POSTAL SERVICE MAKES RATES PROPOSALS

One Pricing 'Experiment' Aimed at Publishers

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WASHINGTON (AdAge.com) -- The Postal Service Board of Governors is moving ahead with one part of the Postal Service's new transformation plan.

The board said it would make its first major moves toward negotiating rates in two pricing "experiments."

One of the moves

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creates a new rate discount classification for periodicals. While no details were provided, industry officials said the discount is aimed at getting publishers to join together to provide pallet-sized sorting if they don't have enough copies themselves.

As second proposal is a negotiated agreement with Capital One Services, the fourth-largest postal customer and biggest producer of first-class mail.

The proposals have to be approved by the Postal Rate Commission.

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