May 2007 USPS Rate Change
Shape-Based Pricing Initiative
Announcement
On May 14, 2007, the USPS implemented a rate change in order to face rising costs. The May 2007 USPS rate change is much different than any previous rate change. Instead of simply increasing postage rates based on mail class or weight, they are now calculating postage based upon the size, shape and thickness of the mail, in addition to the weight. These changes are being classified as Shape-Based Pricing.
The USPS has migrated to a Shape-Based Pricing structure to create a more efficient mail system. The USPS has assessed their operation, identifying the items that both add and reduce costs, and have built their Shaped-Based price structure accordingly, thereby introducing a rate change for different mail types and classes. The USPS states that these changes will position themselves positively for future growth.
To learn more about these changes, click here.
