New rate increase includes "Shape-Based Pricing"

As part of its proposed May 2007 rate change, the United States Postal Service will introduce "Shape-Based Pricing". According to a Business Wire press release, it promises one of the most dramatic postage structure changes in years

"The Shape-Based Pricing initiative moves from a pure weight determination factor for postage costs to one that combines size, thickness and weight. Because of their shape differences, letters, flats and parcels will now all be priced differently, since each is handled and processed differently. Simply put, an item that is easier for the USPS to process will cost less than an item that is not."

In addition to the Shape-Based Pricing initiative, traditional first class postage is expected to increase nearly 8½% - to $.42 up from $.39.

To read the entire release, click here.