Postal Regulatory Commission Files Exigency Price Increase!

Hot off the press!

Below is a brief overview of the proposed Exigency Price Increase that was filed with the Postal Regulatory Commission on July 6, 2010. Details of the exigency rate increase are posted at the USPS website: http://www.usps.com/communications/newsroom/deliveringfuture/prices.htm

Quick Rate Increase Overview

• First Class Mail Increase
  • Average of 5.4% with single piece
  • Increasing from $0.44 per piece to $0.46 per piece
  • Additional ounce increase from $0.17 to $0.18 per ounce
• Standard Mail Increase
  • Average overall increase of 5.6%;
  • Letter mail increases range from 0% to 7% depending on piece weight and presort classification
  • Flat mail increases range from 4% to 13% depending on piece weight and presort classification

Please note the above estimates are average increases with percentages ranging depending upon whether the product covers its costs.

What is the timeline for the proposed price changes?

• USPS files exigent rate increases July 6, 2010
• Postal Regulatory Commission Decision expected by Oct 4, 2010
• Implementation of Postal Increase by Jan 2, 2011

The USPS is on course to lose $7 Billion Dollars in 2011. The exigency rate increase (exigent as it is above CPI) will help to reduce the loss by $2.3 Billion. The balance of the proposed USPS cost cutting/efficiency suggestions as detailed by Jack Potter on March 2, 2010 will further help to reduce the loss (e.g. the suggested reduction in mail delivery to individual addresses from 6 days to 5 days a week).

For more information or questions regarding how this will affect your 2011 budget, please contact the Production Solutions Client Services Department at psi-clientservices@psmail.com