TVPast Forums - U.S. Postal Rates to Increase Again May 12

from a wire report...

U.S. Postal Rates to Increase Again May 12
Incentive Discounts May Remove Sting for Some Businesses

Postal rates are increasing again on May 12 but, overall, the rate hikes should be far less painful than last year. Businesses and retailers that send packages via the mail will see the sharpest increase. First-class retail parcels (for small packages that weigh less than 13 ounces) increased by four cents in each weight category. Rate increases for larger, retail parcels are varied depending on weight and zone. It's these larger packages that show the largest increase.

If you haven't checked into the Postal Service's media rates before, now may be the time. Media rates start at $2.23 for single packages less than one pound. (That's 10-cents higher than last year's prices.) If you are sending small packages that weigh more than six ounces, however, using media rate will save you money.

The cost of a first-class stamp will increase from 41 to 42 cents. If haven't purchased any Forever Stamps, don't despair. According to the Postal Service, it has an additional 5 billion in stock to meet the expected increase in demand prior to the May price change.

The good news is the Postal Service, for the first time, will begin offering commercial volume pricing, minimum-volume rebates, online price breaks and other incentives for many of its shipping services.

Some of the services which will provide discounts include:
Express Mail (the Postal Service's premium, overnight delivery) is switching to a zone-based pricing system, similar to the pricing system currently being used by other over-night carriers. This means lower prices for those who are shipping to closer destinations. There is also a three percent price reduction if you purchase Express Mail online or through a corporate account.

Additional price reductions are available to those who meet quarterly volume minimums. Customers who mail a minimum of 125 pieces per quarter — about two pieces per day — are eligible for an additional 2 percent rebate. Additional reductions of up to 7 percent are available for shippers who send as few as 15 pieces per day, on average.

Flat-rate envelopes will still be available. Individuals using the flat rate envelope provided by the USPS will pay $16.50 regardless of the weight or destination. The commercial price for the same service is $16.00.

Priority Mail (two- or three-day expedited delivery) will offer price reductions from one to 11 percent to customers who use electronic postage or meet other requirements.

Parcel Return Service (a way for customers to return items to businesses) will move to an entirely weight-based pricing system. Which means companies will save money on lighter packages.

The Postal Service also has plans to "explore" contract pricing for larger customers, similar to the contracts companies are getting with UPS, DHL and other shippers. The USPS has not announced when contract pricing will become available.

If you are wondering where these new postal rates are coming from, they actually originate from the postal reform bill that was passed in late 2006. The bill allows for annual rate increases that are capped by the Consumer Price Index to provide individual consumers and businesses with predictable price changes.

Sucks... -LS