Tuesday, August 27, 2013

Reactions to USPS Exigency Case

http://www.dmnews.com/exigency-extra/article/309012/
With the direct mail industry preparing to debate the United States Postal Service's (USPS) Postal Board of Governors on Sept. 5 in a discussion about a potential exigent rate increase, we present considerations posed by parties that figure to be affected by such a move.
"If the USPS Board of Governors impose an above-CPI-cap exigency postage increase on catalog mailers, catalog mail volume will inevitably take a significant fall. In some cases, catalog volume could decline to post-2007 rate increase levels, and will be very hard for some companies to recover from. More than six years since the damaging 20%-plus postage increase imposed on catalog mail, this industry has still yet to recover; an exigency increase will only exacerbate the problem." American Catalog Mailers Association
“With the availability of highly effective and efficient marketing alternatives, any significant postage rate increase would change the ROI calculus by companies in comparing alternatives. That shifting ROI, in turn, would threaten the sustainability of our existing strategies and compel an industry-wide shift of investment of communication and advertising dollars from mail to those alternative channels...  — The Affordable Mail Alliance
“Attempting to address some of the service's inherent problems—notably an oversized and underutilized infrastructure—by imposing a rate increase on a product [periodicals] postmaster generals have called ‘the anchor of the mailbox' [as] both unwise and unlawful... — MPA , The Association of Magazine Media
“And now let's look at the reasons why the USPS should not play the exigency card. The primary reason is that the result of higher-than-CPI increases will be an immediate loss of volume and movement to other marketing channels...— Joe Schick, director of postal affairs, Quad/Graphics 
And more...