Possible postage hike looms for papers, mags

The financial woes of the U.S. Postal Service could soon rub off on the magazine, newspaper and direct mail industries, depending on the outcome of a meeting of the USPS board of governors in Washington on Thursday. Though the announced topics include "financial matters" and "pricing," businesses that depend on the mail are worried that the board will call for an "exigent" rate hike—an emergency measure that could raise some postal rates by as much as 10%.That would be on top of the annual increase that's capped by the consumer price index. Exigent pricing relief is allowed under extraordinary circumstances as part of the 2006 Postal Act, though the definition of "extraordinary" tends to be a subject of debate.In August, the USPS reported that its losses have totaled $3.9 billion so far in fiscal 2013, which ends Sept. 30. In 2012, the postal service lost a record $15.9 billion.The combined price increases could mean a total jump in rates of up to 13%, says Mary Berner, CEO of the Association for Magazine Media, which has joined with other groups as part of the Affordable Mail Alliance to fight the exigent rate hike."The whole system needs to be reformed," she said. "But to put in an emergency rate increase will do the complete opposite of what they hope it will do, which is to drive revenue. It'll end up decreasing revenue."Magazines spend $3 billion a year on postage, Ms. Berner said. A 13% increase could add close to $400 million in costs.Smaller magazine companies... Continue reading at 'Crains New York'

[ Crains New York | 2013-09-05 00:00:00 UTC ]
News tagged with: #$400 million #hearst magazines #gaining momentum #legal battle

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Possible postage hike looms for papers, mags

The financial woes of the U.S. Postal Service could soon rub off on the magazine, newspaper and direct mail industries, depending on the outcome of a meeting of the USPS board of governors in Washington on Thursday. Though the announced topics include "financial matters" and "pricing,"... Continue reading at Crains New York

[ Crains New York | 2013-09-05 00:00:00 UTC ]
More news stories like this | News stories tagged with: #$400 million #hearst magazines #gaining momentum #legal battle


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