1. First-Class Mail Simplification Ideas February 21, 2017 Key Points
Except in exceptional or extraordinary circumstances, postage price increases are capped at the rate of inflation at the class level as measured by the Consumer Price Index (CPI). Stamp prices have stayed consistent with the average annual rate of inflation since the Postal Service was formed in 1971.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
As mandated by the PRC, the termination of the exigent surcharge left the Postal Service with an approximate $2 billion loss in annual revenue.

2. Initiatives Under Consideration
Note: All discussions around these initiatives are to be considered preliminary and non-binding as they are still under consideration and are pending USPS senior leadership approval.

3. First-Class Simplify Single-Piece Residual Evaluate postcard size
Evaluate weight breaks for letters
Evaluate Single Piece “2nd Ounce Free”
Restructure pricing for Picture Permit
Evaluate First Class drop ship
Evaluate the need for indicia on products with Service Type codes

4. First-Class Simplify Single-Piece Residual Description:
To evaluate how we may simplify the price structure for FCM residual letters: Currently, residuals from commercial FCM letter mailings are tendered at the SP meter rate or may pay a flat rate for up to 3.5 oz.

5. First-Class Evaluate postcard size Description:
To evaluate whether the current postcard size should be expanded to 6” x 9” without impacting processing efficiencies. A larger size would add value and mailers would have more space for their messages.

6. First-Class Evaluate weight breaks for letters Description:
To evaluate whether the current weight limits for automation, machinable and non-machinable letters allow for optimal processing.

7. First-Class Evaluate Single Piece “2nd ounce Free” Description:
To have a single price for up to 3.5 ounces for Single-Piece (SP) FCM letters. Currently, customers pay $0.21 for each additional ounce.

8. First-Class Restructure Pricing for Picture Permit Description:
This is to simplify the pricing structure for Picture Permit, ease the administration of the program, and make the product more widely available to mailers by using an annual subscription-like payment type or a one-time fee, for example.

9. First-Class Evaluate First-Class Drop Ship Description:
This is to evaluate whether mailers of commercial First-Class Mail should receive drop ship discounts to encourage them to tender mailings closer to destination.

10. First-Class
Evaluate the Need for Indicia on Products for Service Type Codes
Description:
This is to evaluate the possibility of making indicia optional for some or all classes of mail.

11. Questions