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Proposed 2019 Postage Rates – The Good, The Bad, and The Ugly…

Production Solutions

The Postal Service announced rate changes earlier this month that will go into effect on Sunday January 27, 2019. The USPS governors approved the proposed changes, which will next be reviewed by the Postal Regulatory Commission (PRC) before going into effect at the beginning of next year. The governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue.

Below we’ve broken down some of the key updates into the good, the bad, and the ugly along with a snapshot the main rate changes so you can better understand how to adjust your budget in 2019. And don’t fret about the bad and the ugly, contact a Production Solutions expert today to discuss creative solutions for your budget.

The Good

  • The Full Service IMB Discount is increasing from $.001 to $.003 per piece for each mailpiece that complies with the requirements for full-service Intelligent Mail.
  • Mailing Promotions are BACK for 2019! Check out our blog post for full details as there are some great promotions for nonprofits to sign up for in 2019.

The Bad

  • As in the last two years, the Postal Service will be reducing workshare discounts on drop-shipped Marketing Mail letters, and making differential changes in flats versus letters.  

The Ugly

  • There’s a 10% Increase in Single Piece First Class Letters – The single piece stamp rate will go from $0.50 to $0.55 cents each. This is the biggest increase in 1st Class Stamps since 1991.

Main Rate Change Call-outs:

  • Marketing Non-Profit Letters – Local Entry pricing went UP an average of 1.5%. DNDC & DSCF Drop Shipping went up an average of 4.0%.
  • Marketing Non-Profit Flats – Local entry and DNDC & DSCF Drop Shipping went UP an average of 4.4%.
  • First Class Presort Letters – Went UP an average of 1.0%.
  • Postcard Rate did not change and remains $0.257 per piece
  • First Class Retail Rate Letter Under 1 oz. – Increasing by 10% to $0.55. Higher weight tiers decreased in price.
  • First Class Presort Flats – Pieces under 1 oz. went UP an average of 1.4% while pieces over 1 oz. decreased, with greater decreases seen at the heavier weight categories and an overall average of a 14% decrease.
  • First Class Retail Rate Flat Under 1 oz. – Remains the same at $1.00 per piece. Higher weight tiers decreased in price.
  • Marketing Mail Commercial Letters – Local Entry pricing went UP an average of 2.0%. DNDC & DSCF Drop Shipping went up an average of 3.3%.
  • Marketing Mail Commercial Flats – Local Entry pricing went UP an average of 4.6%. DNDC & DSCF Drop Shipping went UP an average of 4.2%.
  • Business Reply mail – Increase of 3.0%, but is dependent upon what type of Business Reply account is utilized.

To view the complete Postal Service price filings with the new rates on Market Dominant products go to: https://www.prc.gov/docs/106/106732/Notice%20and%20Attach%20ACD.pdf.

We will continue to keep you informed as we expect for these rate changes to be approved by mid-November. Stay tuned as we will soon share our 2019 Postage Rates Chart.