One thing we can all appreciate is saving money and as of April 10, 2016, the USPS is giving us the opportunity to do just that. Rates will be dropping an average of 4.1% and hopefully will result in more people sending mail.
Why Are USPS Rates Dropping In April 2016?
In 2014, the USPS was allowed to add a surcharge to mail rates bringing the rates to the present day amount. This surcharge was put in place to help the USPS recoup losses experienced during the recession. The surcharge was to be in place until $4.6 billion in total was collected. That amount is expected to be reached as of April 10th, 2016.
The USPS doesn’t think the rate reduction will help their financial situation, but instead will make it worse. Overall the USPS is looking at a $2 million dollar annual net loss. There is some hope, however, that the lowered prices will encourage more mailing and direct mail advertising. To date, there are no other rate changes anticipated for 2016, but that could change as the year progresses.
What Are The Changes?
The good news is several USPS rates will be changing. Most notable, in day-to-day life are, the first class rates. Listed below is a handful of the first class rates changing:
- Letters (1 oz.) from 49 cents to 47 cents (including the forever stamp)
- Additional ounces for letters drop from 22 cents to 21 cents
- Letters to all international destinations dropping from $1.20 to $1.15
- Postcards from 35 cents to 34 cents
The even better news is that rates used for direct mail marketing campaigns will also be dropping. Presorted First-Class, Non-Profit, and Standard Mail will all see various reductions averaging around 4.1% (of the orginal cost) starting on April 10th. That means, if you have a direct mail campaign in you marketing mix this year, you could stand to save part of your budget.
To see the specific changes to Presorted First-Class, Non-Profit, and Standard Mail download our USPS mail rates chart.
If you have questions about the new mail rate changes, please speak to one of our mailing experts. Also, don’t forget to read our article on the upcoming 2016 mailing promotions available through USPS.