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Postal Industry Updates: July 2020

June 30, 2020

Congressional Letter to Former Postmaster General

On June 8, several members of Congress sent a letter to Megan Brennan, the former Postmaster General. The intent of the letter is to request a revisal by the USPS® of its projections for the direct impact of COVID-19.

Back in April 2020, when Brennan was still serving in the position, the USPS® projected it would lose an additional $13 billion in revenue for 2020 because of the pandemic, and another $10 billion in 2021. The letter states that while USPS revenues were initially down they have since seen some recovery, and USPS revenues were actually $330,414,152 higher than the same period last year.

Overall, the letter gives some interesting insights into the state of the USPS’ finances.

Click here to read the letter in full.

EDDM Retail Summer Sale

The USPS® has proposed a summer sale of a 10% discount for Every Door Direct Mail® (EDDM) Retail mailings from August 1 to September 30 of this year. Industry commentary was open until June 22, and after that the PRC will need to determine if the proposed sale is consistent with Title 39 sections 3622, 3626, and 3030.

In the June PostCom bulletin, they stated their Board of Directors shared reservations with the USPS regarding the sale. They stated:

“The USPS needs to announce and promptly proceed with a significant price incentive for the USPS Marketing Mail products that serve the retail and service businesses that the USPS recognize are suffering in its recent EDDM retail filing. These customers are also struggling and many perceive the EDDM retail discount – the ONLY discount or incentive announced to date – as competing directly with their businesses and mail programs. Such an incentive through the end of this year would help restore volumes to pre-Covid levels.”

We will update readers when an official decision is reached – so make sure to stay subscribed to the BCC Software eBulletin and consider becoming a listener of our Industry Corner Podcast.

New Postmaster General’s Video Address

The new Postmaster General, Louis DeJoy, addressed postal employees in a video on June 15. In the video he acknowledges the Postal Service as a critical public service and an institution that holds a significant amount of value.

“This institution helps to bind our nation together, delivering mail and packages to a nation that has largely been forced to stay at home. We are critical to our national economy and millions of small businesses and their employees. And we are the ‘face’ of the federal government to millions of Americans who count on us to deliver information, census forms and mail-in ballots.”

DeJoy also addressed several “obvious” challenges facing the USPS®, including the safety of workers during the COVID-19 pandemic, decline in mail volumes, responding to long-term changes in the way people use mail, and the need for change in the USPS’ “expensive and inflexible” business model.

Additionally, as his first official act as PMG, DeJoy bestowed the Benjamin Franklin Award to former PMG Megan Brennan, and thanked her for her years of dedication and service to the industry.

Click here to view the video.

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