On January 26, 2020 postage prices are going up, and for J&Q direct mail clients we estimate a $.005 increase per package which is less than the 2019 rate increase. In October the U.S. Postal Service filed a postal rate adjustment with the Postal Regulatory commission (PRC). Postage will increase an average of 1.9% for both First-Class and Marketing Mail (previously Standard Class).
As of December 12, the PRC approved the price changes for all products so the price adjustment will definitely be taking place on January 26.
After an increase of 5 cents in 2019, the First-Class Forever stamp will remain the same at 55 cents. The cost of postcard stamps is also not changing and will continue to be 35 cents.
Even though it’s tough for mailers to continually add to their postage budgets each year, the Marketing Mail change is less than the average 2.5% increase experienced in 2019. Carrier route increases are also less than automation rates, which lessens the impact of the changes for high volume mailers.
Here are some of the key changes:
- For most of our direct mail clients, the increase will be $.005 per piece.
- The USPS had previously miscalculated the savings for drop shipped mailings, so SCF-entry and NDC-entry rates no longer provide as much of a discount – $.004 to $.006 for SCF Marketing Mail.
- Commercial First-Class and Marketing Mail both increase about 1.9%.
- Pricing for the First-Class Forever Stamp and Postcard remain the same.
New price rate charts are found here for all postal mail classes and services.
Experience the J&Q postage magic
For many of our new clients we have been able to offset postal increases by using our Hybrid Postal Optimization Solution in combination with producing their direct mail programs on color inkjet presses, which allow multiple versions to be combined in one print and postal processing run. We have provided mailers with significant postage savings compared to their previous service providers by optimizing the mail and using a combination of drop shipping and commingling to achieve the lowest postage and freight rates, while meeting in-home dates.
If you have questions or need more information on how the rate increase may affect your direct mail budgets, contact us at 847.588.4800 or email@example.com and ask for Sales.