May 2015 Postage Rate Changes – Discounted Mail (Commercial Rates)

Posted on May 27, 2015

May 2015 Postage Rate Changes – Discounted Mail (Commercial Rates)

Trying to figure out what your average postage rate is for a presorted mailing can be frustrating. Postage discounts are based on zipcode density of your list. If your list has enough mail going to a specific zipcode to fill a mail tray, you will get lower rates. The USPS doesn’t have to handle it much… we fill the tray, code it and send it on its way. But, if the zipcodes in your list are not concentrated enough to fill a tray of mail, the costs for that mail will be higher because the USPS will need to handle it more to get it to its destination. They will take that mail, mix it with other mail and then send it to its destination. They call this ZIP CODE CONCENTRATION.

Example: If you have 1000 pieces of mail going to five cities you will have a lot of zipcode concentration (aka a lot of mail going to the same zipcodes). If you 1000 pieces of mail going to all 50 states, you will not have much zipcode concentration.

The USPS has calculated how much it costs for each of these scenarios and has offered mail discounts based on this. For the May, 2015 rate change, this is especially important when it comes to FLAT-SIZE mail. Letter mail can be handled by machinery from start to finish, but oversized mail requires more handling. The USPS has introduced new sorting machinery, and will deploy more. But, for now, FLAT-SIZE mail still requires more handling.

PRESORTED LETTER-SIZE MAIL RATE INCREASES:

First Class Presort Letter-size = 2.6% average
Standard Mail Letter-size= 1.75% average
Non Profit Letter-size=2.9% average

PRESORTED FLAT-SIZE MAIL RATE INCREASES:

Standard Mail Flat-size:

If you list has a lot of zipcode concentration, your postage will stay the same or possibly go down slightly.
If your list does not have a lot of zipcode concentration, your postage will increase about 1.7%

Non Profit Flat-size Mail:

If you list has a lot of zipcode concentration, your postage will increase slightly, about 1%.
If your list does not have a lot of zipcode concentration, your postage will increase about 4%.

First Class Presort Flat-size Mail:

This class of mail has a slightly different logic change. Basically, the USPS determined that their pricing for mail without a lot of zipcode concentration was already priced correctly. But, for the concentrated zipcode mail, they had given discounts that did not cover the cost of handling the mail. So, they have reduced the discounts for the concentrated mail.

If you list has a lot of zipcode concentration, your postage will increase about 2.7% on average.
If your list does not have a lot of zipcode concentration, your postage will stay about the same.

HensleyMailing-May31-2015-CommercialDiscountOverview. The best way you can keep your postage as low as possible is to be familiar with the mail piece design rules and those designs that will get surcharged by the USPS.

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