On December 2 the Postal Regulatory Commission (PRC) approved our requested Shipping Service price change we announced last month.  We will implement those new prices on January 2, 2011 as planned.  Two new incentive programs – Reply Rides Free and the Saturation Mail/High Density Incentive Program, and the Move Update Threshold change are pending review for January 2 implementation.

On December 2 the Postal Regulatory Commission (PRC) approved our requested Shipping Service price change we announced last month.  We will implement those new prices on January 2, 2011 as planned.  Two new incentive programs – Reply Rides Free and the Saturation Mail/High Density Incentive Program, and the Move Update Threshold change are pending review (see pg 2) for January 2 implementation.

January 2, 2011 Price Change and related changes checklist:

1. Postage Statements dated January 2011 must be used on January 2 regardless of the class of mail.  All postage statements have changed and the January 2011 dated versions must be used due to line item changes, new products and services, or USPS certification wording changes.  System mailers must submit an exception request (for format only) if they are unable to comply prior to the price change.  This request will be forwarded to the Pricing & Classification Service Center for consideration.  New postage statements can be found at www.usps.com under Forms (All Online Forms in Numeric Order) or at our Postal Explorer link at pe.usps.gov where the New Price information is listed on the left.  This includes the following statements:

3541 Periodicals (and the 3541M for those submitting monthly statements)

3600-EZ First Class Nonautomation Letters, Cards or Flats

3600-PM Priority Mail

3600-FCM First-Class

3602-EZ Standard Mail – Easy version – Nonautomation Letters or Flats

3602-R Standard mail

3602-NZ – Nonprofit Standard Mail – Easy version – Nonautomation Letters or Flats

3602-N Nonprofit Standard Mail

3605-R Package Services

3700 International Mail

1. Updating of software, scales, and meters.  Updates must be received from your software or meter company to reflect the new prices and postage statements effective January 2, 2011.  Customers posting items prior to the Price change date must ensure they are using the proper postage for the actual day of mailing.  A new Price List Notice 123 will be available on Postal Explorer after the price change date.

Note:  All USPS personnel must ensure they sample the initial MANIFEST or Special Postage Payment System mailing from each mailer after the price change to ensure the new prices have been used.  A certification to the district that this has been performed will be required.

1. Mailers obtain additional information about the changes that impact them by reviewing the appropriate Federal Register Notices available on Postal Explorer.  Here is a list of the Price Change and other change notices not related to prices:

-          Domestic Shipping Services Pricing & Mailing Standards Changes

-          International Product and Price Changes

-          New Incentive Programs and Other Changes for Domestic Mailing Services (Reply Rides Free, Saturation/HD Incentive Program, & Move Update changes)

-          Express Mail and Priority Mail Open and Distribute (PMOD) requirement changes.

-          Clarification of the Post Office Box Lock Replacement Fee

1.        What are the differences between Retail, Commercial Base, and Commercial Plus for Express Mail and Priority Mail prices?  Customers who do not qualify for Commercial Base or Commercial Plus pay the retail prices.  Commercial Base is discounted pricing available to shippers who use online or other authorized postage payment methods.  These prices are available for Express Mail, Priority Mail, Global Express Guaranteed, Express Mail International, and Priority Mail International.  Commercial Plus applies to large-volume shippers who qualify for Commercial Base pricing.  Express Mail customers must ship more than 5,000 pieces in the previous 4 quarters or have a customer commitment agreement with USPS.  Priority Mail customers must ship more than 75,000 pieces or 5,000 letters and/or flats in the previous year or have a customer commitment agreement.  The savings are significant. 

Customers and USPS employees wishing to review the entire list of eligibility requirements for these prices can reference the Domestic Mail Manual on Postal Explorer after the price change.  Go to pe.usps.gov, click on Domestic Mail Manual, go to the index and reference the class of mail and go to “eligibility for prices”.

1.        Reply Rides Free.  This program is under review by the PRC, but when approved will run from January 2, 2011 through December 31, 2011.  It allows mailers to receive a credit for the amount of the second ounce during the program period as an encouragement for customers to add more marketing materials to their First-Class mail.  To find out more and apply for the program by the January 31, 2011 EXTENDED DEADLINE go to www.usps.com/firstclassmailincentive

1.        Saturation and High Density Incentive Program.  As in recent years, the USPS is offering an incentive program for mailers who increase their volume of Standard and Nonprofit Standard Mail letters and flats mailed at Saturation and High Density prices.  Those mailers identified by the Postal Service as being eligible to participate will be sent an invitation letter after November 1, 2010 directing the customers to apply online at www.usps.com/SaturationHD.  That site provides the minimum requirements of the program (also currently under review) and the deadline to submit an application for the program is also Jan. 31, 2011.

1.        Move Update Changes.  Currently mailings found to have a deficient Move Update method (over 30 percent failure rate) incur a 7-cent per piece assessment for the percentage of mail over that threshold.  We propose to change the maximum failure rate before an adjustment to 25 % pending review by the PRC.

1.        Critical Mail.  This is a new shipping option for commercial mailers only (not at retail) who send documents, tickets, and other urgent materials.  Critical Mail letters and flats travel within the First-Class automated mailstream using USPS-supplied special envelopes which must be ordered by calling 1-800-610-8734. 

• Charged a flat rate regardless of destination or weight (letters up to 3.0 oz., flats up to 13 oz.)
• Customers must meet the Commercial Plus Priority minimum volume of 5,000 annually.
• Must meet all automation compatibility standards with an Intelligent Mail Barcode (IMB) representing the finest depth of code achievable for the address.
• Two postage payment options - Permit Imprint through a Business Mail Entry Unit or PC Postage.
• Mailings presented to a BMEU do not require Presorting but must be in trays, properly “faced” and the trays must be properly sleeved (letters) or covered with green lids and strapped (flats).
• Mailings using a Permit Imprint must meet all regular requirements such as at least 200 pieces or 50 pounds, have a properly formatted indicia, and be presented with a postage statement.

1.        New Regional Rate Priority Mail Box sizes – The Regional Rate Box is a new Domestic product for Commercial Base and Plus customers (cannot be used for PMOD).  Each box is rated for a maximum weight (Box A up to 15 pounds, and Box B up to 20 pounds).  There are two different designs (top load and side load) and the approximate interior size of the boxes is .21 cubic feet for Box A and .41 for Box B.  Eligible mailers may pre-order currently by calling 1-800-610-8734 and these products will eventually be available through www.usps.com /shop

Coming in the January (final issue) of the Price Change Newsletter 2011

1.        Final comments
2.        Upcoming changes
3.        New contact information for Mailpiece Design assistance
4.        Migration to Intelligent Mail Barcodes – workshop schedule