The Unprecedented Postal Rates Decrease Will Go Into Effect on April 10th.

The USPS® will drop the prices by 1 to 2 cents per piece, depending on the service, class, and type of mailpiece.  The rate reduction affects the Standard® Mail as well which is pretty exciting news for all marketers who still favors direct mail as their main marketing channel!

The USPS® is forced to make the change. The event follows the temporary emergency exigent surcharge of 3 cents approved by the Congress in 2014 to help the United States Postal Services recover the billions in losses following the recession.

Exigent increase: increase that goes beyond the one that keeps up with inflation. Such increase can be approved only by the Postal Regulatory Commission in extraordinary or exceptional circumstances.

Even though the USPS® will keep 1 cents, the decreased rates will cost the Postal Office about 2 billion by the end of the year, only from losses caused by the reduction of the first-class stamp for single pieces.

“Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition,” said Postmaster General and CEO Megan J. Brennan. 

Having in mind that the Postal Office receives no tax dollars for operating expenses and relies on the sale of postage, makes us agree with her.  The 1 or 2 cents savings are significant for large mailers, but I don't think it will break anybody's bank to pay the 2 cents extra for stamps.

The total pieces mailed at Standard rates exceeds the numbers for the one sent at First-class rates with almost 10 billion a year. Advertising mail proved to be one of the main revenue streams for the USPS®.

All marketers are thrilled about the 4.3% average decrease which happens for the first time in nearly century! The last rate reduction occurred in July 1919 when the stamp price dropped from 3 to 2 cents.

Download The Latest USPS® Rate Change Effective April 10th, 2016

USPS Postal Rates Decrease Infographic
USPS® First-Class Stamp Cost Through The Years

Milena Marguenski
Milena is the owner and CEO of US Presort.
US Presort | 3801 Victory Blvd., Suite 1 - Staten Island, NY 10314 | P : 718.980.6556