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Postal costs go up like those of any other business or household. In fact increasing costs for fuel and health benefits greatly affect the Postal Service. The Postal Service receives no tax dollars for operations and relies solely on the sale of its products and services to cover its operating costs. Many costs are associated with the fact that different shapes and sizes of the mail require different handling procedures.

On February 26, 2007, the Postal Regulatory Commission issued its recommendation on rates which recognize the impact on cost of different shapes of mail and which attempt to maximize economic efficiency within the mailing industry. In some cases, however, the recommended rates may cause some confusion. The Governors of the United States Postal commission are mindful that any business must consider the impact on its customers due to the timing and magnitude of any price increase.

On May 12, 2008 the Postal Service will adjust prices for its services. While the most visible change is the 1-cent increase for First-Class Mail letters, the changes are broader and include prices that could save you real dollars when shipping packages:

Reduced Express Mail prices for items shipped to addresses closer to home. Lower online postage prices for Express Mail and Priority Mail (domestic and international). Additional flat-rate box prices for Priority Mail.

The information below will help you determine just how much you can save.
Shipping Services
Mailing Services
Pricing Files and Helpful Information

Shipping Services

On May 12 the postal service will adjust the prices for shipping services — Express Mail, Priority Mail, Parcel Select, Parcel Return Service, and International Mail. For the first time the pricing includes rebates, online price reductions, and other new incentives.

These pricing incentives are designed to make the U.S. Postal Service more attractive to all shippers according to the Postmaster General.

Pricing Highlights:
• Express Mail is switching to a zone-based pricing system, resulting in customers paying less for nearby destinations.
• Priority Mail will have an average 3.5 percent savings for customers who use electronic postage or meet other requirements.

Items weighing more than 13 ounces must be presented for mailing to an employee at a Post Office retail service counter. If a customer is unable to present the item in person may use one of the methods listed below to prepare and affix postage.

Customers can use one of several convenient online postage applications — available 24/7 — or an Automated Postal Center, if they wish to mail items that weigh more than 13 ounces through the UAMS Mail Processing center or through US Postal Service collection boxes or Post Office lobby mail slots. Online postage applications include the Postal Service’s Click-N-Ship service on usps.com and PC Postage from an authorized USPS vendor.

Mailing Services

During this price change the U.S. Postal Service will adjust prices for mailing services — First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services. The average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.

A First-Class Mail stamp will be 42¢. Customers can continue to use the Forever Stamps that they purchased prior to May 12 at 41¢, even after the price change. The Forever stamp, while having a purchase price of 41¢, will remain valid postage for a fist-class letter of 1 ounce or less, even after the price change. On a letter of over 1 ounce, or any other mail-piece, the forever stamp can be used as 41¢ postage toward the normal postage required under the new rates.

Pricing highlights:
• No change in the First-Class Mail single-piece additional-ounce price.
• Shape-based pricing for First-Class Mail International letters, flats, and parcels.
• First-Class Mail International price groups expand from five to nine groups.

Pricing Files and Helpful Information

Select prices:

More information about this change can be found on-line at USPS.com.

Letter-sized mail
• These are typical mail pieces
• They must have an aspect ratio (length divided by height) of between 1.3 to 2.5.
• Must be one quarter of an inch thick or less.
• Must be no more than 3.5 ounces in weight.
• A mail piece that does not meet this criteria is not considered a letter, and instead may be considered a flat-sized mail piece.

Flat-sized mail
• This is a new category of mail
• Flat-sized mail pieces cost more than the same weight letter sized mail pieces.
• A flat is designated as being any mail piece that is between 11 1/2 inches to 15 inches long, 6 1/8 to 12 inches high, and 1/4 to 3/4 of an inch thick.
• A mail piece that does not meet this criteria is not considered a flat-sized mail piece and instead may be considered a first-class parcel.

First-Class Parcel
• This is a new category of mail
• First-Class Parcel mail pieces cost more than the same weight flat-sized mail piece.
• An item that is more than 15 inches long or more than 12 inches high or more than three quarters of an inch thick is considered a parcel.

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