6 big ways the USPS rate change affects you

The shipping and mailing price changes scheduled by the USPS to take effect January 22, 2017 focus on increases in multiple areas in both mailing and shipping. Here are the savings the new rate structure will offer.

Mon Jan 09 10:41:57 EST 2017
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The shipping and mailing price changes scheduled by the USPS to take effect January 22, 2017 focus on increases in multiple areas in both mailing and shipping. You can read the details here. But we don’t want you to lose sight of the savings the new rate structure also offers. With decades of experience in the mailing and shipping environment, and several rate changes behind us, Pitney Bowes can help you pinpoint sending solutions that offer the best rates available. All you have to do is count to six.

1. Postage meters increase savings

With the attention on the rise in the cost of retail stamps from 47 to 49 cents, it is valuable to shift your focus to the savings a postage meter enables. Using a Pitney Bowes postage meter saves 3 cents per piece for 1-2-3 ounce envelopes – up to 3.5 ounces. The cost of metered mail is lowered 46.5 cents to 46 cents. The metered mail savings also apply to PC Postage®, Permit Imprints and Pre-Cancelled stamps. This, of course, is on top of the benefits metered mail has always offered, including convenience, accuracy, cost accounting, security, and payment options.

2. Commercial Base Pricing discounts gain value

The USPS provides business mailers a significant discount on packages with Commercial Base® Pricing (CBP). While many rates are increasing in January 2017, the discounts available make qualifying for CBP even more valuable. For example, a 5-pound package sent locally can save 27 percent in 2017 over retail rates. That savings was only 25 percent in 2016. CBP qualifications require a shipping label produced by online software or a shipping solution such as the new SendPro™ family of products from Pitney Bowes. It’s a discount worth leveraging, especially since the USPS has made major strides in secure delivery of larger items such as its popular Priority Mail, delivered in two days almost anywhere in the US. Additionally, the USPS can now track any package from pickup to drop off – free with most package service options.

3. Electronic Return Receipts offer savings

The most popular extra service provided by the USPS is its Certified Mail® service. Certified Mail with Return Receipt Electronic (E-RR) offers mailers both proof of delivery and evidence of delivery. The service is not only a comfort factor, it is often a legal requirement for many businesses. With the 2017 rate change, rates for most extra services change. While rates slightly increase, however, E-RR offers a significant savings opportunity. Instead of using the traditional green card Return Receipt, the USPS offers an E-RR option that saves $1.30 per piece. When using your Pitney Bowes mailing system, you can process Certified Mail with E-RR, with signature files securely accessible on the web.

4. Extra inserts don’t bump the price

The 2017 rate changes include a nice plus for businesses who want to add a little extra weight to their mailings, such as promotional material with a statement. The USPS is expanding to one price, per sortation level, for Commercial First-Class Mail® letters from 2 ounces to 3.5 ounces. And intelligent systems will selectively add the inserts eliminating the worry about additional postage costs so you can leverage the value of your transactional mail with meaningful inserts.

5. Presort Services maximize mail discounts

Pitney Bowes Presort Services helps maximize postal discounts and induct mail closer to its final destination, generating deeper postal discounts and enhanced delivery time. By utilizing our innovative Mail Exchange program, your First-Class Mail is processed to the ultimate sort for optimal results, and inducted at the USPS facility closer to its final destination for enhanced delivery and maximum postage discounts. And with five dedicated Direct Mail Operating Centers processing Standard Mail® (now Marketing Mail), we commingle your mail with mail from other clients. That means that you’ll enjoy optimized postage discounts while ensuring marketing campaigns arrive on-time, at the right place.

6. Marketing Mail (nee Standard Mail) earns recognition

What’s in a name? For the USPS, it’s the desire to attract more mailers to the value of promoting their products and services using physical mail. So the USPS Standard Mail offering will, as of January 22, 2017, be known Marketing Mail to clearly identify it as an option to promote your products through this less expensive alternative. (Remember Third Class Mail from a few years back? It was renamed Standard Mail. Marketing Mail keeps up with the times and the needs of today’s mailers.)

Still wondering how postal rate increases can really translate to cost savings for your shipping and mailing needs? Visit our Postal Information section to learn more.

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SendPro™ integrated shipping solution - Simplify office shipping through USPS®, FedEx® and UPS® from just one, online destination.