POSTAL RATE CASE UPDATE: Catalogers Must Take Immediate Action on USPS-PRC Rate Diferences, Vendors Say
We mailed X number of catalogs in 2006 and paid (your amount) in postage. We expected to increase our circulation by(your amount) percent in 2007. Our 2007 postage budget is based on the Standard Mail rates proposed in May 2006, and this was a (you can use whatever percentage you planned on; it should be around 10) percent increase over current rates. Our budget calls for postage to increase (your estimated dollar amount) this year. Under the rates proposed by the PRC our postage is now expected to increase (you can put in the percentage that your printer will help you calculate, or look at the new rate increases in the press and estimate; the percentage increase should be somewhere around 20 percent) so our postage would increase by (your dollar amount) in 2007. The proposed PRC rates are such a large and unexpected increase that we will be forced to reexamine our circulation and I expect that some of our marginally profitable catalogs will now fall below breakeven. As a rough estimate at this early date, I expect to cut our budgeted circulation by (make your best guess here) percent if these new rates are implemented.