DMA opposes cataloger coalition's stance on Standard flats rates
The differences between the Direct Marketing Association and the Coalition of Catalog Mailers became public Friday, just 48 hours from the inauguration of the new postal rate regime in place today.
Members of the DMA were told by president/CEO John A. Greco Jr. that it doesn’t support a Coalition of Catalog Mailers request to the Postal Regulatory Commission that gives catalogers time to adjust to the high rates rather than lowering them.
Mr. Greco explained that in its May 2006 rate case filing, the USPS requested rate increases in the 9 percent to 12 percent range for Standard Mail flats. However, the PRC sought increases in the 20 percent to 40 percent range.
The PRC’s recommendation would effectively have overturned a 17-year program to gradually increase the rate differential between letter-shaped and flat-shaped Standard Mail, and resulted in an additional USD 678 million in costs for Standard flats marketers.
In addition, the DMA sent a separate letter to the USPS Governors, asking that they reject the PRC’s Standard Mail flats recommendations. The association specifically pointed out that the mail volume the PRC had assumed would now be unrealistic, based on the doubling of the USPS’ requested increase.
The Governors on March 19 returned the Standard Mail flats increases to the PRC for reconsideration but asked the PRC to rebalance the rates in Standard Mail, including raising letter-shaped mail rates and lowering flat-shaped mail rates.
However, the Governors allowed the PRC-recommended rates to take effect “under protest,” which meant that the rates would go live today.
At this point, Mr. Greco explained that the DMA strategy was to push for quick PRC reconsideration so that any rate reduction stemming from its reconsideration could be put in place by today.
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