Communications from ACMA Members to USPS Officials
The results of the postal increases in 2007 and 2008 have been devastating for all catalogers. At our recent Executive Forum we talked about how important it is to make the results known to the Postal Commission. They just don’t seem to understand what they did to our industry. Hamilton Davison, Executive Director, American Catalog Mailers Association and dozens of catalogs are communicating this to the USPS officials. Please make this a priority to communicate the postal increase effects on your profits and what the decrease in circulation will be which hurts the USPS.
We support the American Catalog Mailers Association and their efforts. F. Curtis Barry & Company recently joined ACMA and advocate that you do also. Don’t delay. Send you’re a simple statement of the impact to Mr. Davison and he’ll get it to the appropriate parties. ACMA is meeting regularly with USPS officials.
For further information:
Hamilton Davison
Executive Director
American Catalog Mailers Association
www.catalogmailers.org
Telephone: 1-800-509-9514
Email: hdavison@catalogmailers.org
Direct telephone: 1-401-529-8183
_______________
Selected responses
The Honorable James C. Miller III
Chairman, Board of Governors
US Postal Service
Washington, DC 20260-1000
February 28, 2008
Dear Chairman Miller:
The Johnson Smith Company is a multi-channel direct marketer of gifts, novelties and health care items and has been in business since 1914. In 2006, our annual expenditure with the Post Office on catalogs alone was $6.7 million. In 2007, in anticipation of the initially proposed increases, we made the decision to cut our annual circulation by between 10-15%. Despite that cut to circulation, the ultimate cost to our company as a result of the eventual rates was $1.7 million.
Since we had no warning of the ultimate rate increase, we were unable to properly plan for it. The end result to our company was devastating. We were forced to lay off over 20 of our associates or roughly 20% of our workforce. This was the first time in our 94 years of existence that we have ever had to lay anyone off.
As a direct result of those rate increases, we are further cutting our circulation by 15% in 2008 and dramatically limiting our prospecting. Instead, we are funneling both our monetary and human resources towards alternative means of advertising; in particular the internet. At the current cost of prospecting by catalogs, we see little future for our company in advertising by that method with the Post Office.
While the consequences to our company as a direct result of the Postal increase were unfortunate, it in no way takes into account the impact on the literally thousands of vendors and businesses that support us. Prior to making any more drastic changes, please consider the importance of our industry to the American industry as a whole.
Sincerely,
Johnson Smith Company
Ralph W. Hoenle
President
cc. Postmaster General Jack Potter
______________________
Hamilton Davison
Executive Director
American Catalog Mailers Association
The Thompson Group had sales of approximately $200 million in 2007. Our total POSTAGE cost was $17,255,000 which was an increase of 20%+ or close to $3,000,000 over the prior year with a 5% decrease in mail pieces sent through the USPS. We are further reducing circulation in 2008 by another 10%.
Our profit was very significantly eroded by the 20% increase we absorbed in postage cost. As stated before, we are again reducing circulation of catalogs in 2008 to partially offset the full year effect of the increase.
Steve Cobden
Chief Marketing Officer
The Thompson Group
_____________________
Hamilton Davison
Executive
American Catalog Mailers Association
NEEDS sales for 2007 were $5.74 million. Our total mailing cost for publications was $105,000 which was an increase of 19% ($20,000) over the prior year without an increase or decrease in the 530,000 catalog and newspaper pieces sent through the USPS.
Our profit was $101,000 so the postage increase cut out nearly 20% of our profits in 2007 which should be even more in 2008 as we experience a full year of postage increase costs.
Andrew S. Fox
President/CEO
N.E.E.D.S., Inc
6666 Manlius Center Road
East Syracuse, NY 13057
315-432-1885 x2221
andy@needs.com
_____________________
Hamilton Davison
Executive Director
American Catalog Mailers Association
Ulla Popken had net sales for 2007 of $12 million. Our total mailing cost for publications was $1,620,356 which was an increase of 15% over budget with flat circulation in mail pieces sent through the USPS.
Our profit was $50,000 so the postage increase cut out nearly $250,000 of our profits in 2007 which should be even more in 2008 as we experience a full year of postage increase costs.
Phyliss Sorese Mosca
President Ulla Popken
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