Prices of Stamps Increasing

A United States First Class Postage Stamp will cost you 41 cents beginning on May 14, 2007.

Also, on May 14, 2007, the United States Postal Service is implementing a rate and structure change to combat rising processing costs. In addition to increasing their current postage rates, the USPS will unveil a major structure change to the way postage values are determined for mail pieces. This alteration represents a significant shift in USPS policy and contains far ranging implications for the mailing industry. The anticipated cost determination change is being termed Shape-Based Pricing.

Instead of using an item’s weight as the primary factor to establish shipping costs, a size, thickness and weight combination will now become the standard. Essentially, mail items that are easier for the USPS to process will be rated lower than items that are not. Because of their shape differences, letters, flats and parcels will now all be priced differently because each is handled and processed differently. The proposed Shape-Based Pricing structure will significantly increase postage costs for various types of mailing applications. It also means there are going to be changes to how mail is processed.

Wikipedia was consulted in developing the information contained in this posting.