POSTAL RATE CASE UPDATE: Catalogers Must Take Immediate Action on USPS-PRC Rate Diferences, Vendors Say

* The USPS called for a $0.343 rate for 5-digit non-automatable flats, the PRC recommended $0.363.

For established rates, the differences weren’t as large, but equally significant.

* The USPS called for a $0.233 rate for basic enhanced CRR flats, the PRC recommended $0.249;

* The USPS called for a $0.182 rate for saturation ECR flats, the PRC recommended $0.187;

* The USPS called for a $0.204 rate for high density ECR flats, the PRC recommended $0.205.

Landis notes that there is only one opportunity for the catalog industry to express its concern regarding the PRC recommendations. “The USPS Board of Governors must be made aware of the adverse effects these rates will have on the catalog industry,” he says. “Awareness must come from catalogers and not suppliers. We are working with our customers on this issue now.”

Landis advises catalogers to send a letter to the Board of Governors voicing their concern with the recommended rates. “We are also looking at ways to move customers to a more efficient and less expensive presort,” he says.

How to Contact USPS

To reach the USPS Board of Governors, write to

The Honorable James C. Miller III
Chairman
United States Postal Service Board of Governors
475 L’Enfant Plaza, Room 10300
Washington, D.C. 20260-0004

But industry insiders strongly urge catalogers to fax their letters ASAP to (202) 268-5472.

What to Write

Below are two recommended ways to contact the USPS Board of Governors:

Data services firm Experian has composed the template of a letter it recommends catalogers to write:

Dear Honorable Chairman Miller:

(Company Name) is a large FLAT mailer and is very disappointed in the Postal Regulatory Commission’s (PRC) decision to raise rates on FLAT mail much higher than the USPS requested. This late and surprise decision will only cause our firm to cut back on the volume of FLAT mail we send. We budgeted for a 9%-12% increase and now are not seeing any increases below roughly 20% for our mail. As I am sure you are aware, budgets for the remainder of calendar year 2007 have been set for many months, so the only way we can absorb this unanticipated significant additional rate increase is to reduce our quantity of mailings. This will obviously shrink USPS revenues and volumes if the rates the PRC has set are approved.