USPS 2010 Price Increases

U. S. Postal Service Announces 2010 Shipping Prices
Price of First-Class Postage Will Not Change
WASHINGTON—The simpler way to ship — with convenient Priority Mail Flat Rate Boxes from the U.S. Postal Service — will be just as simple in the New Year, when new prices take effect.

Prices for Priority Mail, a product familiar across America through popular television and online advertisements featuring Al the Letter Carrier, will change on Jan. 4, 2010. Customers also can look forward to several Priority Mail innovations.

In a first for the shipping industry, the Postal Service is introducing cubic volume-based pricing for large volume commercial Priority Mail shippers. Customers who ship small dense, space-efficient packages will receive a financial incentive through a new, tiered pricing option. This encourages greener, more efficient shipping and is one more way the Postal Service is eco friendly.

Other benefits for Priority Mail customers effective in January include a decrease in the domestic Priority Mail Flat Rate Envelope retail price from $4.95 to $4.90. The popular Priority Mail Small Flat Rate Box will continue to be one of the best consumer values in the domestic shipping market at under $5. Its 2010 price will remain at $4.95.

Cubic volume-based pricing will not be the only first in January for customers who qualify to ship at Commercial Plus prices. A Priority Mail half-pound price, based on distance, will be added only in the Commercial Plus pricing category. And, a new Priority Mail Flat Rate padded envelope measuring 9.5 x 12.5 inches will be available exclusively for Commercial Plus shippers. This envelope is specially designed for jewelry, electronics and other delicate goods.

“We have put together a range of creative and innovative products and services for our customers,” said Robert Bernstock, president, Mailing and Shipping Services. “With these new offerings, the Postal Service is reinforcing the value of Priority Mail as the right product at the right time,” he said.

In addition to an overall price increase of 3.3 percent, on average, for Priority Mail, there will be new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select and Parcel Return Service, also effective Jan. 4.

Prices for First-Class Mail, Standard Mail, Parcel Post and other mailing services products will not change in 2010, with the cost of a First-Class Mail stamp remaining at 44 cents.

“The Postal Service is the best buy in the market, whether you’re watching your budget or gearing up as the economy starts to rebound,” Bernstock said, noting that other shippers have announced price increases of nearly 6 percent for 2010, excluding fuel surcharges. Most shippers add extra fees for fuel, rural delivery, Saturday delivery and other items to a customer’s final bill. The Postal Service has no comparable surcharges.

Customers who pay for their shipping services online will continue to save compared to retail prices. Online costs will be, on average, 5 percent less than retail for Express Mail and 5.7 percent less for Priority Mail. Online savings for international shipping will be 10 percent less than retail for Global Express Guaranteed, 8 percent less for Express Mail International and 5 percent less for Priority Mail International.

A complete listing of 2010 prices is available at http://pe.usps.com under the “Jan. 2010 Price Change” link. The new prices and product innovations are pending Postal Regulatory Commission review.

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

Stamps will still be 44cents !

anything under 75 pounds=usps and anything over 75 pounds = ups ground

amannamedhorse said: anything under 75 pounds=usps and anything over 75 pounds = ups ground

What method are you referring to when you say USPS? Parcel Post? I've found PP to be terribly unreliable and slow and once you factor in insurance, it's not much of a deal. Priority is pretty expensive beyond flat rate and less than 1lb.

My rule is anything over a pound goes FedEx unless it's able to be shipped in a flat rate.

ganda said: Unless it's fairly local most things over 2lbs go UPS Ground. Coast to Coast Priority Mail has become ridiculously priced. Didn't postage rates go up because gas was $4/gallon? Since it's $2.50/gallon now shouldn't they be coming DOWN?

This is what happens when lobby groups induce Congress to introduce legislation that hamstrings the USPS from participating in any other commercial activity. Royal Mail turns a yearly profit (UK). Japan Post has some 3.3 TRILLION dollars in savings (one of the largest financial institutions in the world). If USPS was able to diversify its business model, it actually be able to turn a profit. But the fact remains, you cannot operate a state-owned agency as a for-profit enterprise when it its activities are severely restricted by legislation.

So you see, they're effectively screwed by the way their business model works, because they can only diversify so much.

The USPS until recently has been profitable. Its recent problems have been mail volume has been decreasing faster than USPS has been cutting its expenses.

What other non-monopoly do you know that when revenue falls it increases prices?

BradMajors said: The USPS until recently has been profitable. Its recent problems have been mail volume has been decreasing faster than USPS has been cutting its expenses.

What other non-monopoly do you know that when revenue falls it increases prices?

The unprofitability I think came due to concessions they owed for retirement. I think the other problem is the fact they use other carriers to backhaul thier crap. I they had setups like UPS/FDX they might be able to compete a bit more. Which like other things say Japan Post, don't they also have other businesses then delivering mail? Also I think the fact the USA is so large it really hurts profitability when you deliver to every address, as like the UK is tiny (land mass compare).

Now my cutoff is 1lb. I will PM anything that is 1lb or less (except for stuff that goes FCM) and fedex most other stuff. Except for residential stuff that is in a zone close to me I will go to 2lb. And residential rural I will go to 2lb as well.

Occasionally small heavy stuff I will put in a FRB.

airtommy said: AbbaZabba said: I will PM anything that is 1lb or less (except for stuff that goes FCM) and fedex most other stuff.
Wait 'til Fedex comes in with their annual price increase ...

You mean..

http://www.fedex.com/us/rates2010/index.html