How Will Durango Post Office Mail Consolidation Affect Postage Rates And Delivery?

direct-mailThe article has hit the Durango Herald and now comes the flood of emails inquiring about how the consolidation of the Durango Post Office’s sorting equipment will affect postage rates and in-house dates.

There will be an effect on both. What will change is explained below:

Will Postage Rates Increase?

Answer: There are ways to optimize the sorts / logistics to maintain discounts.

Durango Post Office will lose it’s “SCF-rate”, or the postal discount for the 3-digit zip range “813”. Luckily, there’s still ways to maintain said discount:

Basin Printing & Imaging has always been on the forefront of advanced postage optimization techniques. Being a rural mailer, we know the DMM regulations surrounding the smaller Post Offices (such as Bayfield or Ignacio…And now Durango and Farmington) and various tricks that can be deployed during mail sorting to enable the entry of mail at DDU’s (Durango will become a “DDU”) while still claiming the SCF-rate.

We are also one of the only Four Corners / Colorado direct mail service providers practicing methods of entry-point optimization such as “Priority Mail Open And Distribute”, as well as traditional methods such as “dropshipping”.

By combining a series of tactics unique to each mailer, it is possible to maintain most, if not all of the postal discounts currently realized. Here are some of the techniques we leverage to maintain discounts:

“Enhanced Carrier Route” Sorts – Enhanced Carrier Route (ECR) mailings can still be deposited at the DDU while claiming SCF rates. This means one of two things:

A) Any mail that has been processed through DSF to qualify for high-density or saturation will be eligible for the SCF-discount if entered in Durango. In addition, these sort levels will mail at a lower rate than a standard 5-digit sort.

B) Mail can be sorted “ECR-Line-of-travel” instead of 5-digit. Even though “ECR-LOT” mails at a higher rate than 5-digit mail, it is eligible for the SCF-discount when entered at a DDU (such as Durango, after the 28th). The SCF-discount is enough to make the ECR-LOT sort more favorable than a 5-digit “none-entry” sort.

Postal Logistics / Entry-Point Optimization – The other techniques involve logistics to route the mail to the proper postal facilities. Basin Printing & Imaging has been practicing various forms of entry-point optimization since the birth of our direct mail center.

We are one of the only Colorado / Four Corners printers practicing PMOD, and as of right now (prior to consolidation) we regularly expedite mail to everywhere from Phoenix, to Albuquerque to Denver, and many more smaller places in between.

Because we already have the protocols in place, we are well apt to deal with the postal consolidations with minimal expense and no need for expansion of services or infrastructure.

Advanced Mail Entry Also Expedites Delivery Time

Our advanced entrypoint optimization techniques will also help mitigate the increased delivery window caused by mail being processed outside of Durango. In-house or sourced logistics provides mail entry deeper into the mailstream, and when we send mail via PMOD it is treated as priority mail until it reaches the destination facility, thus giving standard mail better treatment than 1st class while it’s in transport.

“Flat-Sized” (Magazine) Postage Will Remain The Same

Flat-sized mailpieces are harder for the Postal Service to process. Therefore, they treat flats differently as other sized mailpieces. Flats receive an additional discount for being entered within the DDU. Therefore, postage on Durango flat-sized mailings will remain comparable to what mailers have realized in the past.

How much longer will mail take to be delivered?
Basin Printing cannot answer that as of right now. We believe the “next day” standard that we’ve seen with Durango addresses will turn into a 3-4 day window. Once the consolidation occurs, Basin Printing plans on testing the new mailflow to see how long each class (and type) of mailing takes with the new processing.

Once we have a solid idea of the new mailstream, we will follow-up with a new blog post, as well as update this one. To receive these updates as they happen, we advise following us on both Facebook and Twitter. All of our blog posts are automatically syndicated through those channels.

For more information on postage optimization, send inquiries to mailing@basinprinting.com