Sheridan Magazine Services: News Releases

Return to the April 2009 issue of the SMS Register.

USPS Rate Hike: Bracing for the Impact

April 2009 — As forecast, the 2009 postal rate increase will go into effect Monday, May 11, increasing costs for First Class, Periodicals and Standard “A” mail, as well as Package Services. Here's how it breaks down for publishers:

Periodicals
On average, periodicals mailers will see a 3.966 percent increase, based on a 3.8 percent increase in the Consumer Price Index plus a bit of unused pricing authority from 2008's rate increase. Keep in mind, though, that this is an average rate for the class; some periodicals publishers could see an increase of as much as 8 percent.

The good news is that co-mailing can negate or significantly lower the increase for many publishers. If you're not already co-mailing, please contact your SMS Account Executive for more information.

Other ramifications for periodicals mail:

The rate for ride-alongs will increase from 15.9 cents to 16.5 cents.
The application fee for Periodicals Mailing Privileges (due with Form 3500) will increase from $510 to $540.
The application fee for Additional Entry, Reentry or Special Rate Request (due with Form 3510) will increase from $60 to $65.

Standard mail
The average increase for standard mail is 2.306 percent. As with periodicals, it’s important to remember that this is the average for the entire class. Individual publishers may see an increase of up to 5 percent.

Again, though, co-mailing can take much of the sting out of these increases. Get in touch with your SMS Account Executive for details.

What the future holds
With mail volume declining by 12 to 15 billion pieces, the USPS lost $2.8 billion in 2008, and expects losses twice as large in 2009. Announced cost-cutting measures include:

Reducing labor hours by 100 million in 2009.
Petitioning Congress to deliver mail only 5 days per week, recommending the elimination of mail delivery for either Tuesday or Saturday.
Planning to reduce the workforce through attrition, early retirements and the elimination of thousands of administrative and management positions.

Watch this space for more information on the ramifications for periodical and standard mail customers.

Return to the April 2009 issue of the SMS Register.

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