Saturday, May 06, 2006

New rates based on shape

Besides increasing the First Class rate and the creation of a "Forever" stamp, the Postal Service is proposing new pricing incentives which combines weight with shape to allow them to better align prices with processing costs.

Current pricing relies primarily on a weight based system. The new plan – sent to the Postal Rate Commission (PRC) as part of a 2007 price adjustment proposal makes a distinction between some letters, flats, and parcels.

For example, in First-Class Mail, the current single-piece price is 63 cents to mail a 2-ounce letter, a 2-ounce flat, and a 2-ounce parcel. The new plan recognizes that each of these shapes has substantially different processing costs and should have different prices.

Click here for the full press release, Postal Service Proposes New Approach to Shape a More Efficient Future.
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posted by Don Schilling at 12:01 AM