Q. When are the shipping services prices changing?
A. Sunday, January 18, 2009, prices will change for shipping services, which includes Express Mail®, Priority Mail®, Parcel Select®, Parcel Return Service, Global Express Guaranteed®, Express Mail International®, Priority Mail International™ and International Direct Sacks (Airmail M-Bags).
Q. Does that mean that I will have to pay more to mail a letter?
A. No, the price of First-Class Mail® will not change—it remains 42 cents for a single-piece First-Class Mail 1-ounce letter. Only the cost of shipping packages has increased.
Q. When will the price for mailing a letter go up?
A. The price increase for mailing services will be announced in February 2009 and take effect in May 2009.
Q. Why not raise all the prices at one time?
A. The January implementation for shipping services prices aligns the Postal Service™ with price changes among other shipping companies and provides a clearer picture of the competitive, affordable products we offer.
Q. Why did the cost of mailing packages increase?
A. The costs of doing business — for things like transportation, utilities, and health care benefits — have continued to increase. Without an increase to keep up with rising costs, we would face significant loss. Contrary to popular belief, Postal Service operations are not subsidized by tax dollars—we must rely on the sale of postal products and services to cover our operating costs.
Q. Why not cut costs instead of increasing prices?
A. The Postal Service has been aggressive about cutting its costs. Like other businesses, however, the Postal Service cannot fully make up for the increase in its expenses by cutting costs. Many costs are influenced by factors outside the control of the Postal Service, such as the rising price of fuel or difficult economic conditions. However, for each of the past several years we have committed to eliminating cost by a billion dollars. During fiscal year 2008, which ended September 30, we eliminated over $2 billion in costs. Labor-related costs such as salary and benefits account for about 80 percent of our expenses.
Q. What are the changes for Express Mail?
A. Express Mail prices will increase an average of 5.7 percent. The Express Mail flat-rate envelope retail price will be $17.50, regardless of the weight or distance traveled. Other than the flat-rate envelope, Express Mail prices continue to be based on weight and distance (zone). We will continue to offer reduced commercial base pricing.
Q. What is commercial base pricing?
A. Commercial base pricing is an incentive for customers to pay for postage online. For Express Mail service, the commercial base price will increase approximately 3.7 percent, and be 5 percent lower than retail price. The Express Mail flat-rate envelope will be priced at $16.63, compared to the $17.50 retail price. Commercial base prices are available to customers who pay postage through Click-N-Ship® service; to registered end-users of approved PC Postage® providers; or through an Express Mail Corporate Account (EMCA), including a Federal Agency Account. We will expand commercial base price availability to include customers paying postage using an approved information based indicia (IBI) metering system.
Q. What are the changes for Priority Mail?
A. Overall, Priority Mail prices will increase 3.9 percent on average, and retail prices will increase 4.7 percent. The Priority Mail flat-rate envelope retail price, as well as the unzoned 1-pound price, will be $4.95. We are introducing a new Priority Mail small flat-rate box that will be priced the same as the flat-rate envelope— $4.95, regardless of the actual weight or destination. Customers will now have four convenient flat-rate box options to choose from (i.e., small flat-rate box, two sizes of the regular flat-rate box, and the large flat rate box). We will continue to offer the $2 price reduction for the large flat-rate box going to APO/FPO destination addresses.
Q. Is there a new commercial base price for Priority Mail items?
A. For Priority Mail items, commercial base prices will be an average 4.7 percent lower than retail prices. The Priority Mail flat-rate envelope and the new small flat–rate box will be priced at $4.80. Commercial base price availability will be expanded to include customers paying postage through the use of an IBI metering system, as well as continuing for customers who use Click-N-Ship service, are registered end-users of approved PC Postage providers, or use permit imprint manifest mailing systems (MMS).
Q. Are there any price changes to Express Mail International service?
A. Published Express Mail International prices will increase by 8.5 percent and vary by country group and weight increments. The Express Mail flat-rate envelope will be priced at $25.95 for Canada and Mexico, and $27.95 for all other countries.
Customers using Click-N-Ship or PC Postage service will continue to receive a commercial base price 8 percent lower than the comparable retail price. We are expanding availability of the commercial prices to include customers who pay postage using an EMCA, and who use approved software for mail preparation and Customs-related functions.
Q. Are there any price changes to Priority Mail International service?
A. Yes. We are expanding availability of the commercial base prices to now include customers who pay postage using an IBI metering system and electronically transmit Customs forms. Priority Mail International customers using Click-N-Ship or PC Postage service, and customers who pay postage using a permit imprint and approved software for mail preparation and Customs-related functions, will continue to get a commercial base price 5 percent lower than the retail price. We will also add a new country price group (price group 10) for shipments to Australia and New Zealand.
Q. Can I use the new Priority Mail small flat-rate box for international mail?
A. Yes. The new Priority Mail small flat-rate box may be used for Priority Mail and Priority Mail International items.
Q. Are there any changes to Global Express Guaranteed (GXG) pricing?
A. Yes. GXG prices will increase 11.2 percent on average, and we continue to offer a 10 percent reduction with commercial base prices. We will expand commercial base price availability to include customers who pay postage using IBI postage metering systems and transmit Customs forms electronically, and continue to offer commercial base prices to customers who use Click-N-Ship service, or are registered end-users of approved PC Postage providers.
