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DMA Pushes PRC On Summer Sale

Summer is a month away and the Direct Marketing Association (DMA) is urging all direct marketers impacted by the U.S. Postal Service to contact the Postal Regulatory Commission and encourage the “expeditious endorsement” of the proposed USPS Summer Sale.


According to a DMA release, the USPS has demonstrated its “willingness to be proactive and to take advantage of flexible pricing through the recently proposed “Summer Sale”. This sale will provide postal rebates of as much as 30% for many mailers. As a marketing community we now need to support this effort by sending a fax to PRC Chairman Blair asking the PRC to expeditiously endorse this program, allowing us to move forward and take full advantage of the benefits throughout the coming summer months. The sooner the PRC acts, the sooner the marketing community can begin to stimulate our portion of the economy through a much needed stimulus in retail sales and USPS revenues, all without an infusion of U.S. tax dollars.”


What’s more, the DMA is asking that all letters regarding the Summer Sale be faxed to PRC Chairman Dan Blair by the close of business on May 21. The DMA provided the fax number for the Commissioners (202-789-6883) and the fax number (202-789-6886). The DMA has provided three sample letters for companies planning to participate in the Summer Sale, for supplier partners to mailers, and for mailers who cannot participate in this year’s sale, but hope to participate in future sales to increase mail volume during slow times.


All letters will be entered into the public record regarding Docket No. R2009-3.


The following is a portion from one of the sample letters: “The impact of the economic downturn on the Service’s current financial situation, which has been well documented at Congressional hearings and in the press, is a reflection of conditions throughout the mailing community. The Summer Sale proposed by the Postal Service provides a thoughtful and unique opportunity without an infusion of tax dollars to stimulate this important segment of our nation’s economy.”


The letter adds: “Our company plans to avail itself of this opportunity. We are currently in the process of determining the amount of additional volume we will be sending through the Postal Service and are in discussions with our suppliers and service providers regarding our plans as we prepare to order supplies and products to increase our mail volume. We do not have the luxury to wait if we want to take advantage of even part of the summer sale.”


The USPS on April 21 announced details of its upcoming “Summer Sale” for Standard Mailers. The plans are tentative, since the Board of Governors and Postal Regulatory Commission must approve them.

• The sale will run from July 1, 2009 through Sept. 30, 2009.

• Mailers who mailed more than1 million Standard letters and/or flats from Oct. 1, 2007 through March 31, 2008 are eligible to participate in the sale.

• Mailers will receive a rebate of 30% on any mail volume in that period which is over the past threshold. • Mailers’ rebates will be adjusted if their October 2009 volume is less than their October 2008 mail volume.

Here’s how the USPS will determine the rebates: Oct. 1, 2008 through March 31, 2009 volume divided by Oct. 1, 2007 through March 31, 2008 volume = trend.

Trend x July 1, 2008 through Sept. 30, 2008 volume = threshold.

July 1, 2009 through Sept. 30, 2009 postage divided by July 1, 2009 through Sept. 30, 2009 volume = average postage. July 1, 2009 through Sept. 30, 2009 volume - threshold x average postage x 0.30 = unadjusted rebate.

October 2008 volume x trend minus October 2009 volume = October adjustment.

Unadjusted rebate - October adjustment x 0.30 = final rebate.

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


The PRC has said it would make a decision regarding the Summer Sale in early June.

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