posted on May 31, 2001 07:38:45 AM new
I just got an email from stamps.com asking me to take a 2 minute survey. It seems they're in the process of working out some sort of discount for PC Postage users with the USPS. Has anyone else heard anything about this?
No, it's not the free Electronic DC. It specifically stated a one cent discount on first class letters and an unspecified discount on Priority and Express mail.
posted on May 31, 2001 09:59:00 AM new
What does the USPS get out of customers who use stamps.com?
Simple - lower costs from individuals (not just businesses) using easy-to-read printed addresses, instead of hand-scrawled addresses that cost the USPS time and money in misdirected mail.
And maybe it encourages people to use the USPS (versus going to, say, UPS), and/or using value-added (more profit) services, like DC (the easier you make it, the more people will use it).
And if people buy postage in advance, that gives the USPS a cash flow float.
Worth a penny? probably.
I guess I won't be so cynical about "hidden motives" in this case.
posted on May 31, 2001 11:15:59 AM new
OK captainkirk, I'll grant you the points you made...
however it won't stop them from tacking on postal increases as much and as often as they can manage...
like when the next one comes 7/01/01 ;-(
so, yes, it does them WORLDS of good, but being the selfish little seller I am, I would really like to know what it all will do for ME (excluding convenience)
posted on May 31, 2001 12:34:08 PM new
At my local staples they were selling the "internet postage kit" for $.15. I was in a rush, and the lines were long, so I didn't buy it, but now I'm wondering if it had a good deal contained inside - free postage or something.
posted on May 31, 2001 12:50:58 PM new
This type of discount has been proposed at least three times in the past (over a 5-6 year period). The proposals are generally timed with the "rate cases" -- periodic festivals which involve the USPS and the independent Postal Rates Commission (PRC).
My firm (PSI/Envelope Manager/Endicia) actually made several formal submittals for a 3 cent discount over the past 8 years or so. And it wasn't tied to PC Postage per se, but simply a verifiably "good" ZIP+4+2 on the mailpiece along with a POSTNET barcode representing that ZIP.
In the early 90's, when they were trying to justify their automation capital costs, the USPS had figures floating around claiming that a pre-barcoded mailpiece saved them 3-4 cents in processing costs. And it is that legacy that continues to "justify" this type of proposal.
BTW, the PRC has always been totally behind this discount and has always recommended it to USPS. USPS has rejected this proposal every time.
The rejection always fell along the lines of "we can't tell if the mail is putting valid ZIP+4+2 information on the mailpiece, and that the mailer has checked for a possible 'move update' (a requirement for other presort discounts)".
Now the first issue is dealt with squarely by the requirements imposed by PC Postage. You must at least *attempt* to ZIP+4 verify each address. And it's easy enough for the PC Postage software to know if a "good" ZIP+4 has been found and then make the discount available at print time.
The move-update issue remains a problem, but we actually have had internet technology in place to check move updates for about 4 years. However, privacy concerns make this service available ONLY to folks who formally sign up with us, sign a paper that says they will use this information for mailing only (not chasing ex-wives/husbands) and you must submit at least 100 address for move update verification per run. IOW, it's geared to folks who do presorted mailings of 200 piece or more.
I actually have a prototype of this service which runs for a single address move update indication. But I can't release it to the public because USPS guidelines would be violated. We have proposed that the move-update check would simply return a "yes-no" response, indicating if a move was filed for that address. Unlike the subscription based service, it would NOT return the new forwarding address. But some at the USPS think that even this level of information on a single query basis could compromise privacy. (Congress and GAO are looking over USPS on this issue, BTW, so they are pretty nervous.)
All that said, there is a VERY GOOD chance that we WILL see some form of PC postage discount by the end of this calendar year. The main reason is that this new industry has been so heavily regulated, that it's viability is threatened (witness EStamps recent exit). Postage vendors receive no "cut" of the postage. IOW, if you buy $100 worth of postage, ALL of that money goes to the USPS.
Postage vendors (like PB) have always had to make their money by rental and service fees. Older style meters rent for $30/month or more, and the vendors often rent/sell scales and other periferals. And that how folks like PB and Neopost did well in past years.
posted on June 1, 2001 06:31:35 AM new
Does the USPS classify people who mail out material to an address on a regular basis (ie subscriptions, catalogs) any different from people who only mail on demand (eBay'ers)? Why should people who mail on demand be subject to the move check? I mean, if the person orders something they SHOULD be living at the address they wish the order sent to.
little seller I am, I would really like to know what it all will do for ME (excluding convenience)
