Proposes an Additional $0.9 Billion in Annualized Contributions
WASHINGTON ̶ On January 15, the Postal Service filed with the Postal Regulatory Commission (PRC) a Market Dominant price change based on a Consumer Price Index (CPI) cap authority of 1.966%.
The Postal Service believes strongly in the value of mail and maintaining relevance for today’s customers, offering reasonable pricing, workshare incentives, and meeting its obligation to the American public to strengthen its financial condition.
All of the proposed price changes are based on CPI prices plus the Exigent Surcharge approved by the PRC in Docket Nos. R2013-10 and R2013-11.
Using the CPI, we estimate that this price change will generate an additional $0.9 billion in contribution on an annualized basis. If the PRC approves the filing, the proposed April 26 implementation of the prices will improve the FY 2015 financial outlook by $0.4 billion in contribution.
The key elements of the CPI case include the following:
- Above average price increases to address PRC concerns about underwater products
- Special Services simplification to reduce redundancy and improve customer ease of use
- Introduction of a separate Flats Sequencing System (FSS) pricing structure for Standard Mail and Periodicals
- Introduction of Carrier Route bundle and container pricing for non-FSS flats for Standard Mail and Periodicals
- Include four promotions (Earned Value Reply Mail, Color Transpromo, Emerging Technologies, Mail Drives Mobile)
Various industry webinars will be scheduled to offer depth and insight into the proposed changes.
In November, the Postal Service filed for the transfer of First-Class Mail Parcels to a competitive product and the elimination of Return Receipt for Merchandise as a special service. These matters are still pending with the PRC. For the purpose of this filing we are assuming that these products will remain in the Market Dominant category.
To PCC Representatives,
Great News…National PCC Week 2015 will be held September 21 – 25, 2015. Please mark your calendars now. We hope this early announcement will help you get off to a fast start with your planning activities for next year. The host PCC where the Postmaster General will deliver his keynote message is the Greater Portland PCC, Portland, OR.
In the meantime, we are confident that your National PCC Week 2014 events will be very successful. We sincerely appreciate your assistance and cooperation that you all provide.
Shipping and Package Services Revenue Up 6.6 Percent
January Price Increase Offsets Continued Volume Loss in First-Class Mail, Driving All Mail Revenue up $424 Million
Need for Comprehensive Legislation Remains Urgent
WASHINGTON — The U.S. Postal Service ended the June 30, 2014, quarter with a net loss of
$2.0 billion, compared to a net loss of $740 million for the same period last year. The Postal Service
has recorded a loss in 21 of the last 23 quarters, the excepted quarters being the two in which
Congress rescheduled the Retiree Health Benefits prefunding payments.
The following article is written by Jeff Brooks, the author of The Fundraiser's Guide to Irresistible Communications: Real-World, Field-Tested Strategies for Raising More Money and creative director at TrueSense Marketing.
Questions I'm Most Often Asked about Direct Mail Fundraising:
Is the Internet the death knell for direct mail?
Not even close. Direct mail is a long way from death. It's still the most effective fundraising medium (after the church offering basket) and it's many times more effective than email.But the way it works is changing. One important change is the way direct mail and the Web are becoming intertwined. Donors are moved by the warmth and personal touch of direct mail, then going online to give. It's the best of both worlds when they do that: The higher average gifts we get from online donors, combined with the higher frequency and retention we see with direct-mail donors. This is on its way to becoming the typical way giving happens. To be effective in that world, we need to make sure our direct mail and online communications are tightly integrated: Same look and feel, same language, same offers.