As inflation and material shortages rage across America, even the post office is raising prices at a faster pace. Traditionally, the USPS has raised rates once per year starting January 1st. As of this year, first-class mail will see a postal increase twice a year. This allows the Post Office to have more flexibility to respond to changes in the economy.
January 2022 saw very little increase in domestic mailing rates.
As of July 1st, the changes are more dramatic. While all products are seeing a price increase, the largest increase will be to retail pieces. In other words, mail that uses retail stamps or metering. Here is the basic outline of what’s to come.
The proposed Mailing Services price changes include:
|Retail Products||Current Prices||Planned Prices|
|First Class Letters (stamped 1 oz.)||58 cents||60 cents|
|First Class Letters (metered 1 oz.)||53 cents||57 cents|
|First Class Letters additional ozs.||20 cents||24 cents|
|First Class Postcards||40 cents||44 cents|
|First Class Commercial Letters – Automation|
|First Class Letters (1-3.5 oz.) – Mixed AADC||.485 cents||51.5 cents|
|First Class Postcards – Mixed AADC||.326 cents||35.9 cents|
|Marketing Mail – Commercial Automation|
|MM Letters (1-3.5 oz.) – Mixed AADC||33 cents||34.9 cents|
|MM Non-Profit Letters – Mixed AADC||19.9 cents||20.7 cents|
|MM Flats (4 ozs. and less) – Mixed AADC||79.8 cents||85.4 cents|
|EDDM – entered at DDU||16.8 cents||18.2 cents|
Bulk rates are increasing approximately 6-8% while retail rates are in the 10% range. Here are some strategies to contain cost:
- Execute campaigns before the increase to announce Summer sales early. By targeting a May and June mail date, you avoid the increase.
- Review the data with your printing partner. See if you can consolidate volume on your target lists to achieve larger sort discounts.
- Evaluate if using LTL to jump entry points makes sense. We can move your mail to different entry points, which will also allow for larger discounts.
- Model your client base. Find untargeted high value segments that can add saturation volume.