New Postal Incentive Could Backfire for Mailers

At an estimated cost of $66 million, the U.S. Postal Service (USPS) will provide credits to mailers that have mailings containing at least 90 percent Full-Service pieces between June 1, 2013 and May 31, 2014.

Here’s the catch: USPS is asking the Postal Regulatory Commission to consider the credits a price decrease for purposes of calculating the price cap for the next round of rate changes. Without such consideration, USPS claims it would be discouraged from offering future credits that promote more efficient mailing practices.

The logic of the request seems to be that the Postal Service would be paying out credits