Dropping Postal Rates: Changes to Take Effect on April 10, 2016

It was recently announced that postage rates will drop as of April 10, 2016. The drop in rates are a result of the United States Postal Service (USPS) collecting surcharge revenue totaling $4.6 billion. You may recall from one of my previous blog posts that the USPS was required by the Postal Regulatory Commission (PRC) that once surcharges of $4.6 billion were reached, the 4.3 percent exigent surcharge was required to be reversed—the roll back in prices are a result of this taking place. The temporary exigent rate surcharge had been in effect since 2014 in an effort to try to help the USPS recoup losses it had experienced over several years during the recession. Click here to read the full announcement regarding the new rates.

Several rates going into effect impact businesses and organizations with large mail volumes, which could mean a significant savings in postal costs come April 10. Key rates to be aware of include the following:

Mail Type Current Rate New Rate to
Begin April 10, 2016
1 Ounce First-Class Letter (Forever Stamp) $0.49 $0.47
Certified Mail $3.45 $3.30
Return Receipt $2.80 $2.70
1 Ounce Certified Mail with Return Receipt $6.74 $6.47
2 Ounce Certified Mail with Return Receipt $6.95 $6.68

While the USPS is worried the price drops could result in a worsening of its financial situation, they are hopeful that the lower rates will encourage mailers, especially those with large mail volumes to increase their mailing patterns as it will be more affordable to send extra mail come April 10. Overall, First-Class commingled letters represent a price reduction of 4.1% and Standard Class commingled letters represent a price reduction of 3.2%. A complete listing of all new rates can be found on the USPS website.

At this point, little is known regarding what the future holds for mail rates, but several upcoming events, including the National Postal Forum taking place March 20-23 in Nashville, as well as the Mailers Roundtable being held at MAILCOM ’16 in Philadelphia on April 12 as will shine light into these new rates and how long mailers can expect to enjoy the lower rates.

Venture Solutions offers several resources to help businesses and organization stay current on industry trends, including those in the postal industry. We invite you to participate in the following to learn more about this latest announcement and to be up-to-date about future announcements:

  • Webinar – Participate in a free one-hour webinar on Thursday, March 3 at 1:00 p.m. CST to learn about USPS updates, trends and strategies. I will be co-presenting this webinar with Jeffrey Olson, manager of business alliances for the USPS. Attendees will receive a $10 Amazon gift card.
  • Blog – Become a subscriber to our blog by visiting the homepage and entering in your email address. Once you’ve subscribed, you’ll receive an email when a new blog appears, so you can be sure you’re receiving the latest news relating to the postal industry as well as other industry topics. For the month of March, new followers will be entered in a drawing to win a $25 Amazon gift card.

About the author

Postal Compliance Officer

Diane has 40 years of experience in the areas of print and mail including production, commingling and postal compliance. As postal compliance officer, Diane ensures postal compliance for Venture Solutions and works to achieve optimal postal benefits for Venture’s current and new clients. Prior to joining Venture Solutions in 2003, Diane was serving as the production manager with IC System, which was acquired by Venture in 2003.