U.S. Direct Mail Giant Urges Rethink on Standard Mail Pricing

Valpak, part of Atlanta-based Cox Target Media, told regulators yesterday that the 2.57 percent rate increase set to come into effect on Jan. 27, 2013, will not be high enough to cover the costs of the Standard Mail Flats service. The company said in failing to meet its costs, USPS was breaking U.S. postal law, and putting its own financial health at risk—as well as requiring direct mail customers to effectively pay higher rates to protect the ailing catalogue industry.

“The enormous continuing $2B-plus losses from Standard Mail Flats contribute to jeopardizing the Postal Service’s survival,” Valpak warned the Postal Commission.