Magazines go postal over rate hike; Direct mailers also rattled by second increase.(U.S. Postal Service)(Brief Article)(Statistical Data Included)

Advertising Age, May, 2001 by Beardi, Cara; Teinowitz, Ira

The second postal-rate hike this year, this one taking effect in little more than a month, has magazine publishers and direct marketers irate, even as they face the prospect the U.S. Postal Service will request another rate increase this summer that would take effect early next year.

``This is a clear signal that the Postal Service is not effectively controlling its costs,'' said Jim O'Brien, director of distribution and postal affairs for the Postal Service's largest customer, Time Inc. ``In private industry, you would never do something like this to your customers. We feel that this is going to exacerbate declining volume within the Postal Service. I think everyone is going to re-evaluate the costs of various sources.''

Joe Bourdow, president of...

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