Page 6 - Postal Magazine Final

WHAT IS

THE PRC’S LEGACY??

A Drop in the Bucket

An Existential Threat to an Industry;
The PRC’s proposal to A Drop in the Bucket to USPS
address a complex problem $3 $75
solely by ratcheting up prices $60
ignores the fundamental $2 Periodicals Rate
Increase
business issues facing 40% Increase $45
Over 5 Years
the USPS. Dramatically $30
increasing prices on loyal $1
$15
customers only throws a
small bit of macadam into an $0 $0
Periodicals Postage Total USPS Revenue
enormous pothole.

The incremental costs to the
magazine industry represent
a substantial burden on A Solution With No Problem
their businesses, one that is
likely to result in decreased
volume, decreased frequency This proposal comes at a time when
or outright closure of titles. revenues from new postal sources continue
to climb. The profit from packages keeps
At the same time, that
amount of money is a mere growing, giving the postal service an extra
rounding error to USPS. $1 billion of profit per year.

Competitive Product Contribution
(FY 2014 - FY 2018)
$8.2
Competitive Contribution (Billions) $4.3 $0.2 $4.5 $1.5 $6.0 $1.2 $1.0
$7.2

2014 2015 2016 2017 2018

4 www.magazine.org