The U.S. Postal Service filed a case with the Postal Rate Commission yesterday seeking a three-year test of a negotiated service agreement between the USPS and Capital One Services Inc.
Negotiated service agreements are special service and rate arrangements negotiated between the USPS and a mailer or group of mailers. Proponents say NSAs could provide variable pricing that would encourage greater volume and reward the postal service's major customers with discounts and premium services.
“We are seeking ways to make it easier and more beneficial for postal customers doing business with us,” said USPS Chief Marketing Officer Anita Bizzotto. “Many postal customers want access to prices and services targeted to their specific needs.”
The NSA with Capital One includes discounts for Capital One First-Class Mail volume above an annual threshold of 1.225 billion pieces and undeliverable mail data provided to Capital One electronically.