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  • Mail Bans, Postal Woes

    Efforts to stop direct mail.

    By Lisa Cross -- Graphic Arts Online, April 1, 2009

    Do Not MailIts finances deteriorating, the U.S. Postal Service faces another hurdle as a major cities advance restricting a key revenue stream for the agency, and the printing industry—direct mail. Last month, a San Francisco City government committee advanced a non-binding rule calling for a statewide Do Not Mail registry in California. Unsolicited mail is "archaic, obnoxious and unnecessary," says city supervisor Ross Mirkarimi, who was the force behind San Francisco's ban of plastic bags. Efforts to limit direct mail in various states are tracked by Mail Moves America, a Washington-based mailing industry advocacy group.

    The ban may seem less urgent, given steep declines in mail volume—9.3% across all mail classes last quarter. USPS Regulatory Commissioner Dan Blair told a Congressional oversight committee that USPS lost almost $750 million in January alone. "The Postal Service projects a $12.4 billion net operating deficit for this fiscal year."

    Attendees at March's NPES Industry Summit gathering in Washington, DC received added insight into the complex dynamics facing USPS. Linda Kingsley, Sr. VP strategy and transition for USPS, explained to the gathering how the Post Office's status as quasi-governmental agency forces the delivery organization to do the bidding of Congress, adding to its costs. For example, it is prohibited from shopping for health insurance on the open market, despite the fact that with 656,000 employees (it is the second largest employer after Wal-Mart), it could likely find savings. Instead, it must buy the same expensive policies covering other Federal employees, and contributes a higher share—75% of worker premiums—than do its competitors at FedEx and UPS. Kingsley also noted that USPS is rebidding its address change marketing service, currently operated by Imagitas, a unit of Pitney Bowes. She says the average person spends $7,000 in moving. USPS knows of address changes first, and this data is invaluable to marketers.

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