The USPS will increase rates on January 21, 2024. The average overall increase is 2%, however, some categories for flat rate postage will see rates increase as much as 4%. A carrier route letter and first-class postcards are increasing a modest 0.5%. The USPS is trying to balance rate increases with the cost it takes to deliver mail based on class of mail and size.

Through strategic planning for most of the year, these increases can be offset by  postage promotion discounts such as Tactile, Sensory, and Interactive, Emerging Technology, and Informed Delivery to name a few. During the most recent Informed Delivery promotion (August 2023 – December 2023) Salem One executed several hundred Informed Delivery campaigns saving clients hundreds of thousands in postage. The promotions offer between a 3% and 5% discount.

An additional opportunity for savings is the Growth Incentive being offered in 2024. For those who mail at least 1 million pieces and exceed their volume from fiscal year 2023 they will be eligible for a 30% rebate on postage for all pieces exceeding their fiscal year 2023 baseline volume.

Mailers who mail in high volumes can also offset the postage increases by considering drop shipping and comingling. Salem One’s logistic expertise and data processing work together to analyze jobs to determine how best to minimize postage and strategically minimize delivery in the mail stream.

In comparison to previous rate changes, this modest increase is somewhat of a relief. The USPS is continuing to work their “Delivering for America” plan to make the USPS more efficient and better at delivering mail to every household in the US.

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