Retail

HANDBOOK PO-102 REVISION

Vending Equipment Redeployment and Obsolescence

Effective September 15, 2005, Handbook PO-102, Self Service Vending Operational and Marketing Program, is revised to provide guidelines for removing and relocating existing stamp vending machines.

Exhibits of sample letters are included to assist with the timely redeployment and obsolescence of the self service vending equipment. The sample letters are specific tools that will create a more consistent message to both our internal and external customers.

We will incorporate these revisions into the next printed edition of Handbook PO-102 and into the next update of the online version accessible on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left hand column, click on References.

• Under "References" in the right-hand column, under "Policies," click on PolicyNet.

• Then click on HBKs.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Handbook PO-102, Self Service Vending Operational and Marketing Program

* * * * *

2 Establishing Self Service Vending Locations

* * * * *

25 Installing Equipment

* * * * *

256 Redeployment

[Add new 256.1 to read as follows:]

256.1 Postal Redeployment

If the vending equipment model at a location is unable to meet the average sales performance threshold listed in Exhibit 231.1 for a consecutive 6-month period, the equipment must be considered for redeployment. Before contacting the location, the district should complete the following steps to verify sales during the time frame:

a. Ensure that the machine has received full servicing and has remained operational.

b. Ensure that the location has accurately reported sales.

c. Ensure that the location sales are appropriately assigned to each machine.

d. Reconcile sales with the PS Form 1412, Daily Financial Report, using AIC 096, Vending Equipment Postage Sales.

e. Correct bad data entries.

Once the sales data has been validated, all efforts must be made to improve sales performance. A letter (Exhibit 256.1) initiating redeployment must be sent to the postmaster of the location requesting the implementation of a plan of action to correct the deficiency within 10 days.

Two months after the plan has been implemented, if the vending machine model at the location has been able to meet the monthly sales threshold listed in Exhibit 231.1, the location will continue to be evaluated for the next 4 months. A letter (Exhibit 256.1a) must be sent to the postmaster of the location as notification of the 4-month extension to achieve a 6 month-average performance threshold. If after attempting the methods identified for improving usage of this machine it is still unable to achieve the 6 month-average performance threshold, the stamp vending machine will be scheduled for removal. An assessment must be made to determine whether replacing the unit with a different model using a lower sales threshold makes business sense.

Two months after attempting the methods identified for improving usage of the machine, if the vending machine model at the location is still unable to meet the monthly sales threshold listed in Exhibit 231.1, a second letter (Exhibit 256.1b) must be sent. In part, this letter (Exhibit 256.1b) states that the equipment will be removed and an assessment must be made to determine whether replacing the machine with a different model possessing a lower sales threshold makes business sense. No more than 3 days after the receipt of Redeployment Letter2 to Postmaster (Exhibit 256.1b), the servicing employee must apply a notice (Exhibit 256.1c) to notify the customers that the vending machine is to be removed. The label must remain on the machine no less than 30 days before the machine is to be removed. The removal of the vending machine should be completed no more than 45 days after notification (Exhibit 256.1b).

Note: Before a vending machine is removed from a location, a vending credit examination must be completed. All cash and product must be removed from the vending machine. All monies removed from the machine are to be deposited as a "final" sale. At no time are monies to be "transferred" to another machine. Stamp stock must be returned to the stamp stock custodian.

Note: The machine must be removed from service in Web VARS.

Note: Vending machines are only to be relocated to Postal Service facilities.

Exhibit 256.1
Initial Low Sales Generation Notice to Postmaster

See page 23.

Exhibit 256.1a
Redeployment Letter1 to Postmaster

See page 25.

Exhibit 256.1b
Redeployment Letter2 to Postmaster

See page 26.

Exhibit 256.1c
Example: Sample of a Customer Notification Notice

See page 27.

[Add new 256.2 to read as follows:]

256.2 Nonpostal Redeployment

If the vending equipment model at a location is unable to meet the average sales performance threshold listed in Exhibit 231.2 for a consecutive 6-month period, the equipment must be considered for redeployment. Before contacting the location, the district should complete the following steps to verify sales during the time frame:

a. Ensure that the machine has received full servicing and remained operational.

b. Ensure that the location has accurately reported sales.

c. Ensure that the location sales are appropriately assigned to each machine.

d. Reconcile sales with the PS Form 1412, Daily Financial Report, using AIC 096, Vending Equipment Postage Sales.

e. Correct bad data entries.

Once the sales data has been validated, all efforts must be made to improve sales performance. A letter initiating redeployment (Exhibit 256.2) must be sent to the postmaster of the location requesting the implementation of a plan of action to correct the deficiency within 10 days. A meeting must be held no more than 15 days after the receipt of the initial low-sales letter (Exhibit 256.2) by the postmaster. After this meeting, a letter (Exhibit 256.2a) will be mailed to the owner/operator to notify the owner/operator that the vending machine is in jeopardy of being removed due to the low sales.

Two months after the plan has been implemented, if the vending machine model at the location is able to meet the monthly sales threshold listed in Exhibit 231.2, the postmaster must notify the owner/operator.

Two months after attempting the methods identified for improving usage of this machine, if the vending machine is still unable to meet the monthly sales threshold listed in Exhibit 231.2, a letter (Exhibit 256.2b) must be sent to the postmaster stating that the equipment will be removed. Within 3 days, the postmaster will notify the owner/operator by letter (Exhibit 256.2c) that the equipment will be removed from the location. No more than 3 days after the receipt of Redeployment Letter to Owner/Operator (Exhibit 256.2c), the servicing employee must apply a notice (Exhibit 256.1c) to notify the customers that the vending machine is to be removed. The label must remain on the machine no less than 30 days before the machine is removed. The removal of the vending machine should be completed no more than 45 days after notification (Exhibit 256.2b).

Note: Before a vending machine is removed from a location, a vending credit examination must be completed. All cash and product must be removed from the vending machine. All monies removed from the machine are to be deposited as a "final" sale. At no time are monies to be "transferred" to another machine. Stamp stock must be returned to the stamp stock custodian.

Note: The machine must be removed from service in Web VARS.

Note: Redeployment to a new nonpostal location requires Headquarters approval.

Exhibit 256.2
Initial Low Sales Letter to Postmaster

See page 28.

Exhibit 256.2a
Initial Low Revenue Letter to Owner/Operator

See page 29.

Exhibit 256.2b
Redeployment Letter to Postmaster

See page 30.

Exhibit 256.2c
Redeployment Letter to Owner/Operator

See page 31.

[Add new 257 to read as follows:]

257 Obsolescence

257.1 Obsolete Vending Equipment Removal

Retail Service Equipment retains authority over disposition of all retail vending equipment items. Offices with inactive, obsolete, or surplus customer vending items being considered for disposal action must follow the directions provided in Handbook AS-701, Material Management, and the applicable Maintenance Management Orders (MMO) or the Material Logistics Bulletin (MLB). Once a vending equipment model is identified as being obsolete, it must be immediately removed from service.

Retail Service Equipment's mailing address is:

RETAIL SERVICE EQUIPMENT
POSTAL SERVICE
475 L'ENFANT PLZ RM 7670
WASHINGTON DC 20260-7670

257.2 Obsolete Equipment Replacement

An analysis of the revenue produced by an obsolete model will be performed to determine whether to replace it with a current model or to discontinue service at the vending location. When there is a replacement model with a performance threshold that is less than or equal to the obsolete machine, a replacement model may be installed.

When no replacement model can be found, the obsolete unit will be removed without a replacement. A notification letter (Exhibit 257.2 or Exhibit 257.2a) must be sent to the location where the obsolete vending equipment is installed. The servicing employee must apply a notice (Exhibit 256.1c) to notify the customers no less than 30 days before the machine is removed.

Note: A vending credit examination must be completed. All cash and product must be removed from the vending machine before disposal. All monies removed from the obsolete machine are to be deposited as "final" sale. At no time are monies to be "transferred" to another machine.

Note: The obsolete machine must be removed from service in Web VARS.

Exhibit 257.2
Obsolete Vending Equipment Letter to Owner/Operator

See page 32.

* * * * *

5 Financial Control

* * * * *

53 Self-Service Products

* * * * *

[Revise title and text of 533 to read as follows:]

533 Determination of Self Service Vending Credit Amount

The self service vending credit is minimally defined as the stamp stock and cash assigned to the servicing person. Bait money orders are also assigned.

The amount of stamp stock necessary in a self service vending credit depends on the vending machine models being serviced. To determine the amount, first identify the types of self service vending machines being serviced and the total number of each type. Then, refer to part 532 to determine the amount of stamp stock required.

533.1 Accountability

[Revise 533.1 to read as follows:]

533.11 Establishing Accountability

The accountability of each vending machine model must equal the amount of stamp stock needed to fully load the machine and the cash required to operate the machine, plus 1 month's average sales. A subaccount must be maintained for each vending machine (see part 552).

533.12 Reducing Accountability

When a servicing employee loses a machine and it is not replaced, the vending accountability credit must be reduced to reflect the loss of that vending machine model, and the subaccount must be closed out with a zero balance (see part 552).

Before a vending machine is removed from a location, a vending credit examination must be completed. All cash and stamp products must be removed from the vending machine. All monies removed from the machine are to be deposited as a "final" sale. Stamp stock must be returned to the stamp stock custodian.

Note: At no time are monies to be "transferred" to another machine.

533.2 Contingency Servicing Stock

[Revise text of 533.2 to read as follows:]

Once the vending credit has been established, the contingency servicing credit (minimum amount to keep machines operational during an absence) must be secured using the procedures in part 561. This contingency servicing credit is part of the total amount of the self service vending credit.

533.3 Bait Money Orders

[Revise text of 533.3 to read as follows:]

Each servicing person must be issued three bait money orders.

A Bait Money Order Control Log must be maintained for all money orders received and issued (see MI AS-220-1999-1). This log may be reproduced locally from Exhibit 533.3 and must be kept current.

* * * * *

[Revise title and text of Exhibit 256.1 to read as follows:]

Exhibit 256.1
Initial Low Sales Generation Notice to Postmaster

Date: [Insert Date]

Subject: Vending - Low Sales Generation Notice

To: [INSERT POSTMASTER NAME]
UNITED STATES POSTAL SERVICE
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Recent evaluation of the stamp vending sales being generated at the location listed below indicates that the equipment is not attaining the minimum acceptable standards.

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Location of Machine: [Insert Address]
Model: [Insert Model Number]
Minimum Average Monthly Sales: [Insert $ Amount]
Actual YTD Average Monthly Sales: [Insert $ Amount]
Percentage Achievement to Goal: [Insert %]
Cost Per Dollar Sales: [Insert $ Amount]

A plan of action to correct this deficiency must be implemented. A copy of the plan, with an implementation date, must be submitted to this office by [Insert Date (10 days)]. Possible ways to improve the sales of this unit include the following:

• Keep machine fully stocked.

• Make repairs and/or clear jams immediately.

• Visually inspect all vending machines during daily lobby sweeps.

• Post signs in lobby directing customers to stamp vending machines.

• Use lobby director to assist customers in using machine.

You may want to contact the district retail specialist to help you prepare your plan of action.

Two months after implementation, if this machine is unable to achieve the minimum acceptable requirement of [Insert Dollar Amount] per month, it will be designated for redeployment to a site which can serve a greater number of customers. If your unit is involved in a unique situation which may preclude its redeployment, please include this information along with your plan of action. Though this machine does not meet the minimum monthly sales standards, we may be able to deploy another vending machine model which requires lower monthly sales.

Please make every effort to increase this unit's productivity. This vending machine, although an underachiever, still contributes vending revenue. The intent of the self service vending program is to improve customer satisfaction and convenience, and to do so in a cost-efficient manner. If we are to maintain a credible presence in the business arena, the Postal Service must use its resources wisely.

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations

[Revise title and text of Exhibit 256.1a to read as follows:]

Exhibit 256.1a
Redeployment Letter1 to Postmaster

Date: [Insert Date]

Subject: Vending Evaluation Period Extension - Results of the 2-month evaluation period
Followup to "Low Sales Generation Notice" letter sent [Insert Date]

To: [INSERT POSTMASTER NAME]
UNITED STATES POSTAL SERVICE
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Approximately 2 months ago, your office was advised of a serious revenue generation deficiency exhibited by the stamp vending machine listed below:

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Cost per Dollar Revenue: [Insert $ Amount]
Location of Machine: [Insert Address]
Model: [Insert Model Number]
Required Minimum Monthly Sales: [Insert $ Amount]
Actual Average Monthly Sales: [Insert $ Amount]
Percentage Achievement to Goal: [Insert %]
Achievement (Per Month): [Insert $ Amount]

Further evaluation indicates that this stamp vending machine has demonstrated performance at, or above, the minimum acceptable standards during this time period. Therefore, the machine will continue to be evaluated for the next 4 months. At the end of this consecutive 6-month period, if the machine does not perform at an acceptable standard and achieve the 6-month average performance threshold, the machine will be designated for removal or relocation.

Retail Specialist [Insert Name] will contact you at the end of this 4-month period with the results.

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations

[Revise title and text of Exhibit 256.1b to read as follows:]

Exhibit 256.1b
Redeployment Letter2 to Postmaster

Date: [Insert Date]

Subject: Vending Removal - Results of the 2-month evaluation period
Followup to "Low Sales Generation Notice" letter sent [Insert Date]

To: [INSERT POSTMASTER NAME]
UNITED STATES POSTAL SERVICE
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Approximately 60 days ago, your office was advised of a serious revenue generation deficiency exhibited by the stamp vending machine listed below:

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Cost per Dollar Revenue: [Insert $ Amount]
Location of Machine: [Insert Address]
Model: [Insert Model Number]
Required Minimum Monthly Sales: [Insert $ Amount]
Actual Average Monthly Sales: [Insert $ Amount]
Percentage Achievement to Goal: [Insert %]
Achievement (Per Month): [Insert $ Amount]

Further evaluation indicates that this stamp vending machine continues to perform below minimum acceptable standards. Therefore, effective [Insert Date] the above machine will be designated for removal. Please post the enclosed notice on this machine within 3 working days. A retail specialist will contact you within the next 30 days to arrange for the removal of this stamp vending machine. If the sales of this machine reach the threshold to qualify for a different model of machine, your retail specialist will discuss those options with you at that time. If you should require further information concerning this action, please contact the Retail Specialist [Insert Name] at [Insert Telephone Number].

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations

[Revise title and text of Exhibit 256.1c to read as follows:]

Exhibit 256.1c
Example: Sample of a Customer Notification Notice

The Postal Service strives to provide the best service at the lowest possible cost to all of our customers. Unfortunately, this stamp vending machine is no longer effective in meeting the needs of the Postal Service and our customers. This vending machine will be removed from service on or about [Insert Date (no less than 30 days before removal)].

To minimize your inconvenience, stamps are available at this convenient nearby location:

[Insert the Name of an Alternate Source for Stamps]

[Insert the Address of an Alternate Source for Stamps]

A complete array of stamps and other products may be ordered for or business delivery via the official Postal Service Web site: www.usps.com. Also available online is a complete listing of all stamp selling locations and their hours of operation. To learn all the convenient locations offering stamps near where you live or work, select "Post Office Locator" and follow the easy instructions.

[Revise title and text of Exhibit 256.2 to read as follows:]

Exhibit 256.2
Initial Low Sales Letter to Postmaster

Date: [Insert Date]

Subject: Vending - Low Sales Generation Notice

To: [INSERT POSTMASTER NAME]
UNITED STATES POSTAL SERVICE
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

A recent evaluation of the sales generated by the self service vending machine listed below indicates that the machine is not attaining the minimum acceptable standards.

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Location of Machine: [Insert Address]
Model: [Insert Model Number]
Current Average Monthly Sales: [Insert $ Amount]
Minimum Monthly Sales Required: [Insert $ Amount]

A plan of action to correct this deficiency must be implemented. A copy of the plan, with an implementation date, must be submitted to this office by [Insert Date (10 days)]. Possible ways to improve the sales of this unit include the following:

• Keep machine fully stocked.

• Make repairs and/or clear jams immediately.

• Post signs directing customers to stamp vending machines.

In an effort to improve customer usage of this stamp machine, you may wish to contact District Retail Specialist [Insert Name] at [Insert Telephone Number]. [Insert Name] will be able to provide you with assistance in preparing your plan of action. If your unit is involved in a unique situation which may preclude its redeployment, please include this information along with your plan of action.

One of the first things you will need to do is to arrange a meeting with the owner/operator of the business to discuss the current amount of sales being produced compared to the minimum required. It is essential that the owner/operator understand that retaining the machine on-site is in jeopardy and that you would like to partner with him or her to raise the sales sufficiently to warrant leaving the service in place. Following this meeting, written confirmation of the meeting is required. Attached to this notice is a letter prepared for this purpose and a pre-addressed envelope. Please enter the current date and your signature on the letter, place the letter in the prepared envelope, and arrange for delivery the following business day.

After 2 months, if this unit is unable to achieve the minimum monthly sales required, it will be designated for redeployment to a site that can offer greater sales potential.

Please make every effort to increase this machine's usage. The intent of the self service vending program is to improve customer satisfaction and convenience, and to do so in a cost-efficient manner.

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations

[Revise title and text of Exhibit 256.2a to read as follows:]

Exhibit 256.2a
Initial Low Revenue Letter to Owner/Operator

Date: [Insert Date]

Subject: Vending - Low Revenue Generation Notice

To: [INSERT OWNER/OPERATOR NAME]
[INSERT BUSINESS NAME]
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Recent evaluation of this self service stamp vending machine indicates that it is not generating enough revenue for the Postal Service to continue to maintain it.

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Location of Machine: [Insert Address]
Model: [Insert Model Number]
Current Average Monthly Sales: [Insert $ Amount]
Minimum Monthly Revenue Sales: [Insert $ Amount]

This letter serves to confirm our recent conversation regarding customer postal needs at your facility. Approximately 60 days from the date of this letter, another review of customer usage and sales performance will be made. If, after attempting the methods identified for improving usage of this machine, it is still unable to achieve the minimum sales required per month, this stamp vending machine will be scheduled for redeployment to a site which serves a greater number of our customers. An assessment will also be made at that time to determine whether replacing this unit with a different model makes business sense.

Although this machine is an underachiever, it contributes vending revenue. As such, it supports the self service vending program to improve customer satisfaction and convenience. However, as Postal Service officials, we are mandated to do so in a cost-efficient manner.

I look forward to working with you to improve customer usage of this stamp vending machine. If you have any questions about this matter, please contact me at [Insert Telephone Number].

Sincerely,

[Insert Name]
Postmaster
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: Manager, Retail
Manager, Post Office Operations

[Revise title and text of Exhibit 256.2b to read as follows:]

Exhibit 256.2b
Redeployment Letter to Postmaster

Date: [Insert Date]

Subject: Vending Removal - Results of the 2-month evaluation period
Followup to "Low Sales Generation Notice" letter sent [Insert Date]

To: [INSERT POSTMASTER NAME]
UNITED STATES POSTAL SERVICE
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Approximately 60 days ago, you were advised of the serious revenue generation deficiency exhibited by the unit listed below:

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Model: [Insert Model Number]
Location Address: [Insert Address]
60-Day Monthly Average Sales): [Insert $ Amount]
60-Day Minimum Sales Required (Monthly Average): [Insert $ Amount]
Achievement to Goal: [Insert %]

Further evaluation indicates that this stamp vending machine continues to perform below minimum acceptable standards. Therefore, effective [Insert date] the machine will be designated for removal. Attached to this notice is a letter and a pre-addressed envelope to notify the owner/operator of this decision. Please enter the current date and your signature on the letter, place the letter in the prepared envelope, and arrange for delivery the following business day.

After the notification letter has been delivered, post the enclosed notice on the machine within 3 working days. A retail specialist will contact you within the next 30 days to arrange for the removal of this stamp vending machine. If the sales of this machine reach the threshold to qualify for a different model of machine, your retail specialist will discuss those options with you at that time. If you should require further information concerning this action, please contact the Retail Specialist [Insert Name] at [Insert Telephone Number].

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations

Enclosures

[Revise title and text of Exhibit 256.2c to read as follows:]

Exhibit 256.2c
Redeployment Letter to Owner/Operator

Date: [Insert Date]

Subject: Vending - Results of 60-Day Revenue Producing Efforts
Followup to "Low Revenue Generation Notice" sent [Insert Date]

To: [INSERT OWNER/OPERATOR NAME]
[INSERT BUSINESS NAME]
[INSERT STREET ADDRESS]
[INSERT CITY, STATE AND 9D ZIP]

Approximately 60 days ago, you were advised of the serious revenue generation deficiency exhibited by the unit listed below:

Unit ID #: [Insert _ _ _ _ _ + _ _ _ _]
Model: [Insert Model Number]
Location Address: [Insert Address]
60-Day Monthly Average Sales): [Insert $ Amount]
60-Day Minimum Sales Required (Monthly Average): [Insert $ Amount]
Achievement to Goal: [Insert %]

As you can see, over the last 60 days the machine has averaged only [Insert Amount] per month in sales. Since revenue- producing efforts have not indicated sufficient improvement, effective [Insert Date], the machine will be designated for removal.

Within the next few days, the Postal Service employee who services this machine will be applying a notice to notify customers that the machine will be removed in approximately 30 days. The notice will minimize your customers' concerns and identify other postal options for obtaining stamps and other stamp products. Approximately 14 to 21 days from the date of this letter, you will be contacted by me, or by one of my staff members, to arrange for the physical removal of the vending unit.

While we regret any inconvenience this may cause you or your customers, your cooperation is appreciated. If you have any questions or concerns, please feel free to contact either District Retail Specialist [Insert Name] at [Insert Telephone Number] or me at [Insert Telephone Number] to discuss this matter.

Respectfully,

[Insert Name]
Postmaster
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Retail
Manager, Post Office Operations

[Add new item Exhibit 257.2 to read as follows:]

Exhibit 257.2
Obsolete Vending Equipment Letter to Owner/Operator

Date: [Insert Date]

Subject: Obsolete Vending Equipment

To: [Insert Owner/Operator Name]
[Insert Business Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

A recent evaluation of the self service vending equipment has identified the machine listed below, which is installed at your location, as obsolete:

Unit ID #: [Insert _ _ _ _ _ + _ _ _]
Model: [Insert Model Number]
Average Monthly Sales: [Insert $ Amount]
Minimum Monthly Sales Required: [Insert $ Amount]

Once a vending machine model has been declared obsolete, it must be removed from service since its maintenance becomes cost-prohibitive. Repair parts become hard to find and customer service degenerates from the machine's frequent breakdowns. Machine breakdowns increase our costs as additional trips are required to provide emergency service.

To determine whether to replace this unit with a current model or discontinue its service at your location, an analysis of the revenue produced by this machine was performed. I regret to inform you that there are currently no replacement models with minimum monthly sales requirements less than or equal to the revenue produced by this obsolete model. As a result, the decision has been made to remove the obsolete unit without providing a replacement.

Within the next few days, the Postal Service employee who services this machine will be applying a notice to notify customers that the machine will be removed in approximately 30 days. To minimize your customers' concerns, the label will also identify some other postal options for obtaining stamps and other stamp products. Approximately 14 to 21 days from the date of this letter, you will be contacted by the postmaster, or his or her representative, to arrange for the physical removal of the vending unit.

Your contributions to the success of the postal service vending program have been greatly valued. While we regret any inconvenience removing this machine may cause you or your customers, your cooperation in supporting this decision will be appreciated. If you have any questions or concerns, please feel free to contact District Retail Specialist [Insert Name] at [Insert Phone Number] to discuss this matter.

Respectfully,

[Insert Name]
Manager, Retail
[Insert District Name]
[Insert Street Address]
[Insert City, State and 9D ZIP]

cc: District Manager
Manager, Post Office Operations
Postmaster

* * * * *

— Retail Service Equipment, Delivery and Retail, 9-15-05

HANDBOOK PO-102 REVISION

Determining, Acquiring, and Installing Vending Equipment

Effective September 15, 2005, Handbook PO-102, Self Service Vending Operational and Marketing Program, is revised with monthly sales performance thresholds and sales maximums for vending machine models at postal and nonpostal locations. These standards will be used to determine the deployment or redeployment of vending equipment.

We will incorporate these revisions into the next printed edition of Handbook PO-102 and into the next update of the online version accessible on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left hand column, click on References.

• Under "References" in the right-hand column, under "Policies," click on PolicyNet.

• Then click on HBKs.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Handbook PO-102, Self Service Vending Operational and Marketing Program

* * * * *

2 Establishing Self Service Vending Locations

* * * * *

23 Determining Equipment

231 New Locations

[Revise title and text of 231.1 to read as follows:]

231.1 Criteria for New Postal Locations

When vending is the best retail channel, the retail specialist determines the model and number of the self-service vending equipment to be placed in a new postal facility. Selection is determined based on the national vending percentage of the monthly total retail revenue (walk-in, retail metered, consignment, stamps by mail, etc.) for the specific type of postal location. Use Exhibit 231.1.

[Revise title and text of Exhibit 231.1 to read as follows:]

Exhibit 231.1
Criteria for Initial Equipment Placement

Main Office (MO)

Postal Branch (BR)

Postal Station (PS)

Postal Store (ST)

231.2 Criteria for Nonpostal Locations

[Revise text of 231.2 to read as follows:]

Headquarters must approve all nonpostal locations.

The retail specialist determines the self-service vending equipment model to be placed in a new nonpostal facility. Selection is determined based on the estimated revenue per month, using the criteria in Exhibit 231.2. The location and equipment must be re-evaluated 6 months after the initial installation.

[Add new Exhibit 231.2 as follows:]

Exhibit 231.2
Criteria for Initial Equipment Placement in Nonpostal Facility

[Revise title of 232 to read as follows:]

232 Existing Postal and Nonpostal Locations

232.1 Revenue Criteria

[Revise text of 232.1 to read as follows:]

Self-service vending equipment meeting the performance threshold detailed in Exhibit 232.1 must be maintained at its current location. If the revenue changes, the self-service vending equipment must be replaced, as defined in Exhibit 232.1.

[Add new Exhibit 232.1 as follows:]

Exhibit 232.1
Revenue Criteria

a. Performance Threshold for Vending Equipment

Self service vending equipment at postal locations with monthly sales totals less than $126.41 must be removed. All vending equipment at nonpostal locations with monthly sales totals less than $338.71 must be removed.

Note: Criteria will change with every rate case.

b. Not Meeting Performance Threshold

Self service vending equipment models that do not meet their performance threshold must be replaced with models that have a lower performance thres- hold. When there is no replacement model with a lower performance threshold, then vending service must be discontinued at the location.

c. Meeting Performance Threshold

Self service vending equipment meeting its performance threshold must be maintained at its current location.

d. Exceeding Performance Threshold

Self service vending equipment exceeding its maximum sales performance requires that an additional machine be deployed. The additional machine should be the same model as the vending equipment that exceeded its maximum sales performance level at the location.

* * * * *

24 Acquiring Equipment

[Revise text of 24 to read as follows:]

The purchase of all self service vending equipment is restricted to Headquarters.

25 Installing Equipment

251 Pre-installation Checklist for Retail Specialist

[Revise 251 to read as follows:]

The following checklist contains the pre-installation requirements for retail specialists:

* * * * *

— Retail Service Equipment,
Delivery and Retail, 9-15-05

HANDBOOK PO-102 REVISION

Vending Equipment Frequencies and Servicing Time Requirements

Effective September 15, 2005, Handbook PO-102, Self Service Vending Operational and Marketing Program, is revised with new servicing frequencies for vending equipment and new time requirements for servicing personnel.

We will incorporate these revisions into the next printed edition of Handbook PO-102 and into the next update of the online version accessible on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left hand column, click on References.

• Under "References" in the right-hand column, under "Policies", click on PolicyNet.

• Then click on HBKs.

Handbook PO-102, Self Service Vending Operational and Marketing Program

* * * * *

4 Servicing Self Service Vending Equipment

* * * * *

45 Workload

451 Determining Frequencies

451.1 For New Location Equipment

[Revise text to read as follows:]

The revenue generated by a machine in a month determines the servicing frequency. Servicing personnel make frequent visits to a new location in order to determine the servicing frequency, using Exhibit 451.2, Standard Servicing Frequencies, as the criteria.

451.2 For Existing Location Equipment

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Exhibit 451.2
Standard Servicing Frequencies

[Revise table to read as follows:]

Notes:

See part 131 for the definition of each machine type.

Each machine is required to generate a projected sale threshold before it can be installed. The number of servicings per month is based on actual sales. The minimum requirements for each machine are reflected in the above table.

For locations with multiple machines, the frequency to the location is based on the machine with the highest earned frequency. All machines at the same location are serviced during one visit. All machines are required to be fully stocked in accordance with part 433 during the servicing visit.

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452 Time Requirements

452.1 Guidelines

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[Add new item g to read as follows:]

g. Breaks in accordance with the National Agreement.

The basic time requirements shown in Exhibit 452.1e are averages based on a nationwide study. Basic time requirements relevant to the workload are applied to determine the servicing person's workload. Basic time requirements that do not accurately reflect the workload are modified. Adjustments are made only to travel and bank deposit times. Such adjustments are as follows:

* * * * *

[Revise item b to read as follows:]

b. Prepackaged products must be used; therefore, no packaging time is allowed. See part 433b and section 434.1c.

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Exhibit 452.1e
Standard Time Requirements in Minutes

[Revise table to read as follows:]

Note: See part 131 for definitions of machine types.

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— Retail Service Equipment,
Delivery and Retail, 9-15-05

HANDBOOK PO-102 REVISION

Stock Levels for Vending Machine Models

Effective September 15, 2005, Handbook PO-102, Self Service Vending Operational and Marketing Program, is revised to provide the value of prepackaged stock items and cash required to fully stock each vending machine model.

We will incorporate these revisions into the next printed edition of Handbook PO-102 and into the next update of the online version accessible on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left hand column, click on References.

• Under "References" in the right-hand column, under "Policies," click on PolicyNet.

• Then click on HBKs.

Handbook PO-102, Self Service Vending Operational and Marketing Program

* * * * *

5 Financial Control

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53 Self Service Products

[Revise text to read as follows:]

Self service products are any prepackaged vendible items approved by Headquarters. The field is not authorized to package stamp stock to be used as a self service product.

* * * * *

532 Other Items

[Revise 532 to read as follows:]

Value of initial stock level for vending machine models:

Note: Actual values may be found on the USPS Retail Self Service Web page at http://eagnmnsg10d/ssam/self_service/html/programs/selfservice.htm.

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— Retail Service Equipment,
Delivery and Retail, 9-15-05

REMINDER

Stamps by Mail — Brochure Ordering Information

The next deadline date for ordering Stamps at Your DoorTM (Stamps by Mail®, Stamps Delivered to Your Door) brochures is October 3, 2005. This print run will be for the holiday brochure design.

To order brochures, submit PS Form 3227-0, Stamps At Your Door Supply Order (August 2005), to Cyril-Scott Company:

CYRIL SCOTT COMPANY
PO BOX 627
LANCASTER OH 43130-0627

Telephone: 800-466-0455
Fax: 740-689-0210

You can find this form at http://blue.usps.gov; click on Forms, then select the form by number. A copy of this form appears on page 41 in this Postal Bulletin.

The cost per unit of 500 is $11.00. This cost includes overprinting the address of the fulfillment office placing the order. You may pay for orders with local IMPAC credit cards, checks, or money orders. However, Cyril-Scott Company cannot process the order until it receives payment. Local eBuy procedures may also apply (refer to local procurement procedures).

Postal ServiceTM Headquarters has funded a national procurement for the October 3 print run for 5 million brochures for the Stamps By Mail centralized computer processing sites. The distribution amount for each site is available by referencing column K (5MM) of the centralized site address spreadsheet. These quantities are based on revenue generated by site. No local order placement is required to receive brochures from this distribution. However, centralized sites may order additional quantities from Cyril-Scott Company from local funds by following the ordering instructions contained within this article.

All other local Post OfficesTM should follow the ordering instructions contained within this article and utilize local funds.

Cyril-Scott Company will deliver orders within 35 calendar days after printing. Printing begins 1 week after the deadline date, and actual receipt of the order will depend on the ultimate destination and the corresponding delivery service standard. You should save copies of all orders placed at your local Post Office until the order has been received. Please ensure procedures are in effect locally for proper verification of receipt.

— Retail Marketing,
Customer Service, 9-15-05