Cubic Pricing with US Postal Service
Do you use a high volume of parcel delivery? If so, you’ve probably made small adjustments along the way to become more efficient and save money. And those methods may vary depending on the parcel carrier you’re using. The US Postal Service uses cubic pricing to determine their tiered pricing structure.
How does this cubic/tier pricing work? Let’s start with what it seeks to incentivize. Its goal is to provide high volume shipping customers discounted rates for small, heavy packages. In other words, blow those balloons up after they arrive (No joke, see 1.5 “Balloon Pricing“). There is a little math involved with cubic pricing – nothing too mentally taxing, just Length x Width x Height. Once the tier is determined, USPS uses zones to figure the cost to ship.
Depending on your volume, there could be additional considerations. For instance, if your account with USPS exceeds 50,000 pieces in the previous year, you may be eligible for “Commercial Plus Cubic (1.4.4).” As they say, restrictions and exceptions apply, so dig in a bit and get familiar with this important piece of your business. Full information on USPS shipping can be found here.