Blue Mass Group

Reality-based commentary on politics.

Small Publishers Protest Proposed USPS Rate Changes

By

The Postal Board of Governors recent decision to support an unfair increase in periodical rates will have grave consequences for the free speech that our Founding Fathers struggled to foster when they established the U.S. mail system.

The rate increase was devised by Time Warner — the largest publisher in the industry. If implemented, it will have an adverse effect on smaller periodicals, while easing the postal burden on the largest magazines.

This goes against more than 200 years of postal policy, which has promoted the spread of diverse periodicals in competitive markets as a means to foster a free press and inform and engage citizens.

Congress must step in to protect smaller media from new regulations that would undo this history.

Please join the call for public hearings to determine how this case was decided in such an unusual and unorthodox fashion. Before any increases occur, we must ensure they don’t imperil small and independent publications and stifle public discourse in America.

Please share widely!
fb-share-icon
Tweet
0

Comments

  1. I believe the primary purpose of creating a government-run postal service was to promote the growth of a free independent press by subsidizing distribution for small papers.

  2. I’ve seen this issue raised in three different online forums, and I’ve read all the links.  I haven’t been able to figure out what exactly the change is, no less why it would unfairly burden some more than others.

    <

    p>
    So, what’s the scoop?

    • As a (very) small business person who mails a lot of documents, this whole thing makes me very unhappy.

      <

      p>
      The best explanation I have found so far can be found at[http://www.pa-lawpra…]. The author — a practice management consultant — has put a lot of effort into understanding this whole thing. The post isn’t aimed at publishers, but there’s plenty to get a lot of small business folks upset. Here’s a sample:

      <

      p>

      Currently our postal system operates on strictly a weight-based methodology. Aside from a slight up-charge for the first ounce on “oversized” envelopes (e.g. our flat letter-size tyvecs) everything is based on weight. Each ounce adds an additional amount. Effective May 14th, we will move to a shape-based pricing system. Under the new system, there will be three different pricing factors: size; thickness; and weight. There are even some rigidity factors which can influence cost, meaning that if you stuff the envelope so tightly it cannot bend, there is an additional cost.

      …..

      NEW POSTAGE RATES

      First class letter current rate: 39¢ plus 24¢ for each additional ounce
      First class letter new rate: 41¢ plus 17¢ for each additional ounce
      Bottom line impact on 2 oz letter: cost DECREASE from 63¢ to 58¢
      (a 5¢ or 7.9% cost decrease)
      Bottom line impact on 3 oz letter: cost DECREASE from 87¢ to 75¢
      (a 12¢ = 13% decrease)

      Under the new regulations a letter must be no smaller than 3.5″ x 5″ and at least .007″ thick, and not more than 11.5″ long, 6 1/8 ” high, 1/4″ thick, and the aspect ratio (length divided by height) cannot fall between 1 to 1.3 and 1 to 2.5 inclusive.

      So far so good. Even though there’s a rate increase, if all you do is send lightly filled #10 envelopes of 2+ ounces, your postage costs will go down. But is that what law firms predominantly send? Heck no. Typically, you’re sending an great proportion of your email in 8.5″ x 11″ flat tyvec envelopes, or in hugely overstuffed #10 envelopes. And here is where two significant changes in postal pricing will immediately and significantly impact law firm postage costs.

      First, let’s look at a typical flat (the 8.5″ x 11″ or larger size tyvec envelope) with 2 ounces.

      First class flat current rate: 39¢ plus 24¢ for each additional ounce
      First class flat new rate: 80¢ plus 17¢ for each additional ounce
      Bottom line impact on a 2 oz flat: cost INCREASE from 63¢ to 97¢
      (a 34¢ = 54% increase)

      Get the picture? All we’re hearing about is the modest 9% increase on the standard first class letter, and how those additional ounces will actually result in a modest savings. And that’s all true. But it will be more than offset by the whopping increase on your flat envelopes.

      Next, let’s look at the typical overstuffed envelope.

      A #10 letter envelope with 12 pages inside will not squeeze through the 1/4″ thick dimension. So even though it only weighs approximately 2.4 ounces, it will have to go into a flat. Here is the impact on cost:
      First class overstuffed envelope weighing 2.4 oz at current rate: 87¢
      Flat envelope weighing 2.4 oz at new rate: $1.14
      Bottom line impact on 12-page mailing: cost INCREASE from 87¢ to $1.14
      (a 27¢ = 31% increase)

      <

      p>
      The posting goes on to describe the mandate that if an article is over 3/4″ thick, it must go as parcel post — which is more expensive. Given the volume of mail that I send out, I have to consider whether and how much of these costs to pass on to my clients, either in the form of a fee increase or by doing a straight pass-through of the expense.

      <

      p>
      If I was a small publisher facing my rates gettting jacked up, I’d be upset, too.

  3. I’m just bursting with indifference.

    <

    p>
    They’re making the cost to send mail more closely aligned with the price of sending mail.  In doing so, they will induce customers to change their behavior a bit, in an efficient direction.

    <

    p>
    This free speech crap garbage is just that.  This is about some people getting a heck of a subsidized deal on their shipping costs, and trying to hold on to that subsidy.

    <

    p>
    Am I wrong?

    • stomv, i don’t have links or time to dig any up, but i have heard for years running from author friends how small presses are being sucked up by the majors.  this is indeed bad for disseminating diverse ideas, i’m thinking in a way similar to radio payola being bad for musical diversity.  if a few small presses have been able to resist thus far the giant hoovers that are major publishing houses, increasing postal rates could be the final straw financially. 

      • but that’s not a strong argument for me.

        <

        p>
        If the new pricing scheme makes more sense because it more accurately reflects the costs of processing the packages, then it’s a better pricing system.  In fact, one of the links had a long list of things lawyers offices could do to help mitigate the change in pricing — which is exactly the sorts of things the change in pricing seeks to accomplish.

        <

        p>
        I hope indie publishers stay successful.  But, I don’t have any problem with the USPS using a pricing system that more accurately reflects their costs, and is designed to improve the USPS’s efficiency and quality of service.

  4. For less than the cost of a doughnut, you can send a 2oz. letter, under the full protection of the United States Government, from sea to shining sea

    <

    p>
    I don’t want to subsidize the business expenses of junk mail purveyors, law firms, or publishers of any sort.

    <

    p>
    If a periodical has an audience, then let the audience pay for the delivery thereof.

    <

    p>
    I receive several magazines/newsletters each month. If the subscription cost goes up to reflect the increased cost of mail service, so be it. 

Archives