BOG Nixes Temporary Flats Rates; Mail Groups Upset
The U.S. Postal Service Board of Governors chose not to implement a proposed temporary cut in the new rates for flats (catalogs). Industry groups were disappointed and several warned this would lead to reductions in mail volume.
At its meeting Tuesday, the BOG chose not to implement the Postal Regulatory Commission’s recommendation of a “temporary” reduction of a three cents for standard mail flats and two cents for standard mail nonprofit regular flats. This was after the BOG had approved in May increases for flats, some of which could exceed 40% (Direct Newsline, May 29).
With this decision, the original rate increases stand.
“The Postal Governors made a bad call,” said John Greco, president of the Direct Marketing Association, in a statement. “It was a bad decision in February when the PRC made its recommendations for rates far in excess of what the Postal Service originally requested. Now by refusing to make the much-needed corrections, the Governors have all but assured a decrease in mail volume that will be felt for years to come.”
“Any rate reduction would have been better then no reduction at all so I imagine catalogers are disappointed,” said Kate Muth, vice president of the Association for Postal Commerce.
“I was disappointed,” said Tony Conway, executive director of the Alliance of Nonprofit Mailers. “I thought it was a reasonable proposal for relief or nonprofit mailers that already had summer campaigns built on flats mail. Those campaigns are usually built about a year in advance.”
Conway noted it would probably take about a year to tell if these new rates have a long-lasting downward effect on mail volume.
Separately, the BOG also approved the Commission’s other two recommendations regarding the reconsideration of the price for the priority mail flat rate box and the application of the nonmachinable surcharge for first-class mail letters
