mailing a single piece or a large direct mail campaign.
Critical Criteria of Automation Compatible Mail
Dimensions, Fold Location, Address Orientation, Flexibility/Rigidity, POSTNET Barcode and Weight. The US Postal Service has established a national network of Business Support Centers. Each of these Business Centers is staffed with one or more Mailpiece Design Analysts (MDA). Remember your Postal Point of View ---- your local MDA should be the first contact you make once you have identified your direct mail concept.
Postal automation-compatible mail has some very specific physical characteristic requirements so proper design is critical. In May, mail piece design became even more critical. Also, the quality of the address that you place on your mailpiece now has to meet even stricter standards in order to claim the biggest discounts. Of particular note is the requirement for you to identify through Delivery Point Validation (DPV) whether or not the address on your mailpiece actually exists in the USPS database.
Prior to August 2007, you could claim automation discounts if your address was simply ZIP+4 encoded; you printed a POSTNET barcode on your mailpiece and your mail was sorted and presented following specific requirements. The new CASS-DPV requirements were effective on August 1 and you are now only able to claim those same automation (barcode) discounts if your addresses are DPV encoded. (ZIP+4 and DPV will be the subject of a future column.)
New Thinking-----New Savings!
Start today by looking at the design and shape of the pieces your company puts into the mailstream. The envelopes Accounting uses for invoicing; the Sales Department’s collateral materials; your company’s Corporate brochure; the company holiday cards---anything and everything that can or is being mailed. Look at the inventory of these printed pieces. Determine the mailing category for each piece and calculate the postage that is being paid now and the postage that could be paid under the new rates. Then work with your design department and your local USPS MDA to establish a plan for redesign.
Start with the mailpieces of your own company and then share your new found knowledge with your clients if you are in the business of providing mailing or print services to the marketplace. The USPS rate increase of 2007 holds a reason for you to contact every one of your current customers and a motivation to reach out to all those prospects on your list.
Remember, your new thinking must involve the entire process from beginning to end and now, must span all classes of mail. A properly designed piece will not be mailed at the lowest possible postage rate without a barcode. And a mail piece with a proper address and barcode will not enjoy maximum savings if it is not designed to be totally automation-compatible. Begin today to make this postage rate case and all of its saving incentives work for your company and your mail.