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Mailer Groups Object to Jan. 8 Rate Hike Implementation
Nov 15, 2005 6:30 PM , By Larry Riggs
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Even through everybody knew the U.S. Postal Service Board of Governors was going to raise postage rates in January, mailer groups objected to the early timing.

"The USPS stuck their thumbs in our eyes," said Gene Del Polito, president of the Association for Postal Commerce, noting that the rate increases would be particularly difficult for mailers who had to make mailings for such events as January white sales and other such seasonal events.

"The Jan. 8 date may present a significant hardship for mailers and those software manufacturers who prepare worksharing software products for mailers," said Neal Denton, executive director of the Alliance of Nonprofit Mailers in a statement. "Because there are problems with some of the recommended rate charts, software manufacturers still await final published numbers before they can build their software products. Without a later implementation date, there may not be enough time for a smooth transition to the new rate structure."

"Although Direct Marketing Association signed onto with the rate case settlement agreement, we are disappointed that the Board of Governors has chosen to implement the new rates on January 8th, rather than a later date," said Jerry Cerasale, the DMA's senior vice president for government affairs in a statement. "This breaks from a past tradition of giving postal customers at least 60 days to prepare, and falling as it does over the busy holiday season, will make it especially difficult for most marketers."

The BOG has voted to increase most postal rates and fees by approximately 5.4% across-the-board, following the recommendations of the Postal Rate Commission earlier this month.

However, the rates for media mail and nonprofit enhanced carrier route will rise by 12.7% and 12.3%, respectively.

All the new rates will take effect Jan. 8.

As previously reported, this increase is needed to fulfill the requirement of a federal law to establish a $3.1 billion escrow account, essentially to help pay down USPS pension obligations to former employees.

Specifically, the single-piece rate for first-class mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent to 24 cents.

Other rates will go up as follows:

*Standard Mail Regular - 5.4% (overall)
*Enhanced Carrier Route - 5.5% (overall)
*Nonprofit Regular - 3% (overall)
*Priority Mail - 5.4% (overall)
*Express Mail - 5.5% (overall)
*Parcel - 7.3% (overall)
*Periodicals within County - 2.3% (overall)
*Other Periodicals - 5.5% (overall)

International rates, which are determined, will be adjusted to coincide with the domestic rate changes, according to the USPS.



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