Released November 10, 2017

PRC ReleasesApprovalforUSPS2018PriceIncrease

OnThursday, November 9,2017, the PostalRegulatoryCommission(PRC)issueditsdecision regardingthe Postal Service’s2018Market Dominant PriceCase. ThePostal Servicehad originallyfiled itsrequestonOctober 6, 2017. ThePRC approvedimplementationof theJanuary21, 2018proposed pricechanges for:First-Class Mail,Standard(aka Marketing) Mail, Periodical, PackageServices, and Special Services products. The Commission determined that the rates and related mail classification changes proposed by the Postal Service are consistent with applicablelawandregulations.

The new prices, scheduled to take effect January 21, 2018, include a one-cent price increase for the Forever stamp from 49 cents to 50 cents. Postcards and metered letters will also increase by one cent from 34 cents to 35 cents and from 46 cents to 47 cents respectively. A complete listing of approved pricing and classification changes may be found on the Commission’s website, in Docket No. R2018-1, Order No. 4215.

A copyof theorder (147 pages) canbefoundonthePRCwebsite–

First Class Mail:

  • The one-ounce Single-Piece Stamped Letters price will increase by 1 cent, to 50 cents.
  • The price for one-ounce Metered Letters will also increase by 1 cent, to 47 cents, thus maintaining the 3-cent differentialbetween Stamped Letters and Metered Letters.
  • Single-Piece Flats will increase 2.0 percent, while prices for Non-Automated and Automated Presort Flats will increase 0.2% and decrease1.6%, respectively.

Marketing (Standard) Mail:

  • Mail preparation changes to encourage the creation of USPS Marketing Mail Carrier Route bundles on 5-Digit Carrier Route pallets (“pure Carrier Route pallets”).
  • Per a PRC directive the 5 digit letter drop-ship discounts for DNDC and DSCF have been reduced by 7.7% and 8.8%, respectively.
  • The price filing includes the new 8-cents per piece assessment fee for Move Update errors above the threshold, using the new census-based verification method.

Periodicals Mail:

  • The Postal Service is maintaining its pricing strategy of setting the prices for bundles and pallet / sack containers based on their estimated bottom up costs.
  • Mail preparation changes to encourage the creation of USPS Periodicals Mail Carrier Route bundles on 5-Digit Carrier Route pallets (“pure Carrier Route pallets”).
  • Increasing the price difference between basic Carrier Route and Machinable Automation 5-Digit Flats to encourage preparation of more Carrier Route pieces.

RR Donnelleywill continuetoprovide youwith important updates asthey become available.

Additional informationincludingRR Donnelleyunique postalcalculators andtools are available upon request. Please reach out toyourRR DonnelleyAccountRepresentativetohelpyoudiscover howthispriceincreasewill affectyour business- as wellas learnhowbest totakeadvantageofUSPS workshareprogramsthatmay helptomitigateyour postageincrease in2018.