Pricing & Classification DMM Advisory
December 22, 2021
PRC Favorably Reviews New Competitive Prices and a New Mail Product for 2022
The Postal Regulatory Commission (PRC) favorably reviewed the new competitive prices that will take effect January 9, 2022.
The prices, approved by the Postal Service Governors, will raise Shipping Services product prices approximately 3.1 percent for Priority Mail service, and 3.1 percent for Priority Mail Express service. Shipping Services price adjustments vary by product. Although Mailing Services price increases are based on the consumer price index, Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.
The new prices will include an increase in the price of a Small Flat-Rate Box to $9.45. The Medium Flat-Rate Box will increase to $16.10, the Large Flat-Rate Box will decrease to $21.50 and the price of the APO/FPO Large Flat-Rate Box will decrease to $20.00. Regular Flat-Rate Envelopes, Legal Flat-Rate Envelopes, and Padded Flat-Rate Envelopes will increase to $8.95, $9.25, and $9.65 respectively.
The domestic Priority Mail Flat Rate Retail price changes are:
| Current | Planned Change | |
|---|---|---|
| Small Flat-Rate Box | $8.45 | $9.45 |
| Medium Flat-Rate Box | $15.50 | $16.10 |
| Large Flat-Rate Box | $21.90 | $21.50 |
| APO/FPO Large Flat-Rate Box | $20.40 | $20.00 |
| Regular Flat-Rate Envelope | $7.95 | $8.95 |
| Legal Flat-Rate Envelope | $8.25 | $9.25 |
| Padded Flat-Rate Envelope | $8.55 | $9.65 |
The Postal Service has some of the lowest letter-mail postage rates in the industrialized world and continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for residential delivery or regular Saturday delivery.
The final order on the domestic competitive prices can be found here: https://www.prc.gov/docs/120/120456/Order_6071.pdf
The order also covered pricing to support USPS ConnectLocal for packages, an affordable package delivery solution for businesses that the Postal Service will begin rolling out nationwide on January 9.
With full implementation, the Postal Service’s 10-year Delivering For America plan is designed to reverse a projected $160 billion in operating losses over the next 10 years. The Plan’s growth and efficiency initiatives, including the proposed pricing changes, together with necessary legislation, should allow the Postal Service to make investments totaling approximately $40 billion over the next 10 years to modernize and improve our infrastructure to become more efficient and service responsive.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.