Postal Service Offers First-Class Postage Sale

The U.S. Postal Service will conduct a reduced-postage-rate test for high-volume first-class mailers. The discount program, which is similar to its summer sale for standard class mail, will go into effect on Oct. 1 and expire on Dec. 31. For details, click here:

Eligible mailers will receive a 20% postage rebate for qualifying presort letters, flats, and cards mailed during the sale period. To be eligible, a mailer must have dropped at least half a million non-parcel pieces between Oct. 1 and Dec. 31 in both 2007 and 2008. Incremental volume mailed by participating companies will earn a rebate of 20%, credited to their Permit trust accounts.

The program is set up similarly to the current standard mail sale, which will last through Sept. 30. As is the case with the current sale, mailers will not be allowed to shift January 2010 volume to Dec. 2009, or withhold volume that would have been mailed in September 2009 until October. Mail volumes for September 2009 and January 2010 will have to meet or exceed each month’s threshold, which will be established when mailers request entry into the program.

The first-class incentive program will have no impact on any preferred rates.

Qualifying mailers will be notified by letter. Those who believe they are eligible but are not notified may request a review by contacting the Postal Service.

The Postal Service anticipates a contribution increase of around $24 million, and a revenue increase of $43 million (net of the 20% rebate) as a result of the program. It expects new volume of around 103 million pieces, as well as another 103 million pieces buying up from standard mail, thereby providing an additional $12 million in revenue and $8 million contribution. The U.S.P.S. expects total program costs to be $809,000.