Mailer groups expressed concern that the package of rate hikes outlined July 1 by the U.S. Postal Service may contain painful jumps in specific rates important to publishers and direct marketers. Those details might not surface until next week when the postal service is due to file full details of its plan with the independent Postal Rate Commission. A Direct Marketing Association official cited indications that rates for enhanced carrier route mailings, a key mail classification for mass mailers, could rise 7% to 9%, sharply higher than the 4.1% average hike for third-class mail that USPS officials released this week. An MPA official said that the 5.4% average increase in second class rates for magazines is less than the 6.2% increase that had been feared, but it too is waiting for more details to be released by USPS about specific second-class prices.
Copyright July 1997, Crain Communications Inc.