Is the Price Right?

The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).


Reducing the Number of Prices

The Postal Service has more than 10,000 prices contained in a 1,800-page customer manual known as the Domestic Mail Manual (DMM). The DMM provides individual and commercial mailers with information about postal services and standards for both domestic and international mailings. The Price List, also known as Notice 123, contains domestic and international retail and commercial prices for all postal products and services.


Pricing and Price Caps

The Postal Accountability and Enhancement Act of 2006 (PAEA) changed the way the Postal Service sets rates. It divided postal services into two broad categories: market dominant (mailing services) and competitive (shipping services). Market dominant products constitute about 90 percent of postal revenue. They include First-Class Mail, Standard Mail, Periodicals, and some Package Services. Products such as Priority Mail, Express Mail, and bulk Parcel Post are considered competitive. The PAEA placed a cap on price increases for market dominant products.



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Recent Comments

  • 3 hours 52 min ago
    Can you explain how does a package that was accepted at the Postal Office - November 23, 2015 , 9:29 am Acceptance SAN JUAN, PR 00911 Payed Priority Mail Express to be delivered next day before...
  • 14 hours 20 min ago
    Several times we have received wrong mail and write on it wrong mail- please redeliver. Wonder how much of our own mail is mis-delivered. This mail man is always talking on the phone to whoever....

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