New rates effective July 10, 2022

Since 1775, the USPS has delivered through rain, snow, sleet…and now a pandemic. Already averaging a steady 2.1% annual decline in volume, the independent agency saw that number rise dramatically in 2020 to a 9.4% loss despite increased package delivery profit as buyers shifted to online rather than in-person shopping. Translated into dollars, that’s a $9.2 billion loss.

All things considered, the USPS predicts a $160 billion deficit by 2030. And with no tax dollars allocated to keeping the USPS afloat and running, their only recourse is to reduce operating expenses and increase profit from postage, products, and services—directly impacting the commercial mailing industry. Now, under the “Delivering for America” plan created to improve both the bottom line and the USPS’s damaged service reputation, the industry will take a hit once again as an unprecedented August 29th rate increase raises prices once again this year.

Overall postage rates will rise by approximately 6.5%…

What’s Changing?

In 2020 the Postal Regulatory Commission, in charge of reviewing pricing and service, approved a change in just how much the USPS could increase rates. No longer limited to the annual January hikes we’re used to, solely based on the rate of inflation, the organization can now bump prices to begin paying down debts and cover costs. 

Here’s what you can expect to see in July:

  • Letter-sized First-Class Single Piece letters and Postcards will increase to 60¢ and 44¢ apiece respectively (a 3.4% and 9.1% increase)
  • First-Class postage will increase to $1.40 apiece for letter size foreign postage that’s 1 ounce or less (a 7.7% increase))
  • Presort standard/marketing mail for letter-sized mail will increase 6.151%. In our experience, on a typical mailing, rates will increase from approximately 30¢ to 32¢ apiece. Many factors influence this rate, so it should only be used as a rough estimate.
  • 1st class presort rates for letter-sized mail will increase 6.863%. In our experience, on a typical mailing, rates will increase from approximately 40¢ to 43¢ apiece. Many factors influence this rate, so it should only be used as a rough estimate.

These changes are right around the corner, so it’s best to help your customers plan ahead.

 

Wow, some postage is actually decreasing!

Yes, that’s right, EDDM retail which is currently 20.1¢ apiece, will decrease to 18.7¢ apiece on July 10, 2022. While the USPS has given no reason for this decrease, bulk mailers who utilize Every Door Direct Mail should be thankful.

How will the rate increase affect you and your customers? Share your comments below.

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