Congress Considers Eliminating Rates for Nonprofit Mail

The U.S. Postal Service’s financial crisis has resulted in the introduction of four different bills in Congress to address the problem. One of those bills, H.R. 2309, the Postal Reform Act, introduced by Congressman Darrell Issa (R-CA), contains a provision that would wipe out reduced rates for nonprofit mail. The Alliance of Nonprofit Mailers has asked its members to write Congressman Issa and other members of the House of Representatives to let them know of the devastating effect the elimination would have on nonprofits’ ability to serve American society. Click here to see a fact sheet that frames the issue and provides an outline for correspondence. The Alliance of Nonprofit Mailers urges all nonprofit mailers to keep their letters to one page -- the simpler and more direct the better. A sample letter can be found on the Association of Fundraising Professionals website.

Source: AFP

$7 Billion Loss and Counting

The US Postal Service filed its preliminary financial results for ten months of Fiscal Year 2011 with the Postal Regulatory Commission (PRC). USPS reported a net operating loss of $1.327 billion ending on July 31, 2011. After ten months into FY 2011 USPS reported a net loss of $7 Billion ($6.985) ending in July 2011 (same time last year USPS had a net loss of $6.143, the plan was $5.004 Billion). First class mail in July was down 9% from the same period last year (SPLY), while Standard Mail, which had been on the rise, was down almost 5% from last year. As a result, overall USPS revenue was also down by 5% from SPLY.

Source: PRC

EDDM Causes Uproar with Newspapers

US Postal Service employees promoting the merits of saturation mail compared to other marketing channels have been accused of “trashing” the effectiveness of newspaper advertising in their pursuit of business mail volumes. But while they might be competing for the same advertising dollar, US newspapers are also major customers of the USPS in their own right. After a spate of complaints from newspapers, the Postal Service has now been forced to order its salespeople to “back off” from their critical comments in touting the new USPS simplified address service, Every Door Direct Mail (EDDM) – pointing out that if the newspapers lose advertising income, the USPS will lose newspaper volumes. The National Newspaper Association, a trade group for local newspapers in the US, said its intervention on behalf of members led to the new directive. Max Heath, the Association’s postal committee chair, said postal employees are now being directed to state that direct mail is “an option that can be blended or used in addition to other media resources”. The USPS directive stated furthermore that “it is not our intent to position EDDM ‘against’ other media choices”, and reminds staff that newspapers and printers “are our friends and partners”.

Source: NNA and Post & Parcel

Icelander Postal Carriers Burdened by IKEA Catalogs

Remember those big JC Penny, Sears, and Montgomery Ward catalogs? Those were the good old days. The Icelandic postal service is under a major strain thanks to the new IKEA Catalogue. The big catalog from the Swedish furniture manufacturer is sent to every home -- all 118,000 of them. The distribution is a considered a big event for the nation, and is the subject of news stories and coffee shop discussions. The IKEA brand, which is just making U.S. inroads, spends 70 percent of its marketing budget on printing and mailing catalogues. They print more than 175 million copies annually worldwide. The catalog is now 55 editions, in 27 languages for 36 countries. The catalog increases the weight of the average daily delivery per carrier to a hefty 225 pounds or so.

Source: UPI.com & Your Postal Blog