Pricing & Classification DMM Advisory
November 5, 2010
A Message to Customers from Steve Kearney, Senior Vice President, Customer Relations
I've heard reports of and been asked questions about misguided theories that apparently are being voiced, and I feel it necessary to address the accusation that USPS is looking at “penalties” as a new revenue stream.
Here are the facts:
- When USPS finds mail that doesn’t meet the standards for the discount claimed when presented, the mailer must pay the price for which the mail qualifies.
- This price adjustment is not a penalty, just the payment of proper postage.
The truth is we would love to not have to collect a single penny from lost discounts. That would mean every piece of mail is in compliance, all mailings qualify for the price they claimed, USPS is not incurring costs to collect what is due, USPS and mailers are receiving full benefits of programs and services, and mailers who comply with the rules are not ultimately—and unfairly—picking up costs for those who don’t.
Actions and decisions can bring about either positive results or negative consequences. Ensuring mail qualifies for the price it pays is not a new revenue stream — instead, it’s a protection of the revenue stream and everyone involved in creating it.
I'm hopeful this sets the record straight.
Senior Vice President, Customer Relations
U.S. Postal Service