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. Last Updated: 07/27/2016

Post International Buys U.S.-Russia Mail Firm

The U.S.-Russia Mail Connection, one of several privately owned international mail services in Moscow, has been bought out by its chief rival, Post International, according to company officials.


The buyout means that customers of the Mail Connection, who paid $70 a month for twice weekly shipments into and out of Moscow, will see their rates drop to $60 a month beginning April 1 with an increase in service to three outgoing shipments per week.


Post International clients, who previously paid $50 per month, will receive an unwelcome April Fools rate increase of $10 per month.


Post International general manager, Leonid Shevchenko, said former RCMI customers will be able to continue to receive mail through Mail Connection's New York address for the next six months. In order to make the address switch less painful, Post International will provide a free address change service if subscribers provide a list of names and addresses.


Michael Brockert, president of RCMI, U.S.-Russia Mail Connection's parent company, said he sold the profitable service to Post International because it was interfering with his business consulting service.


"It was growing so much we were running out of space," Brockert said. "We had to decide whether we wanted to be a consulting company or a mail company."


Shevchenko said consolidation of the two competing services into one company would result in a stronger company because profit margins are low in the business.


At the time of the sale, the Mail Connection had 220 subscribers and handled 1100 kilograms of incoming mail and 120 kilograms of outgoing mail each month.


Post International, which opened last October, had approximately 100 clients and shipped 200 kilograms of outgoing mail each month.


Based on figures supplied by both firms, monthly revenues were in excess of $20,000 for Mail Connection, and $5,000 for Post International.


The merger of the two services leaves Post International, and newcomer P.X. Post, launched last month, to battle it out for a growing market.


"It's extremely good news for us because it's a consolidation of the market," said Guy Kensington of P.X. Post. "Previously, customers were confused about the differences between the three services. Now its simply P.X. Post or Post International."


P.X. Post has no set monthly fee or overweight penalties, making a comparison of rates difficult. The firm charges a per letter rate based on the envelope's final destination and on how often the sender uses the service.


Brockert said his Mail Connection had recently been adding an average of five new clients a week, and that there is no sign of a leveling off in demand.