More Postal Misery

How sad. AOL is asking e-mailers to pay a few pennies to guarantee delivery, and critics are griping.

Oh, give it up. You don’t know what misery is.

We’ll tell you who has a right to complain — snail mailers.

Next year, they’ll be facing their second postal rate increase in less than 18 months.

So what if it’s “only” 9% for standard mail? That puts it ahead of inflation, and combined with last year’s hike, moves the overall hit well into double digits — enough to drive small firms out of the mail stream. And we can expect more of the same if the U.S. Postal Service moves to “annual rate adjustments.”

Yes, there are discounts to mitigate the damage. Larry Riggs reports on them starting on page 9.

But it’s still bad news for direct marketers, for despite the vaunted media options out there, some are trapped in the postal system.

Just look at the list. E-mail can’t be used for prospecting; you could end up in spam-filter purgatory. Telemarketing’s out, too.

That leaves direct mail, the one push medium that hasn’t been legislated almost out of existence. But mail is expensive.

What’s more, the USPS is bound to suffer a steady erosion of its volume as more firms move to e-mail for billing and customer communications. That could lead to bigger hikes.

Do we blame the postal service? Not necessarily. It’s hamstrung by laws passed 35 years ago. But we do question some aspects of this filing.

For example, who thought of the first class postage stamp that’ll be good through future increases? It’s nice of the USPS to offer that, but where’s the perpetual indicia for standard mailers?

As we understand it, the purpose of the “forever stamp” is to reduce the hike’s impact on consumers (i.e., to calm them down). But it’s a mistake.

The USPS would be better served if people got agitated about the second increase in such a brief period of time. A public outcry might just sharpen congressional interest in reform.

Then there’s the container charge for palleted mailings. Is that supposed to cover operational costs? If not, who does it help?

Well, rate cases and hikes are not always identical.

The Postal Rate Commission might modify the rates. But don’t count on it. The alterations we’ve seen over the years have rarely benefited direct mailers.

And reform? The way things are going, you’ll be seeing the 2008 rate increase before you see that.