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Update On USPS Summer Sale


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DMA Provides Calculations to Determine Value of USPS Summer Sale

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Update On USPS Summer Sale

  1. 1. UPDATE ON USPS SUMMER SALE Although the Postal Service Summer Sale has not yet been approved by the Board of Governors, USPS is informing mailers on what they currently envision as the outline of the plan. Below is a summary of that outline (remember this may be changed before it is brought to the Board of Governors, the Board may change it, and the Postal Regulatory Commission may as well): • The sale will run from July 1, 2009 through September 30, 2009. • Mailers who mailed over 1 million Standard letters and/or flats from October 1, 2007 through March 31, 2008 are eligible to participate in the sale. (about 3,250 mailers accounting for 75% of Standard Mail volume) • Mailers will receive a rebate of 30% on any mail volume in that period which is over the past threshold. • Mailers’ rebate will be adjusted if their October, 2009 volume is less than their October, 2008 mail volume adjusted their mailing trend. The rebate is determined as follows: Vol. = Volume Post = Postage Oct 1, 08 thru Mar 31, 09 Vol. ÷ Oct 1, 07 thru Mar 31, 08 Vol. = Trend Trend x Jul 1, 08 thru Sep 30, 08 Vol. = Threshold Jul 1, 09 thru Sep 30, 09 Post ÷ Jul 1, 09 thru Sep 30, 09 Vol. = Avg. Post (Jul 1, 09 thru Sep 30, 09 Vol. - Threshold) x Avg. Post x 0.30 = Unadjusted Rebate (Oct 08 Vol. x Trend) - Oct 09 Vol. = Oct Adjustment Unadjusted Rebate - (Oct Adjustment x 0.30) = Final Rebate Mailers will pay full postage during the summer. After October 31, 2009 USPS will determine the rebate which each mailer is due. Rebates will be credited to the mailer’s permit account before December 31, 2009. USPS will be sending eligible mailers letters that will provide the Threshold as determined by USPS data systems. Mailers who believe they are eligible but did not receive a letter or mailers who do not agree with the USPS determined Threshold may appeal to USPS. USPS, shortly, will provide DMA with the contact for any appeals. We expect mailers to receive these letters by May 4, 2009.
  2. 2. Page 2 April 22, 2009 Mailers may enroll in the program on the web on or before July 1, 2009 (url will be provided later) after they receive their eligibility letter. NOTE: Enrolling on the web means that the mailer accepts the Threshold as determined by USPS or as determine via appeal, whichever is applicable. In determining the Threshold USPS will aggregate a mailer’s mail from all its permits, ghost permits and subsidiaries and business names. If a mailer has entered its mail or portion thereof using another’s permit (such as a mail service provider), the burden is upon the mailer to provide documentation indicating its volume of mail entered under that permit. USPS will submit the plan to the Board of Governors this week. They hope to submit it to the Postal Regulatory Commission in early May and receive the PRC decision in mid June. DMA is planning to host a webinar on the summer sale with USPS very shortly after USPS submits the plan to the PRC. Please watch for that announcement.