You may have heard that the price of postage is decreasing soon. It isn’t an April Fool’s joke. Though postage decreases are rarer than Elvis sightings, the current rates are scheduled to lower by an average of about 4% in April, 2016 – the first such decrease in almost a century.
Barring any legal actions, or highly unlikely presidential or Congressional intervention, the new commercial and retail rates published by the USPS will go into effect on April 10th. Most postal analysts expect the rate change to go through as planned. Vendors of postal preparation software, postage meters, scales, etc. have been preparing to implement the new lower rates. A change of plans at this late date would be highly disruptive to USPS customers and partners.
It is still possible a court action could delay the price decrease. The USPS and the Postal Regulatory Commission have always disagreed on the extent of the damage caused by the recession and the Postal Service says it can’t really afford to give up the $2 billion in annual revenue the temporary rate increase has been providing. The chances for a delay are slim, however. Mailers should plan to use the published rates beginning April 10th. The USPS will undoubtedly file a new rate case later in the year, so stay tuned for more news as details develop.
APRIL 10, 2016 POSTAGE REDUCTION HIGHLIGHTS
Retail First Class mail stamps or metered: -0.02
Retail one-ounce First Class flats: -0.04
Additional ounce: -0.01
Retail 1 to 3 ounce parcels: -0.09
Commercial rates for First Class and Standard Mail have also been reduced, as have fees for some services. Complete details and downloadable price data can be found at the Postal Explorer website: http://pe.usps.com/
What does this mean to me as mailer? Starting this April, high-performing direct mail is getting even better. Numerous studies have shown more people open and respond to messages delivered to their physical mailboxes than campaigns limited to digital channels. Combining mail and other messaging technologies increases response rates across the entire campaign. Reduced postage is an opportunity to have a positive effect on campaign success and ROI by adding direct mail – without spending as much money.
EarthColor’s postal and mailing experts are ready to help you adjust to the planned postage reduction. If you have any questions about how it may affect your mailing program, please contact us today.