Date: June 4, 1998
From: Butch Hiatt
Subject: New Postal Rates
The Postal Board of Governors (BOG) met June 1 and 2. They did not
include the Postal Rate Commission's (PRC) recommendations for the new
rates in their meeting.
What does that mean? The rates cannot be implemented until the BOG
votes to accept them. The next scheduled meeting is June 29 and 30.
The BOG can call a special meeting to consider the rates, but most
sources do not consider that likely. We probably will not get the
answer until June 30th. The effective date needs to be at least 4 - 6
weeks after the decision to accept. Vendors need that long to produce
and distribute new rates for computer software and electronic postal
We probably won't see the increase before mid August at the earliest.
If you budgeted for July 1st with the percentages I suggested, You
should have serendipitous funds. It is to impossible to know how many
dollars at this time.
I am going to give you the proposed changes for 1st Class, Standard A
(3rd Class) Commercial and Nonprofit bulk mail. Most industry sources
believe the rates will be accepted. The major unknown is the
Trade publication speculation centers around two dates -- October 4th
and January 1, 1999. October 4th would make all Nonprofit changes
effective on the same date. January 1 lets the new Postmaster General
build favor with Congress and the public by accepting the PRC
recommended date. All theories are wound up in politics. If you are
having trouble sleeping, call me. The details should cure the
I will let you know when real dates not speculation are available.
Proposed Rate Changes
First Class Mail Old 1 oz $.32 New 1 oz $.33
First Class Mail Old Add oz $.23 New Add Oz $.22
Std A Commercial Bulk Ltr Old Min $.256 New Min $.235
Std A Com Bulk Barcode*Ltr Old Min $.241 New Min $.220
Std A Nonprofit Ltr Old Min $.135 New Min $.169+
Std A Nonprofit Bar.* Ltr Old Min $.120 New Min $.154+
Std A Com Flat Old Min $.306 New Min $.304
Std A Com Flat Barcode* Old Min $.291 New Min $.289
Std A Nonprofit Flat Old Min $.198 New Min $.232+
Std A Nonprofit Flat Bar.* Old Min $.183 New Min $.217+
* This is a UMS rate that includes postage, tabbing, ZIP+4, and other
computer qualifying steps as a single rate.
+ This rate includes the October 4th increase which is the final (step
6) increase from the agreement to preserve Nonprofit rates.
We have not seen the implementation rules that the Postal Service will
use with the new rates. They can affect us as much as the rates.
The bottom line is that we still don't know the full effect of the
increase or its implementation date. Since several of you have
asked, I gave you as much as I know.
Remember! Only approved Nonprofit Organizations can mail at the
Nonprofit rates. Commercial services -- printers, Mail Boxes Etc --
cannot mail for you at the Nonprofit Rate. They must use the
Call me at 45385 if you have questions.