Mailers Concerned with Rate Hikes, Express Need for Postal Reform

Several associations and mailers reacted to the U.S. Postal Service’s announcement last week that it filed for an average 8.5 percent postal rate hike with the Postal Rate Commission with concern, and promoted the benefits of postal reform, DM News writes.

The Direct Marketing Association has said that with the possibility of even more rate hikes, several business and nonprofit mailers would have to replace mailing campaigns with less expensive ways of communicating with consumers. This would send the USPS into a downward spiral, reducing revenue and then calling for more rate increases to compensate.

Parties concerned with the rate increase include in-county newspaper mailers like the National Newspaper Association which said their rates could increase almost 25 percent. “The National Newspaper Association vigorously opposes this increase,” said Jerry L. Reppert, NNA president and publisher of the Anna, Illinois, Gazette-Democrat.

Many mailers saw the hike as evidence of the need for more postal reform. “These frequent rate increases are just temporary fixes on a system that needs serious repair,” said Jerry Cerasale, Direct Marketing Association senior vp for government affairs. “Postal reform legislation would significantly reduce the impact of the USPS escrow payment. If the current House or Senate bills were in effect today, the proposed rate increase would be less than half of what the postal service is asking for.”

While the USPS could alter its rate case if the White House approved the reform bills, insiders said reform wouldn’t necessarily produce any short-term relief for mailers.