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2011 Mailing Services Price Change Presented by: Buddy Goodin Mailing Solutions Specialist North FL District U.S. Postal Service PCC March 9, 2011. Agenda. Timeline CPI cap Changes by class of mail First-Class Mail Standard Mail Periodicals Package Services

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2011 Mailing Services

Price Change

Presented by:

Buddy Goodin

Mailing Solutions Specialist

North FL District

U.S. Postal Service

PCC March 9, 2011


Agenda

  • Timeline

  • CPI cap

  • Changes by class of mail

    • First-Class Mail

    • Standard Mail

    • Periodicals

    • Package Services

    • Extra Services and Fees

  • Resources


Notify PRC

April 17, 2011

Jan 13

PRC Determination

Feb 16

34 days

Timeline

Preparation

Regulatory Review

Implementation

45 days

Price development

49 days


The Price Cap

  • Based on Consumer Price Index

  • PRC formula a moving average of CPI data

  • Current calculation of cap is 1.741%


First-Class Mail

  • 1.7% overall increase

  • 44-cent stamp (no change)

    • New commemoratives issued as Forever Stamps

  • Nonmachinable surcharge (no change)

  • New! Parcels: retail/commercial price distinction


First-Class Mail Single-Piece

  • Letters and Postcards

    • Additional ounce increases by three cents to $0.20

    • Postcards increase by one cent to $0.29

  • Parcels

    • Same price for one to three ounce pieces

    • New! Retail and commercial base price categories

  • First-Class Mail International

    • Letters & postcards to Canada and Mexico – $0.80

    • Rest of the world – $0.98 (no change)


First-Class Mail Presort

  • Letters and Cards

    • Most prices increase 0.5 cent to 0.8 cent

    • 2.5-cent price difference between 5D and 3D

    • No change for additional ounce

  • Parcels

    • Address cost issues for lightweight parcels

      • Same price for one to three ounce pieces

    • New! Commercial base price category

    • New! Commercial plus category for heavier parcels

      • Weight limit increased from 13 ounces to less than 16 ounces


Standard Mail

  • 1.7% overall increase


Standard Mail

  • Foster growth in advertising mail

  • Working with Catalogs and Saturation mailers

    • Encourage growth

    • Below average price increase for Standard Flats

    • New! Jan. 2, 2011: Expansion of Simplified Addressing

      • “Postal Customer”

      • For saturation flats and irregular parcels

      • Delivery to any address, including city delivery routes


Periodicals

  • 1.7% overall increase

  • Low price cap constrains ability to cover costs

  • Encourage efficiency

    • Above average increase for Origin Pallets

  • Maintain 9.8-cent differential between 5D – CR


Package Services

  • 1.7% overall increase

  • Lower price increase for BPM Flats

    • Only product covering costs


Extra Services and Fees

  • 1.7% overall increase


Resources

  • Online

    • Current prices ─ usps.com/prices

    • Postal Explorer ─ pe.usps.com

      • Current and new price files (downloadable)

      • Federal Register notices

      • Domestic Mail Manual & International Mail Manual

  • DMM Advisory ─ e-mail updates for customers

    • Subscribe: [email protected]

  • P&C Weekly ─ e-mail updates for employees

    • Subscribe: [email protected]

  • MailPro ─hardcopy magazine

    • Subscribe and view online: usps.com/mailpro


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