Going Up...Postal Rates Slated to Increase

As this issue of MDR’s MarketReach goes to “press,” the word on the postal rate front is “increase.” According to a March 5, 2007 article in DM News, nearly every mail category will experience rate increases, with the average increase across all categories expected to be 7.6%.

According to DM News, the Postal Rate Commission (PRC) has recommended increases of slightly less than 7 percent for first-class mail. Standard mail rates are expected to increase an average of 9.3 percent. There are also expected to be new limitations on piece sizes and shapes within the Standard Mail classification, along with a significantly higher rate for what’s known as non-flat machinable and parcel mailings.

Most concerning to the education marketing community is the expected increase in rates for lightweight catalogs, with rates projected to jump 20 to 24 percent for catalogs weighing less than 3.3 ounces. For mailers sending catalogs weighing up to 4.5 ounces, the expected increase will be 15 to 19 percent. All mailers are particularly concerned about a proposed hike of nearly 42.5 percent for automated standard mail flats, delivered at the 3-digit qualification.

Some Good News on the Horizon

With the passage of the recent postal reform legislation in December of 2006, postal rate increases will be kept either at or below the rate of inflation. The new rate-setting rules will be, by law, in place by June 30, 2008 and that should eliminate the possibility of another rate increase as large as the spring 2007 request.

Additional information about the expected 2007 postal rate increases is available from DM News at www.dmnews.com and directly from the U.S. Post Office, at www.usps.gov. Postal representatives are scheduling rate and requirements update seminars in major cities throughout the United States to keep mailers updated and to answer specific questions about the new rates and regulations.