News

USPS Rate Change -- Shape-Based Pricing Initiative
Changes to First Class Mail

The USPS May 2007 rate change will raise a first class letter price from 39 to 41 cents and a postcard rate will raise from 24 to 26 cents.

The new Shape-based Pricing, de-emphasizing weight, will produce the following changes:

• 2 oz letter moves from 63 to 58 cents
• 2 oz flat moves from 63 to 97 cents
• 2 oz parcel moves from 63 cents to $1.30

USPS' shape initiative also affects workshare mail. The additional oz. rate for automation pieces will decrease from 23.7 cents to 12.5 cents for letters, and from 23.7 cents to 17 cents for pre-sorted letters, flats and parcels.

The USPS will introduce a new pre-sorted parcel category. This category will increase incentives for presorting parcels. Currently, there is only one pre-sort price at each weight increment, but the 2007 rate change will add new pre-sort rate tiers – 5 digit, 3 digit and ADC. Parcel pre-sorting requires a barcode, and if that is not possible for the customer, the rate adds a 5 cents surcharge.

The USPS will discontinue heavy piece discount and carrier route rates.

1st Class Rate Examples:

Click here to contact Midwest Mailing & Shipping Systems, Inc.