As of January 26, 2020, the United States Postal Service (USPS) adopted new postage rates for mailing and shipping. The new rate increases mirror the changes made in January of 2019, an increase detailed by Allen Press here, along with a similar 2018 increase, explained here.
Although this year’s increase was not unexpected, it impacts both postal customers and service providers. Read on to learn what these new rates mean for the print and publishing industry, marketers and the direct mail market.
2020 USPS Postage Rate Change Overview
- Priority Mail rates will increase by 2.8%
- Priority Mail Express rates will increase by 2.2%
- First Class Package service rates will increase by 2.2%
- Mailing Services product prices will increase by 1.9%
- Periodical Mail rates will increase by 1.9%
What Will the Mail Increase Mean for the Print and Publishing Industry?
As with the 2019 rate increases, both printers and publishers must familiarize themselves with the adjusted pricing, as well as with their publication’s distribution method. After this assessment is conducted, cost-saving techniques can be employed.
To help further lessen the financial impact, Allen Press mailing expert Dustin Young shares these savings tips: “organizations should try their best to decrease piece weight, as well as change the shape of each mail piece. For example, turn a “flat” into a letter or a parcel into a “flat.” Allen Press can help with the specifications for each United-States-Postal-Service-approved shape.” Lastly, Young urges organizations to increase the density of the distribution list. More recipients in a smaller area means lower postage.
How Will the Rate Increase Impact Direct Mail Marketing?
Given that direct mail marketing continues to produce a strong ROI for marketers, it’s no surprise that mail carriers might leverage this marketing channel and continue to increase rates. The 2020 rate increases will drive marketers to be as targeted as possible, forcing the evaluation of distribution lists and removal of recipients who may fall outside the target market.
2020 USPS Rate Increases
UPS and FedEx Also Announce Rate Increase for 2020
The 2020 rate increase is not exclusive to the USPS. Both UPS and FedEx announced increases for mailing services.
Effective December 29, 2019, UPS will initiate the following pricing changes:
- The rates for UPS® Ground, UPS Air and International services will increase an average net 4.9%
- The rates for certain value-added services and other charges will increase
- The weight threshold for applying an Additional Handling surcharge will be lowered from 70 pounds to 50 pounds actual weight for UPS Ground and UPS Air services
FedEx has implemented a number of immediate changes in the past three months, with additional pricing adjustments taking effect on January 20, 2020.
- FedEx Express package and freight standard list rates increased an average of 4.9% for U.S., U.S. export and U.S. import services
- FedEx Ground and FedEx Home Delivery standard list rates increased an average of 4.9%
- FedEx Freight rates increased an average of 5.9%
Navigating Postal Changes for Allen Press Customers
Given the incremental increases in recent years, Allen Press remains committed to helping customers navigate these changes in price. To ensure that clients are not severely impacted by the increase, Allen Press has preemptively installed presort software for the new rates, which will be used to reduce the impact of the price increase.
Allen Press will continue to track all postage updates, as well as their potential impact on customers. For more information about the postage increases and how your organization can reassess its mailing strategy, contact us today.