USPS Rate Increases Take Effect January 24th - How will it Impact your Budget?

January 21, 2021

On Sunday, January 24, 2021, the United States Postal Service will be rolling out price changes that are going to impact all mail classes.

For many, it can be a mind-numbing exercise to try to understand all the price increases and which postal category your mail is classified under.  So we’ve tried to summarize some of the key changes.

Overall, there will be an average increase of between 1% and 2.5%, which impacts some of the most common direct mail categories including ones used by many Hatteras customers. Below are some of the highlights:

First-Class Mail – 1.8% overall increase

  • Single-Piece 1 oz. Stamped Letters  – $.55 (no change)
  • Metered 1 oz. Letters – increase from $.50 to $.51
  • Flats/Large Envelopes 1 oz. - $1.00 (no change)
  • Single-Piece Postcards – increase from $.35 to $.36
  • Pre-Sort Letters and Cards – overall 2.2% increase

Marketing (Standard) Mail – 1.5% overall increase

  • Letters, Mixed Origin – increase from $.299 to $.304
  • Letters, 5-Digit Origin - $.259 (no change)
  • Flats/Large Envelopes, 5-Digit DSCF – increase from $.544 to $.545
  • Saturation Letters and Flats – no change

Marketers using Parcels (packaged services) through the USPS will be seeing the largest increase, at 16.8%. 

Depending upon the type of mailing programs you’re running, there may be some ways you can offset these postal increases.

One area to look at is the USPS Promotions & Incentives Program (2021 calendar below), which offers postage discounts for mailings that feature, for example, a Tactile or Interactive element, or those that are part of an Informed Delivery campaign (more about Informed Delivery here). 

Other ways you can offset these costs include:

  • Printing materials up front and using them across multiple campaigns
  • Keeping all of your printing and mailing under one roof
  • Optimizing your mailing lists by limiting them to your best target audiences
  • Ensuring you’re running NCOA on your list multiple times per year to correct or remove bad addresses
  • Considering comingling or drop ship entry for deeper postal discounts

The bottom line is that it’s a good time to review your mailing strategy and ensure you’re not only getting the best rate for your direct mail, but also taking advantage of other cost savings opportunities for your marketing program.

As a USPS Full-Service Mail Service Provider, Hatteras can answer any questions you have about the new postal rates, and help you navigate USPS guidelines to make sure your direct mail program is set up as efficiently as possible.   

Contact your Hatteras sales representative, or email us today.