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Questions Mailers May Ask

Commercial mail producers and others whose businesses have regular contact with postal services may be aware of a price increase but not really understand why it happens or what it means.  As we did last year, in an attempt to offer answers, below are some of the questions that commercial mail producers and their clients may have.

Price changes generally

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Evaluating Rumors About Potential USPS Changes

The possibility of Postal Service price changes was usually an issue discussed only within the mailing industry, but the politicization of the agency over vote-by-mail and other matters has resulted in postal news appearing in the general media.  However, this phenomenon has resulted in articles being published that are based on incomplete information, rumors, or speculation, derived from “unnamed” or unofficial sources, and produced by writers inexperienced in dealing with the arcane world of the USPS.

Changes ahead

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Answering An Uncomfortable Question

In comments filed February 3 with the Postal Regulatory Commission in response to the PRC’s proposed rule (System for Regulating Market Dominant Rates and Classifications, published in the December 11, 2019, Federal Register), Mailers Hub offered a view about “non-compensatory products,” (market-dominant products whose rates do not cover costs). The passage discussing such “underwater” rates was also excerpted in the February 3, 2020, issue of Mailers Hub News:

“Most non-compensatory classes and products did not become ‘underwater’ in a year or two or even ten; Periodicals, as a class, for example, hasn’t covered its costs since the PAEA was passed.

“… Aside from the resistance of ratepayers in those classes or for those products to accelerated rate increases to bring them to full cost coverage, the PAEA itself thwarted such efforts; the CPI cap is a two-edged sword that keeps rate increases to no more than CPI but also prevents larger rate increases to correct ‘underwater’ classes and products. …

That cost coverage for non-compensatory classes and products needs to be brought to 100% is not debatable, but neither is the need for caution in how that’s to be done. … Though the price sensitivity of most non-compensatory mail will be challenged by an additional 2% per year rate increase above the CPI cap, requiring that seems the least than can be done.



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PRC Approves Proposed First-Class Rates – with Details to Follow

The following article is an excerpt from the Dec. 9 edition of Mailers Hub News

In an order issued on December 6, the Postal Regulatory Commission approved the First-Class Mail rates proposed on October 9 by the Postal Service, as those were later corrected on October 10 and amended on November 20.

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Price Changes. It's Not That Simple

People often ask about price changes – why they’re when and what they are, and why the USPS can’t simply reduce its costs. It’s really not that simple.

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USPS Files Proposed 2020 Rates

The Postal Service has filed new prices for market-dominant mail that, if approved by the Postal Regulatory Commission, will take effect on January 26, 2020.  The average increase for the market-dominant classes of mail is 1.9%, in line with the CPI-based cap; First-Class Mail will increase, on average, by 1.919%, and Marketing Mail prices will rise by an average of 1.891%.  Barring problems during the PRC’s review of the filing, a decision should be expected by mid-November.

New prices for competitive products, set by the Governor of the Postal Service, also were announced.  They will be reviewed for statutory compliance by the PRC and, barring problems, also will be effective January 26.

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Still Time to Make The Mailers Conference on September 20, 2019

There is still time to make the 2019 Mailers Conference.

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The Article Waiting to be Written

Commentary, by Leo Raymond

Any publication on any topic occasionally finds itself in the situation of knowing newsworthy events lie ahead but about which an article cannot be yet written; they just have to wait. Such is the situation in which we – and colleagues with their own newsletters – find ourselves.

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Postal Gadfly Sues USPS over Stamp Price Increase

Excerpted from the February 4, 2019 edition of Mailers Hub News 

The price of a stamp went from $0.50 to $0.55 last month but a challenge to that increase continues.

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Competitive Products - A Final Rule is Only Half the Story

Competitive Products: A Final Rule is Only Half the Story

Commentary excerpted from the Jan. 7, 2019 issue of Mailers Hub News


In an order issued January 3, the Postal Regulatory Commission published its final rule regarding the institutional cost requirement for Postal Service competitive products. The 197-page order concludes a rulemaking that had begun in November 2016.

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PRC Approves USPS Market Dominant and Competitive Product Price Changes

In separate orders issued November 13, the Postal Regulatory Commission approved without changes the Postal Service’s proposed prices for both market dominant and competitive products. Also approved as filed were the promotions the USPS proposed as part of its market dominant filing. As a result, both sets of rates will be implemented as planned at 12:01am ET on January 27, 2019.

Market dominant  products

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