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For when your thoughts are drifting to things not so movie, or if you're feeling trivially inclined.
591

Guess when is the next price increase game
Topic by: NLee
Posted: May 31, 2007 - 9:11 AM PDT
Last Reply: July 5, 2007 - 10:03 PM PDT

author topic: Guess when is the next price increase game
NLee
post #1  on May 31, 2007 - 9:11 AM PDT  
With the recent postage increase effective May 14th, the cost of mailing Greencine DVD has increase by nearly 50% (from $0.63 to something like $0.92 each way). Furthermore, there is another new rate scheme coming July 15th. So... let's play a game of guessing when is the next price increase, and by how much. GC staffs are prohibited from participating in this game, of course.

My guess: July 1st, 20%
artifex
post #2  on May 31, 2007 - 11:05 AM PDT  
> On May 31, 2007 - 9:11 AM PDT NLee wrote:
> ---------------------------------
> With the recent postage increase effective May 14th, the cost of mailing Greencine DVD has increase by nearly 50% (from $0.63 to something like $0.92 each way). Furthermore, there is another new rate scheme coming July 15th. So... let's play a game of guessing when is the next price increase, and by how much. GC staffs are prohibited from participating in this game, of course.
> My guess: July 1st, 20%

It would be bad for them to make a move before Netflix.
woozy
post #3  on May 31, 2007 - 1:42 PM PDT  
Maybe it's time to double-think the cardboard...

(63 to 97 cents! That is a huge hike! Um how is that possible?)
NLee
post #4  on May 31, 2007 - 2:17 PM PDT  
> On May 31, 2007 - 1:42 PM PDT woozy wrote:
> ---------------------------------
> Maybe it's time to double-think the cardboard...
>
> (63 to 97 cents! That is a huge hike! Um how is that possible?)
> ---------------------------------

The new postage scheme is far more complicated than before. Previously the postage was simplyly related to weight. Now you have to pay more if your envelop is too large, too thick, or odd-shaped (square is consided an odd-shape?)

It is probably a good time for GC to consider thinner and lighter disc protectors. NF and BB don't seem to be botherd by higher disc breakage rate from not using disc protectors.
woozy
post #5  on May 31, 2007 - 4:22 PM PDT  
> On May 31, 2007 - 2:17 PM PDT NLee wrote:
> ---------------------------------

>Now you have to pay more if your envelop is too large, too thick, or odd-shaped

Okay, So I'm reading the Domestic Mail Manual and looking at the definition for "letter" and

1) A letter cannot be more than 6 1/8 inch high.

Netflix envelope is exactly 6 inches. GC's are 6 5/8ths. GC could cut half an inch as still fit the disk and be a letter.

2) A letter cannot be more than 1/4 thick.

GC makes it with the cardboard.

So because GC's mail is an unnescessary 1/2 inch too thick it is a "flat" not a letter.

Then there are "non-machinable criteria"

a) "Is too rigid (does not bend easily when subjected to a transport belt tension of 40 pounds around an 11-inch diameter turn). "

Huh? I'm guessing neither netflix nor GC pass this but maybe they do.

Anyhow there is a flexible criterion for "flats" that they can bend an inch if bent from the center. Both NF and GC definately fail this.

Failing "machinability" there is a surcharge.

a1) For letters it is 17 cents
a2) For "flats" one most charge parcel rates.

With carboard GC's mailer weighs 1 3/4 oz.
Without carboard GC's mailer weighs 7/8 oz.

So I figure GC's postage could be:

Now: 97 cents.
Which is wierd because that is the "flat" rate for under 2 oz. but failing the "flexibility test" it should be a "parcel" rate for under 2 oz. which is a whopping $1.30!!!

Resize the envelope from 6 5/8 high to 6 1/8 (basically this would involve folding before gluing): 75 cents or 58 cents.
The letter rate for under 2 oz. is 58 cents but the rigidity is a 17 surcharge. But if the "flat" passed the "flexible" test than I imagine the letter would too so it'd probably be $.58

Keep the envelope; lose the cardboard: $1.13 or $.80.
Again failing the rigidity test, the "flat" is a parcel so it should be $1.13 but if it passes the test and is a "flat" the rate is $.80.

Redo Envelope; lose cardboard: $.58 or $.41
Without cardboard the weight drops to under an oz. and the letter rate is $.41. Again I'd assume the rigidity test would be a .17 surcharge.

Losing the cardboard saves $.17 (one way) not insignificant but maybe the carboard is worth it. I think it's a nice friendly touch so I wouldn't advice GC to lose it just yet.

Redoing the envelopes would save either $.39 (one way) if the "flats" pass the rigidity tests (which they shouldn't but GC seems to be getting away with it). Or $.72 (one way) if they don't! Or $.22 cents (one way) if the "flats" pass the rigidity tests but the letters do not.

Even if it only save $.22 cents, I'd highly advice GC to redo their envelopes!

woozy
post #6  on May 31, 2007 - 4:29 PM PDT  
> It is probably a good time for GC to consider thinner and lighter disc protectors.

The disc protector would have to weigh less than 1/8 oz (can anything satisfy this?) for this to be worthwile. It doesn't have to be any thinner but it can't be any thicker.

Styrofoam?
DHofmann
post #7  on July 5, 2007 - 10:03 PM PDT  
With the USPS having just raised their rates and Netflix having just lowered theirs, maybe the outcome of this tug-of-war will be no change at all.

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