U.S. Postal Service "Flexibility"

As we head into the era of the restructured Postal Service and its new rate-setting mechanism, mailers have been left with the impression that all increases are confined to the rate of inflation in the Consumer Price Index. However, there are many nuances and exceptions in the law that makes this provision somewhat meaningless to mailers.

The newly-formed Postal Regulatory Commission is free to set average rates that exceed the CPI rate of inflation in the case of exigencies. In addition, calculation of average rates is based on entire non-competitive categories, such as First Class Mail and Standard Mail. Within those broad categories, there can be discounts, hefty increases, and other provisions as long as the average falls within the Consumer Price Index rate of inflation. To the extent that there is good news, the Postal Regulatory Commission has adopted a rule requiring that annual rate adjustments be announced at least ninety days prior to implementation.

Remember- the cost of postage can be 2 to 3 times the cost of print production. Talk to your OP Sales Executive in the early stages of your direct mail project for "postage friendly" formats that can lower your overall mailing costs.