In a letter yesterday, SIIA urged the US Postal Service’s Board of Governors to refrain from moving forward with an exigent rate increase on periodicals. SIIA sent the letter in response to signs that the board may increase the postal rate by 7-10% when it meets next on Sept. 24-25.
SIIA believes simply that there will not be any positive return from the filing of an exigent rate case. While there may be a short term increase in revenues, this action will force mailers in all classes of mail to take action to reduce their postage expenses.
Recently SIIA surveyed its members, to better understand how their mailing habits would be affected by postal rate increases. SIIA’s members publish more than 600 print periodical titles and mail about 800 million magazines and newsletters each year. SIIA and it’s newest division, ABM, represent about 15% of the Postal Service’s periodicals class.
The survey results support our overall position in opposition to an exigent increase. Two thirds of respondents said they would reduce mailed periodicals by an average of 11% if postal rates increased by 7.5%. If rates increased by 10%, nine out of 10 of our members say they would reduce mailed periodicals by about 13%. Even if rates increased by less than 7.5%, our members would still reduce their mailings. Since we mail in all classes of mail to support our periodicals, mail volume in other classes of mail would be reduced as well.
SIIA has found that in the long run, an exigent rate increase will reduce, if not eliminate, any increase in revenues. It is very likely that the lost mail volume will never return.
Michael Hettinger is VP for the Public Sector Innovation Group (PSIG) at SIIA. Follow his PSIG tweets at @SIIAPSIG. Sign up for the Public Sector Innovation Roundup email newsletter for weekly updates.