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NAPM Strategic Focus Area: Pricing
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Working to keep prices of postal products and services affordable is one of NAPM’s ongoing key strategic focus areas.  The affordability of mail is a critical component to the future success of our postal system, and a significant issue for NAPM members and all users of mail.  Whether a Mailing Services Provider or a business in-sourcing their own mail, affordable postage is of significant concern and postage discounts, workshare and incentives, are important to your business’ bottom line.

 

The process and regulations around postal pricing are complex.  Rules and methods of developing postal prices also can change as regulators and the Postal Service introduce new cost calculations or pricing methodologies.  NAPM keeps a close watch on these issues as well as working to advance principles and ideas that help control USPS costs and keep prices stable. 

 

Here are some of the current pricing activities being undertaken by NAPM:

 

  • NAPM works to influence the USPS to use its pricing flexibility to encourage use of the most profitable mail products and incent behaviors that will keep mail an affordable and effective medium of business communications. 
  • NAPM keeps watch on PRC filings (including the Annual Price Determinants) and provides feedback and empirical testimony/comments to try and keep prices affordable and operational costs to the Postal Service low.  We encourage use of private sector capabilities to increase the profitability of their products to the Postal Service. 

  • NAPM has been an active participant in discussions and proceedings  concerning any potential exigent price increase and has advocated on behalf of its members in opposition to an exigent price increase in the current environment. 
  • NAPM is an active participant in PRC proceedings concerning workshare discounts and methodologies and has submitted extensive testimony in support of the value of workshare. 
  • NAPM has submitted testimony to the PRC concerning its review of the price cap rules. [PRC Docket R2013-2] 
  • NAPM was an active participant in proceedings and discussions concerning the USPS’ proposed "IMb Tech Credit,” and advocated on its members’ behalf their concerns with the design of the Tech Credit incentive.  While NAPM supported the concept of the Tech Credit, it raised concerns about the USPS’ plan to handle the cost of the incentive which would have a negative long-term impact on mailers.  The subsequent PRC ruling approved the Tech Credit promotion but denied the USPS request to use its rate cap authority to pay for it, which was in keeping with NAPM’s position.  [PRC Docket R2013-6] 
  • NAPM members are concerned about how the IMb Full-Service mandate for 2014 might impact the current Full-Service price discount, and how the incentive discount and automation prices will be impacted in the case of a mail quality deficiency.  [See NAPM’s summary of IMb Full-Service concerns and activities.] 
  • NAPM is pushing for the USPS to implement VAR for flat sized mailings to enable more of that mail to get into the IMb Full Service and commingled mailing mail stream.

 

Click here for more in-depth information on NAPM activities concerning pricing.