A postage rate increase is on the horizon for mailers.
In October 2014, the United States Postal Service announced that it would postpone its usual January rate increase amidst uncertainty about the permanence of an exigent surcharge issued in January 2014. In mid-January, however, the USPS filed a proposal to raise postage rates for 2015. The increase, which is based on the Consumer Price Index (CPI) cap of 1.966%, has been filed with the Postal Regulatory Commission (PRC). Pending the approval of the PRC – the agency responsible for determining if prices are consistent with applicable laws – the new postage rates will take effect on April 26, 2015.
Why the increase?
USPS does not receive tax dollars, but instead relies on the sale of postage, products and services to fund its operations. Using the CPI cap, the USPS anticipates the proposed prices will generate an additional $0.9 billion in contribution per year.
What should mailers know about the proposed rate change?
A listing of all the new prices can be found on the Postal Explorer section of USPS.gov. Key elements of the proposal include:
- Letters 1-ounce or under will not be affected by the price increase
- Additional ounces for letters will increase from $0.21 to $0.22
- Letters to all international destinations will increase from $1.15 to $1.20
- Postcards will increase from $0.34 to $0.35
It’s important to know that a USPS-approved process called presorting/comingling can yield significant postage discounts. Contact us to learn more about how you can optimize your marketing budget with postage discounts.
Additionally, various postal industry webinars are being planned this year to offer a high-level overview of the proposed changes. Check back here often – we’ll share more about these resources and other USPS updates as we learn about them.