USPS Pricing Summary

2. Pricing Summary

Definitions

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Competitive Mail Classes

Competitive mail classes are USPS® services that are similar to services offered by private carriers. Express Mail® and Priority Mail® are examples of competitive mail classes. The Postal Service has flexibility when pricing these classes, including the ability to offer volume or negotiated discounts.

Market Dominant

Market Dominant mail classes are USPS® services that do not have similar or equivalent services offered by private carriers. First-Class Mail® and Library Mail® are examples of Market Dominant mail classes. The Postal Service is limited in their ability to change these prices and the percent increases cannot exceed the current year’s Consumer Price Index.

Here’s a breakdown of mail classes by category:

Competitive Mail Classes Market Dominant Mail Classes
Express Mail® First-Class Mail®
Priority Mail® Standard Mail®
Parcel Select® Media Mail®
First-Class Package Service™ Library Mail
Priority Mail International® Parcel Post®
Express Mail International® First-Class Mail International®
Global Express Guaranteed®  

Retail Price

Retail pricing refers to the standard counter price for postage at the Post Office™ or other physical retail locations.

Commercial Base™ Price

Commercial Base pricing refers to the discounted postage price for certain mail classes available to electronic postage users.

Commercial Plus™ Price

Commercial Plus pricing refers to deeply discounted postage prices for certain mail classes available to qualified high-volume shippers.

How the Postal Service compares

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Private Carrier Increases

In January 2012, the Postal Service will increase Retail prices by an average of 2.1% and Commercial Base prices by an average of 4.6%. Private carriers are also increasing their rates in January. Here’s a breakdown of how the USPS price changes compare to increases from UPS and FedEx.

Service Type Average UPS Increase Average FedEx Increase Average USPS Commercial Base Increase
Overnight +5.9% +5.9% -3.9%
2-Day +5.9% +5.9% -3.9% to +3%
Ground +5.9% +5.9% +3%

First-Class Mail stamps

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First-Class Mail prices are increasing by an average of 5.7%. However, the bulk of this increase will affect the First-Class Mail Parcel services. The cost of an everyday First-Class Mail stamp will go up by one cent to $0.45.

U.S. Postal Service Insurance

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Insurance prices offered by the U.S. Postal Service® are increasing by an average of 2.6% across both domestic and international mail classes.

Domestic Insurance Value 2011 Price 2012 Price Change
$0.01 to $50.00 $1.80 $1.85 +$0.05
$50.01 to $100 $2.30 $2.35 +$0.05
$100.01 to $200 $2.85 $2.90 +$0.05
$200.01 to $300 $4.75 $4.85 +$0.10
$300.01 to $5000 $1.05 $1.10 +$0.05