From the Blog of Jim Gilbert- The Gilbert Direct Marketing Blog
Over the years I’ve been super vocal about my dislike for the U.S. Postal Service and its less-than-forward-thinking bureaucracy. When it slammed direct marketers with a 20 percent postal increase back in 2007, I went (pun intended) postal on it in my Catalog Success Magazine Column.
Earlier this year after it announced its summer postage sale, I was optimistic. But once I looked at the fine print (i.e., how much you had to mail to qualify), I was critical then, too.
I try to be fair in the offering of my opinions.
Therefore, I have to applaud the USPS for its announcement last week that there would not be a postal rate increase in 2010 for dominant classes.
For those of you not aware yet, last week the Postmaster General sent out a memo announcing no 2010 rate increase, which has spread around the internet faster than a scandalous YouTube video goes viral. That memo can be reviewed here.
I know, I know: Postal rates are already ridiculously and restrictively high, but at least mailers can build their 2010 mail plans without having to cut circ from marginal lists and housefile segments.
But along with my kudos to our Postmaster and the USPS, I also want to put them on notice. Here goes:
Dear Mr. Postmaster General,
You’ve started a trend here. Between the postal summer sale and now this offer to keep postal rates stable in 2010, catalog and direct mailers believe that you may actually be interested in working to our benefit. We look forward to the next postal sale, and hope that the USPS opens it up to smaller mailers to take advantage of. We truly hope that you’ll continue to stop thinking like a bureaucracy and encourage more mail volume with innovative special offers and such.
But we’re also wary. Direct marketers are wary because the USPS holds a great deal of power and leverage over us. The last substantial postal rate increase nearly put us under with rate increases of 20 percent-plus. What was the USPS thinking? That move single-handedly drove more and more mailers into the online world. If we were to do the math, we believe the increase in postage actually caused your revenues to go down due to less mail in the mailstream.
Remember this Mr. Postmaster General: Every penny more it costs us to mail means we need to generate about two cents more per catalog and direct mail piece mailed just to breakeven. In this economy, we need every opportunity we can get to mail profitably. We’re struggling to stay alive and keep our workers employed and our customers satisfied.
Keep up the good work, Mr. Postmaster. Please continue this trend.
Sincerely,
The Direct Mail Industry
As to you, my loyal readers, I encourage you to send your letters to the Postmaster General (or just copy mine and send it). Make your voice heard! Remember, the squeaky wheel gets the grease.
Reach the Postmaster General at the following:
The Honorable John E. Potter
Postmaster General
U.S. Postal Service
475 L’Enfant Plaza, SW
Washington, DC 20260-0010
Email: pmgceo@usps.gov
Speak to you next week, when I’ll discuss a tactic to help you reduce mail costs by doing a specific suppression on your housefile and list rentals.
Visit our website at www.bernhart.com
Wednesday, October 28, 2009
Friday, October 16, 2009
US Postal Service makes a bold statement: No 2010 postal increases!
From the Blog of Jim Gilbert- The Gilbert Direct Marketing Blog
Note from Jim: The USPS may have finally learned the lesson that higher postal prices drive down direct mail volume – resulting in lowered not increased revenues.
Note from Jim: The USPS may have finally learned the lesson that higher postal prices drive down direct mail volume – resulting in lowered not increased revenues.
To Postal Service Customers:
Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.
As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.
The Postal Service will not increase prices for market dominant products in calendar year 2010.
Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products.
This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.
While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products—Priority Mail, Express Mail, Parcel Select, and most international products—are under consideration. We expect to announce a decision in November.
We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing. Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.
John E. Potter
Visit our website at www.bernhart.comWednesday, October 14, 2009
Bernhart Survey Shows Improved Outlook for Digital and Direct Marketing Employment
As reported by the major digital and direct marketing news media
Owatonna, MN, October 13, 2009 --With the drumbeat of layoffs diminishing only faintly, the latest Bernhart Associates Quarterly Digital and Direct Marketing Employment Report shows digital and direct marketers are poised in the current fourth quarter (Q4) to add to payrolls for the third consecutive quarter.
"Clearly, it remains a difficult job market in the digital and direct marketing industry, but the overall trend is definitely moving in an encouraging, positive direction," said Jerry Bernhart, Principal of Bernhart Associates Executive Search, LLC, a leading digital and direct marketing recruiter who has been issuing quarterly direct marketing employment reports since 2001.
With 352 companies responding to a survey that was in the field from September 28 through October 12, here are the key findings:
Most of the new hiring, Bernhart pointed out, is expected to take place on the services side with 41% of participating service providers reporting that they plan to add to staff in the last three months of 2009. Agencies were a close second at 39%, and client-side companies, at 18%, said they plan to make the fewest new hires. Among B-to-B direct marketers, 33% said they will hire during this final quarter, compared with 24% on the B-to-C side.
Despite the continuing surplus of job seekers, nearly 60% of companies responding to the survey said it was either "very difficult" or "somewhat difficult" to fill certain positions. Bernhart explained this apparent inconsistency with what he calls the "checkbox" syndrome. "Companies are looking for the perfect candidate, so what we're seeing here is an apparent inability to recruit applicants who meet each and every one of the required criteria needed to trigger a hire."
"Companies that made hiring mistakes in the past are now holding out until they feel highly confident that the candidate's personality and work style will complement the workplace," Bernhart continued. "To help measure that, many are putting candidates through a more extended interview process, including assessment tests. For example, I just had a candidate interview with eight different department heads within a single company. While that's a more extreme case, it gives you a sense for how important that aspect of the hiring process has become."
In addition, Bernhart observed, "Employers who laid-off workers are squeezing more work out of those who remain. This increased productivity is enabling companies to maintain or even boost output without having to add to headcount."
As for what specific positions will be in greatest demand by industry employers this holiday quarter, Bernhart said the list of job categories named was wide and varied--with analysts, sales, and account managers getting the most frequent mention.
Looking back on this year, Bernhart said the employment picture has brightened considerably since February 2009 when the numbers sank to record lows. "Economists are predicting that the overall U.S. unemployment rate will continue to climb into 2010," said Bernhart. "However, our survey is showing that, for online and offline direct marketers, it's possible we've bottomed out."
Still, Bernhart added, given the severity of the economic downturn, any rebound in digital and direct marketing jobs likely will be subdued as we move into 2010.
Bernhart Associates' fourth quarter survey was e-mailed to more than 8,500 senior executives, human resource officials, and other participants in online and offline direct marketing the week of September 28.
Bernhart noted that "Digital" has been added to the title of the quarterly survey to reflect the growth of digital media in the marketplace, as well as the increased number of Internet-based companies that have asked to participate.
According to the Direct Marketing Association (DMA), in 2009, direct marketing advertising expenditures as a portion of total US advertising expenditures will grow to over 54%, and they will generate 8.3% of US GDP.
Results of past surveys can be found in the Direct Marketing Association's (DMA) Statistical Fact Book and on Bernhart Associates Executive Search, LLC's website.
Companies interested in participating in the Bernhart Associates Quarterly Digital and Direct Marketing Employment Report should send an e-mail to survey@bernhart.com with "Opt-In" in the subject line, or they can sign up directly on the Bernhart Associates' website.
Visit our website at www.bernhart.com
Owatonna, MN, October 13, 2009 --With the drumbeat of layoffs diminishing only faintly, the latest Bernhart Associates Quarterly Digital and Direct Marketing Employment Report shows digital and direct marketers are poised in the current fourth quarter (Q4) to add to payrolls for the third consecutive quarter.
"Clearly, it remains a difficult job market in the digital and direct marketing industry, but the overall trend is definitely moving in an encouraging, positive direction," said Jerry Bernhart, Principal of Bernhart Associates Executive Search, LLC, a leading digital and direct marketing recruiter who has been issuing quarterly direct marketing employment reports since 2001.
With 352 companies responding to a survey that was in the field from September 28 through October 12, here are the key findings:
- 30% of the respondents said they will add to staff during the remainder of 2009, up from 20% in the Q3 survey (July through September 2009).
- The percentage of companies planning layoffs was unchanged at 8%.
- Companies reporting hiring freezes spiked to 45%, compared with 30% in Q3.
- B-to-B marketers are more upbeat about Q4 job prospects with more planned hires and fewer layoffs-than their B-to-C counterparts
Most of the new hiring, Bernhart pointed out, is expected to take place on the services side with 41% of participating service providers reporting that they plan to add to staff in the last three months of 2009. Agencies were a close second at 39%, and client-side companies, at 18%, said they plan to make the fewest new hires. Among B-to-B direct marketers, 33% said they will hire during this final quarter, compared with 24% on the B-to-C side.
Despite the continuing surplus of job seekers, nearly 60% of companies responding to the survey said it was either "very difficult" or "somewhat difficult" to fill certain positions. Bernhart explained this apparent inconsistency with what he calls the "checkbox" syndrome. "Companies are looking for the perfect candidate, so what we're seeing here is an apparent inability to recruit applicants who meet each and every one of the required criteria needed to trigger a hire."
"Companies that made hiring mistakes in the past are now holding out until they feel highly confident that the candidate's personality and work style will complement the workplace," Bernhart continued. "To help measure that, many are putting candidates through a more extended interview process, including assessment tests. For example, I just had a candidate interview with eight different department heads within a single company. While that's a more extreme case, it gives you a sense for how important that aspect of the hiring process has become."
In addition, Bernhart observed, "Employers who laid-off workers are squeezing more work out of those who remain. This increased productivity is enabling companies to maintain or even boost output without having to add to headcount."
As for what specific positions will be in greatest demand by industry employers this holiday quarter, Bernhart said the list of job categories named was wide and varied--with analysts, sales, and account managers getting the most frequent mention.
Looking back on this year, Bernhart said the employment picture has brightened considerably since February 2009 when the numbers sank to record lows. "Economists are predicting that the overall U.S. unemployment rate will continue to climb into 2010," said Bernhart. "However, our survey is showing that, for online and offline direct marketers, it's possible we've bottomed out."
Still, Bernhart added, given the severity of the economic downturn, any rebound in digital and direct marketing jobs likely will be subdued as we move into 2010.
Bernhart Associates' fourth quarter survey was e-mailed to more than 8,500 senior executives, human resource officials, and other participants in online and offline direct marketing the week of September 28.
Bernhart noted that "Digital" has been added to the title of the quarterly survey to reflect the growth of digital media in the marketplace, as well as the increased number of Internet-based companies that have asked to participate.
According to the Direct Marketing Association (DMA), in 2009, direct marketing advertising expenditures as a portion of total US advertising expenditures will grow to over 54%, and they will generate 8.3% of US GDP.
Results of past surveys can be found in the Direct Marketing Association's (DMA) Statistical Fact Book and on Bernhart Associates Executive Search, LLC's website.
Companies interested in participating in the Bernhart Associates Quarterly Digital and Direct Marketing Employment Report should send an e-mail to survey@bernhart.com with "Opt-In" in the subject line, or they can sign up directly on the Bernhart Associates' website.
Visit our website at www.bernhart.com
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