2020 Postal Rate Increase and What it Means for Catalogers

The United States Postal Service (USPS) recently filed its new pricing for the 2020 postal rate increase among its various mail class products with an average price increase of 1.9% across the board. Pending review by the Postal Regulatory Commission (PRC), the new prices will begin on January 26, 2020.

Here are the proposed pricing details for all Marketing Mail pieces:

Product – Pct. Increase
Letters – 1.961%
Flats – 3.908%
Parcels – 3.913%
High Density / Saturation Letters – 1.408%
HD / Saturation Flats & Parcels – 0.868%
Carrier Route – 1.136%
Every Door Direct Mail – Retail – 2.139%

“While we were not surprised by the proposed increases due to the current CPI, we also understand the impact postage has on our clients and on our industry as a whole,” said Arandell’s Senior Vice President of Supply Chain & Logistics Rick Kropski of the increased rates. “This will continue to reinforce the need for potential cost-saving initiatives such as USPS Postal Promotions, list hygiene and co-services.”

The USPS is anxiously looking forward to the adoption of new postal rate changing rules identified in the Ten-Year Rate System Assessment by the PRC and USPS. This initiative will support the statutory pricing goals laid out by the PRC that may happen by mid-2020.

So what does the 2020 postal rate increase mean for catalogers and other direct mailers?

The good news is that while a postage pricing increase is a disappointment for all involved, carrier route mail did not see as dramatic of an increase as other mail classes. We believe this will open up additional opportunities to get involved in a postage cost-savings plan.

For catalogers, one of the best ways to achieve this carrier route pricing tier is through co-mailing – which is the process of combining and sorting multiple different titles into a single mail stream it enters into the postal facilities.

Oftentimes, catalogers save a significant amount of money by co-mailing with other titles. It’s also something that is easily quantifiable and can be broken down into exact dollar savings. Here at Arandell, we offer in-house co-mail services, so our catalog clients are able to save on the cost of distribution/logistics compared to utilizing an outside vendor.
https://arandell.com/news-events/2020-postal-rate-increase-what-it-means-for-catalogers/

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