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2007 Postal Rates Effective May 14, 2007

2007 Postal Rates Effective May 14, 2007. Attention.

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2007 Postal Rates Effective May 14, 2007

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  1. 2007 Postal RatesEffective May 14, 2007

  2. Attention • We have included in our webpage a summary of the 2007 United States Postal Service rate increase effective May 14, 2007. In addition, the USPS is introducing Shape-Based Pricing, one of the most dramatic postage changes in years. Presently, the USPS primarily uses a weight-based method to determine postage costs. With mail processing costs rising, and with the need to encourage customers to prepare mail in ways that increase efficiencies, the USPS initiated Shaped-Based Pricing, which moves from a pure weight determination factor to one that combines size, thickness and weight. Because of their shape differences, letters, flats and parcels will now be priced differently. Example, if the contents of a first class large envelope are folded and placed into a letter sized envelope, you can reduce your postage costs by as much as 39 cents per piece. Simply put, an item that is easier for the USPS to process will cost less. • To help offset the postage increase when planning a mailing: • 1. Design the mail piece paying special attention to shape. • 2. Design the mail piece to take advantage of postal discounts. • 3. Cleanse your mailing lists by making sure e addresses are correct. • The University’s Bulk Mail Center can help you determine the best shape for your particular design and provide you with advice on all available postal discounts. In addition, the Bulk Mail Center has the ability to assist you in cleansing your mailing lists to help reduce your overall postage costs.

  3. First Class Mail

  4. Priority MailLETTERS, CARDS, FLATS, & PARCELS

  5. Media Mail

  6. Library Mail

  7. Standard Mail NonprofitLetters Non-machineable Criteria for Letter-Size Mail • When determining the machineability of a letter-size piece, length is the dimension parallel to the address as read, height is perpendicular to the length. A letter-size piece is non-machineable if it has any of the following characteristics: • A delivery address parallel to the shorter dimension of the mail piece. • An aspect ratio (length divided by height) of less than 1.3 or more than 2.5. • For pieces more than 4¼” inches high or 6 inches long, a thickness of less than 0.009 inch. • Contains items such as pens, pencils, or loose keys or coins that cause the thickness of the mail piece to be uneven. • Has clasps, strings, buttons, or similar closure devices. • Is poly-bagged, poly-wrapped, or enclosed in any plastic material. • Is too rigid (does not bend easily when subject to a transport belt tension of 40 pounds around an 11 inch diameter turn). • For folded self-mailers, the folded edge is perpendicular to the address and the piece is not folded and secured as required for automation compatible self-mailers. • For booklet-type pieces, the bound edge (spine) is the shorter dimension of the piece or is at the top (regardless of use of tabs, wafer seals or other fasteners).

  8. "SHAPE MATTERS"

  9. “Shape Matters” - What does it mean? • The USPS has unveiled proposed new pricing incentives that would reshape the future of mail • Current structure does not distinguish letters from flats and parcels • It costs the postal service more revenue to process flat than letter because of size • 1-oz. Letter and 1-oz. Flat are the same pricing structure • USPS does not care as much about weight as they do about the size of piece • New pricing creates an adjustable rate system by giving mailers the opportunity to obtain lower rates by changing the shape of the piece • Forcing mailers to use letter rate • Easier for the USPS to sort and manage letters • Postal service isn’t concerned with weight - size impacts them more • They have redesigned 2nd oz. (reduced cost from $0.24 to $0.17) • Eliminated the surcharge for 1-oz. flats • There is a non-machineable surcharge for uneven mail

  10. Flat Parcel Envelope Shape of Mail to ComeCurrent Price based primarily on weight!

  11. Shape of Mail to Come, cont’d…New rates combine weight and shape. The more machine compatible, the better the incentive.

  12. Shape of Mail to Come, cont’d… • Aspect Ratio = Length/Height • Aspect Ratio between 1.3 to 2.5 • Exceeding ratio considered a flat - examples: • 6x9½ envelope = 1.5 = OK • 4x10 envelope = 2.5 = OK • 6x6 envelope = 1“NOT OK - WILL BE CHARGED 80¢”

  13. Current Rate StructureFirst-Class Mail (1oz.) Strategy: • Weight-based pricing schedules • Letters • Flats • Parcels 1-oz. letter 39¢ 1-oz. flat 52¢ 1-oz. parcel 52¢

  14. Approved Rate ChangeFirst Class Mail (1oz.) • Strategy  De-Emphasize Weight • Shape-Based Pricing Schedules • Letters, Flats, Parcels 1-oz. letter 39¢►41¢ 1-oz. flat 52¢►80¢ 1-oz. parcel 52¢►$1.13 LESS A lot more A whole lot more

  15. Current Rate StructureFirst-Class Mail (2oz.) Strategy: • Weight-based pricing schedules • Letters • Flats • Parcels 2-oz. letter 63¢ 2-oz. flat 63¢ 2-oz. parcel 63¢

  16. Approved Rate ChangeFirst Class Mail (2oz) • Strategy  De-Emphasize Weight • Shape-Based Pricing Schedules • Letters, Flats, Parcels 2-oz. letter 63¢►58¢ 2-oz. flat 63¢►97¢ 2-oz. parcel 63¢►$1.30 LESS A lot more A whole lot more

  17. Approved Rate Change cont’d…First Class Mail Significant Changes • Additional ounce 24¢►17¢ • Letters over 1 ounce go down • Flats over 6 ounces go down • Similar pattern for workshare • Automation letters (2nd oz.) 23.7¢►12.5¢ • Presorted letters, flats, and parcels 23.7¢►17¢ • Non-machineable Surcharge = 17¢

  18. Approved Rate Change cont’d…First Class Mail Examples: Letters Flats Parcels

  19. Approved Rate Change cont’d…First Class Mail Examples: + 39¢ + 6¢ - 5¢ + 34¢

  20. What You Can Do • Don’t Panic • However; you will need to review your business practices as the costs could be tremendous • By taking the following steps you can greatly minimize the impact of Shape-Based Pricing: • 6 1/8th” x 11½” and no more than ¼” thick • If you have multiple pages in an envelope consider duplex printing • Change the font size of the print • Re-examine forms for unnecessary print • Move flat mail to letter mail

  21. Folding and Inserting Solutions • Unfolded pages inserted into a flat will cost more. To save money, you should fold your inserts. • Minimize the number of unfolded items in your mail. Fold them and put them into a #10 or 6” x 9 ½” envelope. • Group documents into one envelope to cut postage costs. • Switch from single-sided printing to double-sided printing. • Maximize each ounce. Add a marketing piece or two. If you have room to spare in an envelope, use it,

  22. Current Rates How much does your item weigh? (If over 2 ounces) May 2007 Rates Classify your mail by weight, size, and thickness No Yes No No Yes Yes No Yes Yes Yes No Does the item weigh less than 3½ ounces? Is the item smaller than 6 1/8” x 11 ½”? Does the item weigh less than 13 ounces? Is the item smaller than 12” x 15”? Is the item less than ¼” thick? Is the item less than ¾” thick? First-Class Letter, Flat or Parcel Parcel Letter Flat Classify Your Mail

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