Last March we reported that ACMA member Potpourri Holdings Inc. filed the first-ever catalog Negotiated Service Agreement request. Today I'm thrilled to report that the Postal Regulatory Commission has approved this request. (Click here for the complete ruling.)
Demonstrating both the USPS’s commitment to growing catalog volume and its improved understanding of how the unique catalog business model functions, this is the third Market-Dominant NSA approved since 2006’s postal reform act (PAEA). It took a lot of time and much hard work by Potpourri to come to fruition, but we expect it to pave the way for other cataloger NSAs. We also anticipate it will be among several initiatives by the Postal Service to boost catalog mail volume. Our hearty congrats to Potpourri for its persistence and the eventual payoff.
The essential moving parts of the NSA are as follows:
The Postal Service has established annual and quarterly thresholds to recognize Potpourri Group's recent catalog mailing activity.
Carrier Route and High Density mail above the quarterly threshold receives a lower postal rate, making incremental mail volume feasible for Potpourri and generates additional, incremental contribution volume for the Postal Service.
Covering five years, the thresholds are adjusted to recognize volume growth from the increased circulation.
The discounts apply only to Carrier Route and High Density volume, and are tiered at 10%, 15%, and 20% off published rates, dependent on the actual volume mailed.
We encourage other catalogers to examine the benefits of NSAs and consider whether they might also qualify for such an incentive. Catalogers that are “similarly situated” may have a comparable opportunity. If you'd like our help to assess this, feel free to contact ACMA.