Chapter 2: Our Customers

Modification of Mail Classification Schedule Regarding Repositionable Notes: Docket No. MC2008-2

On February 27, the Postal Service filed a request to make the provisional Repositionable Note (RPN) service a permanent optional feature. The Postal Service had offered RPN service as a provisional service since April 3, 2005. This service allows bulk mailers of letters and flats to mechanically attach removable, self-adhesive notes to the outside of mailpieces for a small additional charge. On March 19, the PRC accepted this change.

Modification of Mail Classification Schedule Regarding Bound Printed Matter: Docket No. MC2008-3

On March 20, the Postal Service gave notice that all Bound Printed Matter be paid with a permit imprint mailing permit. On July 16, the PRC accepted this change.

Mailing Services Contracts

The Postal Service implemented two mailing services contracts designed to grow Standard Mail volume: Docket No. MC2007-4 (filed on August 3, 2007, with a decision on April 18, 2008), and Docket MC2007-5 (filed on August 8, 2007, with a decision on May 29, 2008). The Postal Service also implemented on April 1 a mailing services contract designed to encourage early adoption of Intelligent Mail® barcodes and related technologies: Docket No. MC2007-1 (filed on February 7, 2007, with a decision on October 19, 2007). This contract provides performance-based incentives to reduce costs associated with First-Class Mail and Standard Mail letters.

Shipping Services

Competitive Products Price Changes Regarding Rates of General Applicability: Docket No. CP 2008-3

On March 12, the Postal Service announced a May 12 price adjustment for shipping services — Express Mail, Priority Mail, Parcel Select, Parcel Return Service, and International Mail (other than First-Class Mail International). For the first time, pricing included commercial and retail prices, volume rebates, lower online prices, and other new incentives to encourage volume retention and growth. The PRC reviewed the new pricing for shipping services and determined that it was consistent with statutory requirements. Highlights of domestic mail pricing changes include:

  • Express Mail was changed to a zone-based pricing system, with customers paying less for nearby destinations. Customers also received a 3 percent price reduction for purchasing online or through corporate accounts. Additional price reductions became available for those who ship quarterly minimum volumes.
  • Priority Mail averaged 3.5 percent savings for customers using electronic postage or meeting other requirements.
  • Parcel Select — the Postal Service “last mile” delivery for ground parcels — featured pricing and volume incentives.
  • Parcel Return Service moved entirely to a weight-based pricing system, with price reductions for many lighter ground packages.

Competitive Products Price Changes Regarding Priority Mail Flat-Rate Box: Docket No. CP 2008-1

In March the Postal Service introduced the Priority Mail Large Flat-Rate Box, with pricing that included a military discount for the first time. The discount enhances good will and reflects the unique economics of military care packages.

Competitive Products Price Changes Regarding Express Mail Service on Sundays and Holidays: Docket No. CP 2008-2

On January 17, the Postal Service gave notice of a change that established a premium for guaranteed delivery of Express Mail pieces on Sundays and federal holidays.

Modification of the Mail Classification Schedule Transfer to Competitive Product Category Premium Forwarding Service: Docket No. MC2008-4

On May 30, the Postal Service petitioned to transfer Premium Forwarding Service to the competitive product grouping to reflect the competitive nature of this market place. The PRC granted this transfer on July 16, 2008.

Shipping Services Contracts

In 2008, the Postal Service submitted 21 contracts to the PRC related to the shipping services products.

Rulemakings

Rules to Establish Procedure for According Appropriate Confidentiality: Docket No. RM2008-1

On August 13, the PRC issued a notice of proposed rulemaking to establish rules for its handling of information provided to it and designated as confidential by the Postal Service under 39 U.S.C. § 504(g)(3)(A). The PRC is authorized to publicly disclose or permit restricted access to commercial postal information if “the nature and extent of the likely commercial injury to the Postal Service” does not outweigh “the public interest in maintaining the financial transparency of a government establishment competing in commercial markets”. The proposed rules would establish procedures by which the Postal Service may designate as confidential (nonpublic) information that it provides to the PRC and establish a process for review of challenges to the Postal Service designation of any such commercial information as nonpublic. The Postal Service filed its initial comments on the proposed rules on September 25 and its reply comments on October 10.