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The Direct Marketing Association has submitted formal comments to the USPS Governors, asking them to reject the Postal Regulatory Commission's specific recommendations for large rate increases on flat-shaped mail and send them back to the PRC for reconsideration.
From DMNews.com—Last month, the mailing community offered mixed reactions to the Postal Regulatory Commission’s recommended rate decision, which included rates either equal to or below those requested by the U.S. Postal Service.
The recommendation of an average 7.6 percent rate increase, which was delivered a week before deadline, was unanimous. If approved, the new rates could take effect as early as May.
“In nearly every category of mail, including nonprofits, the commission approved rate increases equal to or below the postal service’s request, while still meeting the service’s revenue requirement,” said PRC chairman Dan G. Blair in a news conference Feb. 26, the day the decision was made.
The decision follows an administrative proceeding involving mailers, employee organizations, consumer representatives and competitors.
While the rate increase will impact numerous classes of mail to varying degrees, the average rate increase will be 7.6 percent. The rates proposed by the postal service equate, on average, to an 8.1 percent increase.
The Impact on Catalogers
But this does not tell the whole story. Some mailers were alarmed by the effect on lightweight catalogs. The majority of catalogs weighing less than 3.3 ounces will see increases ranging from 20 to 24 percent. In fact, even catalogs weighing 4.5 ounces will be looking at 15 percent to 19 percent increases.
As usual, the greater the carrier route presort and Sectional Center Facility entry, the lesser the effect.
While all catalogs will see increases much greater than the USPS’ original proposal, some mailers were particularly concerned about an increase of 42.5 percent for automated Standard Mail flats delivered at the 3-digit qualification.
DMA Concerned
The Direct Marketing Association expressed its appreciation for the effort made by the PRC to mitigate the impact of proposed rate increases for individual, nonprofit and commercial mail.
However, the association said it remains concerned about both the significantly higher postage rates recommended for some classes of mail. It is also worried about the sufficiency of time allowed for large mailers to modify their systems and processes before the new rates take effect.
“While higher postage costs are never welcome for the individuals and organizations that use the mail to send messages and packages, we are pleased that the PRC did adjust the postal service’s revenue requirement and responded to some of our concerns about the particulars of the rate request,” DMA president/CEO John A. Greco Jr. said in a statement. “However, we had hoped that more could have been done to offset the extraordinarily high increases for non-flat machinable and parcel mailings,” he said. “This is not only the second such increase in two years, but it is also far in excess of the rate of inflation.”
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