USPS Offers Details Of Summer Postage Sale

The U.S. Postal Service has offered more details on its proposed summer postage rollback -- including who is eligible and how discounts will be calculated -- according to the Direct Marketing Association.

While the plans have not yet been approved by the Postal Service’s Board of Governors, what follows is the most recent iteration of the proposed program, according to the DMA. The plans may change further after review by the Board and the Postal Regulatory Commission, the DMA noted.

But as it stands now, the sale will run from July 1 through Sept. 30 of this year. Mailers who dropped more than a million Standard letters and/or flats between Oct. 1, 2007 and March 31, 2008 are eligible to participate in the sale. A statement from the DMA put that at roughly 3,250 mailers, who accounted for 75% of Standard Mail volume.

Mailers will receive a rebate of 30% on any mail volume during the sale period which is over a threshold based on their Oct. 1, 2007 and March 31, 2008 volume.

Mailers’ rebate will be adjusted if their October, 2009 volume is less than their October, 2008 mail volume adjusted their mailing trend.

The rebate is determined as follows, per the DMA:

Vol. = Volume
Post = Postage

Oct. 1, 2008 thru Mar 31, 2009 Vol. ÷ Oct. 1, 2007 thru Mar 31, 2008 Vol. = Trend

Trend x Jul 1, 2008 thru Sep 30, 2008 Vol. = Threshold

July 1, 2009 thru Sept. 30, 2009 Post ÷ July 1, 2009 thru Sept. 30, 2009 Vol. = Avg. Post

(July 1, 2009 thru Sept. 30, 2009 Vol. - Threshold) x Avg. Post x 0.30 = Unadjusted Rebate

(Oct. 2008 Vol. x Trend) – Oct. 2009 Vol. = Oct. Adjustment

Unadjusted Rebate - (Oct. Adjustment x 0.30) = Final Rebate

Mailers will pay full postage during the summer. After Oct. 31, 2009, the USPS will determine the rebate which each mailer is due. Rebates will be credited to the mailer’s permit account before Dec. 31.

The Postal Service will be sending eligible mailers letters that will provide the individually determined thresholds as determined by USPS data systems. Mailers who believe they are eligible but do not receive a letter, or mailers who do not agree with the USPS-determined threshold may appeal to USPS.

The DMA will be given the contact within the USPS for the appeals process. The DMA expects mailers to receive the threshold letters by May 4.

Mailers may enroll in the program on the Web on or before July 1, 2009, after they receive their eligibility letter. The DMA cautions that enrolling on the Web means that the mailer accepts the threshold as determined by USPS or as determine via appeal, whichever is applicable.

In determining the threshold, the USPS will aggregate a mailer’s mail from all its permits, ghost permits and subsidiaries and business names. If a mailer has entered its mail or portion thereof using another’s permit (such as a mail service provider), the burden is upon the mailer to provide documentation indicating its volume of mail entered under that permit.

The Postal Service will submit the plan to the Board of Governors this week. The Service hopes to submit it to the Postal Regulatory Commission in early May and receive the PRC decision in mid June.

“It has taken two years since DMA urged the postal service to utilize flexible pricing, including seasonal rates,” said DMA Senior Vice President of Government Affairs Jerry Cerasale in a statement. “We applaud the Postal Service for their proactive efforts. We hope all eligible mailers will take advantage of this opportunity, because if this sale is successful, it will be only the first of many. We see this as a means of positive stimulus, not just for mailers, but for the economy in general."

The DMA is planning to host a virtual seminar on the summer sale with USPS very shortly after USPS submits the plan to the PRC.