We’re sharing an update from the Alliance of Nonprofit Mailers about the recent PRC proposal which allows postal rate increases above the CPI. It outlines the highlights of the increases as well as six things you can do now to help.
From the Alliance of Nonprofit Mailers:
The PRC Proposal is Simply Bad
December 11, 2017
Alliance Members and Supporters:
We wanted to follow up with you on the Alert we sent when the Postal Regulatory Commission released its proposed changes to the Consumer Price Index cap system for postage increases. The PRC proposal is simply bad for all concerned—customers, citizens, the Postal Service, and its employees. It is bad because it arbitrarily proposes to add extra rate increases on top of the CPI that have no basis in common sense. The increases will drive much-needed mail volume away to alternate channels. It is similar to a doctor knowing that half a dozen treatments are needed to cure a sick patient, but having only one at his or her disposal, prescribes four times the recommended dosage to make up for the lack of other solutions.
The PRC proposal would cause annual 7% postage rate increases for at least the next 5 years, compounding to 40%, for much of the mail that nonprofits use.
Here’s the summary:
2% CPI (assume) + 2% surcharge for all mail + 1% for making their service and productivity goals (doing their jobs) + 2% for all “underwater” products = 7% each year.
“Underwater” products include Periodicals and Marketing Mail Flats.
There is another add-on for products that have pass-throughs of workshare discounts exceeding bands around 100%. So, for example, within Marketing Mail, certain categories of drop-shipped letters will get an extra increase that will have to be offset within Marketing Mail class. So, categories affected can expect a similar extra 2% (and total 7%) that underwater products get. Many nonprofits use these letters as their workhorse fundraising vehicle.
We want to assure you that we are diligently studying the PRC proposal to determine our best course of action. Whatever that course, it will be the best possible attempt to oppose the implementation of this mistake.
Our Board of Directors is meeting this week to discuss strategy.
The best things you can do now:
As always, we are here to answer your questions and address your concerns.