New Postage Rates May Lead to Significant Increases in Law Firms' Postage Expenses

Sheila Chavis

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Effective, Monday, May 14, 2007, new postal rates went into effect. The standard price for a postage stamp went from thirty nine cents ($.39) plus twenty four cents ($.24) for each additional ounce, to the new rate of forty one cents ($.41) plus seventeen cents ($.17) for each additional ounce. Effectively, people mailing standard one once mail will see an increase of three cents ($.03). People who send 2 or 3 ounce, standard business envelope sized letters will see a decrease in their postage costs of five to 12 cents. Unfortunately, most of the mail that is sent by law firms does not fall into either of these categories.

One of the most sweeping and unpublicized effects of the change in postal rates is the switch to an emphasis on postage based, not solely on weight, but also on size, thickness and weight. Our office recently received training on the new shape-based rates, and the implication is clear - if your office sends significant amounts of mail in 8x12 flat document mailers, then you can anticipate a 50% or more increase in your mailing costs. Here's how it breaks down: First class flat current rate: thirty nine cents ($.39) plus twenty four cents ($.24) for each additional ounce to the new rate of eighty cents ($.80) plus seventeen cents ($.17) for each additional ounce. Hence, a 2 ounce 8x12 flat envelope cost will increase from sixty three cents ($.63) to ninety seven cents ($.97) - a 54% increase). Rates will also increase significantly for overstuffed standard first class business envelopes.