2016 Postal Rates and Promotions: A Look at What’s to Come
The United States Postal Service (USPS) recently announced there will be no general price increase for letter and flat mail in 2016. An article was recently released by The NonProfitTimes highlighting this recent decision and forecasting what might come in the New Year. To read the full article, click here. The USPS is held to a Consumer Price Index (CPI) cap of less than one percent on its mailing services. Since, the CPI is so small, I suspect the USPS was generous as any increase allowed would be insignificant. The article did reference a “revenue neutral” rate, which still could cause some pricing adjustments in 2016, but these increases or decreases will most likely balance themselves out.
While rates will not increase for letter and flat mail, package rates will increase in the New Year. The price change for packages will be implemented on January 17, 2016. The average price change is 9.5 percent, but some categories are seeing higher percentage increases.
Another change that will come in the New Year is around April 2016, the 4.3 percent exigent surcharge is expected to be rolled back, as the target revenue should be reached per the July 29 ruling by the Postal Regulatory Commission (PRC). You may recall from some of my blog posts earlier this year, a temporary exigent rate surcharge was placed in effect so the USPS could recoup losses and it’s expected that they will have reached their revenue goals by spring of 2016. We will learn more about what this rollback could potentially mean for rates as the next couple of months unfold.
In addition to this recent rate announcement, the USPS also recently released the proposed *2016 Promotion Calendar as shown here:
The goal of these promotions is to provide mailers incentives to enhance the value of their mail. The recommendation for the 2016 promotions was submitted November 16, so they will most likely be finalized by the end of 2015 or in early 2016.
These promotions are a good reminder, that as we look ahead to the New Year, now’s the time to speak with your current or future mail partner to find ways to optimize your programs in 2016. Remember to speak with a company that can not only take your mail program to the next level, but one who also has the expertise in understanding the many postal regulations.
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*Update: On December 10, the Postal Regulatory Commission approved the five proposed USPS Mailing Promotions as shown in the image above. More information about the promotions can be found by clicking here.