From Ad Week
Magazines, newspapers and direct marketers are girding for the possibility that the U.S. Postal Service will pass an exigent rate increase on top of the annual postal rate that is capped by the consumer price index.
The increase, made possible by a 2006 law that gives the postal service the option to raise rates in case of extreme circumstances like a terrorist attack, could be as high as 10 percent across the board.
It couldn’t come at a worse time for the media and marketing industries that depend on mail service.
“We’re finally getting our footing back since the 2009 recession,” said Mary Berner, president and CEO of the Association for Magazine Media (MPA). Magazines, for example, spend $3 billion annually on postage. A 10 percent increase would add $300 million to an industry that is already challenged. Some magazines could go out of business, Berner warned. Others could cut back on mail delivery and redouble digital efforts.
But lobbyists are running out of time to convince the post office not to jack up the rates. The Postal Board of Governors is scheduled to meet behind closed doors on Sept. 5. Given that the USPS is bleeding billions of dollars each year, lobbyists fear a rate increase seems almost inevitable.