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Vahe Habeshian
Vahe Habeshian   BIO
10.13.06

BMG: USPS Proposals May Put Us out of Mailing Biz


MediaBuyerPlanner: The USPS’s proposal to change flats into parcels will drive mailers away from the mail channel, some are saying.
BMG-Columbia House would face increases of 62 percent to 115 percent in its product shipment costs, wrote vp Clifton B. Knight Jr. in a letter to USPS chief operating officer Pat Donohoe, according to Direct Magazine. If that happens, it would “inevitably reduce, if not entirely eliminate,” the company’s use of mail for marketing and promotional purposes.
Knight went on to say that changing the classification of his company’s product from flats to parcels compounds the problem, particularly since BMG has gone to considerable expense to make sure that CD and DVD shipments meet the requirements for automated flats.
The USPS has drawn criticism from mailer groups for its proposed new standards, and is accepting comments on these proposals until Nov. 13.
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