September 5, 2013 – DMA’s Senior Vice President of Government Affairs Jerry Cerasale, along with representatives of other industry groups, met today with the Board of Governors of the United States Postal Service, Postmaster General, and Deputy Postmaster General to try to steer them away from an exigent postal rate increase.
Beyond the catastrophic impact of such a move on the entire industry, an exigent rate case would kill any postal reform legislation in 2013 and 2014. An above-inflation increase in postage would force all mailers to reduce prospect mailings, which really amount to investments in the future of the industry.
There is good news coming out of today’s meeting per this afternoon’s announcement from the Postal Board of Governors. “As part of the agenda, the Governors considered pricing issues, including the possibility of filing for price adjustments. The Governors continue to listen to stakeholders and have postponed final pricing decisions until the next scheduled Board of Governors meeting, Sept. 24–25, 2013.”
We appreciate that the Board of Governors is carefully considering the concerns of Postal Service customers as they consider whether or not to raise postage above inflation. DMA will work with all stakeholders in the coming weeks seeking Congressional action to help the Service and to avoid any need for above inflation postage increases that would simply force nonprofit mailers & the mailing community at large to find other channels to communicate with the public.
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About Direct Marketing Association (DMA)
The Direct Marketing Association (www.the-dma.org) is the world’s largest trade association dedicated to advancing and protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies and nonprofit organizations that use and support data-driven marketing practices and techniques.
In 2012, marketers — commercial and nonprofit — spent $168.5 billion on direct marketing, which accounts for 52.7 percent of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $2.05 trillion in incremental sales. In 2012, direct marketing accounted for 8.7 percent of total US gross domestic product and produces1.3 million direct marketing employees in the US. Their collective sales efforts directly support 7.9 million other jobs, accounting for a total of 9.2 million US jobs.
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