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MailPro
News for Mailing Professionals

FYI

Express Mail still includes merchandise insurance against loss, damage or rifling up to a maximum liability of $100.

BRAVE NEW SHIPPING WORLD

Great products. Great service. And now, competitive pricing. Why would anyone want to ship with anybody else?

On May 12, the U.S. Postal Service adjusts prices for shipping services — Express Mail, Priority Mail, Parcel Select, Parcel Return Service and international mail. For the first time, our pricing includes commercial volume and contract prices, rebates, online price reductions and other new incentives.

This special edition of MailPro is your resource for information about 2008 pricing. As the Postal Service enters this new pricing world, we’re committed to being America’s shipper of choice.

These new pricing incentives are possible as a result of a change in federal law — the Postal Law of 2006 — that enables USPS to better compete in the shipping market. Here are some of the highlights:

• Express Mail, premium overnight delivery, is switching to an industry standard, zone-based pricing system, resulting in lower prices for closer destinations. Customers also will enjoy a 3 percent price reduction by purchasing Express Mail online or through corporate accounts. Up to an additional 7 percent price reduction is available for those who meet quarterly volume minimums.

• Priority Mail, expedited delivery at economical prices, will be available at an average 3.5 percent savings to customers who use PC postage or meet other requirements.

• Parcel Select, the Postal Service “last mile” advantage of delivery to every door, will feature pricing and volume incentives for large- and medium-sized shippers.

• Parcel Return Service, an easy and convenient way for customers to return items to businesses, will move entirely to a weight-based pricing system, resulting in significant price reductions for lighter packages.

“These innovative published pricing incentives will make our products more attractive to all shippers, especially small businesses,” said Postmaster General John Potter. “We’re pricing our products to sell in today’s highly competitive shipping market. In the near future, the Postal Service plans to explore contract pricing for larger customers similar to others in the market.”

In addition to price changes for shipping services, prices for mailing services also will be adjusted May 12. The price for a 1-ounce First-Class Mail stamp will increase from 41 to 42 cents. Prices for Standard Mail, Periodicals, Package Services (including Parcel Post) and extra services also will change.

For mailing services, the average increase by class of mail is at or below the rate of inflation as measured by the Consumer Price Index.

Consistent with the new law, prices for mailing services will be adjusted annually each May. The Postal Service plans to provide 90-day notice before these price changes each year.

The new prices also are available at usps.com/prices.

Forever Stamp Will Still Get Your Letter Delivered USA First-Class FOREVER Stamp

“The Postal Service issued the Forever Stamp April 12, 2007, for consumers to ease the transition during price changes,” said Postmaster General John Potter. “We encourage Americans to buy Forever Stamps now for 41 cents, because like the name suggests, they are good forever.” The price goes up to 42 cents on May 12.

The Postal Service has sold over 6 billion Forever Stamps and will have an additional 5 billion in stock to meet the expected demand before the May 12 price change.

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