USPS Poised to Decrease Rates for the First Time in a Century

For the first time in nearly a century (97 years to be exact), the USPS has reduced the postage rate on several mail classifications. This historic rate reduction is expected to have a resounding effect on all business verticals, in particular those harnessing the power of mail in their marketing communications.

As of Sunday, April 10 price reductions will be as follows:

  • First class stamp mail: from $.49 to $.47
  • First class metered mail: from $.485 to $.465
  • Postcards: from $.35 to $.34
  • International mail: from $1.20 to $1.15

Since 2014, the USPS had tacked on a 4.3% surcharge on first-class mail and commercial postage rates. This government-sponsored program was designed to help the Postal Service recoup losses sustained post-Great Recession. However, regulators capped the amount they were able to recoup at the $4.6B mark—a total that the USPS is expected to hit by this Sunday, April 10.

Although stamp collectors, in particular those investing in “Forever stamps” will take marginal losses (these were created in 2007 as a way to hedge against future price hikes), the decrease in rates is expected to bolster the demand for mail in the coming years, as well as palliating the biggest concern of direct mail—its cost.

DMbreakdown

In a world where inflation is the only thing constant, it is refreshing to see something with a perpetual upward trajectory, creep back downward. As the blending of physical and digital channels becomes more apparent, we can be sure this postage decrease will enhance DM's place in the direct marketing ecosystem and create additional opportunities for businesses to reach prospects and existing customers.

Published on April 8, 2016