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7R Communications Offers Convertible Mailer

Thursday, July 02, 2009

Press release from the issuing company

Wayland, MA -- The Postal Regulatory Commission approved on June 4, 2009, the  USPS request for a Standard Mail Volume Incentive Program (a.k.a. "summer sale").  The program provides a  30% postage rebate to qualified mailers on incremental standard mail volume from July 1st, 2009 to September  30th, 2009.  Approximately 3,200 standard mail permit holders qualified for the summer sale by having mailed at  least one million standard mail pieces from October 1st, 2007 to March 31st, 2008.  The USPS will penalize  mailers that mail less standard mail in October 2009 than October 2008.  Consequently, 7R Communications  forecasts that the optimal mix for those permit holders taking advantage of the "summer sale" will be to increase  their percentage of letters versus flats during the summer sale and the month of October.

Short lead times for July mailings, the ease of generating creative copy for a standard mail letter versus a full  catalog, and the availability of uncoated paper versus coated/supercalendered paper will encourage mailers  seeking to accelerate their July volumes to turn to standard letters to drive additional traffic to their websites and  retail stores.  Since a mailer's "summer sale" rebate is based on the volume of pieces mailed and not the postage  paid, look for further migration from flats to letters in the month of October.  Standard mail letters are  significantly less expensive to produce and mail than flats.  No mailer wants to lose their hard earned summer  discounts by failing to keep their October volume at least equal to their previous year's level so letters will  increase as a stop gap measure.

Derek Waterhouse, Vice President of Worcester Envelope and a 7R Communications licensee, notes that "adding  more standard letters to the mix of standard mail may have surprising benefits as it allows the mailer the  opportunity to qualify prospects and scrub their house lists at lower total costs."

According to the USPS publication "Revenue, Pieces and Weight By Classes of Mail",  the average standard  letter historically weighs under one ounce while the average standard flat weighs about three ounces.  

"In addition to the cost advantages," observes Brook Spaulding, Principal and CTO of 7R Communications, "the  stimulation of letters by the USPS 'summer sale' also has sustainability advantages."   

Steve Brocker, Western States Envelope & Label's VP of Sales & Marketing and another 7R Communications licensee  concludes, "it is all about the cost per response... if the cost per response is favorable -  especially through innovative design and copy -  we will see more USPS automation approved letters going forward and that is a win-win for the environment, the USPS, and the businesses and non-profit communities that depend upon  standard mail."




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