US Post Office Creates 'Droop' Standard - Impacts Newspaper Delivery Costs

The USPS will be implementing new standards effective Sunday October 3rd that will charge newspapers more if the paper droops more than 3 inches. This cost change is in place because a droopy paper cannot be placed into an automatic sorter and must be sorted by hand.

Per an AP Newstory, the post office will place the paper on a counter with a flat edge, with half of the item hanging from the edge. If it droops more than 3 inches, it fails. This means there would be no bulk discount. The impact of this would be moving the mailing costs from 5.9 cents per paper to 9.9 cents.

The AP also reports that one good way around this problem may be for a paper to use a stiff insert to keep the paper from drooping.

"Maybe you can use (a stiff) insert. If it's an advertising insert, it pays for itself. If it's not, it just makes the paper heavier and costs more to mail anyway," said Tres Williams of the Arkansas Press Association.

The net impact on the cost is a 68% increase for those mailed editions.  There are some possibilities that some discounts will still be available, and some creative solutions may come into place to reduce those costs, but expectations are that there will indeed to increased costs for those papers primarily mailed.

US Postal Service Proposes Rate Increase Effective January 2, 2011

The USPS has proposed a rate increase effective January 2, 2011.  This has the following immediate implications:

• First-Class Mail stamp increases two cents to 46 cents and would add less than 13 cents a month to the average American household’s budget.
• Each additional ounce will cost 18 cents.
• Postcard stamp increases to 30 cents.
• The first ounce of a large envelope (flat) will cost 92 cents.

This will have a mixed impact on the newspaper industry, particularly in regard to preprints.  For those newspapers that are carrier delivered, this will be a benefit, as the their operating costs will not be impacted, while shared mail and direct mail costs will rise, thus making the carrier deliver papers more financially attractive to advertisers.

As for mail delivered newspapers, some will benefit and some will suffer.  As Editor & Publisher points out, depending on the size and volume of inserts a mailed newspaper (or mailed product) deals with, they may still come out ahead.  Some products will see only a 4% rate increase, instead of the 8% that others will see. While 4% isn't good news, it is better than 8%.

Central Arizona Zip Code Changes

On July 1st, 2009, the United States Post Office changed 30 zip codes in Arizona to new numbers in order to improve operational efficiency. Information on the zip code changes can be found at the USPS.

This impacts zip codes in Pinal County, AZ

USPS Lowers Rates on high-density flats

USPS high-density decrease approved

Commercial and nonprofit mailers of US Postal Service Standard Mail high-density flats, mail pieces delivered to each address on a delivery route, will enjoy new minimum per-piece prices decreases of 0.1 cent. The decreases kick in on July 19. In addition, mailers will see decreases to the pound price element that match the Standard Mail Saturation rate.

The Postal Regulatory Commission approved the rate on July 1, potentially setting a new precedent on how to address a rate decrease in a period of deflation.

The order can be accessed at http://www.prc.gov/ under “docket search” (Docket No R2009-4) or “daily listing” for July 1.

This was the first time under the Postal Accountability and Enhancement Act of 2006 that a decrease in postal rates was sought, reflecting a steady decline in the consumer price index over the last few months. One commenter on the price adjustment, identified in the decision as the public representative, contended that the price cap does not apply to price decreases. The US Postal Service supported this position in their statements noting “the legislative history of the PAEA indicates that Congress was concerned about capping the extent to which the Postal Service could increase prices, not decrease prices.

”The PRC responded by suggesting a future rate increase could be larger than it otherwise would be if the cap calculation and unused rate adjustment authority remained unset.

“If the Postal Service continues to exercise its pricing flexibility in a similar manner in the future (small increases or decreases in rates), this rounding problem could become more pernicious,” the PRC decision said.

The PRC has approved the rate adjustment, but also maintained that the new rates will be used as the base rates for the next cap calculation for the Standard Mail class.