The U.S. Postal Service Board of Governors announcement on November 15, 2007 that all future postal rate increases will be implemented under the CPI-capped index provision of the Postal Reform Act.
The Board is relinquishing its legal option of filing for one last rate increase under the old, pre-reform law.
The Postal Accountability and Enhancement Act of 2006 was passed by President Bush last December. The recent decision to not file another rate increase under the regulations used since 1971, is said to increase the savings for anyone who relies on USPS, including the magazine industry.
Some are convinced that this is the move the magazine industry has been waiting for, “This decision is good news for all mailers—but especially for magazine publishers,” said Nina Link, President and CEO, Magazine Publishers of America.
If this is true their will be large savings for shipping costs and finally some good news to the magazine industry. The rise of e-mail popularity is said to be why the Postal Accountability and Enhancement Act of 2006 was passed- to help the U.S. Postal Service gain more mailers because of cheaper costs.
Ironically, the very reason many print publications are worried about losing money to online publications may save the magazines money as the world shifts to compete with its' ever-changing future, “Having the next increase, which is likely in spring of 2008, and all future increases under the new CPI system will literally save publishers billions of dollars in postage costs in the coming years,” said Link.
Yet, the National Association of Letter Carriers said that (http://www.nalc.org/postal/reform/index.html) not everyone is happy about the Postal Reform Act, “Postal reform finally passed not because everybody was happy with it. Nobody—and certainly not the NALC—was completely satisfied. But that is true for any major legislation that affects millions of people and businesses.”
Link also said if the old law was still upheld the difference would have been huge, “If the 2008 increase had come under the old law, it could easily have been in excess of 20% for magazines – under the new CPI cap, it will likely be no more than 2 to 3%.”
Though some seem certain about the savings others don't see a benefit to the magazine industry. President of Spin Magazine and publisher of 7x7 Magazine, Tom Hartle, does not think the act will make any difference, "I don't think there is going to be any lasting change," said Hartle.
It seems the numbers are showing in the report to be in the magazine industries favor but the only way publishers can be certain if the Postal Reform Act will make a difference is to wait until another increase happens and see for themselves.
To see official The Postal Service’s official announcement click here:
http://www.magazine.org/government_action/postal/25128.cfm
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