USPS Unveils Further Details on 'Summer Sale' DMA Provides Update on Current Outline

April 22, 2009 — On Tuesday, April 21, the US Postal service briefed DMA and other associations on the details of its upcoming “Summer Sale.” Although the Postal Service Summer Sale has not yet been approved by the Board of Governors, USPS is informing mailers of what they currently envision as the outline of the plan. DMA has provided a summary of that outline, which may be changed before it is brought to the Board of Governors. The plans may change further after review by the Board and the Postal Regulatory Commission.

The sale will run from July 1, 2009 through September 30, 2009.
Mailers who mailed over one million Standard letters and/or flats from October 1, 2007 through March 31, 2008 are eligible to participate in the sale. (about 3,250 mailers accounting for 75 percent of Standard Mail volume)
Mailers will receive a rebate of 30 percent on any mail volume in that period which is over the past threshold.
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:

Vol. = Volume

Post = Postage

Oct 1, 08 thru Mar 31, 09 Vol. ÷ Oct 1, 07 thru Mar 31, 08 Vol. = Trend

Trend x Jul 1, 08 thru Sep 30, 08 Vol. = Threshold

Jul 1, 09 thru Sep 30, 09 Post ÷ Jul 1, 09 thru Sep 30, 09 Vol. = Avg. Post

(Jul 1, 09 thru Sep 30, 09 Vol. - Threshold) x Avg. Post x 0.30 = Unadjusted Rebate

(Oct 08 Vol. x Trend) - Oct 09 Vol. = Oct Adjustment

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

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

The Postal Service will be sending eligible mailers letters that will provide the Threshold as determined by USPS data systems. Mailers who believe they are eligible but did not receive a letter or mailers who do not agree with the USPS determined Threshold may appeal to USPS. USPS, shortly will provide DMA with the contact for any appeals. DMA expects mailers to receive these letters by May 4, 2009.

Mailers may enroll in the program on the Web on or before July 1, 2009, after they receive their eligibility letter. NOTE: 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. They hope to submit it to the Postal Regulatory Commission in early May and receive the PRC decision in mid June.

DMA has long advocated seasonal pricing. At the Postal Regulatory Commission/Postal Service Summit in 2007, DMA Chairman Markus Wilhelm urged the Postal Service to offer seasonal rates and even daily rates to grow mail volume during slower times. “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. “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."

DMA is planning to host a virtual seminar on the summer sale with USPS very shortly after USPS submits the plan to the PRC. Please watch for that announcement.

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