The Postal Regulatory Commission approved the U.S. Postal Service's "Summer Sale" today and predicted it will be profitable for the agency.
"The Postal Service is to be commended for its response to current market conditions," the PRC said in its order. It is, however, requiring USPS to report results of the sale in detail, including information regarding whether it causes customers to shift mail from First Class to Standard class.
"Development and use of appropriate metrics in evaluating the program are critical in determining whether the program is successful, and also for assessing the long-term implications of such an approach," the PRC wrote in approving the "short-term pricing experiment."
Based on the Postal Service's projections and its own analysis, "the Commission concludes that a positive contribution from the program is likely."
Formal comments filed with the PRC about the proposal were overwhelmingly supportive, with expected opposition from rural letter carriers never materializing. In addition to the formal documents, the PRC said it had "received nearly 300 letters, expressing nearly unanimous support for the program."
The Summer Sale will provide rebates of 30% on incremental Standard flats and letters sent by large mailers during the months of July, August, and September this year. The Postal Service has indicated that it might repeat this sort of incentive to boost volume during generally slow periods.