Mailing & Fulfillment Special Report — Mail Dynamics Equal Opportunities

The proposed rate plan—sent to the Postal Rate Commission (PRC) as part of a 2007 rate adjustment proposal package—combines weight with shape to allow the USPS to better align prices with processing costs to ensure that every type of mail covers its costs.

Current USPS prices do not distinguish between some letters, flats and parcels. For example, in First Class mail, the current single-piece price is 63 cents to mail a two-ounce letter, a two-ounce flat and a two-ounce parcel. The new plan recognizes that each of these shapes has substantially different processing costs and should have different prices.