DMA members met, in March with PRC Chairman, Ruth Goldway and USPS CFO, Joseph Corbett. Each strongly signaled an exigent rate case that may be as much as 5-8%. In addition Goldway stressed that classes of mail which do not cover attributable costs could receive higher than average increases. The recently released PRC Annual Compliance Report on the USPS FY 2009 clearly asserts that Standard regular flats, parcels, NFMs and periodicals are not covering attributable costs.
At issue is what comprises attributable costs. If it includes more than just variable costs, then incentives to increase volume would likely be a better remedy than another hike destined to drive volume down even further.

Corbett seems to agree that increasing carrier route qualified mail would contribute favorably to the USPS bottom line. We all know that the easiest and most efficient means of increased Carrier route qualification comes from increased circulation. Another option to achieve greater density (and more favorable rates) is increased co-mailing

During this update DMA will discuss the sustainability of the USPS and how the USPS plans to reduce losses through:

• Cost Cutting
• Efficiency Improvements
• Volume increases
• Rate increases

 In light of an anticipated exigency rate case filing in July DMA will explore:

• whether the USPS and the PRC have the attributable costs correct for the products in question
• how we might influence the USPS’s plan---required by the PRC---for bringing allegedly below water products to the point that they make a positive contribution to institutional costs

As a means of increasing volume DMA will also review the upcoming Summer Sale - DMA’s efforts in working closely with the USPS and the Postal Regulatory Commission, and ultimately due to our efforts in helping pass postal reform, has resulted in the approval of yet another Standard Mail Pricing Initiative for the Summer of 2010. This “Sale” will allow some mailers to increase their volumes this summer and save 30% on that increase.  This may not have been achieved without member support of DMA efforts.

• Join key members from DMA’s Government Affairs team along with experts from our member community as we review the key regulatory and legislative issues facing marketers.
• These updates are held quarterly
• This session’s featured topic will address USPS Sustainability and the Exigent Rate Case
• Learn about what it is, how it may impact your business and how DMA is representing its members regarding this issue.
• The session will also highlight other issues currently on the radar for our Government Affairs team
• Council members attend FREE – Nominal charge of $10 for all other members and $29 for non-members

About the Marketing Council Regulatory and Legislative Updates

DMA is addressing the need to keep our members well informed in these fast paced and challenging times.

Featured topics for these quarterly sessions are coordinated via the DMA Special Interest Councils and addressed by key DMA staff involved in federal and local regulatory and legislative issues. You’ll learn about each topic: what it is, how it impacts your business, how it may be regulated, and how DMA is representing this issue with federal and local governments.

The session will also highlight other issues currently being addressed by the DMA Government Affairs team. Most notably, USPS sustainability and the Streamlined Sales and Use Tax Agreement.