There’s a lot that’s already been written on both the passage of postal reform and the 2006-7 postal rate case. To your never-ending relief, I have no intention to speak to either issue here. Sure, your business life often depends on rate case. And the passage of the first new postal law in three decades is nothing to sneeze at. Nonetheless, it’s the “little stuff,” the seemingly niggling changes in postal rules and mail make-up procedures that can carry costs that might add more to the cost burden mailers have to carry than inflation-bound rate changes. As one of our board members likes to put
Gene Del Polito
Just about all catalog merchants in America should have gotten more than their fill of news, comments and opinions on the meaning, impact and consequences of the 2006-2007 postal rate case. If you have no idea what I’m referring to, perhaps you’d be better off finding a new career. By now, you should’ve learned how to adjust your business marketing practices to accommodate the recent round of horrendous catalog postage increases. If you haven’t, then you’re about to learn some difficult, unforgiving lessons in trying to make a living in a hotly competitive marketplace. Your focus now must be on the future. Not the future
Usually when we talk about catalogs and postal rate cases, we tend to gloss over the many regulatory details that dictate how new rates will be implemented by the U.S. Postal Service. In many cases, these regulations can have an even greater impact on catalogers than the rates themselves. Regulations can add costs to mail preparation and can detail a host of reasons for not qualifying mail for entry at the most desirable rates. Although some mailers are smart enough to read the rules the USPS proposes as its regulatory implementation plan, many don’t. For some inexplicable reason, they leave attending such details to their
Despite the passage last month of the Postal Accountability and Enhancement Act, mailers soon will be faced with significant changes to the U.S. Postal Service’s Domestic Mail Classification Schedule, the document that serves as the regulatory framework for all postal rates and classifications. In my last column (“Beyond Rising Postal Rates,” October 2006 issue, pgs. 66-67), I shared some of what the USPS proposed in its current postal rate case. Postmaster General John Potter has said that mailers should be ready for new rules and rates to be implemented by May 7. Prudent mailers will get ready to adapt to many changes by early May. Part
Prepare for key classification changes next year. This is a column for those who understand that they’re in the direct mail business. Believe it or not, many catalog marketers refuse to acknowledge this fact, even though some 30 percent to 40 percent of their operating costs come from mail-related marketing and fulfillment expenses. Those in the direct mail business know all too well that postal rate cases usually are harbingers of rising postal costs. They also know that by the time higher rates are put into effect, they must have a plan in place to accommodate the rate and operational changes every rate case brings. As you
