April 16, 2009

Burrus Update #05-09, April 15, 2009

In response to declining mail volume and deteriorating financial circumstances, the Postal Service has announced plans for new price incentives for major mailers.

One proposal, which is designed to increase volume during the time of year when mail volume is typically lowest, is being called a “Summer Sale.” The plan calls for large mailers to be granted rebates of 20 to 30 percent for increasing their Standard mailings between June 15 and Sept 15.

The Summer Sale follows on the heels of another discount bonanza, the Saturation Mail Incentive Program, which proposes a rebate of 2.2 to 4 cents per piece on “incremental business” during the 12-month period beginning May 11.

Although the Postal Service did not issue a press release or make a public statement about the proposals until they were disclosed on mailing-industry Web sites, the USPS is now describing them as attempts to increase volume. Read more