2007 Postal Rates2007 Postal RatesEffective May 14, 2007Effective May 14, 2007

AttentionAttentionWe have included in our webpage a summary of the 2007 United States Postal Service rate increase effective 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 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 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 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 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 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 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 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.that is easier for the USPS to process will cost less.

To help offset the postage increase when planning a mailing:To help offset the postage increase when planning a mailing:

1. Design the mail piece paying special attention to shape.1. Design the mail piece paying special attention to shape.

2. Design the mail piece to take advantage of postal discounts.2. Design the mail piece to take advantage of postal discounts.

3. Cleanse your mailing lists by making sure e addresses are correct.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 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 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.cleansing your mailing lists to help reduce your overall postage costs.

First Class Mail First Class Mail Weight Not Over Weight Not Over

(ounces)(ounces)Letters and CardsLetters and Cards Large EnvelopesLarge Envelopes PackagesPackages

11 $0.41$0.41 $0.80$0.80 $1.13$1.13

22 0.580.58 0.790.79 1.301.30

33 0.750.75 1.141.14 1.471.47

3.53.5 0.920.92 1.311.31 1.641.64

44 ---- 1.311.31 1.641.64

55 ---- 1.481.48 1.811.81

66 ---- 1.651.65 1.981.98

77 ---- 1.821.82 2.152.15

88 ---- 1.991.99 2.322.32

99 ---- 2.162.16 2.492.49

1010 ---- 2.332.33 2.662.66

1111 ---- 2.502.50 2.832.83

1212 ---- 2.672.67 3.003.00

1313 ---- 2.842.84 3.173.17

Card Rate:Card Rate: $0.26$0.26 ---- ----

Priority MailPriority MailLETTERS, CARDS, FLATS, & PARCELS LETTERS, CARDS, FLATS, & PARCELS

Weight Weight Not Over Not Over (pounds)(pounds)

Local,Local,

1 & 21 & 233 44 55 66 77 88

11 $4.60$4.60 $4.60$4.60 $4.60$4.60 $4.60$4.60 $4.60$4.60 $4.60$4.60 $4.60$4.60

22 4.604.60 4.904.90 5.305.30 6.206.20 6.556.55 7.007.00 7.507.50

33 5.055.05 5.705.70 6.406.40 8.258.25 9.109.10 9.659.65 10.5510.55

44 5.705.70 6.656.65 7.707.70 10.2010.20 11.1011.10 12.2012.20 13.4513.45

55 6.306.30 7.557.55 8.908.90 11.9011.90 12.9012.90 14.3514.35 15.8515.85

Media Mail Media Mail Weight Weight

Not Over Not Over (pounds)(pounds)

Single Single PiecePiece

11 $2.13$2.13

22 $2.47$2.47

33 $2.81$2.81

44 $3.15$3.15

55 $3.49$3.49

66 $3.83$3.83

77 $4.17$4.17

88 $4.51$4.51

99 $4.85$4.85

1010 $$.19$$.19

1111 $5.53$5.53

1212 $5.87$5.87

1313 $6.21$6.21

Library Mail Library Mail Weight Weight

Not Over Not Over (pounds)(pounds)

Single Single PiecePiece

11 $2.02$2.02

22 $2.34$2.34

33 $2.66$2.66

44 $2.98$2.98

55 $3.30$3.30

66 $3.62$3.62

77 $3.94$3.94

88 $4.26$4.26

99 $4.58$4.58

1010 $4.90$4.90

1111 $5.22$5.22

1212 $5.54$5.54

1313 $5.86$5.86

Standard Mail NonprofitStandard Mail NonprofitLettersLetters

Entry Entry

DiscountDiscount

Letters Letters weighing weighing 3.3oz. or 3.3oz. or lessless

NoneNone

DBMCDBMC

DSCFDSCF

MachinableMachinable

AADCAADC Mixed Mixed AADCAADC

$0.155$0.155

0.1220.122

0.1130.113

$0.164$0.164

0.1310.131

----

Non-MachinableNon-Machinable

5-Digit5-Digit 3-Digit3-Digit ADCADC Mixed Mixed ADCADC

$0.237$0.237

0.2040.204

0.1950.195

$0.320$0.320

0.2870.287

0.2780.278

$0.349$0.349

0.3160.316

0.3070.307

$0.429$0.429

0.3960.396

----

AutomationAutomation

5-Digit5-Digit 3-Digit3-Digit AADCAADC Mixed Mixed AADCAADC

$0.127$0.127

0.0940.094

0.0850.085

----

$0.142$0.142

0.1090.109

0.1000.100

----

$0.147$0.147

0.1140.114

0.1050.105

----

$0.161$0.161

0.1280.128

----

----

Non-machineable Criteria for Letter-Size MailNon-machineable Criteria for Letter-Size Mail1. 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) A delivery address parallel to the shorter dimension of the mail piece.

b) An aspect ratio (length divided by height) of less than 1.3 or more than 2.5.

c) For pieces more than 4¼” inches high or 6 inches long, a thickness of less than 0.009 inch.

d) Contains items such as pens, pencils, or loose keys or coins that cause the thickness of the mail piece to be uneven.

e) Has clasps, strings, buttons, or similar closure devices.

f) Is poly-bagged, poly-wrapped, or enclosed in any plastic material.

g) Is too rigid (does not bend easily when subject to a transport belt tension of 40 pounds around an 11 inch diameter turn).

h) 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.

i) 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).

"SHAPE MATTERS""SHAPE MATTERS"

• The USPS has unveiled proposed new pricing The USPS has unveiled proposed new pricing incentives that would reshape the future of mailincentives that would reshape the future of mail

• Current structure does not distinguish letters from flats and parcelsCurrent structure does not distinguish letters from flats and parcels• It costs the postal service more revenue to process flat than letter because of sizeIt 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 structure1-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 pieceUSPS 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 New pricing creates an adjustable rate system by giving mailers the opportunity to obtain lower rates by changing the shape of the pieceopportunity to obtain lower rates by changing the shape of the piece

• Forcing mailers to use letter rateForcing mailers to use letter rate• Easier for the USPS to sort and manage lettersEasier for the USPS to sort and manage letters

• Postal service isn’t concerned with weight - size impacts them morePostal service isn’t concerned with weight - size impacts them more

• They have redesigned 2They have redesigned 2ndnd oz. (reduced cost from $0.24 to $0.17) oz. (reduced cost from $0.24 to $0.17)

• Eliminated the surcharge for 1-oz. flatsEliminated the surcharge for 1-oz. flats

• There is a non-machineable surcharge for uneven mailThere is a non-machineable surcharge for uneven mail

““Shape Matters” - What does it mean? Shape Matters” - What does it mean?

Shape of Mail to ComeShape of Mail to ComeCurrent Price based primarily on weight!Current Price based primarily on weight!

Parcel

Flat

Envelope

Shape of Mail to Come, cont’d…Shape of Mail to Come, cont’d… New rates combine weight New rates combine weight and and shapeshape..

The more machine compatible, the better the incentive.

Shape of Mail to Come, cont’d…Shape of Mail to Come, cont’d…• Aspect Ratio = Length/HeightAspect Ratio = Length/Height

• Aspect Ratio between Aspect Ratio between 1.31.3 to to 2.52.5

• Exceeding ratio considered a flat - examples:Exceeding ratio considered a flat - examples:• 6x9½ envelope = 1.5 = OK6x9½ envelope = 1.5 = OK• 4x10 envelope = 2.5 = OK4x10 envelope = 2.5 = OK• 6x6 envelope = 16x6 envelope = 1

““NOT OK - WILL BE CHARGED 80NOT OK - WILL BE CHARGED 80¢”

Current Rate StructureCurrent Rate StructureFirst-Class Mail (1oz.)First-Class Mail (1oz.)

Strategy:• Weight-based pricing schedules

• Letters• Flats• Parcels

1-oz. letter

39¢1-oz. flat

52¢1-oz. parcel

52¢

Approved Rate ChangeApproved Rate ChangeFirst Class Mail (1oz.)First Class Mail (1oz.)

1-oz. letter

39¢ ►41¢1-oz. flat

52¢ ►80¢1-oz. parcel

52¢ ►$1.13LESS A lot more A whole lot more

Strategy De-Emphasize Weight• Shape-Based Pricing Schedules

• Letters, Flats, Parcels

Current Rate StructureCurrent Rate StructureFirst-Class Mail (2oz.)First-Class Mail (2oz.)

Strategy:• Weight-based pricing schedules

• Letters• Flats• Parcels

2-oz. letter

63¢2-oz. flat

63¢2-oz. parcel

63¢

Approved Rate ChangeApproved Rate ChangeFirst Class Mail (2oz)First Class Mail (2oz)

2-oz. letter

63¢ ►58¢2-oz. flat

63¢ ►97¢2-oz. parcel

63¢ ►$1.30LESS A lot more A whole lot more

Strategy De-Emphasize Weight• Shape-Based Pricing Schedules

• Letters, Flats, Parcels

Significant ChangesSignificant 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¢

Approved Rate Change cont’d…Approved Rate Change cont’d…First Class MailFirst Class Mail

Approved Rate Change cont’d…Approved Rate Change cont’d…First Class MailFirst Class Mail

Examples:Examples:LettersLettersWeightWeight CurrentCurrent ApprovedApproved

1 oz.1 oz. 39¢39¢ 41¢41¢2 oz.2 oz. 63¢63¢ 58¢58¢3 oz.3 oz. 87¢87¢ 75¢75¢

ParcelsParcels WeightWeight CurrentCurrent ApprovedApproved

1 oz.1 oz. 52¢52¢ $1.13$1.137 oz.7 oz. $1.83$1.83 $2.15$2.15

13 oz.13 oz. $3.27$3.27 $3.17$3.17

FlatsFlatsWeightWeight CurrentCurrent ApprovedApproved

1 oz.1 oz. 52¢52¢ 80¢80¢7 oz.7 oz. $1.83$1.83 $1.82$1.82

13 oz.13 oz. $3.27$3.27 $2.84$2.84

Approved Rate Change cont’d…Approved Rate Change cont’d…First Class MailFirst Class Mail

Examples:Examples:

ItemItem Current Current PricePrice

Approved Approved PricePrice OpportunityOpportunity

Approved Price Approved Price after modifying as a after modifying as a

flat / letterflat / letter

6-oz. parcel6-oz. parcel $1.59$1.59 $1.98$1.98 Reconfigure as Reconfigure as a flata flat $1.65$1.65

2-oz. flat2-oz. flat $0.63$0.63 $0.97$0.97 Reconfigure as Reconfigure as a lettera letter $0.58$0.58

+ 39¢

+ 34¢

+ 6¢

- 5¢

What You Can DoWhat You Can Do

• Don’t PanicDon’t Panic• However; you will need to review your business practices as the However; you will need to review your business practices as the

costs could be tremendouscosts could be tremendous

• By taking the following steps you can greatly By taking the following steps you can greatly minimize the impact of Shape-Based Pricing:minimize the impact of Shape-Based Pricing:

• 6 1/86 1/8th”th” x 11½” and no more than ¼” thick x 11½” and no more than ¼” thick• If you have multiple pages in an envelope consider duplex printingIf you have multiple pages in an envelope consider duplex printing• Change the font size of the printChange the font size of the print• Re-examine forms for unnecessary printRe-examine forms for unnecessary print• Move flat mail to letter mailMove flat mail to letter mail

Folding and Inserting SolutionsFolding and Inserting Solutions

• Unfolded pages inserted into a flat will cost Unfolded pages inserted into a flat will cost more. To save money, you should fold your more. To save money, you should fold your inserts.inserts.• Minimize the number of unfolded items in your mail. Fold Minimize the number of unfolded items in your mail. Fold

them and put them into a #10 or 6” x 9 ½” envelope.them and put them into a #10 or 6” x 9 ½” envelope.• Group documents into one envelope to cut postage costs. Group documents into one envelope to cut postage costs. • Switch from single-sided printing to double-sided printing.Switch from single-sided printing to double-sided printing.• Maximize each ounce. Add a marketing piece or two. If Maximize each ounce. Add a marketing piece or two. If

you have room to spare in an envelope, use it,you have room to spare in an envelope, use it,

Current RatesHow much does your

item weigh?(If over 2 ounces)

May 2007 RatesClassify your mail by weight, size, and thickness

Does the item weigh less than 3½ ounces?

Is the item

smaller than

6 1/8” x 11 ½”?

Is the item less than ¼” thick?

Is the item smaller than 12” x 15”?

Is the item less than ¾” thick?

First-Class Letter, Flat or Parcel

Parcel

YesYes NoNo

NoNo

NoNo

NoNo

NoNoDoes the item

weigh less than

13 ounces?YesYes YesYes

YesYes

YesYes

YesYes

FlatLetter

Classify Your MailClassify Your Mail