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USPS postal rate increases approved
The United States Postal Service's proposed rates were approved for adoption May 7, 2015. This decision by the Postal Regulatory Committee signals new prices are set to take effect at the end of the month.
According to Direct Marketing News, the previous two requests by USPS were rejected and the third request proving successful. As a result, the Standard Mail rates will increase 1.9 percent. The approval process this time around has been quite difficult than in years past, said the Postal Points newsletter. The difficulty was a result of USPS's two previous proposals lacking in important detail or accuracy.
More steps needed
By accepting the USPS proposal, Printing Impressions says PRC now directs the mailing agency to complete and file more methodologies relating to certain areas. For example, USPS must file a methodology to determine the costs of a "5-digit pallet presort Standard Mail Carrier route flats workshare discount."
Initial proposals
USPS first wanted to raise market dominant classes of mail rates at the beginning of 2015. Postal Points said that first filing wished to implement a consumer price index capped 1.9 percent increase beginning April 26. Then, Jan. 26 saw USPS submit a notice for changes to competitive product prices. According to Postal Points, PRC only approved rates for First-Class Mail and promotions, which signaled the early signs of concern.
USPS rushes for a fix
In early March, USPS was informed the filings for Standard Mail, Package Services and Periodicals were rejected due to the amount of errors and inconsistencies. USPS hoped to enact fixes so its April 26 implementation date would still stand. Yet, the hastily made fixes were still not good enough, as PRC rejected the proposals a second time.
Effects of new rates
These new proposals have effects in a few different areas. Though the price of a First Class stamp will remain at 49 cents, Ecommerce Bytes says the single-piece additional ounce for letters will see a one cent increase to 22 cents. Further, the price of postcards will increase to 35 cents. According to Post & Parcel, USPS estimates the price increases will result in $400 million in new revenue.
However, Eric Nash of stamp.com told Ecommerce Bytes the largest impact of the new rates will be to direct mailers sending out material in bulk. The price increases will reflect business attitudes of direct marketers because they do not want to spend money unwisely. This where a reliable mailing software comes into play, as it will help ensure marketing materials are being delivered to the proper address and reaching potential customers.
