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FOLIO: Personalities -- The Blog People Page

What Went Wrong with the Postal Rate Hike?

Jim O'Brien Design and Production - 03/12/2008-14:19 PM

Recent data from the Postal Service indicate that Periodicals Class mail only covered 83% of its costs in fiscal year 2007. This news comes on the heels of the "cost based rates" that went into effect last July and were designed to reduce the Postal Service's costs. Many people in the industry are now wondering "What went wrong?" The answer is that "nothing went wrong," once three basic facts are understood:

Since the new Periodicals Rates went into effect on July 15, 2007, the USPS' data only reflected 2-1/2 months of mailing under the new rate structure (the USPS fiscal More...

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