This week I read an interesting article on the concerns regarding postal inspection services initiative for move update that Dan O’Rourke, the editor for Mailing Systems Technology had flagged up. In case you missed it – here’s the link.
Mary Ann Bennett provides a very interesting perspective on this subject and it is worth reading. Not being a mailer myself, in reading the article I compared it to a time when I ran my own business, and felt like with all the government requirements such as workman’s comp, property tax, sale tax on goods sold, inventory tax on goods not sold, payroll tax, etc – the likelihood of ever turning my business into an empire seemed bleak as the reality of owning a small business came to life. Just keeping up with all of the requirements while running my business was challenging within itself, it seemed endless – and it obviously is no comparison to what large volumes mailers are dealing with these days.
In the article I mentioned, Mary Ann highlights the many complexities associated in complying with the move update process. While many large volume First Class mailers felt they had all their ducks in a row to ensure maximum postal discounts were achieved, from what we are hearing, this is unfortunately not the case.
Mary Ann writes; It is understandable that these large companies would have no idea there is anything wrong with their mail. And then they get a phone call from a Postal Inspector who is requesting a meeting and that Postal Inspector shows up and says “show me on your mailing statement which move update methods you are currently utilizing.” The mailer is using a service provider and is unsure of what is being marked by their mailing agent on the statements. But surely, there cannot be a problem. They have been using the same in-house method for many years and they had no idea they had problems with the mail. Upon further investigation, the mailer determines that no USPS approved move update method is being used. The Postal Inspector goes back and says well there are these four methods and a 99% accuracy test. And the customer says, “we will submit the files for 99% accuracy”. And the Inspector will say “well no, you would have had to do that before the fact.” As far as the Postal Inspector is concerned the mailer has broken a rule. “Technically you have not been in compliance and listen Mr. Mailer, if I go back a period of years, since this regulation has been in place since 1997, technically I could go back and take away every postage discount you have claimed over the last twelve years. I could recover around $80 million but we will settle for just $2.5 million. We are going to settle for this reduced amount and unless you pay this amount, we are going to rescind your mailing privileges.”
It’s a scary but very real scenario that I hope any of you reading this will not find yourself or your organization a part of. Mary Ann states that many mailers are now seeking other alternatives for mailing, but for many of you that just is not an option in the short term I will look forward to hearing how you are coping, if this is a key concern…or mostly media hype. We do hear of these things happening, but how often and to what extent I just cannot provide any insight into.