BMG-Columbia House: Rate case will put us out of the mail order business

In a letter to USPS Chief Operating Officer Pat Donohoe, BMG Columbia House VP Clifton B. Knight Jr. says that the proposed new Postal rates and regulations “will make it impossible for us to remain in the business of selling music and video products by mail”. Knight asserts that his company will face increases of “62% to 115%” in its product shipments. And if the company is “constrained to stop using the mail for product shipment”, it will “inevitably reduce, if not entirely eliminate” its “use of mail for marketing and promotional purposes”.

Knight says the problem isn’t just the rates- it’s the fact that the USPS is reclassifying his company’s product from flats to parcels, even though Knight claims BMG has gone to “considerable expense” to make sure that their CD and DVD shipments meet the requirements for automated flats.

Letter from Clifton B. Knight Jr to DPMG Pat Donohoe

6 Responses to “BMG-Columbia House: Rate case will put us out of the mail order business

  • 1
    Robert C. Blean
    October 12th, 2006 12:07

    The mailers are crying because the bonus payments made to the CEOs may go down Why not wine about the cost of fuel which is killing the USPS budget

  • 2
    mike
    October 13th, 2006 08:48

    as someone who has had to deal with bmg for years i sincerely hope that the usps has come up with a plan that will ensure that these whiners pay their fair share. postal management has been giving away the store for years letting bmg dictate how they would follow the procedures set forth in the dmm. as well as transportation, staffing and anything else that helps their bottom line.

  • 3
    postalnews blog » A little Nonprofit plagiarism…
    October 13th, 2006 09:18

    [...] If the item below, captured from the web site of the Alliance of Nonprofit Mailers, looks familiar, it should- it was copied word for word from this site yesterday. I emailed them yesterday asking them to credit postalnewsblog.com, but so far haven’t received a reply. You’d think an organization that works on behalf of charities would try to behave in an ethical manner, wouldn’t you? [...]

  • 4
    e phillips
    October 15th, 2006 03:11

    and when these items get classified as parcels will carriers be credited with parcels during mail counts.

  • 5
    jake
    October 15th, 2006 20:17

    STop charging 1st class postage and start sending media mail rate

  • 6
    Alex
    November 12th, 2006 08:30

    Use the same envelopes as Netflix. Heck, it was designed by some former V.P’s who now probably have a job at Netflix.