Industry News Postal

The United States Postal Service announced a proposed rate increase to go into effect on January 26th, 2020. With this increase, catalogers will be subject to a postage increase of 1.8% to 2.1%. LSC is here to help marketers and catalogers save on their postage rates by enjoying a smaller increase of 0.8% to 1.1%. Utilizing LSC’s industry-leading optimization software helps our clients save more money by reducing postage costs.  Our clients can then broaden revenue-generating connections with their most valuable customers.   

The LSC analysts have calculated the percentage rate change of standard rate flats from 2019 compared to the proposed prices of 2020 in the diagram below:  

Percentage Change from 2019 Rates to 2020 Rates: Marketing Mail Flats

A summary of money-saving discounts provided by LSC Communications:

Marketing Mail Flats

  • A reduction in Destination Sectional Center Facility (DSCF) discounts (-2.6%) will reduce drop-ship savings and a reduction in Carrier-Route pallet discounts (-9.5% @ Sectional Center Facility (SCF)) will reduce savings on select co-service clients.  Destination Network Distribution Center (DNDC) discounts increase although that usually does not impact a large percentage of our mail except for low circulation plant mailings.
  • Co-services are more attractive especially for conventional co-mail/co-bind pools with a 10% increase in 5-digit to CR discounts at the SCF level.  HD & HD+ improve as well but in the 4% to 5% range.

 

Marketing Mail Letters

  • A reduction in both DNDC (9.1%) and DSCF (7.1%) drop-ship discounts will reduce savings in a co-pal tray and plant drop-ship.  
  • Irrespective of the reduction in drop-ship discounts, the commingle discount remains unchanged at 2.5¢ a copy across all drop-ship tiers.  Commingling remains the most attractive co-service option for customers who can operate with release dates.  

 

Periodicals

  • Co-mail attractiveness grows especially for conventional co-mail pools as incremental savings increase for 5-digit to CR and for 3 digits to 5-digit presort improvements.  High-Density incremental savings from CR do not change, but savings increase for incremental savings from 5-digit to HD.  
  • The most significant increases are in bundle costs, especially for firm bundles. Followed by 5-digit & CR bundles.  Fundamentally, firm bundles remain very attractive and it will always pay off to minimize the number of bundles produced either in co-mail pools or plant produced mail.  

 

Other ways LSC can help you save:

LSC’s premedia team is utilizing Zappar software to design and build Augmented Reality (AR) experiences to meet the Emerging & Advanced Technology Promotion and will guide you through the process for a relatively small upfront design investment.

Each AR design utilizes image recognition along with a scannable logo that needs to be placed next to the selected image area of the printed piece in order to activate the experience on a mobile device.  Several dozen designs have already been approved for our clients, including swatch-selection, slideshow images, and video creative links that incorporate animation and interactivity.

Contact John Maasik, Director of Business Development, at john.maasik@lsccom.com or your LSC sales representative if you have any clients that could benefit from this postage saving program.

The USPS has a full complement of promotions for 2020. Keep a look-out for our next post where we will highlight all the USPS specific promotions for 2020! 

 

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