Why Postal Costing Should Matter to Everyone

07/20/2017

A recent article by Leo Raymond, Why Postal Costing Should Matter to Everyone is a must read for everyone impacted by postage rates. http://www.presort.com/why-postal-costing-should-matter-to-everyone/

The author provides background USPS costing and pricing, focuses on UPS’s claims that the current standards used do not adequately attribute cost and why it matters to non-parcel mailers.

Mr. Raymond identifies that “Cost attribution directly drives postage rates – and not just those for parcels, but for all classes of mail including those typically of interest to mailing companies.” and that “UPS’ arguments are not just relevant to parcel costs.  Though it has no interest in the cost allocation or pricing for letters, flats, and other categories of mail (or services) in which it has no involvement, deconstructing “institutional” costs to yield a greater proportion of “attributable” (product specific) costs can have an impact all across the spectrum of postal products and services.”