2011 USPS Certified Mail New Postal Rate Increase

The USPS Certified Mail special service rate may increase $0.15 cents per letter to cost $2.95.  Additionally each old fashioned green card Return Receipt is proposed to increase another $0.10 cents per letter costing $2.40.  The Return Receipt Electronic Signature will jump $0.05 per letter to cost $1.15.  Additionally each letter must have USPS First Class postage that is proposed to increase $0.02 from $0.44 to $0.46 cents per letter starting January 2011.

USPS Mail Service	Current Cost	Proposed Increase	Proposed 2011 Rate
Certified Mail	$ 2.80	+ $0.15	$ 2.95
Green Card Return Receipt	$ 2.30	+ $0.10	$ 2.40
Return Receipt Electronic (PDF)	$ 1.10	+ $0.05	$ 1.15
First Class Postage	$ 0.44	+ $0.02	$ 0.46
Total Cost using Green Card			$5.84
Total Cost using Certified Mail Envelopes with ERR			$4.56

Other 2011 USPS Certified Mail Postal Rate Increases include the After Mailing cost to purchase the Return Receipt Electronic Signature.  This cost is proposed to increase $0.25 to $4.85 per letter.  USPS said the new postal rates must go up to help cover a potential $7 billion loss projected in 2011.  Each additional ounce of weight would also increase from 17 cents to 18 cents.

The USPS must prove “exceptional or extraordinary circumstances” in order for the new Postal Rate Increase in 2011 to the Postal Regulatory Commission (PRC) to approve prices above the rate of inflation.  The PRC will approve the request if it finds pricing above CPI to be “reasonable and equitable and necessary.” The country continues to work through the worst recession since the 1930s. Key business customers have been devastated and have withdrawn from using the mail: credit card companies, financial institutions, real estate companies, retailers.

USPS mail volume has plummeted by more than 25.6 billion pieces, or 12.7 percent, in one fiscal year. Total volume stands at 177 billion pieces.  USPS First-Class Mail is the highest revenue contributor to the Postal Service bottom line and also the fastest volume decline.

Mail volume in general has declined at a higher rate than it did following the terrorist attacks of 9/11. More and more Americans are switching to electronic alternatives, further eroding a dwindling customer base. The Postal Service seeks to balance its financial challenges against the needs of its customers through a moderate increase and to gradually increase some prices to improve their financial performance while mitigating the effect on customers.

Experts believe future price increases can be greatly alleviated if the Postal Service was deregulated and became more competitive  or given the tools necessary to be a more flexible, customer-focused: change delivery frequency, restructure the pre-payment of retiree health benefits and expand access to products and services that are more convenient to customers.

Included in this new proposal is stopping delivery of mail service on Saturday.  A significant USPS price increase is under consideration that will impact 2011 USPS Postal Rates & mailing costs including special services mail like USPS Certified Mail. This includes many of the USPS Special Services that include USPS Certified Mail with Return Receipt Requested service, USPS Certified Mail Restricted Delivery, and USPS Registerd Mail.  

For many consumers the initial focus or cost of mailing a First Class letter may appear to be increasing $0.02 per letter, however due to many new financial and regulatory requirements in banking, health care and lending the cost of sending compliance letters by USPS Certified Mail in 2011 could be much higher.