November, 2007 report

From Bob Terry

In November, I attended the quarterly meeting of the Mailers Technical Advisory Committee in Washington, D.C. It was encouraging to learn that the Postal Service is concerned about the future of periodical publications. It was reported that over the past few years there has been an average decline in periodical volume of about two percent annually. Following the increase in mailing costs in July, that decline has increased. Post Master General Jack Potter reported that the Postal Service expects "a sharp decline in periodical volume in 2008."

Part of the reason is the unexpectedly high increase in postage. Publishers are also fighting increases cost for paper. As a result, most periodicals are reducing page counts and adjusting frequencies. All of this impacts postal volume.

Still, mailers should anticipate increased mailing costs in 2008. The Board of Governors announced that instead of filing one last rate case, it will use the newly approved system of annual adjustments to postal rates based on inflation. That means that sometimes during the second quarter of 2008, adjustments to the postal rates could be made. However, these adjustments should not exceed 2.6 percent. There is an outside chance that the Board of Governors may use the opportunity to adjust downward the cost of periodical postage but that is not likely.

The Postal Service is also working on new delivery standards for all classes of mail. For Periodical mail, the proposed standards range from two-day delivery for addresses near the point of mail entry to nine-day delivery for mail far from the entry point. The current standards range from one day to seven days. However, delivery reports indicate the present standards are not being met.

The Postal Service also reported on an enhanced Address Element Correction system which promises to be a major step forward in making sure all addresses on a mailing list are accurate.

Information about this service can be obtained by calling 1-800/238-3150 and asking for the Address Element Correction Department. Ask for information on AECI and AECII.

For more information from the U.S. Postal Service, see  http://www.usps.com/ratecase/ 

The 2008 ACP Convention in Dallas/Fort Worth is planning workshops on postal issues, including design tips for periodicals to save postage.