By Tanya Henderson, Local Media Association
NNA Postal Chair, Max Heath spoke yesterday afternoon to Local
Media Association members on the “Negotiated Service Agreement” (NSA) that
gives Valassis a range of discount pricing from 20-36% for new marriage mail
packages. This agreement is currently under review with the PRC (Postal
Regulatory Commission).
The proposal addresses a number of points including a three year
contract with year-end rebates to Valassis for marriage mail
packages. It’s important to note that Valassis cannot enter a new market that they don’t already exist in. If they exist in the market already, a second package would be offered on a different day of the week than the
initial existing package. The discounts are based on package weight and
only apply to “new mail.”
The proposal also stipulates that the current mailed programs must
be maintained that have been in place the past two years and that Valassis
can’t migrate ad circular business from the USPS solo mailstream.
Service businesses aren’t included in this program but it
will affect many retailers defined as “durable and semi-durable goods” with a
physical presence.
NNA and other newspaper represented groups believe the proposal
violates the rule against “undue discrimination” and “adversely affecting”
other customers. The PRC has postponed the decision on the proposal until it
hears from more newspapers. More than 400 have responded to a recent NNA
survey distributed to newspapers by associations including Local Media
Association. The PRC will have the chance to hear evidence from
newspapers in mid July. For more information regarding the proposal, contact
Max Heath at maxheath@lcni.com