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The proposal includes price incentives:

• To create efficient mailpieces compatible with our processing systems.
• For quality addressing.
• To deposit flats and parcels closer to where they are delivered.

First-Class Mail

The shape of the mailpiece will play a larger role in the pricing of First-Class Mail. Today, letters, flats (large envelopes), and parcels over 1-ounce have the same price at every weight increment. It costs 63 cents to mail a 2-ounce letter, a 2-ounce flat, and a 2-ounce parcel. Our proposed prices recognize that each of these shapes have substantially different processing costs and should have separate prices. In our proposal, flats and parcels would see larger increases than letters because our handling costs for these larger shapes are higher. This new pricing proposal encourages efficiency. For example, if the contents of a flat are folded and placed into a letter-size envelope, the mailer can save as much as 20 cents. On the other hand, a mailer may determine that the aesthetics of a flat-shaped mailpiece better communicates their message. Likewise, if a parcel's contents can be reconfigured as a machinable flat, the mailer can save up to 38 cents. In both of these cases, our costs are reduced. These savings are passed on to mailers through lower prices. The mailer can make a choice as to the value of the shape of the mailpiece versus the cost of mailing it.

letter-size mail
a category of mailpieces (including booklets, cards, envelopes, and self-mailers) that do not exceed 11-1/2 inches long, 6-1/8 inches high, 1/4 inch thick.

flat-size mail
a category of mailpieces that exceed one or more of the dimensions for letter-size mail but that does not exceed 15 inches long, 12 inches high, 3/4 inch thick.

Pieces weighing more than 3.5 ounces, or exceeding one or more of the dimensions for a letter would be subject to the rates for flats. Similarly, mailpieces that exceed any one of the dimensions for a flat would be subject to the rates for parcels. The weight limit for First-Class Mail flats and parcels remains at 13 ounces.

scheme sort
Defines how mail is distributed to its destination. A scheme sort allows mailers to combine mailpieces addressed to two or more 5-digit or 3-digit ZIP Code areas into a single tray, bundle or container, as appropriate, consistent with the distribution scheme used by USPS to process mailpieces.

We propose discontinuing the automation carrier route rate for letters. Carrier route presorting by the mailer no longer has the same value as it once did. Five-digit scheme and (individual) 5-digit preparation provides an attractive option to automation-rate letter mailers, and is optimal in terms of efficiency. Otherwise, we propose to maintain the existing rate structure and 150-piece minimums for automation letter rates.

"Machinable" letters are not barcoded by the mailer, but can be processed and barcoded on our automation at the origin facility. Presorting by the mailer to 3-digit or finer levels is unnecessary so we do not include mail preparation or presort discounts finer than the AADC level. This simplified mail preparation should also reduce workshare costs for mailers.

machinable
The ability of a mailpiece
to be sorted by mail
processing equipment.

Preparation for nonmachinable letters would not change, and mailers of nonmachinable letters would continue to pay higher prices that reflect their more costly manual handling. Regardless of weight, letters that do not meet aspect ratio, or that have any other nonmachinable characteristics, or that may be too rigid, would pay flat or parcel prices, as appropriate. These separate prices eliminate the need for a "nonmachinable" surcharge for letters.

aspect ratio
The dimension of a mailpiece expressed as a ratio of length divided by height (for letters and cards, length is the dimension parallel to the address as read). For example, a postcard 5-1/2 inches long by 3-1/2 inches high has an aspect ratio of 1.57. An aspect ratio between 1.3 and 2.5, inclusive, is required for machinable (automation) compatibility.

We propose a new price structure for Presorted Parcels that would include workshare rates that are not available today. To facilitate more efficient handling of presorted parcels, we would require a 5-digit UCC/EAN Code 128 barcode. If that is not possible, a surcharge of 5 cents would apply. The surcharge would also apply to all parcels less than 2 ounces and to irregularly-shaped parcels such as tubes or rolls, unless prepared in 5-digit scheme or 5-digit containers.