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The Honolulu Advertiser
Posted on: Wednesday, August 12, 2009

Postal Service planning discounts for big mailers


By RANDOLPH E. SCHMID
Associated Press

WASHINGTON — Looking for ways to boost business, the Postal Service is planning to offer discounts to some of its best customers.

Companies that mailed at least 500,000 first-class letters, cards or large envelopes between Oct. 1 and Dec. 31 in each of the last two years will be eligible for the lower prices, according to papers filed with the Postal Regulatory Commission.
Under the plan, the Postal Service would establish a base amount of mail for companies that apply for the discounts, and they would be eligible for 20 percent discounts on mailings over that level in the October-December period.
The agency estimated that the program would bring in an additional $43 million, between new mail and mailings that move up from standard to first-class service.
Between the recession and the switch of millions of mail pieces from the post office to the Internet, the Postal Service is anticipating finishing this year $6 billion in the red, despite a rate increase, reduction in staff and other cost-cutting efforts.
That would not be affected by any increase generated by the discounts because they would not take place until after the Oct. 1 start of the new fiscal year.
In other efforts to save money, postal officials are seeking a cut or delay in the more than $5 billion annually the agency must pay to fund future retiree health benefits, and they have also proposed cutting mail delivery to five days-a-week and closing some local post offices.
The Postal Service does not receive taxpayer funds for its operations.
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U.S. Postal Service: www.usps.com