Full Disclosure

The U.S. Postal Service has a problem: It needs to improve customer relations. But that's a tall order given the uncertainty of postal reform legislation passage, the new rate case and the promise of large annual increases because of the escrow account issue.

What can it do?

The answer is quite simple from the mailer's perspective: Publish preparation makeup standards and rules accompanying the rate case now.

Under normal circumstances, the USPS would release this information in several months. But this rate case is different.

For one thing, the USPS has proposed many new rate categories for which we lack any rules and changes to many existing categories that will require revised rules. It's equally imperative to know which rules will remain unchanged.

Most mailers must present their fiscal 2007 budget requests on or before Aug. 1 — that's why presort bureaus, consolidators and printers are being barraged with hundreds of questions. But they can't offer informed advice. The new rules (which have not been explained) may profoundly affect the rates — much more so than in the average increase.

For example, the USPS has suggested that some standard mail and first class parcel shippers can mitigate the proposed rate increase's effect by repackaging their parcels as flats. To understand whether this is possible and cost effective, the shipper needs to know the exact definition of a flat as well as all related mail preparation rules for these pieces. Changing the way mail is packaged and prepared may require capital investments and operational changes. A long lead time is necessary.

In addition, the USPS is proposing a container charge in the periodicals outside county subclass. This also can create headaches for mailers trying to calculate postage for publications that are combined in containers with other periodicals and mail classes. You have to know the USPS' rules for allocating the container charge to individual titles for co-mailed and co-palletized publications. We don't know when the USPS will determine and announce these rules. Further, implementation will require significant programming changes.

There are many other scenarios for which mailers and others in the industry have insufficient information to prepare for next year. This creates confusion, makes budgeting difficult or impossible, and could result in a serious decline in total mail volume.

Here's why: The USPS will force mailers to assume the highest possible rate they might pay. The result? Mailers will either cut back campaigns to accommodate the estimated figure or use alternative media to avoid the inflated costs.

The postal service can help mailers calculate their costs more accurately and keep them in the mail by providing them with the new standards and rules.

This is one very easy and inexpensive way postal officials can assist its customers and keep mail volumes as high as possible.

So, USPS, what's the big deal?

---

ROBERT E. MCLEAN is executive director of the Mailers Council, a coalition of corporations, nonprofit organizations and major mailing associations that accounts for 70% of the nation's mail volume.