The direct marketing community is dealing with the possibility of yet another increase in postage rates slated for early 2011. The United States Postal Service (USPS), faced with billion-dollar revenue losses, has proposed the following increases: 4.5% for first class, 5.1% for catalogs, 8.0% for periodicals, and 23% for standard mail parcels. In addition, the USPS has voiced the possibility that it will reduce delivery from six days to five.

In a press release dated July 6, 2010, the DMA challenged the USPS regarding its projection that the rate increase would generate $2.3 billion over nine months. The press release noted that after the May 2009 rate increase, mail volume dropped an additional 5% over the next year, bringing the 2-year decline to 18%. The DMA contends that mail volume will sink even lower causing more revenue losses at a time when economic recovery isn't complete. The Postal Regulatory Commission (PRC) has 90 days to review the request. The DMA has encouraged business mailers to voice their opinions to the PRC and Congress.

In other news related to the rate hike, USA Today reported that 200 non-profits, retailers and publishers that rely on mail service have formed the Affordable Mail Alliance to fight the increase. A check on the Alliance's website shows that membership has grown to 500 since the article was published.

Link to DMA Legislative Action Center
Link to Affordable Mail Alliance