2021 postage rates for local newspapers mostly same as 2020, plus long-sought flats tray discount granted

Community newspapers got some sorely needed good news when the Postal Service filed its 2021 rate case Oct. 9. 
The new rates are effective Jan. 24, 2021.
Newspapers were truly winners, thanks in part to policies long promoted by NNA that reward best practices in sortation and entry point.

PERIODICALS IN-COUNTY
Prices stay the same for all carrier-route sorted copies, whether Basic (six or more copies per route), High-Density walk-sequenced (125 pieces per route or 25% of Active Possible Deliveries), or Saturation walk-sequenced (90% of Active Residential deliveries or 75% of Active Possible deliveries).
The latter price is most often used when sampling routes and also applies to Simplified Address “Residential Customer” copies sent to 100% of the Active Residential count per route.
How was no increase possible? USPS chose to use the allowable inflation percentage to get greater increases for less efficient non-carrier-route sorted copies in-county. The 5-digit price increases 8.2% to 15.8 cents. The 3-digit price would go up 10% to 19.4 cents. And Basic price for fewer than six copies to same 5- or 3-digit ZIP increase 11.8% to 21.8 cents.
Opportunity: While most newspapers will have few copies at non-carrier-route sorted prices, most have at least a few. Copies that don’t get a carrier route and 9-digit ZIP when run through presort software will fall out to 5-digit if six or more.
If not, they could “drift” to higher-priced 3-digit (again, if six or more), or Basic if neither. Publishers should check their 3541 to see if they have any copies at these higher prices and work on address fixes to drop them to carrier routes. Non-coded copies add up over a year’s time at these higher prices if not caught and improved.
Opportunity: Remember that while no prices are due to increase, they do get progressively better for entry at the delivery office (DDU) and the more copies walk-sequenced, as the chart demonstrates. Adding DDU drops using Exceptional Dispatch in DMM 207.28.3 could be worth the trip, combined with single-copy drops.

FLATS TRAY DISCOUNT
NNA was finally granted a discount for use of some flats trays outside the county. (There is no container charge on in-county mail.) It was the culmination of a multi-year campaign to get USPS to recognize the efficiency of flats tray (white tub) use compared to sacks. Newspapers and their printers that have not already converted from sacks to flats trays should work to do so. Go all trays. They cannot be mixed.
Carrier-Route, 5-digit, SCF and 3-digit trays get the discounts, with tiny 2021 increases over current rates. But sacks increase much more. Although there is no differential at the ADC and Mixed ADC level, that is where most newspapers have the fewest containers.
The new discounted sortations and the differential, all over 5%, are below. Some similar sorts entered at origin post office are strangely excluded; NNA might pursue those.
• 5D/CR-RT tray entered at DDU office would pay $1.427 compared to sack at $1.502, saving 7.5 cents, or 5.2%. (Note that copies can be entered at a DDU in bundles only, no container necessary, saving even that cost, if desired, under prior rules change won by NNA.)
• 5D/CR-RT tray entered at destination SCF would pay $2.129 compared to sack at $2.241, saving 11.2 cents, or 5.3%.
• 3D/SCF tray entered at destination SCF would pay $1.241 compared to sack at $1.306, saving 6.5 cents, or 5.2%.
Opportunity: Now is the time to convert out of sacks and into flats trays. See my October Pub Aux column online at:
https://www.nna.org/postal-tips.

PALLET PRICE UNCHANGED
Pallet price is unchanged at $3.056 for carrier-route pallet entered at DDU. Requester Periodicals that mail Saturation [MH1] [MH2] [MH3] pay 50-60% In-County prices (for requested copies plus 10% samples) and the nonrequesters pay Outside-County prices, regardless of location. Since there are no container charges in-County, it is not clear how many pay this price, but would if pallet entered at post office outside-county.

REQUESTER PRICES STABLE
The pound price for DDU outside-county stays the same for both advertising and editorial pounds for the second straight year. Piece prices only increase one-tenth of a cent for Basic carrier route to 20.7 cents. The Saturation piece price used by most Requester pubs stays the same at 15.9 cents.
Rate makers chose to use their overall allowable increase percentage to give above-average increases for trays, sacks, pallets and bundles “to encourage more efficient mail preparation.” Requester pubs benefit because when they use the most-efficient DDU pallet, with no increase. And the beginning of tray discounts helps paid Periodicals.
Opportunity: If Requester publications are not palletizing mail, they should look at how to do so.

MARKETING MAIL PRICES
Once again, as nearby charts show, the most efficient mail is rewarded in this class for shoppers sent via this ad mail category, formerly called Standard Mail (and before 1996, Third-Class).
Saturation shoppers or free newspapers entered at delivery office (DDU) get no increase. Price is earned for 90% of addressed pieces on a route walk-sequenced or 100% of Simplified Address mail. Use Active Residential counts.
High-Density Plus price for 300 or more pieces per route, DDU entry and W/S also stay the same.
High-Density/DDU price for 125-299 pieces per route in W/S will increase by 4.23% up through four ounces and by declining percentages with weight.
With declining paid penetration, most newspaper shoppers to nonsubscribers now easily hit the 90% saturation level, or at least the 300-piece level.
Basic/DDU prices for 10-124 pieces per route take the biggest hit, up 5.1% through four ounces and slightly higher with weight with pound price also increasing.
Opportunity: Shoppers should avoid paying the Basic price or ANY price higher for 5-digit, etc., elsewhere on the PS Form 3602-R. Non-codable addresses are very costly in this class of mail. Eliminate them if possible.

EDDM RETAIL PRICE
Every Door Direct Mail price is up just one-tenth of a cent to 19.2 cents. Entered across the front counter of post offices, EDDM is marketed to merchants, political candidates and others wanting to reach every address in a ZIP code. EDDM competes with newspapers, but some newspapers with job shops or quick-print operations sell the printing and market the service themselves.

DETACHED ADDRESS CARDS
Detached address labels increase to 5.5 cents each, up 22%. Detached marketing labels (cards with advertising) increase a full cent to 6 cents each.

FIRST-CLASS PRICING
The First-class Forever stamp remains unchanged at 55 cents. However, the second-ounce price for letters would increase from 15 to 20 cents. Post card would go up one cent to 36 cents.

Max Heath, postal committee chair emeritus of NNA, is a postal consultant for Landmark Community Newspapers and NNA members.