General Overview
On April 8, 2005, the Postal ServiceTM filed a rate case
with the Postal Rate Commission (PRC) seeking an expedited recommended
decision to raise prices approximately 5.4 percent for almost all categories.
The filing was unique in that the decision to seek the increase was due
to the Postal Service's legal obligation to fund the $3.1 billion escrow
requirement imposed by Public Law (PL) 108-18, The Postal Civil Service
Retirement System Act, enacted in 2003. The proposal called for an
almost uniform 5.4 percent rate and fee increase spread over all classes
and subclasses of mail and extra services. No rate eligibility or classification-related
changes were proposed.
The PRC issued its Opinion and Recommended Decision on November
1, 2005. The Governors reviewed the PRC's Opinion and Recommended Decision
and accepted the rates on November 14, 2005, and set Sunday, 12:01 A.M.,
January 8, 2006, as the implementation date for the new prices and fees.
The new price for a 1-ounce single-piece First-Class Mail®
letter is $0.39 - a $0.02 increase. The Priority Mail® 1-pound
rate and flat-rate envelope will be $4.05. The Express Mail® half-pound
rate and flat-rate envelope will be $14.40.
At the same time, the Postal Service is adopting new international
mail postage rates and fees. The total international rate increase is
5.9 percent. To the extent possible, the targeted increase is 5.4 percent
across-the-board, consistent with our domestic rate change. In addition,
there are changes for mail going to the Republic of the Marshall Islands
and the Federated States of Micronesia. Mail to these destinations now
falls under international rate schedules. Both international notices were
published in the November 23, 2005, Federal Register. The international
changes take effect at the same time as the domestic pricing change, January
8, 2006.
Since Postal Service price changes affect virtually every
individual and every business, there are many factors involved in this
rate implementation. This Field Implementation Kit contains important
information that has been designed specifically to share with employees
and customers.
Elements of this kit include standup talks and answers to
frequently asked questions to assist in responding to customers. Also
included is a quick-tip sheet that can be used as a guide to prepare for
rate implementation.
Please review the Field Implementation Kit carefully
and share this information, as appropriate, with all employees and customers.
Informed employees and customers are key to a smooth transition to new
rates.
Communications
Introduction
Here is a brief description of the information included
in this kit which is designed to help you effectively communicate price
changes to employees and customers.
Quick Tips for Retail Units - Rate Implementation
Useful tips are outlined to prepare you for rate implementation.
Also included are retail rate implementation action items and checklists
for Retail Operations, Self Service Vending, Automated Postal Centers®
(APCs®), Stamps by Mail® (SBM), Stamps on Consignment (SOC), contract
postal units (CPUs), and integrated retail terminals (IRTs).
Standup Talks
Two standup talks are provided to communicate the pricing
changes to employees. There is a talk for all employees and one for business
mail entry unit employees. The talks will assist you in conveying the
changes to employees and ensure a smooth transition to the new prices.
Standup talks should be delivered as soon as possible so that employees
are informed and prepared to answer questions.
Frequently Asked Questions
The kit provides two sets of frequently asked questions.
The first set is provided to answer questions that employees may have
concerning the new prices. The second set of questions and answers are
intended to assist employees in answering questions from our customers.
Quick Tips for Retail Units
Preparing Your Staff
• Conduct standup talks provided in the Field Implementation
Kit.
• Ensure retail employees have a sufficient supply
of (new) $0.39 stamps as well as $0.01 and $0.02 stamps.
Preparing Your Office
• Take inventory of $0.01 and $0.02 stamps on hand.
Place special orders with your stamp distribution office (SDO),
if more are needed.
• Confirm that automatic distributions of $0.39 stamps
have been received from your SDO. Contact your SDO if shipment is not
received by December 8 or if additional shipments are needed.
• Ensure vending equipment is stocked with $0.39 nondenominated
stamp booklets on December 15. Check vending machine inventories several
times per day and restock as needed and just before closing.
• Staff all retail units appropriately to handle increased
customer demand in lobbies, especially prior to and immediately after
January 8, 2006.
• Ensure that postmasters, station managers, and supervisors
monitor the lobby and assist customers.
• Review Retail Rate Implementation Action items for
Retail Operations, Self Service Vending, Automated Postal Centers, Stamps
on Consignment, Stamps by Mail, Stamps by Fax, CPUs, and IRTs, all of
which are found in this kit.
• Remove all old rate information and replace with
new rate information prior to January 8, 2006. Ensure updated signage
is installed in lobby and that menuboards and parcel slides (if applicable)
are updated.
• Ensure retail employees are informed and ready to
answer customer questions on the new rates.
Preparing Your Customers
• Inform customers of the new rates and suggest purchasing
new rate postage prior to January 8, 2006. Be sure to inform all CPUs,
commercial mail receiving agencies (CMRAs), universities, colleges, hotels,
and other large stamp order customers of the changes and make arrangements
for them to buy stamps in advance.
Frequently Asked Questions for Employees
Why are rates going up now?
The Postal Service filed the 5.4 percent rate case solely
to meet the mandated escrow payment required by Public Law (PL) 108-18,
The Postal Civil Service Retirement System Act, enacted in 2003.
This law requires the Postal Service to establish a $3.1 billion escrow
account.
Will international prices change?
Yes. International prices will change simultaneously with
domestic prices.
Will there be enough $0.02 stamps available
for sale?
Yes, more than 2.5 billion $0.02 stamps were produced. To
ensure that sufficient quantities are available at every retail unit,
one automatic distribution from the SDO is scheduled. Backup supplies
are available at your local Stamp Distribution Office (SDO) to meet local
needs.
What promotion(s) are planned to encourage
customers to purchase $0.02 stamps early?
Retail associates are being asked to offer $0.02 stamps
in lieu of change during the weeks preceding the rate change. Associates
are also being asked to advise customers of the rate change starting December
8, so that customers have the option of purchasing nondenominated $0.39
stamps and avoiding a return trip in January.
Will there be sufficient stamp stock
for vending?
Yes, sufficient quantities will be available. Additional
packets of new-rate postage are being produced based on previous orders
and usage. However, this is not an automatic shipment and offices with
vending equipment must order the product they need.
Will updates for IRTs, APCs, RAMM 60s,
and POS ONE units be available on time?
Yes, disks for updating IRTs will be sent via Express Mail®
service to district IRT coordinators in late December. These items should
be received in early January. POS ONE and APC updates will occur over
the network. RAMM-60 CPUs will receive an update chip for the RAMM-60
rate change via the mail directly from the meter vendor with instructions
for installation.
How will eMOVES updates be completed?
eMOVES updates will be done by the St. Louis ASC and will
occur over the network prior to the price change.
How will SPORT money order configuration
be completed?
The SPORT money order configuration file will be updated
over the network.
Electronic scales are located in our
lobbies for customer use. These require a chip containing new rates. How
do we obtain updated chips?
Headquarters is not supporting any scales during this price
change because of the variety of scales in use. Each office will need
to contact the manufacturer of its specific scale to find out what is
available for the rate change.
What are we supposed to do with excess
stock we receive with the automatic shipments?
After implementation of the rate change, excess stock may
be returned as long as it is in the original package. The seal must be
intact. Communicate with your SDO prior to returning any stock. Note:
In the future, special instructions will be issued by Headquarters,
Revenue and Field Accounting, as to temporary stock limits.
Retail Operations Time Line
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1. Maintain contact with district rate implementation
coordinator for information, material updates, and guidance.
|
Manager, Retail
|
Ongoing
|
|
2. Ensure adequate staffing at SDOs during rate change
period. Keep critical time frames in December and January in mind
when reviewing leave requests.
|
Manager, Retail with SDO
|
Now
|
|
3. Ensure all communication regarding ordering procedures
gets to appropriate personnel. Include information about automatic
distribution of stock as well as replenishment and return of stock
procedures.
|
Manager, Retail and SDO/Stamps Services Center (SSC)
|
Immediately
|
|
4. Based on stock shipment and quantities on hand,
develop a primary and secondary distribution plan. (Include CPUs
and other access channels.)
|
Manager, Retail and SDO/SSC
|
Now
|
|
5. Prepare and ship rate-related stock. Phase 1 -
Distribute week of December 8. Phase 2 - Distribute week of December
29.
|
SDO/SSC - Manager, Retail ensures compliance
|
As determined
|
|
6. Verify stock immediately when received. Contact
SDO at once if quantity is not sufficient. Follow normal accounting
procedures as described in Handbook F-1, Post Office Accounting
Procedures.
|
Postmasters, station managers, and branch managers
|
As soon as available and as appropriate.
|
|
7. Issue stamp stock to retail employees and other
retail channels immediately upon receipt.
|
Postmasters, station managers, and branch managers
|
As appropriate, dependent upon first day of issue
and date of receipt.
|
|
8. Develop contingency plan to address additional
lobby traffic: Lobby directors work during peak periods.
|
Postmasters, station managers, and branch managers
|
As appropriate
|
|
9. Ensure all retail unit employees are prepared to
handle issues regarding new rates. Deliver rate change standup talks
so retail employees are aware of rate changes and how to communicate
changes to customers.
|
Manager, Retail and customer service supervisors
|
As appropriate
|
|
10. Ensure CPU and Community Post Office (CPO) staffs
are knowledgeable about the new rates and are prepared to address
customer concerns.
|
Manager, Retail; postmasters; station managers; and
branch managers
|
As appropriate
|
|
11. Ensure each CPU, CPO, Post Office, and retail
unit receives rate charts, posters, brochures, manuals, and publications,
if applicable.
|
Manager, Retail; postmasters; station managers; and
branch managers
|
As determined
|
|
12. Ensure rate signage is installed on menuboards
and parcel slides in all offices and Postal Stores. (Current rate
information must be posted until COB January 7, 2006.)
|
Manager, Retail; postmasters
|
January 7, 2006
|
January 8, 2006, before customers arrive.
|
13. Ensure all IRTs (including those at CPUs) and
electronic scales and RAMM-60s for CPUs are updated with new rates.
|
Manager, Retail; postmasters; station managers; and
branch managers
|
After close of business on January 7, 2006.
|
Before customers arrive on or after January 8, 2006.
|
14. Ensure POS ONE system is properly closed out to
receive download of new software and data files.
|
Postmasters; station managers; and branch managers
|
As directed by POS ONE Message Center.
|
Before customers arrive on January 8, 2006.
|
15. Ensure new rate information is displayed in customer
lobbies and all old rate information is removed and disposed of.
|
Manager, Retail; postmasters; station managers; and
branch managers
|
January 7, 2006, after close of business.
|
January 8, 2006, before customers arrive.
|
Retail Operations Lobby Scale Upgrade Information
Individual offices will be responsible for updating their
scales in Post Offices. Headquarters will not coordinate any support for
scales. Contact your specific scale manufacturer to find out what is available
for the rate change.
Retail Service Equipment - IRT Time Line
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1. Receive rate change diskettes, release notes, and
installation instructions for IRTs in bulk via Express Mail
service.
|
IRT coordinator
|
Mailing date to be announced via e-mail.
|
|
2. Contact the IRT hotline at 800-247-6478 if an insufficient
quantity is received or if no diskettes are received by the expected
date.
|
IRT coordinator
|
January 3, 2006
|
|
3. Mail IRT rate change software and information to
all IRT sites, including CPUs, immediately upon receipt.
|
IRT coordinator
|
January 3, 2006
|
In time to arrive by January 5.
|
4. Contact the district IRT coordinator by telephone
and/or e-mail if no disk is received.
|
Postmaster of IRT office
|
January 5, 2006
|
|
5. Install update disk before opening for business
on January 9, 2006, following instructions in release notes.
|
Postmaster of IRT office
|
After closeout on last workday prior to rate change
(January 7, 2006).
|
Before opening on first day after rate change is effective.
|
6. If update disk is found to be faulty at the last
minute, do not wait for a new disk to be mailed. Borrow an update
disk from a neighboring retail unit.
|
Postmaster of IRT office
|
ASAP
|
|
Retail Service Equipment - Vending Time Line
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1. Download the new product identifiers. These are
found on the Self Service Web page at www.retail.usps.gov.
The exact address is http://eagnmnsg10d/vfo/vfo_2006RateCase.htm.
See Attachment A for the complete list of products by item number.
|
Vending servicing employee and supervisor
|
December 2005
|
|
2. Print Label 223 for the single stamp vending machines.
New labels can be downloaded from the Web site at http://eagnmnsg10d/vfo/vfo_2006RateCase.htm.
|
Vending servicing employee
|
December 2005
|
|
3. a) Stock machines with the old and new rate stamps
on December 15, 2005. Follow the instructions in the machine model
maintenance series handbooks. b) Set the prices on the keypad for
newer machines or the program board for older machines. c) Change
the product display as necessary.
|
Vending servicing employee and supervisor
|
December 2005
|
|
Prices for the Single Stamp Vending Machines
Sample Label 223, December 2005
Label 223 is used in single stamp machines to identify the
available stamps. New Label 223 can be downloaded from the Web site at
http://eagnmnsg10d/vfo/vfo_2006RateCase.htm.
Item Prices for Rate Change Vending Products
Item #
|
Denomination
|
Description
|
Machines
|
315800
|
$ 0.40
|
20 - $0.02 Stamp Packet Navajo Jewelry Design Packet
|
PCM-1625A, 1625B
|
674300
|
$ 7.80
|
Book 20 Lady Liberty & U.S. Flag Nondenominated
(Straight)
|
PCM-1625A, 1625B
|
674311
|
$ 7.80
|
Book 20 Lady Liberty & U.S. Flag Nondenominated
X-Cross
|
PBSM-624, 624B
PBM-2A, 6, 7
|
783001
|
$39.00
|
Coil of 100 Nondenominated
|
PCM-1625A, 1625B
|
577600
|
$ 7.02
|
ATM Stamp Sheetlets Nondenominated
|
Automated Postal Centers (APCs)
|
Vending Scales
Electronic 30-pound Lobby Scales and
Rate Change Chips
Headquarters will not support lobby scales. Post Offices
are instructed to contact the manufacturer of the scales to find out what
is available for the rate change.
Vending Model and Instructions
Rate change instructions for vending models can be found
on the Retail Service Equipment Web site at http://eagnmnsg10d/vfo/vfo_2006RateCase.htm
for the following vending machines:
• PBM-2A.
• PBM-6.
• PBM-7.
• PBSM-624.
• PBSM-624B.
• PCM-1625B.
• PSM-22.
• PSM-22B.
• PSM-53C Modified.
• PSM-53D.
Obsolete machines will not have instructions and you will
have to use instructions of current model counterparts. It is recommended
that obsolete models be replaced with current models.
Rate Change Booklets (20 Stamps)
As of December 8, 2005, all vending sites may stock and
sell the new nondenominated Lady Liberty & U.S. Flag stamp
for the rate change effective January 8, 2006. These stamps are in 20-stamp
booklets at a cost of $7.80.
All shipments have been completed and are available at accountable
paper depositories (APDs), stamp distribution offices (SDOs), and stamp
service centers (SSCs). Stock booklets in postal book/stamp machine (PBSM)
models PBSM-624 and PBSM-624B, and in postal commodity machine (PCM) models
PCM-1625A and PCM-1625B. These stamps will not be an automatic
shipment. You will need to order the appropriate stock for your vending
machines.
From December 15, 2005, to January 7, 2006, stock these
machines with both the nondenominated Lady Liberty & U.S. Flag
stamp and the existing 37-cent booklet. Beginning Sunday, January
8, 2006, 37-cent booklets must be removed and replaced with the Lady
Liberty & U.S. Flag stamps.
Use the numbers from the following tables when ordering
these vending products from your SDO.
Nondenominated
Stamp Product
|
Item Number
|
Vending
Machine
|
Lady Liberty & U.S. Flag (straight) 20-stamp book
|
674300
|
PCM-1625A,
PCM-1625B
|
Lady Liberty & U.S. Flag (X-cross) 20-stamp book
|
674311
|
PBSM-624,
PBSM-624B
|
37-cent Denominated
Stamp Product
|
Item Number
|
Vending Machine
|
Flag (straight) stamp book
|
670700
|
PCM-1625A,
PCM-1625B
|
Flag (X-cross) stamp book
|
670711
|
PBSM-624,
PBSM-624B
|
As other vending products become available, an announcement
will be made in the Postal Bulletin.
Setting Prices in Postal Commodity and Postal
Booklet and Stamp Machines
PCM-1625A and PCM-1625B must have the new prices entered
into the control board via the keypad. Procedures for price setting are
in section two of Handbook MS-121, Postal Commodity Machine PCM-1625,
in section two of Handbook MS-134, Postal Commodity Machine PCM-1625B,
and in PCM-1625B Operator's Handbook.
PBSM-624 and PBSM-62B must have the new prices entered into
the control board via the keypad. Procedures for price setting are in
section two of Handbook MS-139, Postal Booklet and Stamp Machine PCM-1625,
and in PBSM-624 Operator's Handbook.
Retail Service Equipment - Automated Postal
Center
As of December 15, 2005, all APC sites may stock the new
Automated Postal Center (APC) nondenominated Lady Liberty & U.S.
Flag stamp for the price change effective January 8, 2006.
All shipments have been completed and are available at APD,
SDO, and SSC locations.
The Lady Liberty & U.S. Flag stamps are nondenominated
and available in 18-stamp sheetlets at a cost of $7.02. From December
15, 2005, to January 7, 2006, sheetlets should remain in the APC Stamp
Repository until January 8, 2006.
Beginning January 8, 2006, and after the software update
has been completed, all 37-cent sheetlets must be removed from the APC
kiosk and replaced with the new nondenominated Lady Liberty &
U.S. Flag stamps.
Use the number provided below when ordering the APC sheetlet
from your SDO.
Item #
|
Denomination
|
Description
|
Machines
|
577600
|
$7.02
|
ATM Stamp Sheetlets Nondenominated
|
APCs
|
Retail Service Equipment - Automated Postal Center
Time Line
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1. As of December 15, 2005, all APC sites may stock
the new nondenominated Lady Liberty & U.S. Flag stamp
sheetlet for the price change effective January 8, 2006.
|
APC supervisor and APC servicing employee
|
December 2005
|
December 2005
|
2. Order Stamps - The Lady Liberty & U.S.
Flag nondenominated stamps come in 18-stamp sheetlets at a
cost of $7.02. From December 15, 2005, to January 7, 2006, sheetlets
must remain in the APCs Stamp Repository until being loaded in the
APC kiosk.
|
APC supervisor and APC servicing employee
|
December 2005
|
December 2005
|
3. Beginning Saturday, January 7, 2006, all 37-cent
sheetlets must be removed from the APC and replaced with the new
Lady Liberty & U.S. Flag stamp sheetlets.
|
APC supervisor and APC servicing employee
|
January 7, 2006
|
January 8, 2006
|
Retail Access Channels - Stamps by Mail Time Line
Task
|
Responsibility
|
Time Line
|
Start
|
Complete
|
1. Distribute SBM template to areas, district offices,
and centralized and decentralized SBM fulfillment sites. Once rate
is confirmed, the template will be e-mailed to area retail managers
who will be requested to share the information with district retail
managers and SBM fulfillment sites. See Attachment A.
|
Headquarters
|
November 2005
|
December 2005
|
2. Make sufficient copies of rate template to go with
order forms. Template to be distributed once rate is confirmed.
Fulfillment personnel to include template with all orders until
order form with new rates is completed.
|
District retail specialists and postmasters
|
December 2005
|
December 2005
|
3. Distribute new rate change insert once rate is
confirmed. Include with fulfillment of all orders. Insert to be
distributed to areas and districts by rate implementation team.
Areas and districts will provide this to SBM fulfillment sites.
|
District retail specialists and postmasters
|
December 2005
|
December 2005
|
4. Distribute rate change letter to customers who
have submitted orders using old order forms after the rate implementation
has taken effect. This letter is to be used after rates have changed
and the customer has paid according to old rates. Print sufficient
copies of letter from the rate package. See Attachment B.
|
District retail specialists and postmasters
|
January 2006
|
January 2006
|
5. Review SBM General Information letter. See Attachment
C.
|
District retail specialists and postmasters
|
December 2005
|
December 2005
|
6. Share the following information with SBM centralized
and decentralized fulfillment sites. SBM order forms (PS Form 3227)
with new rates will be provided between December 1 and December
24 to the 50 centralized sites and those decentralized sites that
placed orders with the printer (Cyril-Scott) for the October 3,
2005, print run. For additional details, please refer to Postal
Bulletin 22168 (11-24-05, pages 61-63). The next print cycle
cut off date for decentralized sites to order brochures (order forms)
is December 12, 2005.
|
District retail specialists and postmasters
|
December 2005
|
January 2006
|
Retail Access Channels - Stamps by Mail Template,
Attachment A
Retail Access Channels - Stamps by Mail Customers
Template for Postal Service Letterhead, Attachment B
Dear Stamps by Mail Customer:
The Postal ServiceTM is changing rates and fees for all
classes of mail and extra services effective Sunday, January 8, 2006.
We have received your Stamps by Mail® order; however,
you placed your order prior to the rate change. Rather than return your
order to you unfulfilled, we have enclosed the value of new stamps equal
to your payment. We also are enclosing an order form with the new rates.
When you are ready to place another order, please use the enclosed order
form.
Thank you for your continued use of our Stamps by Mail program.
We look forward to serving you in the future.
Sincerely,
Name
Title
Retail Access Channels - Stamps by Mail General
Information for Retail Managers and Postmasters, Attachment C
The first Stamps by Mail (SBM) order forms to support the
new rates will be available between December 1 and December 24. The old
SBM order forms should not be used after the rate change, January 8, 2006,
unless you have included a template with the rates or a rate change (brochure)
order form.
If the SBM form with the new rates is not available on time,
there are several things to be done to ensure customers can continue to
use this service and are aware of the rate change:
• Copy the SBM rate change template provided by the
area and include with all orders.
• Do not plan any further saturation mailings of the
current SBM forms unless you can include the rate change template with
the form.
• Ensure that SBM forms with the old rate are not in
the lobbies beginning January 8, 2006, unless you can include the rate
change template with the form.
• If you have a lobby director, have this person distribute
SBM order forms with the rate change template to customers in the lobby.
Retail Access Channels - Stamps on Consignment
The local Stamps on Consignment (SoC) program (formerly
known as Stamps to Go®) was officially closed in December 2004 when
a Rescission of Delegation of Authority was issued by the Vice President
of Supply Management. National SoC vendors must secure stamps from the
national vendor, American Bank Note (ABN).
Existing local consignments and all potential leads from
local Post Offices should be referred to the Stamps on Consignment program
office (stampsonconsignment@ usps.gov) for follow-up contact
by the national program supplier, ABN. To be a potential lead, a local
Postal Service employee with knowledge of the consignment program should
discuss the basic concepts of the program with a contact person working
at the potential lead location or company headquarters. The lead information
sent to the SoC program office should include, at a minimum, the company
name, contact person name and title/position, contact telephone number,
and the name of the Postal Service person who initiated the lead contact
including the date of the discussion. Leads provided to ABN via the program
office will be contacted within 24 hours of receipt.
Retail Access Channels - Approved Shipper
Customers participating in the new Approved Shipper Program
will receive updated signage and Product Guides from the Headquarters
program office. These vendors will need to work through their normal channels
to secure any stamps that they may purchase for miscellaneous use.
Retail Access Channels - Contract Postal
Units
RAMM-60 CPUs will be receiving a chip update with the new
rates prior to the rate change for the RAMM-60 meter. This chip will also
include other program updates and enhancements. A separate document will
be released regarding the stamp exchange policies for RAMM-60 CPUs via
Kansas City SFS and ABN.
All other CPUs will exchange their stamps through the SDO
following the policies outlined herein. Excess stock may be returned as
long as it is in its original package with the seal intact. Contact your
SDO prior to returning any stock.
CPUs with a meter (other than the RAMM-60 meter) will need
to contact their meter manufacturer for specific instructions on rate
updates. CPUs with an IRT should follow the guidelines set for IRT rate
changes contained in this kit.
Standup Talk
All Employees
Postage rates to increase on January 8, 2006
The Postal Service will be raising postage rates on January
8, 2006. The price of a First-Class stamp will be $0.39 - an increase
of $0.02. Most other domestic rates will increase by about 5.4 percent.
International rates will go up by a total of 5.9 percent, with many services
increasing only 5.4 percent.
The Postal Service has not raised domestic postage rates
since June 2002 - 3 1/2 years ago. International rates haven't gone up
in 5 years. In that time, other delivery companies have raised their rates
a number of times - in some cases every year - and some even added a surcharge
for fuel and residential delivery.
Like other organizations, the Postal Service has faced rising
costs, such as the price of fuel, over the last several years. With your
help, we have worked very hard and very successfully to reduce spending
and to increase revenue. That has allowed us to absorb rising costs without
increasing prices or adding a fuel surcharge to the price of a stamp.
However, in 2003, a law was passed that requires us to place
$3.1 billion into a special account in 2006. The new rates will generate
the money needed to fund this account. We are not raising rates because
of increases in the usual costs of doing business. Without the $3.1 billion
payment, we would not have to raise the price of postage in 2006.
It's important that you - and our customers - understand
the reason for this rate increase. We have done a very good job of managing
our business. And we will continue to do that.
More information about the new rates is on its way to every
Postal Service facility. Stamps that cover the new rates - including an
ample supply of $0.02 stamps for customers who have $0.37 stamps on hand
- are also on the way.
A new stamp, the Lady Liberty & U.S. Flag stamp,
picturing the Statue of Liberty with the American Flag in the background,
is being issued to cover the new, basic First-Class letter rate. The price
will not be printed on the stamp, but it will sell for $0.39. The stamp
will be good for domestic and international postage.
New stamps will be available through all channels: in postal
lobbies, postal vending machines, Automated Postal Centers, the Postal
Store at www.usps.com, Stamps by Mail, Stamps by Fax, and through
other retailers who participate in our Stamps on Consignment program.
This special Postal Bulletin has complete information
about the new rates. These rates are also posted on our Web site, www.usps.com/ratecase.
Here are some of the new rates:
• First-Class Mail®
- The new one-ounce letter rate - the basic First- Class
stamp price - is going up $0.02, to $0.39.
- The new rate for each additional ounce is $0.24, an increase
of $0.01.
- The new rate for First-Class postcards is $0.24. Stamped
cards will be $0.26.
• Priority Mail®
- The new Priority Mail 1-pound rate is $4.05.
- The new Priority Mail flat-rate envelope is $4.05.
- The new price for the Priority Mail flat-rate box is $8.10.
• Express Mail®
- The new Post Office to Addressee half-pound rate is $14.40.
- The new price for the Express Mail flat-rate envelope
- also Post Office to Addressee - is $14.40.
- Express Mail will continue to have a $100 indemnity for
merchandise and documents included in its basic price. Customers can purchase
additional Express Mail merchandise insurance. The new cost is $1.05 for
each $100 increase. The limit for this insurance is $5,000.
• Extra Services
- The fees for most extra services are increasing as well.
This includes Delivery ConfirmationTM and Signature ConfirmationTM services
purchased at retail units. Prices for Certified MailTM and return receipt
services are also rising. While domestic money order fees are going up,
the fee for APO and FPO money orders will remain the same - $0.25.
• Post Office Boxes
- Post Office box fees are also increasing. But the new
fees only apply to new rentals and renewals. Current boxholders will not
have to begin paying the new fees until their current rental period expires
and it is time for them to renew.
Even with our new rates, mail continues to offer a great
value for our customers. Our service has never been better. Customer satisfaction
scores have never been higher. We've made it quick, easy, and convenient
to take advantage of our products and services. It's all about being the
best.
Standup Talk
Business Mail Entry Unit Employees
New Postage Rates Effective January 8, 2006
As you are aware, new domestic and international postage
rates will be effective January 8, 2006. The domestic changes call for
an almost uniform 5.4 percent rate and fee increase spread over all classes
and subclasses of mail as well as extra (special) services. International
increases are 5.9 percent. No domestic rate eligibility or classification-related
changes were proposed. There are limited international classification
changes. There are no "container labeling" changes. We will
go over some key points related to this change.
The new rates increase an average 5.4 percent across the
board, with a few exceptions:
Registered Mail + 5.6%
In-County Periodicals - 2.3%
Media Mail + 12.7%
Library Mail + 12.6%
Nonprofit Standard Mail + 3.0%
Nonprofit Standard ECR + 12.3%
Fee Changes
• All of the following annual fees increase from $150
to $160: bulk parcel return service fee; business reply mail annual permit
fee; merchandise return service fee; and permit imprint application fee.
• All annual accounting fees increase from $475 to
$500.
• Quarterly fee for high-volume qualified business
reply mail (QBRM) goes from $1,800 to $1,900.
• Business reply mail weight-averaged monthly maintenance
fee goes from $750 to $790.
New business reply mail "per-piece charges" (in
addition to postage) are as follows:
• Basic - from $0.60 to $0.65.
• Regular high-volume - from $0.10 to $0.11.
Business reply mail "per-piece charges" (in addition
to postage) that do not change:
• QBRM low-volume - remains $0.06.
• QBRM high-volume - remains $0.008
• Bulk weight averaged - remains $0.01.
Periodicals Fees
• Original entry - from $375 to $395.
• Additional entry - from $60 to $65.
• Re-entry - from $40 to $45.
• Registered News agent - remains at $40.
Postage Statements
All mailings deposited on or after January 8, 2006, must
be reported on (revised) January 2006 editions.
Implementation Support Materials
On the following pages are two easy-to-duplicate rate charts.
The first chart contains the most frequently requested domestic rates
and fees. It can be used as a "quick glance" for employees in
offices without electronic terminals and can be displayed in lobbies until
the printed materials arrive. The second chart is a stamp combination
matrix and contains often- used stamp combinations.
[DLINK]
Stamp Combination Matrix
|
Item
|
Old Rate
|
Make-up Stamp
|
New Rate
|
First-Class Mail 1-ounce letter
|
$0.37
|
$0.02
|
$0.39
|
First-Class Mail card rate
|
$0.23
|
$0.01
|
$0.24
|
First-Class Mail additional ounces
|
$0.23
|
$0.01
|
$0.24
|
|
Priority Mail Flat Rate Envelope
|
$3.85
|
$0.20
|
$4.05
|
Priority Mail 1-pound Rate
|
$3.85
|
$0.20
|
$4.05
|
Priority Mail Flat-Rate Box
|
$7.70
|
$0.40
|
$8.10
|
|
Express Mail Flat Rate Envelope
|
$13.65
|
$0.75
|
$14.40
|
Express Mail Half-pound rate
|
$13.65
|
$0.75
|
$14.40
|
The rate implementation items listed below will be printed
and distributed in various quantities to all Post Offices, stations, and
branches:
• Large Lobby Poster - 18" x 24" Cling.
• Handouts/leaflets.
Distribution to all locations will begin in mid- to late-
December. Instructions on the use and display of these items will be included
with the shipment.
Samples of the handout/leaflet pictured below are not scaled
to actual size.
Point of Purchase Rate Change Support
New point of purchase (POP) elements to support the rate
change will be shipped automatically to arrive in offices during the week
of January 2, 2006.
Rate change POP elements will include the following:
Elements
|
Locations
|
U.S. Shipping Menuboard
|
All Locations
|
Extra Services Menuboard
|
All Locations*
|
Stamps and Other Services Menuboard
|
All Locations*
|
Extra Services Writing Table Decal
|
Select Locations
|
Bilingual Global Shipping Menuboard
(English/ Spanish)
|
Select Locations & Puerto Rico
|
Bilingual U.S. Shipping Menuboard (English/Spanish)
|
Select Locations & Puerto Rico
|
Bilingual Extra Services Menuboard (English/Spanish)
|
Select Locations & Puerto Rico
|
*Space permitting
Frequently Asked Questions for Customers
Why are prices going up?
This increase in prices and fees is needed to fulfill the
requirement of Public Law (PL) 108-18, The Postal Civil Service Retirement
System Act, enacted in 2003. This law requires the Postal Service
to place $3.1 billion in an escrow account. Domestic rates and fees have
not increased since June 2002. This price adjustment was proposed based
solely on this requirement.
When will the new prices take effect?
The new prices and fees go into effect January 8, 2006.
Why don't you make the price of a stamp
an even $0.40?
No one should have to pay more than necessary. We want to
make sure the mail remains a great value. An increase of more than $0.02
in the price of a First-Class Mail stamp would impose an unfair share
of the burden of operating the Postal Service on First-Class Mail users.
A $0.02 increase results in a more equitable distribution of postal costs
among all mail classes.
Also, the majority of retail customers purchase their stamps
not in singles but in booklets of 10 or 20 stamps, so pennies are not
usually involved in the transaction. A booklet of 10 stamps will increase
only $0.20 from $3.70 to $3.90, and the booklet of 20 stamps will increase
from $7.40 to $7.80.
When will new stamps be available?
New nondenominated $0.39 First-Class Mail stamps will be
available for sale on December 8. A $0.02 stamp that can be added to the
$0.37 stamp to make up the First-Class Mail letter rate will also be available.
Buy stamps as early as possible. There are many convenient
stamp-purchasing options - by fax, by mail, by phone at 800-STAMP24, at
the Post Office, through retail lobby vending equipment, or over the Internet
at www.usps.com.
Why are rates going up now?
The Postal Service filed the 5.4 percent rate case solely
to meet the mandated escrow payment required by law.
Will International prices also increase?
Yes. International prices are determined separately from
domestic prices. There has not been an increase in international prices
since January 2001. To the extent possible, the targeted increase was
5.4 percent, consistent with our domestic rate filing with the Postal
Rate Commission. The implementation of international price adjustments
will coincide with the domestic price change.
Where can I find additional information
regarding the new prices?
Additional information is available on the Web site at www.usps.com/ratecase/
or by calling 800-ASK-USPS (800-275-8777).
What is the new price of a Priority Mail
flat-rate envelope?
The new price for the flat-rate envelope is $4.05.
What is the new price of a Priority Mail
flat-rate box?
The new price for the flat-rate box is $8.10.
What is the new price of an Express Mail
flat-rate envelope?
The new price for the Express Mail half-pound and flat-rate
envelope is $14.40.
Are there any changes to Delivery Confirmation
service or Signature Confirmation service?
Yes. The fees for these services have been increased. The
new fee for Delivery Confirmation service on Priority Mail is $0.50 for
the retail option. The new fee for Delivery Confirmation service on First-Class
Mail parcels and Package Services parcels is $0.60 for the retail option.
The new fee for Delivery Confirmation service on First-Class Mail parcels,
Package Services parcels, and Standard Mail items subject to the residual
surcharge is $0.14 for the electronic option. Delivery Confirmation service
on Priority Mail and Parcel Select items will remain free for the electronic
option. The new fee for Signature Confirmation service on Priority Mail
items, First-Class Mail parcels, and Package Services parcels is $1.90
for the retail option. The new fee for Signature Confirmation service
on Priority Mail items, First-Class Mail parcels, and Package Services
parcels is $1.35 for the electronic option.
Are the fees for Premium Forwarding Service
increasing?
The weekly reshipment fee for Premium Forwarding Service
(PFS) is rising from $10 to $10.40. However, the enrollment fee remains
$10.
No PFS customer is required to pay the new weekly reshipment
fee ($10.40) for PFS until the end of the current service period,
and no retroactive adjustment is to be made for a payment received before
the date of the change. The "service period" is defined as the
start and end dates listed in item number 15 and 16 of the PFS Application
(Form 8176). The $10.40 weekly fee is only collected for customers initially
enrolling (or extending) and paying on or after January 8, 2006.
Additional Resources for Rate Information
(for Employees and Customers)
www.usps.com/ratecase/ - New price information
and rate charts
www.prc.gov - Postal Rate Commission Web site
800-ASK-USPS (275-8777)
- Implementation and Outreach,
Pricing and Classification, 12-1-05
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