USPS Summer Sale - Postage shop 'til you drop

It has recently been announced that the USPS is proposing a Summer Sale for many standard mailers and I think it's definitely about time the US Postal Service recognizes that they need to do something to incentavize catalogers and direct mailers to continue mailing. The constant increases in postage rates for the past several years have made it extremely difficult to reach desired ROI on direct mail pieces.

The DMA - Direct Marketing Association has long advocated seasonal pricing, urging the Postal Service to offer seasonal rates and/or daily rates to increase overall mail volume during slower times. "The current economic climate demands this new pricing strategy to grow mail volume during the slow summer season,” says DMA President and CEO John Greco. “It has taken two years for this to come to fruition, and we welcome its continued progress.”


stamp rate increase.jpg


Still in the works, the proposed Summer Sale will hopefully be established by the summer of 2010 and will offer mailers 20 - 30% discounts from June 15 to September 15 for mail volume over and above that mailer's past mailing. The Postal Service would establish a base mail volume for each mailer derived from that mailer's mailings from June 15 to September 15, 2008 adjusted downward by the current mail trends for that mailer during the first two quarters of Fiscal Year 2009. Any mail volume above that baseline would receive the ‘summer sale’ price. Since the Postal Service must establish a separate base line for each mailer and provide an appeal to each mailer to contest those calculations, it is likely only the 4,000 largest Standard Mailers will be eligible this summer.

For large mailers like Eddie Bauer, this proposed postage savings plan will reap significant savings. Let’s just hope the catalog marketing executives take advantage of this seasonal sale.

Who knows when and if it will come around again.


del.icio.us del.icio.us  |  digg it!  |  reddit reddit!  |  Google!

Trackback Pings

Comments

No-one has commented on this entry (yet).

Post a comment



Remember Me?

(you may use basic HTML tags for style)