Shape-Shifters Beware!

Attention catalogers who have changed the shape of your books or are considering doing so within the next year: Beware! Changing your catalog shape to qualify for automation letter postage rates may save money in the short term, but it can cost more in the long term.

That’s because the U.S. Postal Service is in the process of conducting tests on a variety of design characteristics. Within the next year, its rules will change significantly and may wipe out the slim-jim savings. And it’s not just about the shape. The USPS also is looking into changing rules concerning mailing materials, thickness, tabbing requirements and more.

Background
Catalogers began to aggressively explore letter-size designs more than a year ago when the postage for flat-size catalogs experienced a significant increase. Under the current rates, going from an automation flat postage rate to an automation letter rate results in postage decreases ranging from 48 percent to 90 percent.

In addition to potentially significant postage savings, catalogers face rising paper costs and environmental/sustainability pressures that also drive them to look at smaller catalog designs.

The overall dimensions for letter-size catalogs (aka slim jims) to qualify for letter automation rates are at least 5 inches long and 31⁄2 inches high, but not more than 111⁄2 inches long or 61⁄8 inches high. Thickness requirements range from at least .007 inches for smaller pieces to 1⁄4 inch maximum. There are a host of additional USPS design requirements for booklet style and folded self-mailer, letter-size pieces, so review all the requirements if you’re exploring these options.

Why the Rule Change?
The USPS began looking more closely at small catalogs and other designs more than a year ago when catalogers began exploring smaller sizes as a way to combat the significant postage increases for regular-size (flats) catalogs. As the volume of these types of pieces began to grow, the USPS noticed that many of the pieces were causing its automated letter processing equipment to jam. It then began to look more closely at the existing design rules for such catalogs — rules developed more than a decade ago based on equipment capabilities at that time.

The USPS also is testing other letter-size designs, such as large postcards, folded self-mailers and thinner booklets. So catalogers that use other nonenvelope designs could be faced with design changes on those pieces as well.

This past March, the USPS published some preliminary thoughts on design characteristics that it felt were problematic. It then began conducting a series of complex engineering tests to look at a long list of design characteristics, including size, thickness, cover stock, tab style, tab strength, tab location and binding techniques.

The USPS likely won’t be done reviewing the test results until later this fall. At that point, it will publish a proposed rule outlining the changes to the requirements it plans to make.

The USPS is conducting more tests, but there are some early indicators of changes to come. Early in the process, the Postal Service identified thickness, tab integrity and cover stock as the most important design characteristics in terms of being able to successfully process slim-jim pieces on letter-sorting equipment.

Thickness Cited
Preliminary test results do not bode well for letter-size catalogs that are more than 1⁄16 inch thick. The USPS is testing pieces with a variety of thicknesses, as well as other design characteristics. While it’s said some designs of pieces 1⁄8 inch thick can be successful, those pieces must have appropriate tabbing and other characteristics to work.

Tabs. Tests reveal that the size of tabs, materials used to make the tabs and location of the tabs on mail pieces are all important factors. So far, test results on perforated tabs aren’t at all encouraging. They often break during processing, causing the catalogs to come apart and get damaged in machine jams.

Catalogers have told the USPS that there’s a need to balance recipients’ ease in opening tabbed pieces with the USPS’ equipment processing requirements. Three translucent tabs and paper tabs seem to work particularly well in locations the USPS will likely dictate.

Cover Stock. Although lighter weight cover stock can be problematic, it appears the size and location of tabs can make these pieces run successfully on letter processing equipment. But lacking the right tabbing, lighter weight cover stock can be an issue. Preliminary test results indicate that 50-lb to 70-lb cover stocks generally work well, although tab strength and location still come into play.

What You Do Now
Catalogers considering changing — or who have already changed — their books to letter-size need to keep a close eye on the changes the USPS will propose for these pieces later this fall.

If you’ve yet to make the change in shape and design, but are seriously considering doing so, either wait until after the USPS publishes its new rules, or test your new design with USPS engineering to ensure it will qualify for letter automation rates. Take advantage of your printer or service provider to help guide you through the whole testing process with the USPS.

The USPS likely will give at least six months lead time between when it publishes the final changes and when the changes will be required. So there will be some transition time, but there’s no guarantee as to the length of that transition time.

Final Caution
Keep in mind that it’s not just about reducing postage. Industry marketing experts caution that there are many things catalogers should consider before going with a letter-size design; postage is just one aspect.

Catalogers should conduct extensive tests to determine the impact on response and sales. While some mailers have had great success with letter-size designs, companies considering a move in this direction should proceed carefully and look at all potential impacts.

Kathy J. Siviter is president of Postal Consulting Services, a postal issues consulting firm. She formerly served with the USPS and the Association for Postal Commerce and has 11 years experience in all areas of postal operations. Reach her at (703) 237-1740 or kathys@postalconsulting.com.