Overall, the new prices reflect changes in operations and the marketplace and will enhance efficiency, offer more choices, and ensure that the prices for all types of mail is sufficient to cover costs. Incentives are included for mailers to create mailpieces compatible with our processing systems and to deposit flats and parcels closer to where they are delivered.
One of the major changes is new shape-based prices for First-Class Mail® items, with lower rates than today for letters over 1 ounce, and lower rates for flats (large envelopes) over 6 ounces. The new price structure recognizes that each shape of mailpiece — letter, flat (large envelope), and parcel — has substantially different processing costs and affects processing and delivery efficiency. For example, for a First-Class Mail item, a 2-ounce letter will cost 58 cents; a 2–ounce flat, 97 cents; and a 2-ounce parcel, $1.30. These prices reflect the differences in costs of processing and delivering each type of mailpiece, as well as the higher value of larger pieces.
The new Forever Stamp™ has been introduced to make future price changes more convenient for consumers. The Forever Stamp will go on sale nationwide Thursday, April 12, and will increase convenience for consumers by eliminating the need to purchase make-up stamps when new prices are implemented in the future. Customers still need to prepare for the May 14 change, just as they have for previous price adjustments. The Forever Stamp will be one of two nondenominated First-Class Mail stamps. The Forever Stamp will be available in booklets of 20 for $8.20 on April 12, and beginning May 14 from our Automated Postal Centers® (APCs®) and at select automated teller machines (ATMs) in sheetlets of 18 for $7.38.
The value of the Forever Stamp will always equal the First-Class Mail single-piece 1-ounce letter price that is in effect on the day of use (mailing) without the addition of extra postage. Initially we will sell the Forever Stamp at the new 41-cent rate. While the Forever Stamp is intended to be used for First-Class Mail single-piece 1-ounce letters, it may be used on other single-piece-rate items as well. Additional postage will have to be affixed to letters weighing more than 1 ounce, letters subject to the nonmachinable surcharge, and mailpieces subject to another rate of postage (e.g., large envelopes or packages).
At the same time, a nondenominated American Flag stamp will be available in coils of 100, 3,000, and 10,000; in panes of 20 and 100; and in individual quantities. The American Flag stamp is not a Forever Stamp and will always have a value of 41 cents.
Priority Mail Flat-Rate Boxes are now a permanent product offering, and a new 1-pound price for Express Mail has been added.
For commercial mailers, new sorting options will be offered to reduce the number of trays in a mailing of letter-size pieces. New scheme preparations will allow mailers access to lower prices that align flat-size mail preparation with mail processing. A new automated Address Change Service (ACS) option has been added to reduce the costs associated with undeliverable-as-addressed mail. First-Class Mail parcel mailers will have new barcode options, and there will be new opportunities for mailers to combine Standard Mail® Not Flat-Machinable (NFM) pieces, Standard Mail parcels, and Package Services parcels in the same mailing.
The R2006-1 filing included mail classification changes, new pricing structures, and price changes for most domestic mailing services. Below is up-to-date information and summaries of the changes by class of mail and extra services. New prices are provided in the DMM Rates Module in this issue. For the complete final rule, as well as helpful information, including frequently asked questions, press releases, and previous Mailers Companion and MailPro articles related to the pricing changes, go to www.usps.com/ratecase.
To ensure presort software will be prepared for the May 14 implementation, we have worked closely with the presort software vendors. Training and communication programs have been initiated nationwide to ensure employees and customers are prepared.
Updated manuals and other mailing tools for customers such as decision trees, diagrams, and other supporting material to clarify physical standards and other mailing criteria will be published and featured on the Postal Explorer® Web site at http://pe.usps.com. The business rate calculator on Postal Explorer will be updated with new graphics and navigation features to make it even easier to use.
The policy for plant-verified drop shipment (PVDS) mail was published in the February 1, DMM Advisory. PVDS mailings verified and paid for before Monday, May 14, using current rates, will be accepted at destination entry postal facilities until Tuesday, May 29, when presented with appropriate verification and payment documentation. PVDS mailings may be verified and paid for beginning Saturday, April 14, using the new rates, provided the shipments are not deposited at destination entry postal facilities until Monday, May 14, or later, when presented with appropriate verification and payment documentation. Established procedures for other mailing exceptions will be followed in accordance with past rate cases.
