- 3 - discount). ZSI typically shared the presorting discount with its customers such that ZSI would refund, or reduce, fees paid to ZSI by 2 cents. Despite receiving this presorting discount, the presorting division historically maintained a very low profit margin; high volume was essential to the success of the presorting division. Through 1990, ZSI’s overall performance was stagnant, and petitioner attempted to sell ZSI’s unprofitable presorting division but was unsuccessful. In 1990, the Postal Service instituted an additional refund program wherein the Postal Service began refunding to participants 0.9 cent for each piece of presorted bulk mail that met certain Postal Service criteria (the value-added refund, or VAR, program). One criterion of the VAR program was that the participant place bar codes on each piece of mail so that the Postal Service could use optical scanners to economize its operations. In June 1990, ZSI entered into a lease1 for a multiline optical character reader (MLOCR) which automated its presorting division, printed bar codes on pieces of mail, and sorted the pieces by ZIP Code. Although ZSI began leasing the MLOCR in 1990, ZSI did not yet qualify for participation in the VAR program; in 1990, ZSI 1ZSI leased the multiline optical character reader (MLOCR) either because MLOCRs were too expensive to purchase (between $400,000 and $1,000,000) or because, for security reasons, the manufacturer would not sell a MLOCR to ZSI.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011