In January of this year, the USPS sent their first application to the PRC for a postal rate increase. When that application was rejected, a second was sent in February. The proposal was then met with over one hundred questions from the Postal Regulatory Commission. The US Postal Service answered those questions adequately and finally received approval to raise the postal rate.
One of the questions the PRC asked was in regard to discounts offered to nonprofits and commercial entities. Though both types of organizations could receive discounts on Standard Mail, the savings weren’t equal. The nonprofit organizations actually paid more for their mail then the commercial entities. With that inequality fixed, the USPS was one step closer to receiving approval for their rate increase.
The 4.3% exigent surcharge is still in effect, too, though it will be removed later this year. The US Postal Service had to submit two proposals—one with the surcharge and one without—in order for the PRC to consider the rate increase. Their compliance was yet another step toward approval.
As of May 31, 2015, Standard Mail and Periodicals will now be subject to an increased price for mailing. The overall increase equals 1.937% and comprises 124 changes to Standard Mail prices. The cost of a stamp for first-class mail will not change. A full list of the rates can be found here.
How This Affects Direct Mail Marketing
The increase in price may suggest to many businesses that direct mail has now become too expensive. While an increase in postal rates may limit the number of direct mail campaigns you can perform this year, it does not mean those you do perform will be less effective.
With targeted marketing, you can make sure the direct mail marketing pieces you send reach the intended recipient and provoke a response. It’s only when your mail receives no response that direct mail marketing becomes too expensive. We can help you make sure you get the best possible results so that you can continue to grow your business in spite of postal rate increases.
To learn more, don’t hesitate to reach out. We’re here to help.