Volume 01
ISSUE
03
Postal Perspective
October
2013
this issue
Every Door Direct Mail® P.1
How Does EDDM
Compare to Mspark
Services?
To the Door Delivery P.3
New Prices for 2014 P.4
EDDM users are limited to a piece size
and geographical selection per
mailing.
With Mspark, clients can choose from
a wide variety of proven turnkey
products or we’ll create a custom
design with our leading graphics,
targeting, and distribution services.
Shared Mail Solutions
Saves client’s time and money by
including graphics, print , and mailing
services.
Client’s looking to mail a large trade
area may find the Wrap piece as a
better solution. A full –color 8.5” x
11” advertisement can be used to
reach more households than EDDM, at
a lower cost.
The Smart Market Postcard (SMP) is a
stand-alone product that accompanies
our Mspark Wrap. SMPs can be used
to target down to the ZIP Code™ level
and is far less expensive than a EDDM
mail piece.
Want the power of targeting
combined with the flexibility of piece
size options? Then, the Targeted Print
& Mail (TPM) is an excellent choice.
Target specific audiences on any of
Mspark’s 10 different size. Inserted
within the Wrap, TPM pieces provide
another cost-effective mailing choice.
Solo Mail Solutions
We get messages across to current
and potential audiences in a single,
dedicated mailing . Mspark can build,
print, address, process, and distribute
advertising messages to as many as
122 million households!
Every Door Direct Mail®
Every now and then advertisers will question whether the USPS® Every Door Direct
Mail® (EDDM) program is right for them. Some small to medium businesses have gone
as far as far as jumping into EDDM on a mission for immediate savings on postage,
without thoroughly understanding the requirements and effectiveness of this
approach in comparison to other direct mail options.
The Postal Service® has done an excellent job promoting this program at only 16
cents per piece. But, Every Door Direct Mail® or Every Door Direct Mail – Retail® is not
a “one size fits all” option and is likely to only work for a minority of businesses. So,
.
let’s cut to the chase…
What is EDDM?
Basically, Every Door Direct Mail – Retail® offers a less expensive way to saturate a
given area. The Destination Delivery Unit (DDU) or Local Post Office will deliver
mail pieces to every door in a selected Carrier Route, without the need for a
postage permit or a specific name or address on the mail piece.
How does it work?
• Select your mailing area using the EDDM Tool on the USPS® website.
• Mail between 200 - 5,000 pieces per day, per ZIP Code™ .
• Create your mail piece, following the Standard Mail® flats format specifications
in your mail piece design. This includes the proper indicia and alternative
labeling. Per-piece weight must also be 3.3 ounces or less.
• Find a printing service.
• Prepare postage statement and mail pieces in accordance with EDDM
standards.
• Deliver your pieces to the Post Office™ that services the area you want to reach.
• For businesses that send larger mailings, Every Door Direct Mail® has another
option. This option requires the mailer to obtain a postage permit and enter the
mail into a Business Mail Entry Unit (BMEU), with the appropriate facing slips
and postal paperwork.
Continued on page 2
Every Door Direct Mail®, Every Door Direct Mail – Retail®, Postal Service®, and USPS® are registered trademarks of the United
States Postal Service®. Post Office™ and ZIP Code™ are trademarks of the United States Postal Service®.
Every Door Direct Mail®
Continued from page 1
What is excluded?
• Letter-Size Pieces
This program requires an oversized piece, which is often more expensive to print than normal letter
sizes, sometimes offsetting the postage savings.
• Intelligent Targeting
Although Carrier Routes can be targeted, there is no demographic targeting option. In addition,
personalization of the mail piece is not permitted.
• Households/Mail Quantity
Carrier Routes with less than 200 deliveries cannot use EDDM, nor can more than 5,000 households
be reached in a ZIP Code™, per day.
• Shipping
The mailer must deliver the mail pieces directly to the Post Office ™.
When should a business seek assistance from a Mail
Service Provider, such as Mspark?
• When a business is focused on maximizing the return
on marketing and advertising dollars
• When a business needs to target specific
demographics and/or use data tools to have a
message read/heard
• When a business needs a partner to handle the
preparation and delivery of the mailing
• When a business is uncertain of the requirements of
the postal system to ensure mailing is delivered as
intended
When should a business consider EDDM?
• If a business provides a COMMONLY needed product
or service in its neighborhood
• If a business has an exceedingly SMALL marketing
budget
• If a business owner/manager has the SKILL to create
an effective mail piece without the support of a Mail
Service Provider
• If a business owner/manager has the TIME to
support the manual tasks such as bundling the mail
pieces and delivering them to the post office
The bottom line is that EDDM still requires a basic understanding of postal regulations. Businesses utilize Mail
Service Providers, such as Mspark, because they choose to avoid the hassle of mail preparation. Not only are
EDDM users required to enter the mail at the appropriate USPS® location, but they are also required to print
“Postal Customer” and the EDDM indicia on the mail piece, bundle the mail pieces in counts of 50, select the
route information, and prepare the postal paperwork. Precisely, everything that Mspark can do for them!
Source: EDDM
2
To the Door Delivery
A thing of the past?
The USPS® has faced resistance to many
of its efforts to reduce or change its
service in response to the struggle of
meeting its financial requirements. If it
cannot find a way to adjust its business
model, it risks necessitating a predicted
bailout to the tune of nearly $50 billion by
2017.
The Postal Service® is legally prohibited
from accepting tax dollars. It has
borrowed from the U.S. Treasury as it
continues to struggle with the decline in
mail volume, a government mandate that
it fund retiree health benefits, and the
requirement that it maintain the
commitment to deliver mail to every
address in the country, six days a week.
The Postal Reform Act of 2013, which is
being considered by the House Oversight
and Government Reform Committee,
would end "to the door" delivery in favor
of curbside service or neighborhood
cluster boxes. The Act would require "to
the door" service to be phased out over
10 years, saving an estimated $4 billion
per year.
Contrary to some reports, the Postal
Service® has not recently moved to
eliminate "to the door" delivery to new
homes. According to the Postal Service®,
"to the door" delivery for new homes has
not been an option since the 1980s. In
April, however, the Postal Service® did
shift from allowing developers to choose
between curbside and cluster box delivery
to making that determination itself. It has
also been moving toward collective
deliveries at shopping malls and business
developments. According to the House
Oversight and Government Reform
committee, 28 percent of addresses now
receive "to the door" service, while 42
percent receive curbside mail delivery and
30 percent received centralized delivery.
The Postmaster General's office estimates labor-intensive
“to the door” delivery costs an average of $353 a year, per
box. Curbside delivery averages $224 and cluster boxes
average $160. The Postal Service® currently makes 54
million curbside deliveries and 40 million deliveries to
cluster boxes/central locations.
Delivery
City
Rural
“To the Door”
$353
$278
Curbside
$224
$176
Centralized
$160
$127
The mailing community is divided over moves in this
direction. The American Postal Workers Union, in particular, is
against it, saying cluster delivery would put the Postal Service®
at a competitive disadvantage against its competitors.
“This bill would have a devastating effect on the Postal
Service® and on postal employees, as well as the American
people," said Gary Kloepfer, Director, Legislative & Political
Department at American Postal Workers Union, AFL-CIO. "We
must do everything we can to stop it.“
Sue Brennan, a Postal Service® spokeswoman, said, “While
converting delivery away from the door-to-door to centralized
delivery would allow the Postal Service® to deliver mail to
more addresses in less time, doing so is not included in our
five-year plan.”
Brennan said the agency’s five-year plan does call for shifting
20 percent of business address deliveries from door-to-door to
curbside and cluster box delivery through 2016.
Postmaster General Patrick Donahoe said his agency will
evaluate the legislation to determine whether it aligns with a
$20 billion savings goal by 2017.
“A balanced approach to saving the Postal Service® means
allowing USPS® to adapt to America's changing use of mail,"
said U.S. Rep. Darrell Issa (R-Calif.), who sponsored the bill and
chairs the committee. "Done right, these reforms can improve
the customer experience through a more efficient Postal
Service®."
3
U.S. Postal Service Announces New Prices for 2014
WASHINGTON—September 25, 2013 The United States
Postal Service® announced proposed price changes, including
an increase in the price of a First-Class Mail single-piece letter
from 46 cents to 49 cents. The proposed changes, which
would go into effect in January 2014, are intended to
generate $2 billion in incremental annual revenue for the
Postal Service.
Highlights of the new single-piece First-Class Mail pricing,
effective Jan. 26, 2014 include:
Letters (1 oz.) — 3-cent increase to 49 cents
Letters, additional ounces — 1-cent increase to 21 cents
Letters to all international destinations (1 oz.) — $1.15
Postcards — 1-cent increase to 34 cents
Stamp prices have stayed consistent with the average
annual rate of inflation of 4.2 percent since the Postal Service
was formed in 1971.
The Governors of the Postal Service voted Sept. 24 to seek price increases above the typical annual
increases associated with changes in the Consumer Price Index (CPI).
In a letter disseminated to customers, Board of Governors Chairman Mickey Barnett described the
“precarious financial condition” of the Postal Service and the “uncertain path toward enactment of postal
reform legislation” as primary reasons for seeking price changes above the CPI increase. He also indicated that
the price adjustment above the CPI increase is necessary in order to ensure that the Postal Service will be able
to maintain and continue the development of postal services of the type and quality which America needs.
“Of the options currently available to the Postal Service to align costs and revenues, increasing postage
prices is a last resort that reflects extreme financial challenges,” said Barnett in the letter. “However, if these
financial challenges were alleviated by the timely enactment of laws that close a $20 billion budget gap, the
Postal Service would reconsider its pricing strategy. We are encouraged by the recent introduction of
comprehensive postal reform legislation in Congress, and despite an uncertain legislative process, we are
hopeful that legislation can be enacted this year.”
Except in exceptional or extraordinary circumstances, postage price increases are capped at the rate of
inflation as measured by the Consumer Price Index for All Urban Consumers (CPI-U). The Postal Service is filing
a price increase above CPI-U due to extraordinary and exceptional circumstances which have contributed to
continued financial losses. The Postal Service recorded a $15.9 billion net loss last fiscal year and expects to
record a loss of roughly $6 billion in the current fiscal year, and has an intolerably low level of available
liquidity even after defaulting on its obligation to make prefunding payments for retiree health benefits.
The Postal Regulatory Commission (PRC) will review the prices before they become effective Jan. 26, 2014,
and must agree the prices are consistent with applicable law. The new price proposals were scheduled to be
filed Sept. 26 and will be available on the PRC website at www.prc.gov and also will be available at
http://pe.usps.com.
Mspark will continue to monitor the progress of the PRC review and how it affects Standard Mail rates.
Once rates are confirmed, Mspark will release on official statement regarding any postal surcharges.
Read Full Press Release at: New Prices 2014
4