Tag Archive | USPS

USPS Update: Postage Rate Increase

The United States Postal Service (USPS) recently announced proposed price changes to take effect January 27, 2019. The USPS has been granted the authority to raise their rates. Although the USPS has indicated that the first‐class price is going up 10%, many bulk mail categories are only going up 1% or less.

Changes to First-Class Mail®

  • Price increase for First-Class Metered Mail, from $0.47 to $.50
  • First-Class commercial Base Pricing remains:
    • 5-Digit – 0.383
    • AADC – 0.412
    • Mixed AADC -0.428
    • Presorted – 0.459
    • Presorted non machinable -0.609
  • First-Class Mail® retail stamp price increase from $0.50 to $.55
  • First-Class Mail® single piece post cards $0.35 (no change)
  • First-Class Presort:
    • Average increase for First-Class Mail is +2.464%
    • Average increase for Priority Mail is +5.9%

Changes to USPS Marketing Mail

  • Average increase in Marketing Mail pricing +2.482%
  • Average increase in Parcels +2.2%

Changes to other Mailing Products and Services

New pricing to affect several services, with average increases as follows:

  • Package Services + 2.522%
  • Special Services + 2.5212%

If you have any questions new rates, feel free to call your Account Manager or Client Relations for more information.

2018 Postal Rates Increase Takes Effect Jan. 21

After approval from the Postal Regulatory Committee last month, the USPS will move forward with new postal rates for market dominant mail (first class letters, postcards and flats, and standard mail letters and flats) and competitive mail (priority mail, packages). The changes go into effect on January 21.

There will be a one cent increase to postcard stamps and metered letters. The rate change does not include any price change for single-piece letters being mailed to international destinations or for additional ounces for letters.

Per USPS: “The prices will raise Mailing Services product prices approximately 1.9 percent, and most Shipping Services products will average a 3.9 percent price increase. While Mailing Services price increases are limited based on the Consumer Price Index (CPI), Shipping Services prices are adjusted strategically, according to market conditions and the need to maintain affordable services for customers.”

2018 Commercial First-class letter rates:

Automation Automation Machinable Non Machinable
Weight Not Over
(ounces)
5-Digit AADC Mixed AADC Presorted Presorted
1 0.378 0.408 0.424 0.458 0.668
2 0.378 0.408 0.424 0.458 0.668
3 0.378 0.408 0.424 0.458 0.668
3.5 0.378 0.408 0.424 0.458 0.668
Postcard 0.257 0.268 0.274 0.280
Nonmachinable
Surcharge
0.210

2018 Commercial Marketing Mail rates:

Carrier Route Automation
Entry Point Saturation High-Density Plus High-Density Basic 5-Digit Scheme AADC Mixed AADC
None 0.186 0.196 0.200 0.292 0.251 0.274 0.287
DNDC 0.164 0.174 0.178 0.265 0.227 0.250 0.263
DSCF 0.158 0.168 0.172 0.257 0.220 0.243
DDU

For more information, go to USPS.com.

Dear Diary: 3 Interesting Facts from the USPS 2016 Household Diary

The United States Postal Service recently released their 2016 Household Diary Study, which, since 1987, has set out to collect data on household use of mail and how that use evolves over time. The survey culls information on “demographics, lifestyle, attitudes toward mail and advertising, bill payment behavior, and use of the Internet and other information technologies.” It’s a long, comprehensive, and interesting (really!) document. We pulled three facts worth noting about transactions mail.

  1. The share of bills payed electronically has increased—significantly.

Not too surprising, right? In 2006, 62 percent of households paid their bills by mail. In 2016, that number dropped to 27 percent. Conversely, the percentage of households paying electronically has jumped from 32 percent to 70 percent in those ten years. The study attributes this to “electronic diversion” which is another way of saying Internet access. A smaller percentage of households pay their bills in person, but that number also declined in the 10-year span from 6 percent to 3 percent.

  1. BUT the shift to bills received electronically hasn’t happened as quickly as you might think.

Though the Internet has dramatically affected the number of payments made by mail, the percentage of households receiving bills electronically hasn’t followed the same pattern with an increase from 4 percent to 23 percent. Why? The study attributes this to a correlation of household Internet access with income and education.

  1. Electric bills experienced the largest decline in payment by mail.

From 2011 to 2016, the percentage of households paying electric bills by mail dropped from 46 percent to 33 percent. The next largest decrease was with medical bills, with a drop from 41 percent in 2011 to 32 percent in 2016.

To see the full report, go here. And learn more about OSG’s digital communications solutions, go here.

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