USPS Price Hike Alert: How Mail & Parcel Businesses can Mitigate Impact

The U.S. Postal Service (USPS) is raising prices again, marking the second increase of 2024. This comes after an earlier adjustment in January.

The new rates, scheduled to take effect on July 14th, 2024, will see a bump in the price of a Forever stamp from 68 cents to 73 cents – a 5-cent increase. This translates to roughly a 7.8% rise in mailing service product prices overall.

The USPS is raising prices again, impacting your bottom line. Here’s what you need to know:

  • First-Class Mail: Expect a 7.8% overall increase, including a bump in Forever stamp prices from 68 cents to 73 cents.
  • Parcel Select: The proposed 25% increase is still under review, but a decision is expected soon. Factor this potential change into your planning.
  • Shipping Services: Pricing adjustments will vary by product, potentially impacting Priority Mail and Priority Mail Express.
  • Additional ounce price: Increases from 24 cents to 28 cents for single-piece letters.
  • Special Services: Price adjustments include Certified Mail and money orders. Certified Mail fees will increase an additional 50 cents per piece, while Return Receipt will increase by 55 cents (hard copy).
  • There will be no price increase for Post Office Box rental fees.
  • The USPS will offer a 10% discount on postal insurance when mailing an item.

Why the Price Hike?

The USPS cites financial goals outlined in their 10-year plan, “Delivering for America,” as the reason behind the price hikes. The plan highlights the need to address chronic underinvestment and ensure the long-term sustainability of the Postal Service.

What You Can Do

Strategies to Mitigate Impact:

  • Optimize Shipping Mix: Analyze your mail volume and explore strategic allocation across different USPS service levels based on new price structures.
  • Negotiate Commercial Rates: Leverage high-volume discounts through negotiated service agreements with USPS for cost savings. Not enough volume? Partner with a service provider, like us, to access the merchant rate card pricing.
  • Embrace New Technologies: Utilize online postage meters and advanced mailing software to streamline operations and potentially identify cost-effective shipping solutions. Need a recommendation? Check out ConfirmDelivery to get started.
  • Communicate Proactively: Inform your clients about potential price adjustments for their mailing needs and explore collaborative solutions to minimize their impact.

We’re Here to Help!

Here at Engineering Innovation, we understand the challenges you face as a logistics and mail professional.  The upcoming USPS price hike can disrupt your operations, but we’re here to help you navigate these changes and maintain efficiency.  Contact us today to discuss your specific needs and explore how our services can optimize your shipping processes and minimize the impact of rising costs.

For a complete breakdown of the new pricing structure, you can visit the USPS website for more information.

By proactively planning and adapting your mail processing strategies, you can navigate the upcoming price changes and maintain efficient operations for you and your clients.