January 27, 2013, Domestic and International Mailing Services Price Change

Field Information Kit: January 27, 2013, Domestic and International Mailing Services Price Change

On October 11, 2012, the Postal Service™ announced new prices and product features for the following domestic and international mailing services, effective January 27, 2013:

n First-Class Mail®.

n First-Class Mail International®.

n Standard Mail®.

n Periodicals.

n Package Services:

n Bound Printed Matter.

n Media Mail®/Library Mail.

n Alaska Bypass Mail (formerly part of Parcel Post®).

n Extra Services and Fees.

According to the Postal Accountability and Enhancement Act of 2006, on average, Mailing Services prices can increase no more than the rate of inflation based on the Consumer Price Index (CPI). Mailing Services prices will increase by an average of 2.570 percent (rounded to 2.6 percent) across each class of mail.

Individual prices within a mail class may have an increase that is higher or lower than 2.6 percent. Furthermore, when the prices for certain products are raised by less than the full CPI amount, the remainder can be used in future years. This year, the Postal Service is using some of this remainder to increase the prices for Extra Services.

Highlights of Changes

Single-piece, 1-ounce First-Class Mail letters will increase $0.01, to $0.46 (additional ounces remain at $0.20). The price for mailing a First-Class Mail postcard will increase by $0.01 to $0.33 and the cost of a stamped postcard will increase by $0.02 to $0.37.

New mailing standards consisting of classification changes to support the price changes will be implemented. Prices for other mailing services will also change, with price increases in the following categories:

Percentage Changes by Product Category

 

Product

Percent Change

First-Class Mail — overall

2.568

Single-piece letters and cards

2.283

Flats

2.674

Parcels

4.971

Presort letters and cards

2.467

First-Class Mail International

7.627

Standard Mail — overall

2.569

Letters

2.610

Flats1

Parcels

3.081

Carrier route letters, flats, and parcels

2.907

High density/saturation letters

2.059

High density/saturation flats and parcels

2.092

Periodicals — overall

2.560

Outside County

2.546

In-County

2.911

Package Services — overall

2.567

Bound Printed Matter (BPM) flats

0.002

BPM parcels

3.424

Media Mail/Library Mail

3.469

Extra Services — overall

2.850

Certified Mail®

5.085

Registered Mail™

3.064

Insurance

4.925

Return Receipt

7.523

Collect on Delivery (COD)

9.203

PO Box™

6.002

All other

-3.058

1. The Postal Service has revised its proposed Standard Mail Flats prices for 2013 in response to a Postal Regulatory Commission (PRC) order. The revised prices are being reviewed by the PRC and a decision is expected in December.

Additional Information

The Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) and Mailing Standards of the United States Postal Service, International Mail Manual (IMM®) will be updated on the Postal Explorer® website at pe.usps.com on January 27, 2013. Updates can be found in this and later issues of the Postal Bulletin.

Frequently Asked Questions

General

Q. When are Postal Service Mailing Services prices changing?

A. January 27, 2013. This includes new prices for First-Class Mail, Standard Mail, Periodicals, Package Services (Bound Printed Matter and Media Mail/Library Mail), First-Class Mail International, and Extra Services — a broad category including many products such as Money Orders and Return Receipt and services such as insurance, Certified Mail, and Collect on Delivery (COD).

Q. Where are the new Mailing Services prices listed?

A. The January 2013 new prices are viewable on Postal Explorer at http://pe.usps.com.

Q. How much are Postal Service prices changing?

A. Postal Service Mailing Services prices will increase by 2.6 percent, on average, across each class of mail.

Q. How did the Postal Service come up with 2.6 percent for the Mailing Services price change?

A. By law, Mailing Services prices can increase by no more than the rate of inflation based on the Consumer Price Index (CPI).

Q. Are Shipping Services prices also changing in January?

A. Yes, new Shipping Services prices will also take effect on January 27, 2013.

Q. Why is the Postal Service raising prices in January?

A. We are implementing this price change in January to address the urgency of our current financial challenges and to coincide with the price changes for Shipping Services.

First-Class Mail

Q. Are First-Class Mail prices changing in January 2013?

A. Yes.

Q. What will be the new price for a First-Class Mail stamp for letters?

A. The price of a single-piece, 1-ounce, First-Class Mail stamp will increase $0.01, to $0.46, only the second increase in this price since May 2009.

Q. Will Forever stamps still be available?

A. Yes. Forever® stamps do not have a denomination and will be valid whenever they are used. After the January 27, 2013, price change, the price of a Forever stamp will be $0.46. Most new First-Class Mail commemorative stamps will be Forever stamps.

Q. Will there be an increase to the price for additional ounces?

A. No. The additional ounce price for single First-Class Mail letters remains $0.20.

Q. Is the nonmachinable surcharge increasing?

A. No, the nonmachinable surcharge (typically paid by customers who mail square or rigid letter-size pieces) will not change; it remains $0.20.

Q. Will the price for postcards increase?

A. Yes, the price for mailing a single-piece First-Class Mail postcard is going up $0.01, to $0.33. Stamped postcards will increase to $0.37.

Q. Is the price for single-piece large envelopes (flats) changing?

A. Yes, the price for single-piece large envelopes (flats) will increase by $0.02 to $0.92, maintaining a 2-to-1 ratio with single-piece letters and preserving the convenience to consumers of using two letter-price stamps as postage.

Q. How are prices changing for First-Class Mail presort letters?

A. For First-Class Mail presort letters and cards, most one-ounce letter price increases fall within the $0.001 to $0.01 per piece range. Presorted and automation letters weighing up to 2 ounces continue to be charged the same ounce price, continuing the “Second Ounce Free” incentive program.

In the January 2012 price change, the Postal Service proposed a uniform price for all Presort and Automation letters weighing up to 2 ounces. However, this was not fully achieved because residual pieces still had different prices for 1-ounce and 2-ounce pieces. Separating the pieces by weight was expensive and time-consuming for mailers. With the January 2013 price change, there will be a uniform price of $0.48 for these residual pieces, making it easier for customers to do business with the Postal Service.

First-Class Mail International

Q. Are the First-Class Mail International prices changing?

A. Yes, this includes First-Class Mail International letters, cards, and flats. There is one price for 1-ounce machinable letters and postcards anywhere in the world ($1.10).

Q. Can regular Forever stamps be used for International mail?

A. Customers can use Forever stamps for International mail, but since all international prices are higher than domestic prices, customers will need to attach additional postage. The value of the Forever stamp is the domestic First-Class Mail 1-ounce letter price in effect on the day of use.

Q. Is it true that there’s now a Forever stamp for international use?

A. Yes, the Postal Service is introducing a Global Forever stamp, with a single price for any First-Class Mail International 1-ounce letter or card to any country in the world. The Global Forever stamp will ease the transition during price changes and will always be sold at the price of a single-piece First-Class Mail International 1-ounce machinable letter and will have a postage value equivalent to the price of a single piece First-Class Mail International 1-ounce machinable letter in effect at the time of mailing.

To help distinguish between the domestic and international Forever stamps, the international version will always be round and will always bear the words “Global Forever.”

For the January 27, 2013, price change, 1-ounce and 2-ounce letter-size mailpieces to Canada will be charged the same price. Thus for this price change, the Global Forever stamp may also be used to mail a 2-ounce letter-size mailpiece to Canada.

Q. How are the prices changing for International mail?

A. The prices for single-piece First-Class Mail International letters increase approximately 13.8 percent and postcards increase approximately 8.7 percent. The extra services that are part of Mailing Services increase approximately 11.3 percent.

Standard Mail

Q. Are there any changes for Detached Address Labels (DALs)?

A. Yes, Detached Address Labels will increase to $0.031 from the current $0.030.

Q. Is there any change in Carrier Route pricing? I’ve heard there’s a new price tier called High Density Plus.

A. Yes, the new High Density Plus price tier falls between High Density and Saturation Mail. High Density is used by customers who want to target advertising geographically. It is similar to advertising sent using Saturation Mail, except that while Saturation Mail is usually distributed solely through the mail, High Density advertising often consists of ads mailed by newspapers to nonsubscribers.

The new High Density Plus price tier requires a minimum of 300 pieces per carrier route (compared to 125 pieces per carrier route to qualify for High Density prices). The price range for High Density Plus letters is from 15.6 cents to 19.9 cents and for High Density Plus flats is from 17.2 cents to 22.4 cents, depending on where it is entered.

Periodicals

Q. Are Periodicals prices changing?

A. Yes, Outside County Periodicals are increasing an average of 2.5 percent and In-County Periodicals are increasing an average of 2.9 percent. The Postal Service is continuing to encourage more efficient mail preparation and encouraging entry closer to destination by increasing the price for pallets entered close to origin which must then be transported through our network. In addition, the prices encourage entry at plants that sort Periodicals on automation equipment rather than at delivery units where these pieces must be sorted manually.

Package Services

Q. Are Package Services prices changing?

A. Yes, there is a 2.567 percent overall average increase.

Q. What is happening to Parcel Post, which used to be part of Package Services? and what is Alaska Bypass?

A. With this January 27, 2013, price change, Single-Piece Parcel Post has been transferred to the competitive price list (Shipping Services) and renamed Standard Post, while Alaska Bypass mail remains on the market dominant price list (Mailing Services). Alaska Bypass now stands alone as a Package Services product. In years past, Alaska Bypass prices were linked to the 70-pound single piece Parcel Post prices; with the transfer of Single-Piece Parcel Post, separate prices have been established for Alaska Bypass mail.

Q. Are Media Mail, Library Mail, and Bound Printed Matter prices changing?

A. The prices of Media Mail and Library Mail are linked by law. The prices for Media Mail are increasing an average 3.5 percent while the prices for Library Mail are increasing an average of 3.2 percent.

Within Bound Printed Matter, there are two shape groupings: Flats, which are primarily heavy catalogues, and parcels, which are primarily thicker heavy catalogues or books. The average price for Bound Printed Matter flats will be unchanged while Bound Printed Matter parcels will increase 3.4 percent.

Q. I’ve heard there’s something new called Simple Samples. What’s that?

A. Product Samples, also know as Simple Samples, is a reconfiguration of what is currently Marketing Parcels Carrier Route. Samples are mailable at targeted address prices (similar to current basic Carrier Route prices) or at saturation prices (Every Door Direct Mail prices). Simplified preparation standards enable mailers to induct samples into the mail in cartons or sacks without requiring outer packaging. Under the simplified pricing structure, Every Door samples will be priced at $0.26 (small sample) and $.30 (large sample) and targeted samples will be priced at $0.36 (small) and $0.40 (large) a piece, for up to 200,000 pieces. Lower prices are offered for higher volumes.

Extra Services

Q. What are some of the Extra Services?

A. Extra Services contains products such as Money Orders, services such as insurance and Post Office Boxes, and fees such as Business Reply Mail®, Bulk Parcel Return Service, and presort annual mailing fees.

Q. What are the overall changes in Extra Services?

 

Extra Services — Overall

2.850

Certified Mail®

5.085

Registered Mail™

3.064

Insurance

4.925

Return Receipt

7.523

Collect on Delivery (COD)

9.203

PO Box™

6.002

All other

-3.058

The fee for Delivery Confirmation with retail Priority Mail and the newly-named Standard Post has been set to $0.00 because USPS® Tracking/Delivery Confirmation is now included in the price of those products.

Another service fee, the $1.00 fee for credit card authentications, has been expanded to apply to all credit card authentications, not just those for filing Change-of-Address requests. The Postal Service uses credit card authentication to verify that a particular addressee, or a credit card tied to an address, is actually the one requesting a service.

Q. Are there any changes in Post Office Boxes™?

A. Yes. This year Post Office Box prices will increase an average of 6 percent.

Q. Are there changes to Return Receipts?

A. Yes. Current DMM standards permit customers to request proof of delivery via mail, fax, email, or electronically when they purchase at the time of mailing an electronic return receipt and also permit customers to request proof of delivery by mail, fax, or email when they purchase after mailing PS Form 3811-A, Request for Delivery Information/Return Receipt After Mailing. With the January 27, 2013, price change, mail and fax options are discontinued for electronic return receipts and the fax option is discontinued for PS Form 3811-A.

The prices for Return Receipt services are also changing. The price for the basic hardcopy Return Receipt (showing to whom delivered, signature, date of delivery, and addressee’s address) requested at the time of mailing and received by mail is increasing by $0.20, to $2.55. The price for a Return Receipt requested at the time of mailing and received by email or electronically is increasing by $0.10 to $1.25; the price for a Return Receipt requested after mailing and received by mail or email is increasing $0.20 to $4.95.

 

Proof of Delivery

Service

Change to delivery options

Return receipt via

2012 price

2013 price

Return Receipt requested at mailing (PS Form 3811)

none

mail

$2.35

$2.55

Electronic Return Receipt requested at mailing

eliminated fax and mail options

email or (for Bulk Proof of Delivery) electronically

$1.15

$1.25

Return Receipt requested after mailing (PS Form 3811-A)

eliminated fax option

email or mail (PS Form 3811-A)

$4.75

$4.95