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USPS News: Upcoming Postage Decrease

By The Marketing Team, Modern Postcard

The United States Postal Service (USPS) has announced that the price of a stamp for a 1oz letter will drop by approximately 2 cents, beginning April 10, 2016. Additionally, a range of postage decreases will affect other USPS mail products, depending on type, size and weight.

Quick Facts

  • The change will only affect market dominant products:
    • This includes letters, postcards and flats that mail First Class, Standard or Non-Profit
    • All postage within this category will decrease, but not all will decrease by 2 cents
  • Forever Stamps will also be worth 2 cents less
  • Competitive products, like Priority Mail and Parcels, will not be included in the decrease

Why It’s Happening
In 2013, the United States Postal Regulatory Commission* (PRC) approved a postage increase twice in one year due to difficulties the USPS was facing as a result of the recession. However, this approval came with a stipulation that limited the amount of revenue the USPS could receive as a result of these increases. They ended up massively exceeding the limit by 1.2 billion dollars, and due to this huge increase in revenue, they are now being forced by the government to reduce their postage costs for the time being.

How It Will Affect Our Customers
For current Modern Postcard clients, this is potentially great news that will allow for a bit more savings on direct mail campaigns that mail after April 10, 2016. With that said, Modern is happy to report that its current mailing services clients get the lowest possible postage rates, since every mailing order is analyzed to ensure maximum savings. So, while the USPS postage decrease will provide further discounts, the change will likely be slight for automated mailers. Overall, this change is a win-win for Modern Postcard clients, as every bit of savings can add up.

Next Steps
If you have a direct mail campaign in the works that is set to launch between now and April 10, your Direct Marketing Specialist has likely contacted you about this change. If we haven’t been in touch with you yet, please call or email your Direct Marketing Specialist immediately if you’re interested in delaying your mail date to take advantage of these savings. You may also call our main phone number: 800.959.8365.

*About The Postal Regulatory Commission
The Commission is an independent agency that has exercised regulatory oversight over the Postal Service since its creation by the Postal Reorganization Act of 1970, with expanded responsibilities under the Postal Accountability and Enhancement Act of 2006. The Commission is composed of five Commissioners, each of whom is appointed by the President, by and with the advice and consent of the Senate, for a term of six years. A Commissioner may continue to serve after the expiration of his or her term for up to one year or until a successor is confirmed. No more than three members of the Commission may be from one political party (www.prc.gov/about).

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