Hopefully, by now you have gotten word that the Postal Regulatory Commission has proposed to increase catalog postal rates well above the Congressionally-mandated CPI levels to erase the red ink at the US Postal Service. Postage is already two-thirds of the variable cost of reaching catalogers’ customers, and continues to represent one of your largest cost centers other than merchandise. With catalogs continuing to earn the highest lifetime customer values of any media, this represents an existential threat to your use of the mail.
As happened with the exigency increase levied in 2015, policy officials do not fully understand your business operations. They underestimate the volume response from adding a third to postage cost in five short years. As with exigency, mailers must band together to reduce, mitigate or limit in time the extraordinary rate hikes being proposed. Otherwise, your postal rates are certain to shoot up over the next several years.
Time is Of the Essence
With your help, the ACMA can do something to influence the outcomes, but we have only a short window of opportunity in 1Q-’18. The available resources we can mobilize will determine the aggressiveness of ACMA’s response.
Our Ask & Your Future
Responding to this extraordinary threat will take extraordinary capabilities beyond those supplied by a cadre of active ACMA member dues contributions. Consequently, we are requesting company donations from both ACMA members and non-members, catalogers and their suppliers, be made to our Postal Action Fund so we can leverage professionals in law, government relations, public relations, econometricians, researchers and others with similar skill sets.
ACMA does not have the resources or manpower to do door-to-door fundraising. So please click here now or if you have any questions, please contact Paul Miller (914-669-8391 firstname.lastname@example.org).
2007 All Over Again?
If we cannot quickly galvanize an industry response, the opportunity to get this PRC proposal changed will be lost. Wheels will be set in motion. There will be no turning back and it will be 2007 redux all over again. The ACMA board is recommending contributions equating to 0.25% (one-quarter of 1%) of your annual catalog postage spend, equivalent to members’ annual dues contribution. If many companies participate, it will materially increase ACMA’s leverage.
Beyond money, we intend to mobilize industry outreach to politicos so Congress hears loud and clear that the current trajectory will lead only to significant mail volume decreases (and thereby, falling postal revenues), and ultimately, a taxpayer-supported postal system. And that’s all not to mention a potential death knell to the catalog business as we know it.
You Are Counting On Us…Can We Count On You?
Two easy options: Please either make your donation right on our Postal Action Fund web page or reply to email@example.com letting us know how much of a donation you can pledge, and whether you can also help us mobilize you to speak up to your local politicians about this.
We have two weeks to make some decisions as to our approach, which will be based on the level of financial commitment we get from the catalog industry. Please take action now, especially if you are a non-member company. Broad-based industry action will make a difference. Show us you have our back. Thank you!
© 2018 American Catalog Mailers Association, Inc.