SPECIAL EDITION: Postal Rate Recommendation Could be Catastrophic for Catalogers

Among other catalogers I spoke with about this development, Herrington, a Londonderry, N.H.-based cataloger of personal recreational gadgets, anticipates its rates would rise 19.8 percent if the PRC recommendation goes through. “I am extremely disappointed in the recommendation, not only in terms of the increase but in the timing,” says president/COO Norm Beauchesne.

He calculated this increase “despite using all possible work-share discounts possible. Given that postage is by far our largest expense,” Beauchesne adds, “our CPM will increase significantly. As a result, I’m expecting some significant changes in our circulation strategy.”

Smaller catalogers, who don’t mail great enough quantities to gain carrier route rates, could get hammered even worse, Crofoot says. The USPS requested that the 3-digit sort automated rate, which is currently $0.275, be raised 19 percent to $0.328, but the PRC recommends that rate balloon to $0.392, a 43 percent jump.

Call For USPS Rejection

Crofoot and others are part of a campaign among catalogers, printers and other suppliers to get the USPS to reject the PRC recommendations.

“We’re working with a group of printers to build a significant voice of advocacy,” says Mike Talbott, vice president, business development for CMS Direct, a marketing services firm that owns the Prefer Network co-op database service. Talbott believes that if the USPS is sympathetic to catalogers’ and their suppliers’ protests, the likely outcome will be an “accept under protest” verdict, which would mean the rates being implemented per the PRC recommendation.

“That would mean we take a hit in May,” the expected month for new rates to be implemented, he says, “and start a fight to get this extra hit back.