The Direct Marketing Association (DMA) has circulated a release expressing its opposition to the United States Postal Service’s request for a rate increase, and it seems that various magazine groups and publishers are echoing its concerns.
The Postal Service’s rate increase request seeks raise rates an average of 5.6 percent. The proposed increase for small parcels, however, is 23.3 percent — a jump that has been deemed much too high, and possibly illegal, by many companies.
Explains Linda Woolley, DMA’s executive vice president for government affairs:
We question the need for a rate increase at this time, and strongly believe that it will further damage the economic viability of the Postal Service. The increase is not in the public interest, and ultimately, would have a devastating effect on any economic recovery since marketers rely heavily on mail to deliver offers, as well as products, to customers.
According to Folio:, the DMA has an ally in the Affordable Mail Alliance, a coalition made up of several magazine publishers, associations and other groups. The AMA is calling for the Postal Regulatory Commission to reject the USPS’ proposal, describing the proposed increase as being “ten times the rate permissible by law.”
Jim Cregan, executive vice president for government affairs at the Magazine Publishers of America, has also publicly voiced his concerns over the proposed rate increase:
We firmly believe that this filing is unlawful, is bad economics and is bad public policy. What they’re about to do will only accelerate their own death spiral by forcing out the last groups of profitable mailers.