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2018 USPS Rate Increase: How It Affects Marketing Mail

February 15, 2018 | Kopytek

2018 USPS Rate Increase: How It Affects Marketing Mail

Earlier this month, the United States Post Office (USPS) increased mail and shipping rates in their various categories. The obvious question for those who rely on the USPS for their marketing needs is…”How will this USPS rate increase affect my direct mail efforts?”

The Post Office is Not Alone

One of the first solutions is to try and find another direct mail service to ship printed products. However, FedEx and UPS both announced an increase in their average shipping rate of 4.9%. While these businesses have more flexible “drop off” hours than the post office, the amount of their average shipping rate increase makes the USPS the better cost-saving choice.
The changes in mail category rates for the post office include such categories as First Class Mail Retail, Marketing Mail (Standard Mail) and Periodicals. The USPS is attempting to make up for financial losses that came about due to customers using email marketing, blogs and electronic newsletters to directly spread their marketing message. Last year, the post office reported a net loss of $2.1 billion for the fiscal third quarter which was a net loss increase of $573 million compared to the same quarter the previous year.

What Does This Mean for Direct Mail Services?

While some of the price increases are minimal, every dollar counts so publishers of marketing mail need to examine the potential impact on their bottom line. Periodicals have a 1.84% increase for domestic pieces as well as a 1.93% increase for international pieces. This could mean up to a 1.9% increase in total postage for large circulation publications.
A recent Print Media Center article reported that 66% of people, in a recent survey, remarked that “screen fatigue” can drive them to “switch off” and enjoy magazines and printed books. In other words, print materials, and direct mail, are here to stay.

Kopytek is here to help you navigate the changes in your mailing rates. The changes in price rates will cause many businesses to review their current direct mail practices and plan strategy changes for the future. We offer a variety of marketing printing services ranging from digital offset printing to custom mailing and shipping services that get your marketing message into the hands of customers. Call us to get your price quote or to simply find out more about what we can do to help with your direct mail efforts.

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