The new year might start with an increase in US Postal Service (USPS) rates as the agency recently proposed a 6.5% increase in base pricing for first class mail and a 5.95% increase in business rates. The proposed rate increases are above the government-mandated inflation-based rate cap as measured by the Consumer Price Index—Urban Consumers (CPI—U). The US Postal Regulatory Commission (PRC) must first review the proposed increases before the new rates become effective.
The Direct Marketing Association, an advocate for data-driven marketers, is planning to object to the rate proposal through the PRC’s review process. The new rates could be avoided if the PRC rejects the current proposal as it did the last time the USPS proposed similar increases above the inflation-based rate cap. The rate increase is expected to generate approximately $2 billion in additional annual revenue for the USPS.
If implemented, effective January 26, 2014, the price of a single-piece first-class-mail letter includes the following changes:
- Single-piece first-class letters (1 oz.): a 3-cent increase from 46 cents to 49 cents
- Single-piece first-class letters, additional ounces: 1-cent increase to 21 cents
- Letters (1 oz.) to international destinations: $1.15
- Postcards: 1-cent increase to 34 cents
Please contact your Digital Dog Direct Customer Service Representative to learn more about the increased rates and to obtain a FREE Postal Rate Chart.