About Mail

It has been almost five months since the postage rate changes took effect. By now, most businesses and organizations have realized the impact of the new rates and Shape-Based Rating on their mailstream processes and budgets.

The May 14, 2007 rate structure combines weight with shape to allow the Postal Service™ to better align prices with processing costs to ensure every type of mail covers its costs. Here are three examples of how the new structure has specifically impacted our customers' mailing applications and what steps were taken to mitigate postage increases.

• An office of dentistry was sending new patient information in flat-size envelopes. Each 9 x 12" envelope weighed 3.2 ounces and contained a small booklet, 2 - 8 ½" x 11" pages and a reply envelope. Prior to May 14th, postage for each mailpiece was $1.11. Under the new Shape-Based Rating structure, postage for this flat-size mailpiece is $1.31. This office was able to mitigate postage by reconfiguring the pieces to meet letter-size dimensional requirements (within the maximum dimensions of 6 1/8" x 11½" x ¼").
• Postage 3.1 oz. letter-size mailpiece: 92 cents
• 19 cents less than pre-May 14th rate - this savings is due to the reduced additional ounce rate from 24 cents to 17 cents!
• 39 cents less than post-May 14th flat-size postage rate!
• A real estate agency was sending prospective homebuyers information within 3-ring binders. Flat-size mailpieces, under the new structure, must be rectangular in shape, uniform in thickness and flexible. Because the envelopes enclosing the ring binders were rigid and also had a variance in thickness greater than ¼", the mailpieces must be rated as parcels. Prior to May 14th, postage was $2.07. Parcel-rate postage for these 8-ounce pieces today is $2.32. This agency was able to mitigate postage by placing the documents in an attractive, lightweight plastic folder, which then met flat-size physical characteristic requirements.
• Postage 5-ounce flat-size mailpiece: $1.48
• 59 cents less than pre-May 14th rate due to redesign of mailpiece (lighter weight) and reduced additional-ounce rate!
• 84 cents less than today's parcel-size rate!
• A manufacturer was sending replacement parts via Priority Mail® to customers nationwide. Many of the parcels exceeded one cubic foot. Under the new rating structure, Priority Mail® packages mailed to Zone 5 - 8 destinations and exceeding one cubic foot may be subject to Dimensional Weight Rating. In some cases, postage increased substantially for this manufacture. This manufacturer was able to mitigate the postage increase by redesigning the packaging to dimensions just under one cubic foot. Here are the figures:
• Package detail: 15" L x 15" H x 10" W, weight 8 pounds, destination Zone 7
• Prior to May 14th, postage for this mailpiece was $14.55.
• Under the new rating structure, multiply dimensions 15 x 15 x 10 = 2250

When result exceeds 1728 cubic inches, divide by 194: 2250 / 194 = 11.6
Round up to next pound: 12 pounds.
Rate is based on the actual weight or dimensional weight, whichever is greater. Postage for this package: Dim. Wt. 12 pounds, Zone 7 = $24.10
• This manufacturer's solution was to reduce packaging to 14" x 13" x 9". 14 x 13 x 9 = 1638. Being less than one cubic foot (< 1728), postage is based on actual weight of 8 pounds to Zone 7 = $18.00. The mitigated postage is $6.10 per package.

As these real case applications indicate, it is critical to thoroughly understand the new Shape-Based Rating structure as it applies to the design of business-critical mail. By making even minor modifications, postage expenditures can be better managed and mailstream objectives can be maximized.

Tip: Reduce postage expenditures by as much as 50% by converting flats to letter-size mailpieces. First-Class Mail® single-piece letter-size dimensions are no greater than 6 1/8" x 11 ½" x ¼" and 3.5oz.