Navigating Postal Rate Changes and Incentives: What You Need to Know

As we move closer to July 2024, significant changes are on the horizon for postal rates and incentives. Here is what you need to know to understand these adjustments and how to strategize effectively and minimize the impact on your budget. Let’s delve into the details:

July 2024 Postage Increases

The Postal Service has filed for Market Dominant Price Changes with the Postal Regulatory Commission, slated to take effect on July 14th, 2024. While final approval is pending, substantial pre-validation has been conducted. Here’s a snapshot of the key highlights:

• Single Piece Forever Stamps: Increasing from $0.68 to $0.73, marking a 7.4% rise.
• First Class Presorted Automation Letter Rates: Set to rise by an average of 8%, or $0.045 per piece.
• First Class Presorted Automation Flat Rates: Expected to increase by an average of 11.6%, or $0.313 per piece.
• Nonprofit Marketing Mail Auto Letters: Anticipating a 2% increase, or $0.003 per piece. Drop Shipped letters may rise by up to 5.8%, or $0.008 per piece.
• Nonprofit Marketing Mail Auto Flats: Projected to increase by an average of 11.6%, or $0.056 per piece. Drop Shipped Flats weighing 4 oz or more could experience increases as high as 23.3%.

2025 Postal Incentives

Preliminary details regarding the 2025 planned promotions have been received. While not finalized, minimal changes are expected by year-end. Here’s a glimpse:

• Sunset or Changes in Promotions: Some existing promotion discounts may undergo changes in 2025, such as the exclusion of gloss/coated paper stocks in the Tactile, Sensory & Interactive promotion.
• New Promotions: Exciting new promotions like Continuous Contact and Sustainability Discount are on the horizon.

Volume-Based Discount Program

The volume-based incentive program, offering a 30% discount on additional mail volumes year-over-year, continues through 2025. Aimed primarily at organizations experiencing growth in First-Class and Marketing Mail volumes, this program provides credits for future mailings. However, enrollment is complex, with registration required by June 30, 2024.

What’s Next?

Here are three steps you can take right now:

1. Be Informed: Download our postage rate chart and promos calendar from Production Solutions to support your budgeting process.
2. Stay Tuned: We’ll notify you once the rates are approved and provide insights into proposed promotional changes. We’re closely aligned with industry advocacy partners and will keep you updated.
3. Reach Out: Contact us with any questions or concerns. We’re here to help strategize through contingency plans and budget scenarios.

Rest assured, your Production Solutions team is dedicated and committed to being your trusted advisors and creative problem solvers. Feel free to reach out to your PS team with any questions or concerns that come up for you.