Businesses that rely on direct mail touchpoints will have to shift strategies and keep options open.
The USPS announced several cost-cutting measures earlier in 2021, including a decade-long strategic plan meant to modernize operations and increase postal rates. The proposed changes had been in the works for some time now, but they’re finally here. The Postal Regulatory Commission approved the price hike to take effect on August 29, 2021.
The changes force a raise in overall “market-dominant” products and services — such as direct mailiDirect mail is the act of using the postal service to deliver promotional marketing material direct to a customer based on demographic information such as age, location or income. Direct mail pieces can include postcards, catalogs and other promotional pieces enables one-on-one communication with your audience, so you can control who receives the message and when they rece... Read More letters and postcards — by an average of approximately 6.9 percent, while First-Class Mail prices would increase by 6.8 percent to offset the USPS’ declining revenue due to First-Class Mail volume declines.
A quick breakdown of the updated pricing can be found below:
|Product||Current Price||New Price|
|Letters (1 oz)||55 cents||58 cents|
|Letters additional ounce(s)||20 cents||(Unchanged)|
|Letters (metered 1 oz)||51 cents||53 cents|
|Domestic Postcards||36 cents||40 cents|
|Flats (1 oz)||$1.00||$1.16|
|Outbound International Letters (1 oz)||$1.20||$1.30|
|Non-Saturation Letters (ads, solicitations)||21.2 cents||22.6 cents|
|Non-Saturation Flats (catalogs)||31 cents||33.9 cents|
|Saturation Letters (coupons||16.1 cents||16.5 cents|
|Saturation Flats (flyers, coupons)||17 cents||17.5 cents|
That said, most marketers and decision-makersiA decision-maker is the person within a company who is charged with being the final say as key decisions are being made. It's important in sales, for example, to understand who the ultimate decision-maker is so that efforts are targeted to the key person who has the authority to implement change, approve buying decisions, etc. may be thinking: what does the USPS rate increase mean for your business? We’re here to help facilitate the most efficient, cost-effective campaigns, and the most relevant solutions for you.
Please do not hesitate to reach out today.