As of July 10, 2022, the anticipated postal increase for First Class Mail Forever Stamp from 58 cents to 60 cents took effect. This means it will cost an extra 6.5% to mail letters, packages, postcards, and direct mail advertisements.
Would this price increase affect your business operations?
Before we get into that, let’s consider why postage prices are increasing.
Why Are Postage Prices Increasing?
Postal regulations allow the USPS to apply for price increases in response to a rise in inflation as reflected in the Consumer Price Index or “density”. Which measures mail volume. When density drops, the USPS is permitted to increase rates in areas of the service that don't generate enough cash to cover their costs.
After approval by the Postal Regulatory Commission (PRC), the price increase goes into effect.
The major reason for the current price increase is a measure by the USPS to achieve their objective laid out in the USPS’ 10-year plan, called Delivering for America.
This plan is an initiative to make the USPS self-sustaining, avoid a $160 billion projected loss over the next 10 years, and enable the USPS to invest $40 billion over the next 10 years in core postal service infrastructure.
Nonetheless, the current price increase isn’t the end. There is more to come in the future. PMG Dejoy warns of “uncomfortable” postal price increases until they put the Postal Service on a path to financial stability and service excellence.
Postal Price Changes That Came Into Effect on July 10th
Mailing Service Rate Changes
- Standard Forever Stamps increased by 2 cents, from $0.58 to $60
- First class mail increased by 6.5%
- 1-ounce domestic letters increased from $0.58 to $0.60
- 1 ounce metered letters increased from $0.53 to $0.57
- Additional ounce(s) increased from $0.20 to $0.24
- Domestic postcards increased from $0.40 to $0.44
- 1-ounce international letters increased from $1.30 to $1.40
Additional First Class Mail Changes
- First-class flats increased $0.891 to $0.934 (5%) for Mixed AADC.
- First-Class Letters increased from $0.485 to $0.515 (6%) for Mixed Automated Area Distribution Center (MAADC8) Mail.
Marketing Mail Rate Changes
- Marketing Mail Letters increased from $0.330 to $0.349 (6%) for Mixed AADC.
- Marketing Mail Flats increased from $0.798 to $0.854 (7%) for Mixed AADC.
Non-Profit Mail Rate Changes
- Non-Profit Mail Letters will increase from $0.199 to $0.207 (4%) for Mixed AADC.
- Non-Profit Mail Flats will increase from $0.594 to $0.648 (9%) for Mixed AADC.
What Does the New Postage Increase Mean for Your Business?
For direct mail companies, postage increases can affect your business and the business of your clients.
The effects of these changes, however, will vary from industry to industry depending on the volume of and type of mailing you carry out through the USPS. For industries with high-volume mailings and marketing campaigns, this will definitely inflate your budget.
One way you can offset this cost of operations is by automating manual processing job times. This can lead to saving in time up to 8 hours a day, and in money, up to $56,680 per year just as Heeter did.
A Partner You Can Trust
At BCC Software, we’re committed to helping printers to meet their deliverability goals. With over four decades of industry experience, our team of industry experts is active and involved in advocating for our customers’ needs.
Backed by unlimited access to our legendary team of USPS® Mailpiece Design Certified professionals, BCC Software is the smart choice in postal software. To learn more about how we can help you mitigate the effect of postage increases, reach out to us by submitting the contact us form below or by calling 800-624-5234.