The following is a postal perspective by Mary Ann Bennett,
President, The Bennett Group, Inc. The views expressed are solely the author's.
The USPS announced the new postage rates
that are effective May 11, 2009. The 41-page document is the equivalent of the
first of many nails that will close the lid on the coffin containing the much
ballyhooed U.S. Postal Service’s IMB. For over 12 months, the industry has
grappled with the announcement of this “innovation.” The early articles on the
topic began to appear in January of 2008---at least that was when I first saw
one buried on the far right of an inside page, below the fold. Postal officials
boldly proposed that the IMB would replace the current POSTNET barcode in
January of 2009.
When I read the article, my first thought was that
there was some mistake. Replace the POSTNET barcode in twelve months! Surely
there was some misunderstanding. Then I saw another article that said,
essentially the same thing.
Phone calls were placed by many. E-mails
were sent. The mailing industry became aware and became involved. They spoke
loud and clear to USPS officials. The proposal was pulled back and
modified---just a little. The IMB would not replace the POSTNET until 2011 and
(in the meantime) committees and panels and advisory boards would be formed and
the implementation of the IMB would be seriously studied. The IMB has been
dissected 16 ways ‘til Sunday throughout all of 2008 and, slowly but surely, has
moved closer to being buried.
Essentially, the success or failure of the
IMB would hinge on the incentives. How big a postage discount could be claimed
by printing the IMB instead of the POSTNET barcode? If the postage rate applied
to mail using the IMB was significantly lower than the rate for the
POSTNET---well, a business case could be made for using the IMB.
The long
awaited announcement of the IMB incentives came today.
“First-Class Mail
– Commercial Letters and Cards
Subtract $0.003 for each automation letter that complies with
the requirements for the full-service Intelligent mail option (effective Nov.
29, 2009.)”
“Standard Mail Regular
Subtract $0.001 for each letter that complies with the
requirements for the full-service Intelligent mail option (effective Nov. 29,
2009.)”
$1 in postage savings for 1,000 letters mailed Standard
class.
A whopping $3 savings for 1,000 First Class letters.
I performed calculations on the incentives a number of
times. I did see the $1 and $3 figures but thought they just
had to be wrong.
An incentive of $0.001!!! I
think they would have gone lower but it is the smallest monetary denomination
that the current rate structure can handle.
The reality of these numbers is depressing, alarming,
distressing---you name it---anything but good. The USPS’ IMB program has
consumed many in this industry for, at least, the past 14 months. And many very
hardworking, talented USPS employees and members of the direct mail industry
have dedicated endless hours to efforting this flawed program’s implementation.
The announcement of these rate incentives by USPS officials is further proof
that even they don’t believe in this program.
The Intelligent Mail Barcode program has been in trouble from
the very first day it was announced. Let me correct myself here….the program has
never been in trouble in the eyes of some USPS officials. However, most industry
experts have long since lost count of the number of problems they see no matter
how many different times they look it over.
Today’s very small
incentives for using the full service IMB are the first nail and the USPS is
swinging the hammer. Unless the
USPS makes significant changes after listening AND responding to industry
concerns---the direct mailing industry could be lowering a completely nailed
shut coffin containing the IMB into the ground before the end of the year.
