While nothing has been officially filed with the Postal Regulatory Commission (PRC) regarding next years’ price change, the USPS® is providing unprecedented insight into some of the things they are thinking about.
Mailers will need to wait for the official filing to get the new prices and understand the full impact of the changes. All of the following items are discussion topics, and are still subject to the approval of the USPS Executive Team, the one remaining Board of Governor, and the PRC.
FSS Preparation
Based on the feedback from the mailing industry regarding the last price change, which introduced a new FSS price (which was higher than Carrier Route), the USPS is proposing to return to the previous FSS pricing model. This “do no harm” proposal would revert back to having FSS pieces pay their respective price as if FSS preparation had not occurred. This would take us back to when FSS Scheme bundles could have as many as seven different prices in the bundle. To help the USPS track this, new “Optional” Endorsement Lines (OELs) will be required on all the pieces in a FSS scheme bundle. Mailers that are drop shipping FSS Scheme and FSS Facility container/pallets could see the DFSS entry discount going away. Qualifying mail entered at a FSS facilities will earn a DSCF discount.
Standard Mail will become Marketing Mail
Yes, we have another product name change. For those of you that remember when Standard Mail was previously known as Third Class Mail, the USPS is now proposing to rename it once again to Marketing Mail. At recent National Postal Forums, Chief Marketing Officer Jim Cochrane has lamented that the term Standard Mail is boring and not descriptive enough, which is likely the cause of this change.
First Class 3rd Ounce Free
USPS has offered a free second ounce for First Class letters for the last two years, and will be adding another ounce to the mix. Postmaster General Megan Brennan originally announced this change at the National Postal Forum. While no longer breaking news, it will create the opportunity for mailers to include more marketing content in bills and statements without additional postage cost.
Standard Mail Piece/Pound Break Point Changing
Or should I say Marketing Mail? The USPS is proposing to change the weight limit for piece pricing for letters and flats from 3.3 ounces to 4.0 ounces. Piece/Pound prices will apply to pieces that weigh four ounces or more. [Is this just for flats and parcels, or all Marketing Mail?]
Standard Mail Heavy Letter Simplification
The USPS is proposing to eliminate the 3.3 to 3.5 ounce weight break and respective price cells for automation letters. Presort letters weight break would be updated as well. This would apply to automation letters, carrier route automation letters and carrier route Every Door Direct Mail (EDDM) letters.
Reply Mail Changes
The USPS is proposing the elimination of QBRM permit related fees. This would apply to BRM customers who use only Qualified Basic, Qualified Business Reply Mail, and High Volume Qualified Business Reply Mail for letters and cards.
How Much and When?
The actual rate cell prices have not been officially proposed. The USPS is waiting for the final months of Consumer Price Index (CPI) to become available. The USPS is expected to officially file in September or October and it is being speculated that the available CPI for the USPS will be around 1%. All USPS proposed prices will be subject to PRC review and approval. The USPS has already set and announced their price change date. The new prices, if approved, will go into effect on January 22, 2017.
