USPS Price Changes for the New Year!
Posted by Elizabeth Lombard on December 02, 2009 in Mail
Season’s Greeting! My name is Elizabeth Lombard and I am the National Postal-Carrier Manager for Pitney Bowes. In my role, I assist businesses, agencies and organizations of all sizes in not only making sense of, but also leveraging, all the USPS® regulations and changes to improve their mailstream processes.
Perhaps you read my blog from May which discussed the May 2009 USPS price and regulatory changes. I don’t have that same “news” this time around. You see, the USPS recently announced that there will be no price increases in May 2010 for Mailing Services (also called Market Dominant products). Recall that Mailing Services includes First-Class Mail®, Standard Mail®, Periodicals, Extra Services and some International mail.
However, that is not the case for USPS Shipping Services (also called Competitive Products). New pricing and regulatory changes will take place for USPS® Shipping Services on January 4, 2010. Shipping Services includes Express Mail®, Priority Mail®, Parcel Select®, and Parcel Return services, and also Express Mail International®, Priority Mail International® and Global Express Guaranteed® services. Prices are adjusted based on regulations of the Postal Accountability and Enhancement Act, which states that Shipping Services must cover its costs and make a 5.5% contribution to institutional overhead.
Highlights of the Shipping Services Priority Mail® and Express Mail® changes include:
1. Price changes -
- Domestic Products Rate Change (%)
- Express Mail® 4.5% Retail, 4.5% Commercial Base, 4.4% Commercial Plus
- Priority Mail® 3.9% Retail, 2.9% Commercial Base, 0.9% Commercial Plus
- Parcel Select® 4.7%
- Parcel Return Service 3.0%
- International Products
- Global Express Guaranteed® 4.1%
- Express Mail International® 2.9%
- Priority Mail International® 3.0%
2. Price difference between Priority Mail® small Flat-Rate Box and Flat-Rate Envelope – the small Flat-Rate box and Flat-Rate envelope will be priced separately. This will apply to Retail, Commercial Base and Commercial Plus Priority Mail® pricing.
3. New pricing structure for one-pound Priority Mail® packages based on Zone – the one-pound price for Priority Mail® will be priced according to weight and zone based on seven zone separations. This applies to Retail, Commercial Base and Commercial Plus Priority Mail® pricing.
4. New opportunities for Priority Mail® Commercial Plus shippers including Priority Mail® Cubic Volume-Based Pricing, the Priority Mail® Half-Pound Price and a Priority Mail® Flat-Rate padded envelope.
So while there are price increases, by employing the right mix of strategies and solutions, mailers can help improve their overall operational efficiency, address quality and reduce postage costs.
I welcome your thoughts and encourage you to share how your business or organization plans to meet the changes and leverage the new opportunities! And you will always find up-to-date rate information and savings tips, on www.pbpostalinfo.com
Kind regards,
Elizabeth
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