Archive for November 13th, 2008

DMM Advisory – Shipping Services Price Changes

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Interesting how they call these “price changes” instead of price increases.  I find it difficult to believe that the changes will ever be to reduce prices.  Mailing services price changes will be announced in February 09 for implementation in May 09.

From today’s DMM Advisory:

Pricing for shipping services will change on Sunday, Jan. 18, the Postal Service announced today following a vote by its Board of Governors.

“The move to annual January price changes for shipping services products is consistent with industry-wide practice, and provides a clear picture of the competitive, affordable prices the Postal Service offers,” said Robert Bernstock, president, Mailing and Shipping Services.

Prices will change on Sunday, Jan. 18, for Express Mail, Priority Mail, Parcel Select, Parcel Return Service and some international shipping products. Overall, shipping services prices will increase an average of 5 percent. The new prices are available at www.usps.com/prices (click “New Shipping Prices” box).

“The new prices are very competitive within the shipping industry and reinforce the value Postal Service pricing offers our customers,” Bernstock said. “As always, the Postal Service does not impose fuel surcharges, hidden surcharges or surcharges for residential delivery or Saturday delivery.”

New for 2009 is Commercial Plus pricing, an extraordinary value for high-volume Express Mail and Priority Mail users. New Commercial Plus prices for Express Mail are 14.5 percent less than retail on average, and for Priority Mail 7 percent less than retail on average.

“Commercial Plus is a tiered pricing option designed with larger shippers in mind,” said Gary Reblin, vice president, Expedited Shipping. “It’s a very competitive offering for commercial customers — lower prices that will reward them for shipping higher volumes with the Postal Service.”

The Postal Service remains the best shipping value in the market, Reblin said, especially for Express Mail and Priority Mail packages weighing less than 5 pounds. Parcel Select, the Postal Service “last mile” ground product, where the Postal Service provides delivery for other parcel shippers and parcel consolidators, continues to be an excellent solution for high-volume shippers. For international mailers, Global Express Guaranteed, Express Mail International and Priority Mail International are the best value in global shipping.

Service    Average Price Change
Express Mail    5.7%
Priority Mail    3.9%
Parcel Select    5.9%
Parcel Return Service    5.3%
International Shipping Services    8.5%

This is the first time the Postal Service is adjusting prices for its shipping services on a different schedule from its mailing service price adjustments. Price changes for mailing services, including stamp prices, will be announced in February, and will be effective in May 2009.

Written by Lisa.Bowes

November 13th, 2008 at 4:04 pm

Posted in USPS