Postage Costs and Postage Rates

You knew it was coming, but now it’s official. After months of adjustments, the Postal Regulatory Commission officially approved rate adjustments for USPS that will take effect in just a few short weeks. Here’s what you need to know about the rise in postage:

Who approved the increase?

The Postal Regulatory Commission, “an independent Federal agency that provides transparency and accountability to the U.S. Postal Service’s operations,” is responsible for approving the proposal for adjusted rates for Standard Mail, Periodicals and Package Services.

When will the rates increase?

Several pricing elements were submitted to the Postal Regulatory Commission, however, some required revisions. The latest approval rounds up the list of pricing adjustments, and ensures the new rates will be implemented on Sunday, May 31 as expected.

How much more will postage cost?

On average, the postage rate will increase 1.96% per class. According to DM News, Standard Mail letters will see an increase of 1.8% for automation mail and 1.2% for walk-sequence carrier route, while First-Class Mail Automation Letters and Cards will increase roughly 2.4%.

The Postal Service also has four planned promotions for commercial mailers, which will take effect as planned. The length of the promotional period is still undetermined.

You can read the entire 133-page order for price adjustment here.

What This Means For You

An increase in postage rates doesn’t have to equate to paying more money for postage. Here are just a few reasons why partnering with KD Mailing & Fulfillment can help you cut costs.

Eliminate bad addresses from your mailing lists

Prior to sending out mailing lists, KD utilizes postal qualification software to weed out incorrect and unrecognizable addresses. That way, you won’t waste postage and printing on addresses that would otherwise wind up being undeliverable 

Benefit: Reduces overall mailing costs and saves money on postage.

Destination Entry Techniques

KD creates “Mail Plans” for each mailing that qualifies and utilizes destination entry and other techniques to uncover the best postage discounts. By partnering with trucking companies who specialize in delivering mail to National Distribution Centers (NDC) throughout the United States, KD Mailing & Fulfillment is able to receive a discounted rate from the post office. On average, KD you saves $34 in postage for every 1,000 pieces of qualified mail (not including service cost) and also decreases the time it would normally take to get your mail into its final destination.

Benefit: Saves money on bulk postage via a special program USPS offers to select mailing companies.

Intelligent Mail barcode (IMb)

The Intelligent Mail barcode is a USPS barcode that is printed on letters, packages, etc. The USPS offers select full-service IMb mailers special benefits such as postage discounts, address correction, streamlined mailing permits and mail tracing.

• Discounted Postage

KD Mailing is designated by the USPS as an full IMb-compliant mailer. In order to receive this status, we use special software and processing which improve sorting by helping the post office instantly distinguish the specific delivery point of the package or letter.

• Address Correction

OneCode ACS™ enables businesses to conduct automated record retrieval, address corrections, and more.

• Streamline Mailing Permits

KD Mailing participates in the Mail Anywhere program. This allows us to use one permit at all mailing locations. This is particularly important for periodical mailers, who will no longer be required to send postage checks to the entry point of their mail.

Mail Tracing

While IMb doesn’t include free automatic tracking, it does offer free automatic tracing, which allows you to identify the last USPS destination the item was scanned from.

Benefits: Special benefits make it easier to control mailing lists/campaigns and decrease unnecessary postage costs.

Although postage rates are increasing, partnering with a KD Mailing & Fulfillment will help you cut costs and save a significant amount on postage. To find out how KD can help you execute your direct mail or fulfillment needs for less, contact us today at 1-866-330-MAIL.