“Band-Aid†Relief for Unkind Postal Cut
Got a minute? Try taking this week’s USPS quiz. What “leaves Standard letter rates untouched, protects the Postal Service’s financial standing, allows USPS projected revenues to meet expected costs and does not reduce the contingency fund� (The quote is from Dan Blair, chairman of the Postal Regulatory Commission.)
The correct answer is the PRC’s new proposal for a temporary rate decrease of the flat rate that went into effect May 14. Some catalogers are having to deal with increases of up to 40%. The PRC’s proposal would reduce Standard Mail regular flats by 3 cents, with a 2-cent reduction for Standard Regular nonprofit flats until September 29. In theory, this respite should help mailers make the transition to higher rates without requiring additional capital outlay during the interim period. (Just multiply the number of flats by 2 or 3 cents, as necessary, says the PRC.)
The proposal is now in the Board of Governors’ court. The Direct Marketing Association has registered its “disappointment,†calling the proposal nothing more than a “summer break†for mailers and a “Band-Aid.†With the DMA suggesting that this new proposal be made permanent, it seems clear that there is no chance that the flat rate increases will be reduced significantly. They’re here to stay, either at the current rate, or possibly with the 2–3-cent reduction to Sept. 29, or even beyond.
Affected mailers can send their comments—again—to the Postal Board of Governors.
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Jeff Barry is Director of Marketing of F. Curtis Barry & Co., a warehouse consulting company focusing on the entire direct fulfillment process with expertise in freight analysis.
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