USPS | DC Court Rules on Postage Discounts

DC Court Rules on Postage Discounts

Postal ProblemsThis week the D.C. Circuit Court ruled that the Postal Service’s discount for presorted mail cannot exceed the cost the office saves by not having to sort the mail itself.

One of the many services that Strahm Automation provides our clients is presorting of their mail so that clients are able to take advantage of discounted postage rates. This discount encourages mailers to presort, which in turn lowers costs for the Postal Service, but the current discount is greater than the Postal Service would pay to sort the mail themselves.

The Postal Service is not pleased with this ruling because it believes that it needs to offer mailers large discounts so that bulk mailers (including co-minglers, combined mailers and continuous mailers such as Strahm) will continue to use First Class mail.

“Through snow and rain and heat and gloom of night, the Postal Service delivers the mail,” Judge Brett Kavanaugh wrote for the three judge panel.  “But the Postal Service does so under the watchful eye of a separate independent agency, the Postal Regulatory Commission.”

The PRC establishes rates that the Postal Service may charge for mail.  The commission states that the reason customers choose to presort their mail is based on the lower price, and a 1% increase in price will cause a “significant change in demand”.

What are your thoughts?  Would a decrease in your presorted postage savings cause you to change how you process your mail?  Would you reconsider presorting?

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  1. #1 by Archeage Gold on July 8, 2013 - 6:00 am

    it’s a excellent weblog and i enjoy it greatly!

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