MEMO TO MAILERS - DECEMBER 2005(text)
UNITED STATES POSTAL SERVICE
VOLUME 40 NUMBER 12
DECEMBER 2005

WHAT'S INSIDE
FAST
NEW POSTAGE PRICES
KEEPING POSTED
NATIONAL POSTAL FORUM
QUALITY SUPPLIER AWARDS

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JUST ONE WORD. BARCODE
Better visibility. Better information about the mail.

Barcodes are the technological foundation for efforts by the U.S. Postal Service to improve service and reduce costs, and for developing new product features. One such effort now under way is Surface Visibility, which helps the Postal Service better manage dock operations. It allows USPS to track individual handling units — trays, tubs and sacks — from origin to destination using a series of barcode scans on the handling units, containers and vehicles used to move mail.

Scanners are used to collect the data. They also can alert employees if they are placing a handling unit into the wrong container or a container onto the wrong truck. Once all the scans are complete, the system lets the destinating plant know how much mail is on the way and when it will arrive.

More than 100 postal processing and distribution facilities nationwide have implemented Surface Visibility.

“By providing customers with information about the mail in transit, the Postal Service adds value to the mail and customers can manage their operations more efficiently,” says Pranab Shah, manager, Networks Operations Development.

Customers want to know when a package enters the postal network, where it is en route, when delivery is expected and when delivery occurs. And the Postal Service is building a robust platform of data about the mail to provide that information.

With advance notice of the delivery of payments, remittance companies could reduce the time and total cost to process the payments. Advertisers could know with greater certainty when a Direct Mail promotion has reached a customer. That would help companies prepare for the customer’s response and fine-tune the timing of future mailings.

Barcodes are enhancing the visibility of the mail.

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FYI
Calculate postage with a click! The Postal Service’s online Postage Rate Calculator was named Best Government Website in the 2005 Web Marketing Association’s WebAward competition. The award recognizes outstanding achievement in website development. Go to usps.com to calculate postage right from your computer.

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FAST NATIONAL DEPLOYMENT A SUCCESS
The Facility Access and Shipment Tracking (FAST) system is now managing drop shipments at 800 Postal Service facilities around the country. The six-month phased deployment of FAST, which replaces the Drop Ship Appointment System, was completed last month.

For a full schedule of all facilities in FAST, go to the Postal Service’s Rapid Information Bulletin Board System (RIBBS) at http://ribbs.usps.gov and click on the FAST/Surface Visibility link.

Enhancements
There are new enhancements to the FAST system. Speedline appointments can only be made for 24 pallets or fewer. An error message will be displayed on the logon page to notify users if the PostalOne! authentication services are unavailable. Users also will be able to search by Recurring Appointment ID on the Appointment Status Report.

Refer to the FAST/Surface Visibility link on RIBBS for more information on these enhancements implemented Nov. 20.

Pallet barcode validation process
A new pallet barcode is available for customer use. Before a corporation can use its barcode, it must meet USPS specifications. Participating corporations should e-mail 10 unique barcode samples in PDF format to fast_webservice@usps.com. USPS will conduct a visual inspection and a test to determine if the Surface Visibility application and the Motorola Utility Manager are able to recognize the barcode. Once validated, customers can begin placing the barcode on drop shipments to be scanned by USPS facilities.

Register for FAST
It’s not too late to register for FAST. To schedule drop shipments, a customer must register for a FAST ID through PostalOne! at www.usps.com/postalone. Customers who already have a PostalOne! account and need access to FAST must register by calling the PostalOne! Customer Care Center at 800-522-9085.

Detailed instructions on the FAST/PostalOne! registration process are available on RIBBS. Only users with FAST scheduler IDs will be allowed to make appointments at drop shipment facilities.

If you have any questions, e-mail fast@usps.com or call the USPS help desk at 1-800-877-7435 and say “FAST.”

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PRICE CHANGE, EFFECTIVE JAN. 8TH
The Governors of the U.S. Postal Service voted Nov. 14 to accept the Postal Rate Commission’s recommendation to increase most rates and fees by approximately 5.4 percent.

This price increase — the first since 2002 — is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by Oct. 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. Among the adjustments, the one-ounce single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent to 24 cents.

The Board of Governors set Sunday, Jan. 8, 2006, as the effective date for the price changes.

Following are some of the most frequently used domestic rates and fees. Complete domestic rate and fee information, as well as international prices, can be found online at usps.com/ratecase.

EXPRESS MAIL
The average increase is 5.4 percent. Increases for individual rates range from 5.3 percent to 5.6 percent as rates are always rounded to the nearest $.05 increment. The rate for the USPS-provided flat-rate envelope, as well as the half-pound (Post Office to addressee) will be $14.40.

FIRST-CLASS MAIL
The average increase is 5.36 percent, with most rates at or near the average.
- Single-piece (consumer) 1-ounce letter rate will be $.39.
- Single-piece nonmachinable surcharge will be $.13; and the presorted nonmachinable surcharge will be $.058.
- Additional ounce rates — single-piece will be $.24; and presorted and automation rate will be $.237.
- Single-piece card rate will be $.24.

Priority Mail
The average increase is 5.4 percent, with most rates at or near the average.
- The rate for the USPS-provided flat-rate envelope, as well as the 1 pound (unzoned) rate will be $4.05.
- The rate for USPS-provided flat-rate boxes will be $8.10.

STANDARD MAIL
The average increase for Standard Mail is 5.3 percent and Nonprofit Standard Mail is 3 percent.
- Nonmachinable surcharge — Standard Mail letters will be $.042 and Nonprofit will be $.021.
- Residual shape surcharge (parcels) will be $.242.
- Machinable parcel barcode discount remains $.03.
- Fee for bulk parcel return service will be $1.90.
- Weighted fee for all Standard Mail returns remains 2.472 times the applicable single-piece First-Class Mail rate.

PACKAGE SERVICES
Machinable parcel barcode discount for all Package Services mail remains $.03.

Bound Printed Matter
The average increase for flats and parcels is 5.5 percent.
- Single-piece increases 5.2 to 5.6 percent.
- Presorted and Carrier Route increases 5.2 to 6.0 percent.

Library Mail
The average increase is 12.6 percent.
- Single-piece increases 11 to 13.9 percent.
- Presorted increases 11 to 14.5 percent.

Media Mail
The average increase is 12.7 percent.
- Single-piece increases 12 percent to 13.5 percent.
- Presorted increases 12.5 to 13.9 percent.

Parcel Post and Parcel Select
The average increase for Parcel Post is 5.4 percent. Intra-BMC/ASF and Inter-BMC/ASF increased 5.3 to 5.4 percent. Parcel Select increases vary from 5.1 to 5.7 percent. Nonmachinable surcharges will be:
- Intra-BMC $1.42.
- Inter-BMC $2.90.
- Parcel Select $1.53.

EXTRA SERVICES AND
MAILER SERVICES
Certificate of Mailing
- Individual pieces (Form 3817) fee will be $.95 each, and three or more items listed on Form 3877 remains $.30 for each item.
- Bulk (Form 3606) fee for up to 1,000 pieces will be $4.75, and the fee for each additional 1,000 pieces (or fraction) will be $.55.

Certified Mail
- Certified Mail will be $2.40.

Delivery Confirmation
- First-Class Mail parcels, electronic option will be $.14; retail option will be $.60.
- Priority Mail, electronic option remains “no charge,” retail option will be $.50.
- Standard Mail parcels, electronic option will be $.14.
- Parcel Select, the electronic option remains “no charge.”
- All other Package Services parcels, electronic option will be $.14, retail option will be $.60.

Express Mail Insurance
- Up to $100 included with Express Mail service. Over $100 will be $1.05 per each additional $100 of merchandise insurance coverage up to $5,000.

Insurance
- Less than $50 (unnumbered) will be $1.35.
- $50 up to $100 will be $2.30.
- Over $100 will be $2.30 plus $1.05 for each additional $100, up to $5,000.

Registered Mail
- No declared value will be $7.90.
- Values between $.01 and $100 will be $8.45.
- Over $100 will be $8.45 plus $.90 per each additional $100 up to $25,000.

Return Receipt
- Requested at the time of mailing (Form 3811) will be $1.85.
- Requested at the time of mailing (electronic option) will be $1.35.
- Requested after mailing will be $3.45.

Signature Confirmation
- Priority Mail and all First-Class Mail and Package Services parcels, electronic option will be $1.35, retail option will be $1.90.

OTHER SERVICES AND FEES
Address Correction Service
- Manual notification will be $.75.
- Electronic notification (address change service) will be $.21.

Pickup Service
- Pick up on demand service — available for Express Mail, Priority Mail and Parcel Post — will be $13.25 per pickup.
- Carrier Pickup Online Notification remains no charge.

Post Office Box and Caller Service
- Increases on average 4.2 to 8.3 percent, with most Post Office box fees at or near the average.
- Caller service (for each separation provided), a semiannual period will be $434.
- Caller service reserved number per calendar year will be $34.

Mailing and Permit Fees
- All annual mailing fees, as well as the annual fees for: bulk parcel return service (BPRS), Business Reply Mail (BRM) permit, merchandise return service (MRS) and Parcel Return Services (PRS) will be $160.
- All annual accounting fees, BPRS, BRM, MRS and PRS go to $500.
- Permit imprint application fee will be $160.

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KEEPING POSTED
TOP-FLIGHT PCC LEADERSHIP CONFERENCE — ORLANDO, FL, NPF
News from and for Postal Customer Councils -- www.usps.com/nationalpcc

Don’t miss your opportunity to learn what’s new in the Postal Service and mailing industry and ask questions by attending the Postal Customer Council (PCC) leadership conference. It’s scheduled for April 2-5 at the Orlando, FL, National Postal Forum (NPF). PCC members will receive a 10 percent affiliation discount on their NPF registration fee. By attending the PCC leadership conference opening session, four workshops in this track and the NPF general session Tuesday morning, you will earn your PCC leadership “top flight pilot” certificate. Don’t go back to your local PCC without it!

The PCC leadership track is designed to strengthen the strategic partnership between PCCs and the Postal Service, and enhance the value of the nationwide PCC Network to local memberships and the mailing industry. This track is tailor-made for PCC leaders and members, and anyone interested in joining and taking an active role in their local PCC.

The leadership conference will include:

Opening Session — All new content!
Postal Service officers and executives will share their views on the challenges facing the Postal Service and the mailing industry, and discuss the critical role PCCs play in helping customers grow their business.

PCC Model Unit Program — New
The PCC Model Unit Program is an important and innovative step forward in implementing the new PCC Network plan to address standardization. Panelists in this session will explain this new program and outline how local PCCs — of any size — can bring even greater value to their membership by offering a variety of educational and networking opportunities. Audience input is encouraged.

Driving PCC Attendance Through Educational Content — New
Education is one of the core strategies for the new PCC Network plan and is a key factor for the success of the PCC model unit program. This workshop is designed to help you learn more about PCC workshops-in-a-box, expansion of the PCC speakers bureau (including an industry version), Webinars and the use of the PCC Network website as a channel for education and training. Attendees will have the opportunity to discuss future education and training needs to add value to PCC groups.

PCC Advisory Committee Restructure — New
The rollout of the new PCC Network program calls for establishing a charter and bylaws for the PCC advisory committee. Learn about the committee’s restructuring and how it will add value to the partnership between the PCC Network and the Postal Service.

Integrated Marketing Campaigns for PCCs — New
Throughout the year, the U.S. Postal Service conducts marketing campaigns for key products and services that focus on helping business mailers grow their businesses. For the first time, PCCs will be requested to integrate and synchronize local campaigns around these strategic marketing campaigns. This workshop is intended to provide information about how PCCs can participate in and benefit from these integrated marketing initiatives.

PCC Best Practices — New
In a facilitator-led, interactive session, co-chairs from a variety of PCCs will discuss best practices for educational events, planning membership drives and other key operational areas.

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MAILPIECE QUALITY CONTROL PROGRAM OFFERS ONLINE EXAM
Want to gain a better understanding of mailpiece design? The Postal Service’s popular Mailpiece Quality Control (MQC) program provides participants with a better understanding of USPS acceptance requirements as they relate to mailpiece design. And now, the final exam that leads to certification as an “MQC Specialist” is available online.

The program’s self-study guide allows individuals to learn at their own pace. After completing the course, participants have the option to complete a final exam and become a certified MQC Specialist. MQC Specialists are listed on the Rapid Information Bulletin Board System (RIBBS) and are recognized throughout the industry for their high level of proficiency in mailpiece design and addressing standards.

Traditionally a hardcopy process, the MQC examination is now available online at http://www.ribbs.usps.gov/mqc/mqc.html along with a link to a new version of the MQC certified specialist list.

The MQC online examination offers many advantages for customers including ease of use, immediate examination results and an automatic update of the certified specialist list on RIBBS.

If you’re interested in more information about the MQC program or the new electronic testing option, contact the MQC administrator at the National Customer Support Center at 800-238-3150, option zero.

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INFO@USPS
SMALL BUSINESS TOOLS
Get new customers.
Meet customer demands.
Around town or around the world.
www.usps.com

SIMPLE FORMULAS
Use the mail to grow your business.
Order a Simple Formulas kit.
800-THE-USPS, ext. AD4433

SEND MAIL FROM YOUR PC
Send postcards, letters,
flyers, booklets or greeting cards.
www.usps.com/netpost

THE POSTAL STORE ONLINE
Open 24/7. Stamps.
Subscription services.
Digital scales.
www.usps.com/shop

SHIPPING INFORMATION
Express Mail, Priority Mail
and package support line.
800-222-1811

PRINT POSTAGE ONLINE
Your shipping label is just
a Click-N-Ship away.
www.usps.com/clicknship

CARRIER PICKUP ONLINE NOTIFICATION
From your home or office
at no extra charge.
www.usps.com/pickup

QUESTIONS?
Rates and mailing information.
ZIP Codes. Post Office locations.
Much, much more.
800-ASK-USPS

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POSTAL NEWS BRIEFS

USPS ENDS YEAR DEBT FREE
The U.S. Postal Service concluded fiscal year 2005 with a net income of $1.4 billion on record revenues of $70 billion and record volume of 212 billion pieces of mail.

“Financially, we are in the best position we’ve been since the 1970s,” said Postmaster General John E. Potter. “Despite the strong financial and productivity records of recent years, we are facing a modest increase in postage rates in January.”

The Jan. 8, 2006, rate increase was compelled by legislation enacted in 2003 requiring the Postal Service to put aside more than $3 billion each year into escrow beginning in 2006. Efforts to change the escrow requirement have been stalled in Congress. Without the escrow requirement, postage rates most likely would have remained at current levels until 2007.

Postage rates have remained stable since 2002, a direct result of three straight years of operating surpluses. The cash generated from the surpluses has been used to reduce the Postal Service’s once $11 billion debt to zero.

“We kept our focus on the customer for the past four years,” said Potter. “It has paid off in record revenues, record volumes and positive customer satisfaction ratings.“

In 2005, mail volume increased 5.6 billion pieces to 212 billion. Standard Mail, which American businesses rely on to reach consumers, outpaced First-Class Mail for the first time in history with 101 billion pieces of Standard Mail compared with 98 billion in First-Class Mail. First-Class Mail grew slightly in 2005 after three years of decline.

“The increase in mail volume demonstrates that American businesses recognize that hard copy mail works and has a bright future,” said Potter.

Although postal financial news is positive, Potter cautioned that the forecast for 2006 projects a surplus from operations but coupled with the anticipated escrow requirement of $3.1 billion, the Postal Service will likely have a net deficiency approaching $2 billion.

Since Potter became Postmaster General in 2001, the Postal Service has reduced costs by a cumulative $15 billion. “Our postal team is moving more mail, going to more places, and doing it with less people,” Potter said. In September, he unveiled plans to continue to reduce costs, pledging to take another $5 billion out of the Postal Service by 2010.

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HONORING QUALITY SUPPLIERS
The Postal Service honored six companies for their hard work and excellent customer service in supplying USPS employees with the supplies, equipment and services they need to deliver superior products and services to the American public.

The 2005 Quality Supplier Award categories and winners are:

SMALL BUSINESS:
Auth-Florence
Manufacturing Company,
Manhattan, KS
(Cluster Box Units)

Postal Products
Unlimited, Inc.,
Milwaukee, WI
(Postal Unique Supplies and Equipment)

LARGE BUSINESS:
CompX Security Products,
Greenville, SC
(Cabinet Style Locks)

Eaton Electrical
Services & Systems,
Moon Township, PA
(Power Distribution
Maintenance Services)

IBM Corporation,
Fairfax, VA
(Customer Satisfaction Measurement – Analytics)

Northrop Grumman
Security Systems, LLC,
Elkridge, MD
(Biohazard Detection
System – BDS)

_________________________________

MEMO TO MAILERS
Volume 40 Number 12

Ilze Sella
Editorial Services

David Ostroff
Designer

Betty Shelton
Purchasing Specialist

John E. Potter
Postmaster General and CEO

Thomas G. Day
Senior Vice President, Government Relations

Azeezaly S. Jaffer
Vice President, Public Affairs and Communications

Memo to Mailers
is published by U.S. Postal Service
Public Affairs and Communications.
USPS eagle symbol and logotype are
registered marks of the
United States Postal Service.

© 2005 United States Postal Service. The following are among the many trademarks owned by the United States Postal Service: USPS®, U.S. Postal Service®, United States Postal Service®, Postal Service™, Post Office™, Priority Mail®, Express Mail®, Standard Mail™, First-Class Mail®, Registered Mail™, Certified Mail™, Delivery Confirmation™, Signature Confirmation™, ZIP Code™, Click-N-Ship®, NetPost® and The Postal Store®. This list is not a comprehensive list of all Postal Service marks.

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memo to mailers
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