The Postal Regulatory Committee (PRC), which is an independent agency that oversees the USPS, approved the planned price increase for mailing services. However, the PRC also expressed some reservations:
While the price hike follows all the relevant rules of the Postal Service’s Market Dominant price adjustment schedule, the PRC is concerned that the USPS may not have fully considered the broader impact on mailers and customers.
In particular, the PRC is worried that raising prices could be counterproductive given the ongoing decline in mail volume (especially for traditional mail like flyers and magazines) and recent issues with mail delivery performance. These concerns, along with the USPS’s overall financial situation, haven’t improved since the current system for setting mail prices was adopted.
Other sources agree with the PRC’s skepticism over these rate increases and their effectiveness. Citing a notable trend of year over year decreases in marketing mail revenue for the USPS, Jim Coogan, President of Catalog Marketing Economics, wrote: “The postal price increases in the near term have proven to be a failure. The USPS modeling predicted that revenue would increase and demand wouldn’t fall. However, the data tells a different story. In 2023, revenue of “marketing mail” decreased by $920 million and volume decreased by 7.7 billion pieces.”
The PRC is currently reviewing this system (Docket No. RM2024-4) to see if it’s still the best approach. In the meantime, the PRC is urging the USPS leadership to carefully consider these concerns and the feedback from stakeholders when deciding on future price adjustments. They suggest the USPS may not need to continue raising prices by the maximum allowed amount. You can read the PRC’s full decision here.
To summarize, the price of sending mail will increase in July, but there are questions about whether this is the best course of action for the long-term health of the USPS and its services. Accompanying these rate increases will be a handful of other changes to USPS rates, processes and programs. You can read more about the specific rate increases and updates in this blog.
