Magazine publishers along with mailers everywhere are anxiously awaiting the outcome of the exigency rate hike request that the ailing United States Postal Service filed in a bid to raise up to $2 billion in new revenue.
A broad range of postage hikes takes effect in January. A ruling could come Friday or Monday.
The USPS is seeking to raise the rates on periodicals — previously known as second -class mail — by 6 percent.
The fear is that the hike could wallop magazine publishers with $180 million to $200 million in added postal costs at a time when they can ill afford it.
Mary Berner, CEO of the MPA, the Association of Magazine Media, said the USPS is using flawed logic in its bid to raise rates.
“They are blaming their revenue shortfall on the Great Recession but the real culprit is digital diversion. People are going online to send e-mail and pay their bills.”
Berner also said magazines are the best customers that the USPS has.
“No industry raises its rates on its best customers,” she noted. “They should be making the hard decisions that all other industries are making regarding labor costs and excess capacity.”