USPS Exploring Ways to Reduce the Cost of Ride-Alongs
Only recently too expensive for most, the option may become attractive once more.
The U.S. Postal Service is currently exploring ways to alleviate costs for the Periodicals class, according to the blog Dead Tree Edition.
The blog states that the USPS will be revamping the pricing and regulations for “ride-alongs,” which are items such products samples and catalogs that are not eligible for Periodicals treatment, but are mailed along with a Periodicals publication.
The ride-along option was originally a big success for the Periodicals class, but now has become too expensive for most, according to postal consultant Ed Mayhew. “It was created in 2000 as a test to encourage more revenue and volume for the Periodicals class,” he told AD. “Once they decided to make it a permanent thing, the price was set at 10 cents per piece. But over the last few rate increases, it’s risen exponentially to 16.5 cents. That’s still cheap, but not cheap enough.”
The ride-along charge, according to Mayhew, is based on a formula that sets the maximum weight of the product sample or catalog at 3.3 ounces. But because the majority of the ride-alongs were far below that weight, publishers couldn’t justify paying 16.5 cents per piece.
Now, Mayhew says, the USPS is looking into two options to reduce the price: setting the ride-along charge at two tier levels with one level being for items that weigh below one ounce, and allowing publishers to have multiple ride-alongs attached to a publication.
“The idea of having multiple ride-alongs was introduced three or four years ago and the publishers didn’t want it,” Mayhew says. “They didn’t want their publications to start looking like Standard mail and then get charged a higher rate. But now that advertising is down, they’re all for it now. So it’s looking positive on both fronts.”
Mayhew adds that he hopes to see these changes are implemented by the end of the fiscal year.
Dead Tree also reported that the USPS is looking into offering “special rates to help Periodicals publishers attract new subscribers,” but there are concerns that it might not be beneficial for a class that has been losing money. Mayhew hasn’t heard about these plans, but if they are accurate “it would be good because solicitations or complimentary publication copies may be able to be sent at a reduced rate and it would be easier to implement more subscriber efforts.”
Related Links
Postal Service May Boost Ride-Alongs [Dead Tree Edition Blog]
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