On March 20, 2007 the Governors of the United States Postal Service approved a rate increase that will affect all mailings deposited with the United States Post Office.  The Board of Governors has set Monday, May 14, 2007 as the effective date for new rates and fees.  The new rates for Periodicals will become effective on July 15, 2007.

One of the major components of this rate increase will be the United States Post Office moving to a Shape based pricing system.  Currently there is no difference in price to send a first class 2 ounce letter, a first class 2 ounce flat, or a first class 2 ounce parcel.  The new pricing structure recognizes that each of these shapes has substantially different processing costs and should have different prices.  This will put a premium on properly designing your mail to keep postage costs in line.  For example: if the contents of a 2 ounce flat can be folded and placed into a letter size envelope you can save 20 cents per mail piece.  If the contents of a 2 ounce parcel can be configured as a flat then you can save 38 cents per mail piece.

One of the benefits of the new shape based pricing structure is a reduction in the rate for additional ounces.  As mail pieces become heavier, the impact of the rate change declines.  For 2 and 3 ounce letters, the new prices are cheaper than today’s rates.

Business Reply mailings will receive a small increase on the postcard mailings.  However they will be subject to the increases in first class mail for all Business Reply returns.  Once again, mail design will be the most important aspect to controlling mailing costs.

A rate comparison chart for the most frequently used mailing classes is attached.

The complete rate chart for all the services provided by the USPS can be found at: http://pe.usps.com/RateCase2007/Notice123_PDF/Notice123.pdf

The most significant changes in the rates are included in the brief overview document that can be found at: BasicRate_Overview.pdf

For additional information concerning your mailing needs, please contact:
Indiana University Mail Service
http://mailsvc.indiana.edu/
iumail@indiana.edu
855-3503