The U.S. Postal Service (USPS) has approved several new postage increases, predominantly impacting First-Class, Marketing Mail, and Non-Profit Mail products effective Jan. 22, 2023.
Pending approval by the independent federal Postal Regulatory Commission (PRC), these new prices will raise costs of First-Class letters, flats, and postcards; Marketing Mail letters and flats; and Non-Profit Mail letters and flats.
Here's what you need to know.
Why Are Postage Prices Increasing?
Yearly postage increases are a routine occurrence in response to inflation costs and the fluctuating Consumer Price Index. After annual approval by the PRC, new postage rates take effect each January.
However, recent price increases take into account some new factors.
On March 23, 2021, the USPS announced its 10-Year Plan titled “Delivering for America,” an ambitious initiative aiming to “return the organization to financial sustainability and achieve service excellence,” according to its corresponding press release. The plan is designed to reverse a projected $160 billion in operating losses, and enable the USPS to invest around $40 billion throughout the next 10 years into infrastructural improvements, modernization, and maximizing overall efficiency and reliability.
“The need for the U.S. Postal Service to transform to meet the needs of our customers is long overdue,” explained Postmaster General and Chief Executive Officer Louis DeJoy in a statement at the time. “Our Plan calls for growth and investments, as well as targeted cost reductions and other strategies that will enable us to operate in a precise and efficient manner to meet future challenges, as we put the Postal Service on a path for financial sustainability and service excellence.”
Postage Increases Approved for Jan. 22, 2023
Here are some of the price changes that will take effect as of Jan. 22. For a complete list, download the Design Distributors Postal Rate chart.
First Class
Letters
- Mixed AADC would increase from $0.515 to $0.531 (3% increase).
- AADC would increase from $0.491 to $0.507 (3% increase).
- 5 digit would increase from $0.455 to $0.471 (4% increase).
- Non-machinable would increase from $0.390 to $0.400 (3% increase).
- Retail would increase from $0.600 to $0.630 (5% increase).
Flats
- Mixed AADC would increase from $0.934 to $1.068 (14% increase).
- AADC would increase from $0.821 to $0.955 (16% increase).
- 3 digit would increase from $0.762 to $0.896 (18% increase).
- 5 digit would increase from $0.555 to $0.689 (24% increase).
- Presorted would increase from $1.080 to $1.185 (10% increase).
- Retail would increase from $1.200 to $1.260 (5% increase).
Postcards
- Mixed AADC would increase from $0.359 to $0.381 (6% increase).
- AADC would increase from $0.348 to $0.370 (6% increase).
- 5 digit would increase from $0.330 to $0.352 (7% increase).
- Presorted would increase from $0.372 to $0.394 (6% increase).
- Retail would increase from $0.440 to $0.480 (9% increase).
Marketing Mail
Letters
- Mixed AADC would increase from $0.349 to $0.360 (3% increase).
- AADC would increase from $0.328 to $0.339 (3% increase).
- 5 digit would increase from $0.296 to $0.305 (3% increase).
Flats
- Mixed AADC would increase from $0.854 to $0.896 (5% increase).
- AADC would increase from $0.782 to $0.824 (5% increase).
- 3 digit would increase from $0.684 to $0.726 (6% increase).
- 5 digit would increase from $0.530 to $0.572 (8% increase).
Non-Profit Mail
Letters
- Mixed AADC would increase from $0.207 to $0.213 (3% increase).
- AADC would increase from $0.186 to $0.192 (3% increase).
- 5 digit would increase from $0.154 to $0.158 (3% increase).
Flats
- Mixed AADC would increase from $0.648 to $0.681 (5% increase).
- AADC would increase from $0.576 to $0.609 (6% increase).
- 3 digit would increase from $0.478 to $0.511 (7% increase).
- 5 digit would increase from $0.324 to $0.357 (10% increase).
These new rates are routinely announced on the USPS website.
What the Postage Increase Means to You
Given these increases, it is best practice for marketers to adjust budgets accordingly when preparing for upcoming campaigns.
As industry leaders, Design Distributors has anticipated these increases by employing a variety of innovative strategies. For instance, within our Postage Optimization Process, we offer options such as Postage Consolidation and Commingling, both of which can be combined into a hybrid option.
As the USPS invests more in technology and modernizes its processing network, Design Distributors also recognizes the importance of continued evolution and cutting-edge modernization within the direct mail industry.
Recently upgrading our HP PageWide Web Press from a T240 to T250 HD, our experienced professionals are committed to staying ahead of industry trends, leveraging this state-of-the-art tech to provide the widest media versatility on the market, and unparalleled personalization.
A profitable, effective strategy for any marketing campaign, direct mail continues to demonstrate competitive (112%) return on investment (ROI) and response rates (9% for house lists), with a remarkable 7.7 billion parcels delivered to more than 161 million countrywide addresses in 2020.
Where seasoned expertise meets revolutionary printing advancements such as the T250 HD, Design Distributors is committed to making your next direct mail campaign stand out from the competition.
Contact Design Distributors today for a quote on your next project.
