Postal Reform Is a Must For Print

A printing company's survival depends on offering more than ink on paper. Successful printers supply a host of value-added services—from digital photography to distribution of a customer's products. Distribution, or providing mailing services, is a key service. Mailing services are defined as preparation and presentation of mail to the United States Postal Service for delivery.

Developing the knowledge, skill and capability to provide a customer with mail preparation requires plenty of research and learning. For printers who provide mailing services, 2005 is the year they must learn all about the three R's of mailing: Rules, Rates and Reform.

Rule changes in mail preparation are routine and regularly implemented by the USPS and companies that prepare the mail. They are aimed at improving delivery, increasing processing efficiency or reducing costs. In 2005 we can expect many new rules about mail preparation that will aid the USPS in implementation of its "Corporate Automation Plan." The USPS is automating mail processing to reduce its operating costs. Automation, by its very nature, needs standardization. Standardization in turn drives specifications and rules. In 2005 you can expect rules about packaging materials for bundling magazines and catalogs, address accuracy and new sorting schemes.

Simply put, rates will be going up—significantly! There will be a Rate Case filed by the USPS with the Postal Rate Commission early in 2005 for implementation in early 2006. This will not be a simple Rate Case in the sense that rates will simply rise for all classes of mail. It will contain some rule changes, such as those mentioned earlier. In fact, parts of the new rate structure may be completely different—driven by something known as "cost-based rates." A very basic definition of cost-based rates is "you pay for the service you use." Translated further, sacked mail costs much more to deliver than carrier-route, palletized and drop-shipped mail. The rates may be designed to more appropriately compensate the USPS for the costs it incurs to deliver mail prepared in a particular manner, such as in sacks.

On the reform front, the USPS is operated under a law passed by Congress in 1970. The world and the mail stream have changed significantly in 35 years! Over the past couple of years, the mailing community and Congress have made significant progress in preparing new legislation for reformation of the USPS. Cost and effectiveness are at the heart of the business proposition between the USPS and its customers—catalogs, magazines, direct mail and first-class mail. Postal Reform is aimed at modernizing and improving that value proposition. This is the year that Congress could pass Postal Reform.

The mailing service environment will be dynamic and full of challenges in 2005. Two resources for keeping up with the changes are the USPS website, www.usps.com, and the National Postal Forum, www.npf.org, in Nashville from March 20 to 23. At the Forum, there will be a symposium designed for printers who provide mailing services. We urge you to attend.

National Postal Forum print track is March 23. www.npf.org