Mailers Council Issues Statement on GAO Decision to Put USPS Back on High-Risk List
The Direct Marketing Association (DMA) today applauds the initiative and creativity of the United States Postal Service (USPS) and commends the diligent and expeditious endorsement of the USPS Summer Sale by the Postal Regulatory Commission (PRC).
“The Summer Sale provides an opportunity for marketers and the USPS to create an independent and much needed stimulus to their businesses and the nation’s economy,” said John Greco, DMA President and CEO.
The potential benefits from the program will accrue to the entire supply chain from creative entities to paper suppliers, printers and private sector common carriers.
The Postal Service estimates that they will realize between $38 million and $95 million in additional net revenue from the expected increase in mail volume.
Direct mail and catalog remain significant contributors to the US economy, accounting for over $56 billion of advertising spending last year and sales of more than $702 billion – including nearly $155 billion in catalog sales. The Summer Sale program will buttress this important segment of the economy.
By endorsing the Summer Sale, the PRC is allowing the USPS to take advantage of the pricing flexibility that DMA worked so hard for in the passage of the Postal Accountability and Enhancement Act. DMA has long advocated seasonal pricing. At the Postal Regulatory Commission/Postal Service Summit in 2007, then DMA Chairman Markus Wilhelm urged the Postal Service to offer seasonal rates and even daily rates to grow mail volume during slower times. DMA endorsed cooperation between the USPS and mailers then, and will continue to do so in the future.
The basic outline of the sale is that any mailer with over 1 million pieces of annual volume is entitled to a 30 percent rebate on the incremental increase in volume mailed between July 1 and September 30, 2009, over previous years. These numbers are subject to a series of calculations that adjust for current mailing trends and any shift in October 2009 volume. You can learn more about the details of the sale here http://www.the-dma.org/postal/.
To inquire about your company’s eligibility email summersale@usps.gov. Please click here to view the PRC Summer Sale approval.
DMA looks forward to a successful execution of this initiative and encourages the USPS to continue the use of flex pricing in 2010 with the ability of a broader base of mailers to qualify.
