Follow-up: Postal Rate Increase

In a previous post, we reviewed early impressions of the proposed postal rate increase, scheduled for January, 2011. Action must be taken on the proposal by October 4th, meaning it will be approved, rejected or tweaked by that date. I have looked at the proposal in detail and consulted with various other experts on the details. So that you can plan and budget appropriately, please see this synopsis on the primary postage rates (Thank you POSTCOM & DMS for insights and much of the verbiage):

Non-Profit Mail

• Non-Profit automation rate letters have increases ranging from less than 1% to 2.8%, the best of any category.
• Non-Profit flats increases behave similar to the Standard Mail experience noted below with generally lower increases.
• Enhanced Carrier Route mailings also tend to reflect the Standard Mail increases noted below with generally slightly lower increases.

First Class Letters

• Automation rate (bar-coded) letters weighing less than one ounce will see an increase of about 6%
• Heavier automation rate letters (2 ounces to 3.5 ounces) will see increases ranging from 2.9% to 4.5% with heavier pieces seeing the lowest increases.
• Postcard increases range from 4.5% to 6.34 %
• A Reply Rides Free program would credit mailers who include a reply devise in a mailing for the additional ounce charge if the piece weighs between 1 ounce and 1.2 ounces. Various conditions apply.

Standard Mail

• The increase for Standard Mail automation rate letters will vary based on whether the mailing takes advantage of the drop ship discounts. Drop ship mailings (usually larger mailings) will see increases ranging from 5.5% to 6.2% while mailings that don't use the drop ship discounts (usually smaller mailings) will see increases of 4.3% to 4.8%.
• For Standard Mail Flat size pieces you will have to check the individual rate category into which your mailing falls. The increases range from less than 1% to double digit increases.
• Enhanced Carrier Route mailings also have a wide range of increases, although some of the more commonly used categories see increases of 3% to 6%.

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