New Data: Postal Rate Increase has led to Dramatic Drop in Magazine Mail Volume and Revenue Loss for USPS

Washington, DC (May 15, 2014) – The Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industries, today expressed significant concern over new data from the U.S. Postal Service revealing a sharp decline in the volume of periodicals mailed in the first quarter of 2014. This is the first quarter following the 4.3 percent exigent rate increase that went into effect this year as part of an overall 5.9 percent rate increase.

Specifically, periodical volume decreased by 7.8 percent for the quarter, which led to a 5.3 percent revenue decrease for this mail class for the quarter. This first quarter decline in periodical volume represents the largest first quarter decline since 2009, which occurred during the height of the Great Recession.

In response, SIIA President Ken Wasch issued the following statement:

“It is troubling, but not surprising, that the exigent rate increase has led to a steep decline in volume of periodicals mailed in the U.S. and a significant drop in postal service revenue. This data provides evidence consistent with an SIIA member survey in 2013, which found that significant rate increases would lead to a reduction in mailing of periodicals.

“SIIA has been actively calling for postal reform proposals that maintain a rate framework providing for reasonable and predictable increases going forward. Such increases must be coupled with increased USPS efficiency and appropriate ‘right-sizing’ of the Postal Service, while preserving service standards. Without these steps, the significant declines in volume and revenue can be expected to continue.”

  • Bill

    Big surprise maybe usps should raise the rates to make up difference and deliver periodicals on third Wednesday each month

  • Post!!

    what they are not saying is we are losing money on the revenue that periodicals produce. basically it cost us more to deliver than they are paying. so it might be a good thing in the long run.

  • surprise!

    We need more information to see the true picture.

    However, I assume they are telling us that gross revenue is down. So what, how has the picture changed after we include expenses?

    Also, don’t forget this should be a time when magazines are more profitable than usual. There should be less personnel being paid over time to deliver the magazines than other times of the year.

  • Fred

    Well shazzamm! A firm raises its prices and its sales go down. Even the USPS can’t repeal the “law of supply and demand”. Apparently no one in the upper echelon of the Postal Service has ever taken Econ 101.