Wednesday, August 28, 2013

Business Worries About USPS Rate Jump

http://thehill.com/blogs/on-the-money/1007-other/319075-postal-services-big-customers-dreading-a-rate-hike
Private-sector groups are growing increasingly worried that the Postal Service's board is going to consider a broad rate increase next month, a move they say would amount to an attack on some of the agency’s best customers. Industries that heavily use the mail, like magazines, catalog marketers and banks, say that a sharp hike in the postage rate would drag down their bottom line.
 Mailers also insist that, while they understand the USPS's board of governors has to look for ways to firm up a dire financial situation, approving a rate increase would be counterproductive for the agency, and little more than a temporary substitute for the long-term changes the service desperately needs. 
A postal rate increase of as much as 10 percent could produce a short-term revenue burst for the struggling service, mailers say, but could be a long-term loser once companies rely less on the mail.