As the Sonny and Cher song states, "the beat goes on," so guess what! Postage rates are increasing just like the last 3 plus years.
It’s year 4 of the United States Postal Service (USPS) 10-Year Plan, and they are implementing a postage increase for Market Dominated products on January 21, 2024. The increase averages 2% across First Class, Marketing Mail, Periodicals, Package Services and Special Services.
Flat rate mail, Periodicals and Packages will have a higher average rate due to the fact they are not meeting the cost associated with delivery. The USPS call these products "Under Water." The USPS has the authority to add an additional 2% increase above the 2% average rate increase until these products are covering their delivery costs. View the entire USPS 10-year plan.
The USPS has not stated if we will see another rate increase in July 2024, but according to the 10-year plan we could see a second rate change in summer. USPS rate adjustments are based on the Consumer Price Index (CPI). If the CPI raises by 2% or more, we will very likely see another rate hike.
The Postal Regulatory Commission will review the changes before the scheduled implementation date. The complete Postal Service price filing with changes to all products can be found on Postal Explorer at https://pe.usps.com/pricechange/index.
Here are some of the highlights of the new proposed rates. First Class forever stamps are increasing from 66 cents to 68 cents for mail weighing under 1 ounce. First Class flats weighing under 1 ounce is going up to $1.39. The additional ounce rate for letters and flats is staying at 24 cents per ounce. The nonmachinable surcharge for letters is going to increase to 44 cents. Domestic First-Class postcards are going up to 53 cents, an increase of 2 cents per card. International outbound 1-ounce letters are going from $1.50 to $1.55. Below is a table with some of the new pricing:
| Product | Current Price | Jan. 21st, 2024 Price |
| Letters (1 oz.) | 66 cents | 68 cents |
| Letters (metered 1 oz.) | 63 cents | 64 cents |
| Domestic Postcards | 51 cents | 53 cents |
| International Postcards | $1.50 | $1.55 |
| International Letter (1 oz.) | $1.50 | $1.55 |
I have mentioned in the that that the best way to soften the blow of these price increases is easier than you might think. The first way is to be sure your mailing list is up to date. List hygiene is crucial now more than ever. If you mail to consumers, have you checked to see if people have moved. Business mailers, are you sure the contacts on your mailing list are still with the company? Are they working in the office or from home? Are you targeting your mailing list to get the most ROI or doing saturation mail?
The second way is to take advantage of USPS Promotions that run throughout the year. I will be writing a blog regarding the 2024 USPS Promotions next month.
The best way to increase response rates is to use a Connected Mail program. Boost the ROI on your direct mail campaigns by expanding your marketing reach though coordinated digital features. This includes Informed Delivery (a 2024 USPS Promotion), Mail Tracking, Social Follow Up, Social Match, Lead Match, Direct Mail Retargeting, and Call Tracking. Contact us for more details or to schedule a demo.
Happy Mailing,
Rob Hanks
