2020 is the start of a new decade and with all of the exciting changes and upgrades we will be seeing in the Mailing, Marketing, and Print Industries also comes some not-so-pleasant updates. Going into effect January 26, 2020, postage rates for the United States Postal Service (USPS) will increase. While we know nobody ever wants to be charged more for the little things, we have put together a comprehensive list of these changes to make transitioning to these new rates as easy as possible. We know getting it right is vitally important; a piece of mail folded incorrectly or sized unconventionally can cause postage headaches, along with an unexpected postage bill.
Let’s break it down. First, there will be no increase on Forever Stamps, and luckily for us First-Class Mail® sees little changes from 2019. All customers will continue to automatically save 5¢ on every letter through the Metered Mail rate, with Metered single-piece letters under 1 oz. staying at .50 cents. First-Class letters and cards are raising slightly at about $0.001 to $0.0005. Mailing Services through USPS will raise product prices around 1.9% while Priority Mail Express will increase 3.5% and Priority Mail will increase 4.1%, on average, the largest change in rates from 2019!
We understand that even a slight change in cost can mean a lot for a business. So, why does the USPS and other shipping carriers raise shipping costs and how does it happen? The USPS files their proposed pricing with the Postal Regulatory Commission (PRC). Each year, the price increases usually take effect within the last week of January. Who’s happy about that in the New Year? Although Mailing Service price increases are based on the Consumer Price Index (CPI), Shipping Services prices are primarily adjusted according to market conditions and vary by product. The Postal Service has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping with its highly-integrated supply chain. They receive no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations. This, in turn, can cause postage rates to rise to keep up with growing market inflation and business requirements. Don’t stress though, shipping rates from the USPS are transparent and easy to calculate even when changing. The biggest challenge is understanding what impact it will have on your business and developing a plan to of action to retain profit.
We recognize businesses create mailing projects to elicit the most effective client response. Marketing campaigns and direct mail should always factor in current postage rates to understand the costs involved and assess any small changes that could be made to the mail piece design to result in notable postage savings. Taking time to consider postal rates when creating mail campaigns can help minimize overall costs so there’s no unpleasant surprises or fees that you weren’t ready for to begin with. There are few key steps your business can take to counteract these changes and be prepared leading in to the rest of the 2020 calendar year.
- Calculate and assess new costs. Find average order size, box size, distance being shipped, etc.
- Factor the increase into your product price or budget planning.
- Look for partners to handle order fulfillment to receive commercial rates.
To see the comprehensive list, we have compiled all of the 2020 USPS Postal Rates and information:
Click here for a Fact Sheet with more information
When mailing through the U.S. Postal Service, getting it right is imperative. Don’t worry, Prisma’s experts can help. Our in-house consultants review your mail pieces to ensure it meets current postal requirements so you always know how much you’re paying. Processing around 5 million pieces a month… we know mail. We can help you.