2015 Proposed Postal Price Increases

Many-USPS-delivery-trucks-sit-unused-blog

The USPS filed a notice last week with the Postal Regulatory Commission for a nearly 2% increase to take place on April 26. What does that mean for mailers?

Unlike previous CPI increases that only included price increases for established rate categories, this price proposal includes new FSS pricing – now including Bound Printed Matter flats – as well as incentives for Carrier Route 5-digit pallets, which can only contain carrier route bundles.

As such, comparing current prices for flats – Standard Mail, Periodicals and Bound Printed Matters – with what has been proposed, is not easy to do. Without the preparation requirements, which the USPS has yet to provide, we can only make assumptions on what can be accomplished and whether there will be cost added to our process to meet the requirements and take advantage of new incentives, like the Carrier Route 5-digit pallets.

Likewise, we don’t know what will be required in the FSS pricing structure or whether there will be options in preparation. At first glance, it looks like current carrier route-qualified mail in FSS zips will not be impacted negatively. However, High Density and High Density Plus in FSS zips may now have to be FSS prepped which would eliminate DDU entry opportunities and require that all mail pieces meet machinability requirements. It could also result in higher-than-CPI increases for those categories.

It should be noted that about 25-28% is the average volume per mailing that falls into FSS zips. That can vary by mailing and in some cases could be as high as 30% of the mailing.

Because of the complexity and new rate cells in the pricing proposal, it may take some time to get our rate calculators modified for client use. Until then, the charts provided below will provide a guide on what to expect. As details are confirmed, we will provide additional updates.

Letter mail – First Class, Standard Mail and Periodicals – along with Package Services should be close to the averages shown in the following USPS tables as there are no major changes to rate structures in those categories.

2015 Price Change Percentage by Mail Class

Class

Percent Change

First-Class Mail

1.949

Standard Mail

1.886

Periodicals

1.965

Package Services

1.964

Special Services

0.234

 

First-Class Mail – The Postal Service is maintaining the price of a stamp for a one-ounce single-piece stamped letter at 47 cents*, and is increasing the price of metered letters by one-half cent to 46.5 cents.
*The current price for a first-class piece is 49 cents, which includes a 2 cent exigent surcharge on the 47-cent base rate. If we get the rollback of exigent later on this year, the price would roll back to 47 cents.

First-Class Mail Product Price Change

Product

Percent Change

Single-Piece Letters/Postcards

0.623

Presort Letters/Postcards

2.417

Flats

2.438

Parcels

10.180

FCM International

2.768

Total First-Class Mail

1.949

 

Standard Mail – Within this class, the prices of Standard Mail products increase as follows:

Standard Mail Product Price Change

Product

Percent Change

Letters

1.835

Flats

2.466

Parcels

9.794

High Density/Saturation Letters

2.027

High Density/Saturation Flats and Parcels

1.557

Carrier Route

1.415

Every Door Direct Mail – Retail

4.761

Overall

1.886

 

Periodicals – The prices for these products change as follows:

Periodicals Product Price Change

Product

Percent Change

Outside County

1.966

Within County

1.952

Overall

1.965

 

Package Services – The prices for these products change as follows:

Package Services Product Price Change

Product

Percent Change

Alaska Bypass

2.294

BPM Flats

0.425

BPM Parcels

2.640

Media Mail/Library Mail

2.313

Overall

1.964

 

Joe Schick, Quad/Graphics’ Vice President of Postal Affairs is an advocate for mailers and the print industry and works closely with the USPS and Congress to achieve effective postal reform.


Popular Tags :

Related Posts

2015 USPS Price Changes (Part 2)
Looking Ahead: 2015 Postal Pricing Adjustments
Rate hike will harm postal service - Rafe Morrissey, The Hill