In 2002, postal rates are going to change. Do you know what the proposed new rates and classification changes are going to be? A corporate consultant knows that the value he brings is the ability to stay ahead of change. How do you, as the mail center manager, do that? Reading trade publications like this one is one way. There are also many other publications you will want to become familiar with, in your role of mail center manager/corporate consultant. Here are just a few of them:
A great deal of information is also available through Web sites such as www.usps.com. Another way to stay ahead of change is by networking. You can join your local PCC, attend mailer conferences or join trade associations. The contacts you make there will prove to be invaluable.
A good mail center manager needs to know how to assess the impact of the rate change for his specific organization. It's not just the obvious. For instance, the current rate proposal offers larger discounts for automation. This proposed increase in automation discounts and the proposed half-cent reduction in the workshare additional-ounce rate would result in more attractive workshare incentives for companies that mail heavier pieces. This might also present an opportunity for the inclusion of advertising with your statements. The rate proposal also calls for a shift to zone rating for items over a pound. Although rates for the farther distances will increase, if your company mails items going within your own regional area, you may actually reduce your shipping costs.
How will this rate change fit into your company's priorities? Looking beneath the surface and understanding that the "devil is in the details" is important. For example, be sure to fully research the effects of the change. Recently, we worked with a client who was mailing a newsletter at periodical rates. Its mailpiece was not timely and did not have to be in the hands of the subscriber on a particular date, such as TV Guide. Therefore, we suggested the client mail at standard rate, saving it $100,000 a year in postage. It's true that it sounds too hard to pass up, but I had to be sure the client knew the difference between the two classes and the delivery standards for each. Once that was addressed, with all the facts, a decision was made. The client switched over to standard and utilized its savings for other projects.
Remember, it's also important to distinguish between the transition challenges and the long-term ones. You must be prepared with data and show both short- and long-term implications. How does this change affect others, pros and cons? No one likes surprises at a later date. Many times a short-term solution is not the long-term answer. Make that distinction.
To be effective, it is critical that you understand how all areas of your business will be impacted by the rate change. That means taking a look at your vendor/supplier agreements, your hardware/software, meeting with the marketing and transportation groups as well as the procurement department to go over how some of the changes might affect them. Take advantage of your U.S. Postal Service representatives and trade associations. They can provide you with industry trends, presentation support and case studies.
Implementing any change within your organization is always made easier when you work with your vendors, suppliers or service providers such as the USPS, up front in the process. One of the worst things you could do, for example, is to redesign your existing mailpiece thinking you will save money only to find out after it has already been designed and printed that it doesn't qualify for discounts you might have expected. Discussing your plans and providing pre-production samples to the USPS can save a lot of headaches in the long run. Get involved with your marketing department. Remember, you must sell yourself as the knowledgeable person you are. Mail center or letter-shop environments are the cost-saving centers. Proper knowledge of mailpiece design is crucial.
Recently, a marketer presented a mailpiece designed as a flat. A simple suggestion of rotating the piece to meet letter standards saved the client over $5,000 in postage and did not change the integrity of the piece.
Change is most effective when it's communicated properly. An internal mail center newsletter is a great way to keep people informed. It shouldn't be any longer than a single page. You do not need to reinvent the wheel either. Wherever possible, cut and paste from other articles or trade publications. Take advantage of your network of other mail center managers that you have developed through PCCs and trade association events. Don't be afraid to capitalize on their successes or learn from their failures. Two-way communication is most effective. Be sure to provide your audience with a way to give you feedback as well.
With any rate change, there will always be issues of concern for your organization. When you have a concern, it's important to communicate externally to both the USPS and your trade associations. Keep in mind that this will be most effective if you can provide meaningful statistical data concerning the impact of the change on your organization. It's also a plus if you can offer viable alternatives or solutions as well. By establishing measurement systems that contain both pre- and post-change data, you will have the basis for meaningful dialogue. Utilize your industry resources to be proactive in the process.
Remember the mail center manager/corporate consultant is the mail and package expert for your company. Take that information and network it internally. Let everyone know that your knowledge can benefit their bottom lines.
John La Greca is the vice president of Sales for Federal Direct in
Mary Streb is the manager of Business Customer Relations for the U.S. Postal Service in
