How the new postal rate-making process affects catalogers, Part 1 of 2

By Jerry Cerasale

Way back in 1990, the USPS asked the Postal Rate Commission (PRC) to recommend postal rates that would begin to reflect the processing-cost differences caused by the shape of the mail. The least expensive shape for the USPS to process, transport and deliver is letter mail, followed by flat-shaped mail (most catalogs) and then parcels. The PRC agreed, and the letter/flat rate differential was born. This 1990 rate differential, however, was far smaller than the actual cost differential since the USPS wanted to phase in a full rate differential to avoid “rate shock.” This philosophy remained until 2007.