Monthly Archives: January 2011

Analysis – USPS Postage Increase for 2011

 

Analysis of the Proposed USPS Postage Increase for 2011

 

From a bird’s eye view, the 2011 increases don’t appear too severe and average well within the USPS’s price cap as legislated by the Postal Enhancement and Accountability Act of 2006. As a result, we see no apparent reason why these rates would not be approved by the PRC and are scheduled to go in to effect on April 17, 2011.

 

However, drilling down into the proposed rates revealed a few surprises – Good & Bad:

 

The Good:

 

Contrary to last year’s rumors that non-profits would be hit the hardest, they did surprisingly well with no increase whatsoever for automated mail. In fact, the highest  sortation level (Mixed AADC) actually decreased by a little over ½ of 1 percent.

 

Automated Flats, both First Class and Standard, also did surprisingly well with an average increase for both classes of mail of less than 2 tenths of 1 percent.

 

While the postage on presorted standard automated letter-size mail (the majority of all business advertising mail) did increase, the increase was relatively small at 1.6 to 1.7 percent as compared to some of the other mail categories.

 

The Bad:

 

Not surprisingly, non-automated, non-machinable prices for standard and non-profit letter-sized pieces received the highest increases at 15 to 20 percent.

 

By not increasing the price of a 44-cent first class letter as sent by a typical American consumer, the entire burden of this year’s postage increase will shift to the commercial business sector.

 

Flats – in order to meet the legislated annual price cap, many categories actually decreased in price to offset other increases in excess of the price limitation.  However, from a “volume” standpoint of an average mail job, those decreases occur at sort levels that would normally contain only a small percentage of the overall mail job volume (often called “residual mail”). The resulting impact may cause total final postage figures in excess of the legislated cap percentage while still allowing the USPS to be in compliance with the regulation.

 

Below is the line-by-line analysis of the most (but not all) of the commonly used postal rate categories. For more information, or for categories not listed here, you can go to www.USPS.com/prices and click on the link “New Prices For Mailing Services April 17, 2011”.  

 

 

 

Postage Analysis – Increase 4/17/2011

 

 

 

 

 

2010

4/17/2011

 

 

 

 Price

 Price

Chng

% Chng

 

 

 

 

 

First Class – Single Piece (1 oz or less)

$0.440

$0.440

$0.000

0.0000%

1.1 to 2 oz

$0.610

$0.640

$0.030

4.9180%

2.1 to 3 oz

$0.780

$0.840

$0.060

7.6923%

3.1 to 3.5 oz

$0.950

$1.040

$0.090

9.4737%

Presorted 1st Class Cards (Automated)

 

 

 

 

5-Digit

$0.205

$0.208

$0.003

1.4634%

3-Digit

$0.218

$0.222

$0.004

1.8349%

AADC

$0.220

$0.223

$0.003

1.3636%

Mixed AADC

$0.230

$0.235

$0.005

2.1739%

Prsrted 1st Class Letters (Auto) (1-oz)

 

 

 

 

5-Digit

$0.335

$0.340

$0.005

1.4925%

3-Digit

$0.357

$0.365

$0.008

2.2409%

AADC

$0.360

$0.368

$0.008

2.2222%

Mixed AADC

$0.382

$0.390

$0.008

2.0942%

Prsrted 1st Class Flats (Auto) (1-oz)

 

 

 

 

5-Digit

$0.380

$0.373

-$0.007

-1.8421%

3-Digit

$0.542

$0.547

$0.005

0.9225%

AADC

$0.603

$0.605

$0.002

0.3317%

Mixed AADC

$0.725

$0.725

$0.000

0.0000%

Std Mail Reg – Letters (Auto)

 

 

 

 

5-Digit

$0.233

$0.237

$0.004

1.7167%

3-Digit

$0.251

$0.255

$0.004

1.5936%

AADC

$0.253

$0.257

$0.004

1.5810%

Mixed AADC

$0.270

$0.273

$0.003

1.1111%

Std Mail Reg – Letters (Non-Auto/Non-Mach)

 

 

 

 

5-Digit

$0.330

$0.381

$0.051

15.4545%

3-Digit

$0.447

$0.474

$0.027

6.0403%

AADC

$0.491

$0.512

$0.021

4.2770%

Mixed AADC

$0.578

$0.606

$0.028

4.8443%

Std Mail Non-Profit – Letters (Auto)

 

 

 

 

5-Digit

$0.132

$0.132

$0.000

0.0000%

3-Digit

$0.150

$0.150

$0.000

0.0000%

AADC

$0.152

$0.152

$0.000

0.0000%

Mixed AADC

$0.169

$0.168

-$0.001

-0.5917%

Std Mail Non-Profit – Letters (Non-Auto)

 

 

 

 

5-Digit

$0.229

$0.276

$0.047

20.5240%

3-Digit

$0.346

$0.369

$0.023

6.6474%

AADC

$0.390

$0.407

$0.017

4.3590%

Mixed AADC

$0.477

$0.501

$0.024

5.0314%

Std Mail Reg – Flats (Auto)

 

 

 

 

5-Digit

$0.346

$0.347

$0.001

0.2890%

3-Digit

$0.418

$0.426

$0.008

1.9139%

AADC

$0.486

$0.482

-$0.004

-0.8230%

Mixed AADC

$0.496

$0.492

-$0.004

-0.8065%

Std Mail Reg – Flats (Non-Auto)

 

 

 

 

5-Digit

$0.367

$0.382

$0.015

4.0872%

3-Digit

$0.464

$0.464

$0.000

0.0000%

AADC

$0.509

$0.516

$0.007

1.3752%

Mixed AADC

$0.558

$0.549

-$0.009

-1.6129%

Std Mail Non-Profit – Flats (Auto)

 

 

 

 

5-Digit

$0.212

$0.213

$0.001

0.4717%

3-Digit

$0.284

$0.289

$0.005

1.7606%

AADC

$0.352

$0.345

-$0.007

-1.9886%

Mixed AADC

$0.362

$0.355

-$0.007

-1.9337%

Std Mail Non-Profit – Flats (Non-Auto)

 

 

 

 

5-Digit

$0.233

$0.250

$0.017

7.2961%

3-Digit

$0.330

$0.332

$0.002

0.6061%

AADC

$0.375

$0.379

$0.004

1.0667%

Mixed AADC

$0.424

$0.412

-$0.012

-2.8302%

Std Mail Reg – Not Flat Machinable

 

 

 

 

5-Digit

N/A

 

 

 

SCF

N/A

 

 

 

NDC

$0.996

$1.045

$0.049

4.9197%

Mixed NDC

$1.515

$1.460

-$0.055

-3.6304%

Std Mail Non-Profit – Not Flat Machinable

 

 

 

 

5-Digit

N/A

 

 

 

SCF

N/A

 

 

 

NDC

$0.877

$0.948

$0.071

8.0958%

Mixed NDC

$1.334

$1.312

-$0.022

-1.6492%

Std Mail (B) – Bound Printed Matter

 

 

 

 

Zones – Local, 1 & 2

$1.452+$0.164/lb

$1.451+$0.165/lb

$0.003

0.1423%

Zone 3

$1.452+$0.195/lb

$1.451+$0.196/lb

$0.003

0.1344%

Zone 4

$1.452+$0.235/lb

$1.451+$0.237/lb

$0.007

0.2926%

Zone 5

$1.452+$0.301/lb

$1.451+$0.303/lb

$0.007

0.2635%

Zone 6

$1.452+$0.372/lb

$1.451+$0.374/lb

$0.007

0.2381%

Zone 7

$1.452+$0.427/lb

$1.451+$0.428/lb

$0.003

0.0949%

Zone 8

$1.452+$0.566/lb

$1.451+$0.568/lb

$0.007

0.1883%