July 2024 USPS Postal Increase Announcement

On Tuesday April 9^th, the United States Postal Service formally filed their 2024 proposed postal rates to become effective July 14, 2024, after the Postal Regulatory Commission (PRC) approves the increase. The PRC’s approval is typically a formality, and the proposed rates are expected to be approved.

The July 2024 increase is significant across all classes of mail. The USPS is again increasing SCF pallet & 5-Digit scheme discounts that can be best attained by participation in cooperative mailing programs, increasing the IMB discount and offering a new “catalog incentive” to benefit direct mailers.

Please find below the impact for Marketing Mail and First-Class Mail.

Marketing Mail Letters

• 5 Digit/SCF for-profit rate will increase 7% – 8%
• 5 Digit/SCF non-profit rate will increase 4% – 6%
• Exact impact dependent on discount qualification

Marketing Mail Flats 4 ounces and under, postage is on a per piece basis

• For Profit impact (primary presort levels)
  • CR Basic/SCF increasing 8% – 10%
  • High Density/SCF increasing 9% – 10.5%
  • 5 Digit/SCF increasing 12% – 13%
• Non-Profit impact (primary presort levels)
  • CR Basic/SCF increasing 18% to 19%
  • High Density/SCF increasing 22% – 24%
  • 5 Digit/SCF increasing 23% to 24%
• Exact impact dependent on discount qualification
• Please see the appendix for details on postage pricing

Marketing Mail Flats over four ounces, postage has a fixed (per piece) & variable (per pound) component

• For Profit impact (primary presort levels)
  • CR/SCF 6 oz piece = 6% – 7% increase
  • CR/SCF 12-oz piece = 1% increase
  • HD/SCF 6 oz piece = 6% – 7% increase
  • HD/SCF 12-oz piece = 0.5% – 1.5% decrease
• Non-Profit impact (primary presort levels)
  • CR/SCF 6 oz piece = 18.5% – 20% increase
  • CR SCF 12-oz piece = 15% – 16% increase
  • HD/SCF 6 oz piece = 20% – 21% increase
  • HD/SCF 12-oz piece = 8% – 9% increase
• Exact impact dependent on discount qualification
• Please see the appendix for details on postage pricing
• Lighter books just over four ounces will see larger increases as opposed to heavier pieces approaching 16 ounces. Books over 12 ounces may see postage reductions after discounts are applied.
• Postage on pieces that are over four ounces are charged both a piece rate and a pound rate. The USPS has decided to change the pound portion of the postal rate calculation back to how it was done pre- July 2023 whereby the pound rate will be applied to each fraction of a pound that is mailed rather than having the pound rate applied to weight over four ounces (.25#).

First Class Mail

• A stamped 1-ounce letter will increase from $0.68/pc to $0.73/pc – 7.4% increase
• Postcards increase from $0.357/pc to $0.384/pc – 7.6% increase

Solutions to help mitigate postal increases

Postmaster General Louis DeJoy has stated that bi-annual postal increases are going to continue.

Whether letters or flats, it is essential to participate in a postage optimization program. Mailers have been shifting volume from flats to letters (such as slim-jims, self-mailers and envelope mailers), and there are best practices to deploy that drive response and optimize cost. Please contact us for solutions.

Additionally, please support industry associations such as Keep Us Posted (https://www.keepusposted.org/) and the ACMA (https://catalogmailers.org/) and lobby Congress for change.

Appendix

July proposed 2024 rates with and without discounts