DMA Opposes Postal Board Decision to Raise Postal Rates Above Inflation
New York, NY, September 25, 2013—The Direct Marketing Association (DMA) is extremely disappointed by the action of the Postal Board of Governors today as they voted to raise postage rates above the rate of inflation. DMA is seriously concerned that this action will significantly harm the Postal Service and the mailing industry in the very near future.
Rather than lowering prices at times of weak sales—a common practice in businesses across the United States—the Board of Governors has misguidedly decided that raising prices will help cure its lack of sales. On the contrary, the problem of decreased mail volume will only worsen as mailers cease to rely upon the United States Mail to reach consumers.
DMA will fight this request at the Postal Regulatory Commission as we work to correct this error by the Board. As we saw in 2007, above-inflation postage increases can have a devastating effect on mail volume. DMA will work to avoid that folly in 2013.
About Direct Marketing Association (DMA)
The Direct Marketing Association (www.thedma.org) is the world’s largest trade association dedicated to advancing and protecting responsible data-driven marketing. Founded in 1917, DMA represents thousands of companies and nonprofit organizations that use and support data-driven marketing practices and techniques.
In 2012, marketers—commercial and nonprofit—spent $168.5 billion on direct marketing, which accounts for 52.7 percent of all ad expenditures in the United States. Measured against total US sales, these advertising expenditures generated approximately $2.05 trillion in incremental sales. In 2012, direct marketing accounted for 8.7 percent of total US gross domestic product and produces 1.3 million direct marketing employees in the US. Their collective sales efforts directly support 7.9 million other jobs, accounting for a total of 9.2 million US jobs.