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New Pricing Strategy to Grow Priority Mail

U.S. Postal Service Capitalizing on Strong Package Growth

WASHINGTON — The United States Postal Service today filed notice with the Postal Regulatory Commission (PRC)  to change Priority Mail prices, including a reduction in prices on average for businesses and other customers who use Commercial Plus and Commercial Base online shipping services. The price change will include a modest increase for Priority Mail prices at Post Offices and other postal retail outlets. The proposed changes, which would go into effect in September 2014, are intended to offer more competitive pricing and build on Priority Mail’s popularity with customers.

“The Postal Service is a vital business partner for small and large businesses and lowering shipping prices will save them money and improve their bottom line,” said Nagisa Manabe, chief marketing/sales officer.  “With our affordable shipping options, we hope to attract new business customers and become their preferred delivery service.”

Pricing at Post Offices and other retail outlets will have a modest increase of 1.7 percent on average.

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Postal Service Launches Major Upgrades to Priority Mail

Improved Priority Mail® includes free insurance, free tracking and day-specific delivery

 WASHINGTON — Capitalizing on strong growth in its shipping business, the United States Postal Service has launched major changes to its Priority Mail line-up, with improved features including free insurance, improved USPS Tracking™ and day-specific delivery which are expected to generate more than a half a billion dollars in new revenue over the next year.

“This major upgrade of our Priority Mail products is one of the most dramatic new offerings from the Postal Service that meets the strong marketplace demand for core shipping features at affordable pricing,” said Patrick R. Donahoe, Postmaster General and Chief Executive Officer. “We believe this Priority Mail line-up positions the Postal Service very competitively in the shipping marketplace and gives small businesses and other frequent shippers a continued and compelling reason to do business with the Postal Service.”

Priority Mail will now provide scheduled delivery – 1-day, 2-day or 3-day based on the origin and destination of the package.1 The Postal Service also will provide improved USPS Tracking™ for all Priority Mail products. Tracking and scheduled delivery information will be prominently and conveniently located on customer’s retail receipts and is also available online using Track and Confirm.

Free insurance is another new and important Priority Mail feature designed to close competitive gaps in the shipping market place and meet the growing needs of small businesses and other frequent shippers. Priority Mail 1-day, 2-day and 3-day will include or 0 of insurance coverage depending on the payment method, such as whether a customer brought it to a retail counter or it was paid for online.

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