Thursday, May 17, 2007

USPS Rate Change - What do you think?

May 14th, 2006 will go down in history as the most confusing day in mailers history. Unfortunately many people did not install the new presorting software on development machines and get them fully tested before the big date and tried to frantically switch over on May 14th. The tech support team at Firstlogic was overwhelmed with calls - specifically in their Presort support dept. Complaints regarding the post office rejecting their mail, confusing new requirements and general upset due to the increase in postage as a result of the new rate case. Mailers are experiencing anywhere upwards of $.10 per piece increase - the highest increase in standard mail that I can remember.

I saw a post on the DM News website that the USPS claimed the new rate case implementation was going smooth - however it is quite different on the ground in speaking to mailers and software support technicians.

Per the below excerpt from DM News page, it looks as though the Postal Regulation Committee is considering reverting the Standard Flat Mail rate change due to the "rate shock" occurring:

The Governors of the USPS asked that the rates for this category of mail be reconsidered because the price increases recommended by the PRC may impose an unnecessary degree of “rate shock” on the catalog industry and small businesses particularly. The recommended increase for some catalog mailers is as much as 40 percent, which is more than double what the Postal Service had proposed.

Here is a poll to find out your opinion of the new rate case. Please vote and let me know your comments on this.