Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association
GOVERNORS APPROVE MAJORITY OF POSTAL
· Request Reconsideration for Some Mail Classes
· Approve Shape-Based Pricing
· Board of Governors Set May 14 for New Prices
WASHINGTON, D.C. — The
Governors of the U.S. Postal Service (USPS) today approved an increase in
the price of a First-Class stamp to 41 cents, authorized the issuance of the
Forever Stamp, approved shape-based pricing, and set May 14 as the date for
implementation of these changes. However, they delayed implementation of new
prices for periodicals and requested reconsideration for some mail classes.
The Governors approved the
Forever Stamp, which will sell at the new 41-cent First-Class Mail one-ounce
letter rate. The value on these stamps will always be the one-ounce letter
rate and can be used for any future one-ounce letter mailing without extra
The new prices also reflect differences in the costs of handling letters, large envelopes (flats), and packages. Mailers are encouraged to consider options available to reduce postage costs. For example, if the contents of a First-Class large envelope are folded and placed in a letter-sized envelope, mailers can reduce postage by as much as 39 cents per piece.
Request for Reconsideration
The Governors, however, requested reconsideration of the PRC's rate recommendations for Standard Mail flats (catalogs), the Non-machinable Surcharge for First-Class Mail letters, and the Priority Mail Flat-Rate Box.
· Standard Mail Flats - The Governors are concerned that price increases recommended by the PRC may impose an unnecessary degree of "rate shock" on the catalog industry, particularly small businesses. The recommended increase for some catalog mailers is as much as 40 percent, which is more than double what the Postal Service had proposed.
· Non-machinable Surcharge - The PRC decision on First Class Mail two-ounce and three-ounce letters does not differentiate between machinable and non-machinable. The Governors believe this warrants further analysis to ensure there are incentives for mailers to provide letters that can be processed at lower cost on efficient sorting equipment.
· Priority Mail Flat-Rate Box - The PRC recommended a rate of $9.15 for the Priority Mail Flat-Rate Box, which is $1.05 above the current rate and 35 cents higher than the Postal Service proposal of $8.80. The Governors believe a rate below $9 would be more appropriate for this popular consumer and business product and would be cost-justified.
The Board of Governors also delayed until July 15, 2007, implementation of the new prices for Periodicals (magazines and newspapers) to allow time for the publishing industry to update computer software and adjust to the complexity of the PRC-recommended rate structure for periodicals. USPS had proposed a single container charge for periodicals to encourage efficiency, but the PRC recommended 55 different prices based on container type, entry point, and level of sortation.
The Postal Service has nine Governors who are appointed by the President
with the advice and consent of the U.S. Senate. They are members of the
Board of Governors, which also includes the Postmaster General and the
Deputy Postmaster General. Only the Governors can approve a PRC rate case
recommendation, but the full Board sets the implementation date for the new
** Postal Service Governors are requesting reconsideration for the new price of the Priority Mail Flat-Rate Box.
Useful Direct Marketing and Mail Order Links.
Advertising- Bridal Market Advertising Guide
Advertising- Christian Market Advertising Guide
Advertising- Hispanic/Latino Market Advertising Guide
Advertising- Hispanic/Latino Market Advertising Guide- Master Series
Advertising- Home Furnishing and Decor Advertising Guide
Advertising- Home Gardening Advertising Guide
Advertising- Parenting Market Advertising Guide
Advertising-Pet Market Advertising Guide
Advertising- Woman's Market Advertising Guide
Advertising- How to Create Great Small Business Advertising
Advertising- Breakthrough Advertising by Eugene M. Schwartz
Call Centers- Telephone Order Taking Services
Catalogs- Catalog and E-commerce Benchmarks
Catalogs- Directory of Mail Order Catalogs
Catalogs- Top 150 Catalogs in the United States
Classified Advertising- How to Market using Classified Ads
Direct Mail- Copywriters and Creative Services Guide
Direct Mail- Directory of Major Direct Mailers
Direct Mail- Inside Direct Mail Newsletter
Direct Mail- Secrets of Successful Direct Mail by Dick Benson
Direct Marketing- Direct Marketing Seminars and Events
Direct Marketing- Direct Marketing Statistics
Direct Marketing- Direct Marketing Response Rates
Direct Marketing- Direct Marketing Toolkit
Direct Marketing- Industry Contact Directory
Fulfillment- Warehouse and Order Fulfillment Centers
Mailing Lists- Direct Mail and E-mail Lists
New Products for Direct Marketers to Sell
Product Marketing- Promote your Product to Catalog and Direct Marketing Companies.
Product Marketing- Joe Cossman's Course for Marketing a Product
Product Marketing- How to Market a Product for Under $500
Start a Home Based Mail Order Business- Direct Marketing Toolkit
Wholesale and Drop Shipping- Professional Wholesale Resource Guide
Wholesale Search Engine
Direct Marketing and Mail Order Bookstore
National Mail Order Association Home
Direct Marketing Article Archive