2020 Postage Rate Change Highlights!
The USPS announced rate adjustments on October 9th that will go into effect on Sunday, January 26, 2020. These rates were approved last week by the Postal Regulatory Commission (PRC). Proposals for Market Dominant Products are changing which impacts USPS Marketing Mail (a high percentage of Nonprofit mail is in this category), Periodicals along with Package and Special Services.
The PRC reserved the right to make a final decision on First Class Mail pending the Postal Services filing of a revised First-Class Mail pricing proposal and an additional opportunity for comment. Market Dominant Changes are factored on a CPI base of 1.9%, but there are various swings from this average.
Below we provide a snapshot of the main rate changes so you can better understand how to adjust your budget. Be sure to download our handy 2020 PS Postal Rate Chart and contact a Production Solutions expert today to discuss creative solutions for your budget.
The Good News:
Mailing Promotions are BACK for 2020! These are preliminary at this point and while we don’t expect any major changes to eligibility requirements we won’t know the full details until the Postal Service releases the updated requirements. The mailing promotions are as follows:
- Tactile, Sensory, and Interactive Mailpiece Engagement Promotion: Marketing Mail, February 1 – July 31, 2% discount off eligible postage.
- Emerging and Advanced Technology Promotion: Marketing Mail or First-Class Mail, March 1 – August 31, 2% discount off eligible postage.
- Earned Value Reply Mail Promotion: Business Reply of Courtesy Reply Mail, April 1 – June 30, once volume threshold is met, earns variable rebate depending on the volume of reply mail returned during the promotional period.
- Personalized Color Transpromo Promotion: First-Class Mail, July 1 – December 31, 2% discount off eligible postage.
- Mobile Shopping Promotion: Marketing Mail, August 1 – December 31, 2% discount off eligible postage.
- Informed Delivery Promotion: Marketing Mail or First-Class Mail, September 1 – November 30, 2% discount off eligible postage.
Main Rate Changes:
- Marketing Non-Profit Letters – Local Entry pricing went UP an average of .963%. DNDC & DSCF Drop Shipping went up an average of 2.2%.
- Marketing Non-Profit Flats – Local entry and DNDC & DSCF Drop Shipping went UP an average of 4.9%.
- First Class Presort Letters – Went UP an average of 1.5%.
- Postcard Presort Rate went UP an average of 1.1%.
- First Class Full Rate Letter Under 1oz. – No change and remains at $.55 pending further review.
- First Class Full Rate Flat Under 1oz. – Remains the same at $1.00 per piece pending further review.
- First Class Presort Flats – Pieces under 1 oz. went down an average of 5.3% while pieces over 1 oz. increased an average of 13%, with greater increases seen at the heavier weight categories.
- Marketing Commercial Letters – Local Entry pricing went UP an average of 2%. DNDC & DSCF Drop Shipping went up an average of 4.6%.
- Marketing Commercial Flats – Local Entry pricing went UP an average of 3.6%. DNDC & DSCF Drop Shipping went up an average of 3.5%.
- Our clients will see a 3% increase for Business Reply mail (increase is based on what type of BRM account they have with the USPS)
To access the USPS Notice 123 Price List for a full outline of new prices you can access this link: https://pe.usps.com/resources/PriceChange/January%202020%20-%20Notice123.pdf