Unlocking USPS Savings: A Closer Look at the New Discount Plan

The United States Postal Service (USPS) is on the verge of rolling out an enticing offer for businesses and organizations that rely heavily on First-Class and Marketing Mail services. The plan promises a 30% discount on additional mail volumes. Here’s what you need to know to make the most of this opportunity.

Earned Credits

As part of this program, mailers have the chance to earn credits, which can be thought of as incentives for future mailings. It’s important to note that these credits come with specific conditions. Credits accrued from the First-Class Mail Growth Incentive can only be applied to future First-Class Mailings, while those from the Marketing Mail Growth Incentive can be used solely for Marketing Mail.

How Credits Are Calculated

For every qualifying piece mailed in the calendar year following the first million pieces, mailers receive a credit equivalent to 30% of the average per-piece price they paid for all qualifying pieces. This credit accrues if the mailer’s volume of qualifying pieces exceeds 1,000,000 pieces in the preceding fiscal year. Essentially, the more you mail, the more credits you can earn.

For example, if a mailer sent 5 million qualifying pieces in the calendar year 2024 and 4.5 million qualifying pieces in fiscal year 2023, they would earn credits on the last 500,000 pieces. Assuming an average per-piece price of $0.639, this would result in a credit of $95,850. However, when distributed across the total mailing of 5 million pieces, the actual per-piece credit equates to a lower 3%.

Issuance and Expiry

Mailers can expect credits to be issued in installments, with issuance occurring in July and October 2024 and again in January or February 2025. Note that these credits can be utilized for mailings until the end of calendar year 2025.

By offering this discount plan and credit system, the USPS aims to support mailers, especially those with substantial mail volumes, in reducing their postal costs and promoting continued use of USPS services.

This is an exciting opportunity for businesses to save on mailing expenses and enhance their communication strategies through USPS. If you have any questions or concerns, don’t hesitate to reach out to your PS contact.