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Considerable Postal Increase Proposed

June 2006
WASHINGTON, DC—Commercial printers who thrive on mailing must hope that the Senate and House of Representatives can quickly find common ground in order to send meaningful postal reform to President Bush. Other-wise, the United States Postal Service (USPS) has proposed an 8.5 percent rate increase that would likely take effect next May.

Still, it might be too late to head off this most recent postal rise, which comes on the heels of a 5.4 percent increase that took effect in January. The recent USPS request would cost mailers just over 11 percent more to mail a magazine, while package services and special services would see double-digit boosts.

The USPS has also proposed new pricing structures for different shapes of mail that aligns prices with processing costs. The adjustable rate system allows mailers to obtain lower rates by reconfiguring mail into shapes that reduce processing costs. Along with this is a reduction in cost for heavier pieces. For letters over one ounce, for example, the new prices are lower than current rates.

The Postal Rate Commission has 10 months to render a decision on the proposed increases.
 

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