As we expected, the Postal Regulatory Commission has approved the USPS request for an inflation-based price adjustment effective January 21, 2018. The average increase will be approximately 2%, with individual rate category increases between 1% and 3%. The USPS continues to narrow the pricing gap between origin-entered and drop-shipped mail, so one of the rates with a higher increase will be SCF-entered Marketing Mail letters, which will see a 1.4% increase for 5 digit automated letters and a 2.5% increase for AADC automated letters.

 Also, the ongoing governor shortage on the USPS Board of Governors has delayed (or potentially eliminated) mailing promotions for 2018.  The USPS cannot implement any postal promotions until at least one of the three Presidential nominated governors is confirmed by the US Senate, which is an issue in itself. The Senate has consistently delayed or blocked postal governor confirmations for years, resulting in 9 vacancies on the 11 member Board of Governors. Lacking a necessary governor, it’s unlikely that there will be mailing promotions in 2018.

 Other key points of the upcoming price increase:

  • First Class letters weighing less than one ounce will increase from $.49 to $.50
  • Presorted First Class letters weighing less than one ounce will increase an average of 1%
  • First Class Domestic postcards will increase from $.34 to $.35
  • SCF entered 5 Digit Automated Marketing letters will increase from $.217 to $.220

At SPC, we understand the importance of postage on direct marketing budgets and don’t take these increases lightly. Our experts are glad to discuss how to lessen the impact of this postage increase with a variety of options, including 4-Color Variable Print, Tabled Laser Copy, Commingling, Copalletization and Destination Entry Mail Delivery. Just reach out and we’re happy to get that conversation started.

 

Randy Weiler
Director Postal Affairs and Logistics

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