Postal Rate Update – January 22, 2012

As you many now know the postal rates are going up in a couple weeks. This will affect First-Class Mail, Standard Mail, Periodicals, Package and Extra Services.

On average the increase varies based on the class and presort level, but the by law, it is capped at 2.1%, the rate of inflation as measured by the Consumer Price Index (CPI).

While most of the increase is around 1 cent for first class and standard mail, the Postcard rate is jumping 3 cents. That’s quite a hit considering the state of the economy, but the USPS is struggling with cost over runs and pension issues. They must have felt the old PC rate was too low based on how they have to process it and 1 cent would cover the increase.   Ouch…!

Some Highlights from the USPS:

For First Class

• Letters (1 oz.) – 1-cent increase to 45 cents. This is the first increase in the price of a First-Class Mail stamp since May 2009.
• Single-piece letters additional ounce rate – unchanged at 20 cents.
• Postcards – 3-cent increase to 32 cents
• Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents
• Letters to other international destinations – 7-cent increase to $1.05
• The second ounce will be free for First-Class Mail Presort pieces weighing between one and two ounces.

For Other Services

• The price increase for Standard Mail Letters is slightly below the overall average at less than 1.9 percent
• A new 3-month pricing option will be available to rent PO Boxes for people on the move and others that need a PO Box for a shorter time period.
• Delivery Confirmation will be free for several parcel products as the Postal Service continues to make tracking an integral component of parcels mailed at commercial rates.

Additional Details can be found at the USPS.com web site.

For your convenience, you can download a detailed DataMart Direct Postal Rate Chart. Click here for Postal Rates

Will the USPS survive 2012? … Cuts and changes are raising eyebrows

With the announcement the USPS has just released dealing with its challenges and cost cutting strategies, how will it impact you and your clients? No more Saturday delivery, slower stamped mail delivery, no more in-home date guarantees, cutting almost 1/2 of their processing facilities. I have to admit, the world is much different than it was when my parents starting this business 40 years ago. The way we communicate is significantly different, and the need for the USPS to be “only” way to get a message out doesn’t hold water the way it used to.

I think there is a need for the USPS to survive and I hope these measures (or whatever is finally agreed upon) make it a stronger and more nimble organization that provides the service and deliverability we need as an industry.

But back to my question. Many of our clients have already accepted these possibilities and asking how we can help manage them. Mail a bit earlier, mailing efficiencies we can suggest, even look at alternatives to mail delivery… This last one is an unfortunate reality – but one we have embraced. Our business is delivering a message on behalf of our clients. The USPS should be one of many tools we use. Our longevity will depend on how we deal with this fact and the opportunities we implement to achieve it. At least that is the direction we have chosen to follow.

What’s yours?