April 2007 Issue 41

RATE INCREASE

MAY 14, 2007

Highlights of the New USPS Prices

Shape Matters

The USPS is implementing a rate increase on May 14, 2007. Current prices do not distinguish between some letters, flats, and parcels. Unlike today, where prices are set mostly on the weight of a mailpiece, the USPS is introducing shaped-based pricing. Each shape of mailpiece, a letter, flat, and a parcel has different handling costs and their prices must sufficiently cover those different costs. As shape becomes more important, there is less price emphasis on weight. The USPS wants you to create efficient mailpieces that will be compatible with their processing and sorting systems and use packaging such as a smaller, denser parcel rather than a large, lightweight one. The following are tips to remember when choosing the proper container for your mail. Improving efficiency for the USPS results in lower mailing costs for you.

If your letter is over 3 pages, place it in a 6x9 envelope (still a letter size envelope weighing 1 ounce with the cost being $.41) rather than a #10 letter envelope (weighing 1 ounce but over 1/4" thick with the cost moving to an ($.80 flat). Going over in this case has increased your letter to a flat and the price has increased by $.39.

If your parcel contents weighed 1 ounce and could be placed in a flat size envelope and remained under ½" thick, you will reduce your rate to a flat ($.80) rather than a parcel ($1.13).

Plan your mailpiece ahead of time. For example, the second ounce of a first-class letter will be less expensive than the first ounce, so combine information from two different mailings into a single mailpiece can save you money. As long as you keep it within the letter shaped regulations, it would cost you $.58. At the very least, you could keep the thickness to ½” or a flat, (cost would be $.97 rather than $1.30).

Cleanse your addresses (we offer address list cleansing free of charge to any campus department and take advantage of discounts offered by CMS (if sending automation compatible letters in the a.m. you will receive a discount on your letters).

If any of you out there want to learn more, please sign up for the seminar being held on April 24, 2007.

Manhattan Postal Customer Council is sponsoring an open panel discussion
on the 2007 Rate Case & Beyond. Come join us!

Express Mail International

Express Mail International replaces Global Express Mail service. Express Mail International is an expedited mail service that can be used to send documents and merchandise to over 190 countries worldwide. Express Mail International service does include a date-certain, money back guarantee to select destinations (see IMM 220 and ICL for availability of this service). To all other destinations, Express Mail International shipments are not guaranteed and are not eligible for a postage refund should a delivery delay occur.

Express Mail International Highlights

Express Mail International is a reliable, high-speed mail service available to over 190 countries. It offers:
· 3 to 5 average business day delivery to major destinations
· Tracking
· $100 insurance included
· Additional insurance available at the mailer’s option
· Lowest price among competitors
· Rates start at $22.00
· Money-back service guarantee to Australia, China, Hong Kong, Japan and Korea, Republic of (South Korea)

Express Mail Flat-Rate Service

· Express Mail flat-rate envelope can be used for international shipping.
· One rate to Canada and Mexico - $22
· One rate to all other countries - $25

IMM country listings show required Customs forms

Did you know? Coins, jewelry, watches and other valuables are prohibited in EMI shipments. Always check country-specific prohibitions, restrictions and observations in the IMM country pages.

Customer Opportunities

· $100 of insurance provided at no extra charge.
· Express Mail International with money-back guarantee is available to Japan, China, South Korea, Hong Kong and Australia.


Fact Sheet

First-Class Mail International

First-Class Mail International service replaces Airmail Letter Post, economy letters, and aerogrammes. First-Class Mail International is a service that provides customers with a reliable and economical means of sending correspondence, documents, and lightweight merchandise weighing up to 4 pounds to foreign destinations that are listed in IMM 231.4.

First Class Mail International Highlights

· Service available worldwide for items weighing up to 4 pounds
· Registered Service available without insurance coverage
· Delivery time varies by destination

Air Mail M-Bags
· Direct sacks of Printed Matter to a single addressee
· Air service only, available worldwide
· Registered Service or Insured Service is not available
· Delivery time varies by destination
· No tracking

Customer Opportunities

· First-Class Mail International provides an economical option for customers shipping lightweight items to foreign destinations.
· Registered Mail service is available for purchase with First-Class Mail International items for additional security.

Priority Mail International

Priority Mail International combines Global Priority Mail and Airmail Parcel Post services and is a reliable, cost-effective way to send documents and merchandise to over 190 countries. All domestic Priority Mail packaging can be used for Priority Mail International shipments including flat-rate envelopes and flat-rate boxes.

Priority Mail International Highlights

Priority Mail International is a reliable cost-effective way to send documents and merchandise to over 190 countries that offers:

· 6 to 10 average business day delivery to major destinations
· Tracking to major destinations
· Limited indemnity coverage provided at no extra charge
· Insurance available at the mailer’s option
· Domestic Priority Mail flat-rate envelope can be used for international shipping:
· One rate to Canada and Mexico - $9.00
· One rate to all other countries - $11.00
· 4 pound maximum weight
o Registered Mail service without insurance is available for a fee, check POS ONE or IMM for country-specific availability
· Domestic Priority Mail flat-rate boxes can be used for international shipping:
o One rate to Canada and Mexico - $23.00
o One rate to all other countries - $37.00
o 20 pound maximum weight
o Requires Customs form, PS Form 2976-A

Contract Post Office Corner

The following article was released by the US Postal Service on March 26,.2007.

NATION GETS SNEAK PEEK OF THE FOREVER STAMP

WASHINGTON, D.C. — You've heard about it. You've read about it. Now see it for the first time. It's the Postal Service's newest consumer innovation — the Forever stamp. The stamp was previewed today at the National Postal Forum, the premier trade show for advertising, marketing and mailing executives. Featuring the Liberty Bell image and the word "forever," the stamp will be good for mailing one-ounce First-Class letters anytime in the future — regardless of price changes. The Forever stamp goes on sale April 12 at 41 cents. Customers can begin using the stamp when postage changes May 14.

"Who said nothing lasts forever?" remarked Postmaster General and Chief Executive Officer John E. Potter in unveiling the image here at the National Postal Forum. "The Forever stamp is a consumer innovation guaranteed to deliver unprecedented convenience and value to our customers. It's good forever."

Potter said the Liberty Bell was selected because it resonates as one of the nation's most prominent and recognizable symbols associated with American independence.

Research has shown that customers prefer the Forever stamp for the convenience it offers by easing the transition for mailing letters when prices change. When postage changes in the future, it will reduce the need to buy one- and two-cent stamps.

Beginning April, 12, the Forever stamp will be available in booklets of 20. Once prices change May 14, the Forever stamp will remain on sale at the 41-cent First-Class one-ounce letter price until the next price change. The Forever stamp will then be available at the new price.

An independent federal agency, the U.S. Postal Service is the only delivery service that visits 146 million homes and businesses, six days a week. It has 37,000 retail locations and relies on the sale of postage, products, and services to cover its operating expenses. The Postal Service has annual revenues of $73 billion and delivers nearly half the world’s mail.

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