USPS Proposes Pricing Changes, Rate Hikes for July 2024

The United States Postal Service (USPS) is gearing up for some significant changes in July 2024, aiming to streamline operations and enhance services. These changes have only been proposed and are still subject to approval and/or change by the PRC. Here are some highlights from the proposed changes:

Delivery Network Redesign: USPS will continue to redesign its delivery network, which may involve renaming facilities and assigning new responsibilities to them.

Mailing Promotions and Incentives: USPS plans to introduce five mailing promotions and two “add-on/upgrade” promotions.  These include the Tactile, Sensory and Interactive Promotions, Integrated Technology Promotion, Reply Mail IMbA Promotion, Continuous Contact Promotion and First-Class Mail Advertising Promotion.  The add-on promotions deal with Informed Delivery and Sustainability.  Additionally, there will be growth incentives for both First-Class Mail and USPS Marketing Mail.

Identification of Official Election Mail/Ballots: New requirements will be introduced to identify Official Election Mail/Ballots from Political Campaign Mail, aiming to ensure the secure and timely delivery of election-related materials.

Reevaluation of First-Class Mail Flat Pricing: USPS will reevaluate the pricing structure for First-Class Mail Flats, potentially impacting the cost of mailing larger, flat items.

USPS Proposed Pricing Changes for July 2024

The USPS has proposed a list of rate increases that covers many of its services, in addition to changes to the way pricing is calculated for certain mailings.

How Promotional Discounts are applied: Currently, the USPS removes promotional discounts from primary postage and then removes incentive discounts.  Moving forward, incentive discounts will be removed from primary postage and then promotional discounts will be taken.

Full-Service Discount for First Class and Marketing Mail pieces increased from $.003 to $.005 per piece. (Full-Service Automation barcoded pieces receive this discount) Seamless discounts from $.001 to $.002 per piece.

First Class Flats are currently priced by the ounce with a base price for each additional ounce.  Moving forward, the prices between ounces could vary.

Marketing Mail had components found to be over their costs, or not covering their costs.

• Marketing Mail Flats will raise by 11.708%
• Carrier Routes will raise by 9.918%
• Nonprofit flats will raise by 16.2%
• Nonprofit Carrier Route will raise by 20.1%
• Nonprofit High Density and High Density Plus Carrier Route will increase by 17.3%

Marketing Mail Flat Rates Restructuring: Currently, marketing mail flat pieces over 4 ounces pay per piece and a per pound rate for the weight over 4 ounces.  This will be restructured so a per-pound rate is paid for the whole weight, including the first 4 ounces. Also under this plan, work share discounts will return for under 4 ounces reflected in the per piece cost, but over 4 ounces, the work share discounts will be shared in the per pound pricing.

Catalog Incentive: Mailers using Marketing Mail or Package Services Bound Printed Matter Flats and Parcels will be granted a $.001 per piece incentive for announcing their mail pieces are catalogs when presenting the mailings to the USPS via the postal statements. However, Marketing Mail Simple Samples will be eliminated.

To qualify as a catalog, a mail piece must meet one of the following requirements:

1. 12 or more pages.
2. Bound or fastened along one edge and shaped as a letter, flat or parcel.
3. An organized, illustrated, descriptive listing of the products or services offered for sale.
4. Prices or a method for determining prices.
5. Information on Shipping or Fulfillment (shipping or pick-up methods)
6. Enough information to allow an order to be placed.  This may be through an order form, mailing address, phone number, web address or means to access a web address such as a QR Code.
7. Every Door Direct Mail (EDDM) – Retail

Mailing Rate Increases By Mail Class

First-Class Mail Price Changes

First-Class Mail First-Ounce Rates – Letters

USPS Marketing Mail Product Price Changes

Periodicals Price Changes

Package Services Price Changes