When the U.S. Postal Service proposed a 30% discount in mailing rates during the slow summer months, many mail groups called it too little too late, since most mailers plan far ahead. But one direct mail service company thinks summer price breaks can work. “I think these rates would help anybody in a high-volume competitive space, including the credit card and telecom folks,” says Pat O’Brien, CMO at Direct Group in Pennington, NJ. He adds that $20 or $30 off each thousand names mailed could look good to companies operating on thin margins. The USPS discount, intended to apply July 1 to September 30, could generate anywhere from $38 million to $95 million in revenue while costing $1 million to implement. O’Brien isn’t sure this will encourage mailers to mail at this traditionally slow season. “It may turn out to be a pure numbers game,” he says. “We’re just going to have to see if it works.
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