USPS “No 2010 Rate Increase”: The Loophole and a Call to Action

Just when I thought it was safe to believe in the U.S. Postal Service, I find out this lovely tidbit of information: Despite Postmaster General John Potter’s grand statement (or was it a grandstanding statement) that there’d be no postal rate increase in 2010, there’s a giant loophole.

No matter what Potter said in his memo, the USPS can still increase postal rates. Just to be sure, I asked Don Landis, vice president of postal affairs at Arandell Corp., a noted catalog printer/mailer. According to Landis, “It’s possible some mailers could see an increase in their postage come May 2010. The USPS could make regulation changes that would force mail into a more expensive category. We’ll know in January or February.”

How You Can Make a Difference
While I applauded Potter and the USPS for taking a stand for the direct marketing industry in this column two weeks ago, I hope I didn’t speak too soon. I still remain cautiously optimistic, but I also must do my part to help sway the decision. We must hold the postmaster general and the Postal Regulatory Commission to his/its commitment.

Thus, I urge you to write a letter to the postmaster general using the contact information provided below. Here’s the letter I wrote. Feel free to copy, paste and use it, or create your own. The key is to make your voice heard!

Dear Mr. Postmaster General,

You’ve started a trend here. Between the postal summer sale and now this offer to keep postal rates stable in 2010, catalog and direct mailers believe that you may actually be interested in working to our benefit. We look forward to the next postal sale, and hope that the USPS opens it up to smaller mailers to take advantage of. We truly hope that you’ll continue to stop thinking like a bureaucracy and encourage more mail volume with innovative special offers and such.

But direct marketers are also wary because the USPS holds a great deal of power and leverage over us. The last substantial postal rate increase nearly put us under with rate increases of 20 percent-plus. What was the USPS thinking? That move single-handedly drove more and more mailers into the online world. Doing the math, we believe the increase actually caused your revenues to go down due to less mail in the mailstream.

Remember this, Mr. Postmaster General: Every penny more it costs us to mail means we need to generate about 2 cents more per catalog mailed just to break even. In this economy, we need every opportunity we can get to mail our catalogs profitably. We’re struggling to stay alive and keep our workers employed and our customers satisfied.

Keep up the good work, Mr. Postmaster. Please continue this trend.


The Direct Mail Industry

Reach the postmaster general at the following:

The Honorable John E. Potter
Postmaster General
U.S. Postal Service
475 L’Enfant Plaza, SW
Washington, D.C. 20260-0010

Originally published in All About ROI Magazine

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