David Kanter, President and CEO of AccuList, is a list brokerage and direct marketing expert. For more than 30 years, he has helped companies and nonprofit organizations achieve their marketing goals. With David's Direct Marketing Forum, he shares, and invites others to share, helpful direct-marketing industry news, trends, analyses, resources, and tips for success. Please read our Comment Policy.
Thursday, April 18, 2013
With 5-Day Delivery Shelved, Are Rate Hikes Ahead?
Is it good or bad news for direct mailers that the U.S. Postal Service Board of Governors has dropped its plan for five-day delivery, which had been set to start August 5? In the short run, the retention of Saturday delivery relieves bulk mailers of re-scheduling issues. In the long run, it may portend another "exigent" rate increase by the cash-strapped USPS. And the American Catalog Mailers Association, for one, is much more concerned about this potential cost impact than elimination of Saturday mail. In a recent article by Al Urbanski of Direct Marketing News, ACMA President Hamilton Davison is quoted: "Our members say they'll take one-day delivery if it translates into lower cost. That's how much of an overarching concern cost is." A rate increase won't come quickly at least; it will be hashed out in discussions between the Postal Regulatory Commission, Congress, postal unions and lobbyists like ACMA and the Direct Marketing Association. However, watch for a speed up in postal facility closures and consolidations, which could impact delivery efficiency. For more discussion, see the DM News article at http://www.dmnews.com/postal-board-shelves-5-day-delivery/article/288285/
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