One of the reasons behind the switch to shape-based pricing in 2007 was to urge businesses to be more efficient with their mailings. By using packaging that the USPS can automatically process through their machines, you can qualify for discounts that will lessen your financial burden.

Here’s a look at how the shape-based pricing initiative impacts several types and classes of mail. To qualify for a particular price, each piece must meet the aspect ratio assigned by the USPS. Otherwise, you might pay the next level of pricing.

Type of mailing	Previous pricing (through May 13, 2007)	Shape-based pricing (as of May 14, 2007)
Letter (1 ounce)	$0.39	$0.41
Letter (2 ounce)	$0.63	$0.58
Flat (1 ounce)*	$0.52	$0.80
Flat (2 ounce)	$0.63	$0.97
Parcel (1 ounce)*	$0.52	$1.13
Parcel (2 ounce)	$0.63	$1.30
Each additional ounce	$0.24	$0.17
Postcards	$0.24	$0.26
Flat box rate (no restrictions on weight, content, or distance traveled)	$8.10	$8.80
Priority envelopes	$4.05	$4.60
Express mail (one pound)	Not applicable	$19.50

* As part of shape-based pricing, the USPS eliminated the surcharge for flats and parcels weighing one ounce or less, or letters that can’t be passed through machines. These mailings are now charged at the same rate as flats.

Reconfiguring your mail pieces

Referencing the chart above, you can see the financial advantage to using a less expensive type of mailing. But how will that work in the real world?

Let’s say you send a typical 1,000-piece mailing in flats, but want to switch to standard-sized envelopes instead. Here is how your costs will change based on the postage rate changes:

After:

Two-ounce letter	Per piece	1,000 pieces
Original pricing	$0.63	$630
Shape-based pricing	$0.58	$580

By simply folding documents into a letter format, you pay $50 less than you used to, instead of spending an extra $340 under the old pricing structure.

If you primarily send parcels, the savings you realize by switching to flats are even more drastic:

After:

Three-ounce flat	Per piece	1,000 pieces
Original pricing	$0.87	$870
Shape-based pricing	$1.14	$1,140

While your mailing costs do increase, you save $330 per mailing by switching to flats instead of parcels.

For additional details on the different levels of shape-based pricing, visit http://www.usps.com.

To learn more about shape based pricing, read Shape-Based Pricing: Not your standard postage increase.