Postal Action Alert: USPS Files for a 2024 Mid-Year Price Increase
4/17/2024 Robert Lindsay
On Tuesday, April 9, 2024, the U.S. Postal Service (USPS) filed with the Postal Regulatory Commission (PRC) a “Market Dominant” price adjustment notice to become effective on July 14, 2024.
Per a ruling issued by the PRC on December 3, 2020, Postal Service mid-year pricing can include a combination of pricing authorities, which are CPI-U Change Authority, Unused Bank Authority, Non-Compensatory PRC Directed Authority, Density Adder Authority, and Retirement Adder Authority.
Together, these price increase authorities will result in an overall increase ranging from 7.755% to 9.754% within the Market Dominant product category. The table below illustrates each pricing authority component's proposed increase at the mail class level — and the percentage utilized.
The chart below provides a more detailed picture of the products within each major mail class. Products with percentages displayed in red exceed their respective class average. This filing also includes a preview of proposed calendar year 2025 promotional discounts.
These promotional discounts include the five following base promotions: “Integrated Technology,” “Tactile, Sensory, and Interactive,” “Continuous Contact,” “Reply Mail IMbA,” and “FCM Advertising.”
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Additional promotional discounts will be available by using “Informed Delivery” and “Sustainability” as 1% add-ons to a base promotion with the exception of “Reply Mail IMbA.” For more information on the proposed 2025 promotional discounts, please read RRD’s Postal Action Alert: USPS Proposed Promotions Summary.
A copy of the 109-page USPS filing notice can be found on the PRC website here.
The complete Postal Service price filing, with prices for all products, can be found on the PRC website under the Daily Listings section (R2024-2 for April 9, 2024).
The PRC will likely take between 30 to 45 days (approximately the week of June 13 or earlier) to review the filings and confirm whether the proposed price increases are consistent with applicable postal law. If approved by the PRC, the increases will take effect on Sunday, July 14, 2024, at midnight.
Additional highlights from the USPS filing by major class of mail include:
First-Class Mail:
- The one-ounce Single-Piece stamped letters price will increase by 5 cents to 73 cents
- Meter price (1 ounce) is increasing by 5 cents, from 64 cents to 69 cents
- Flats will increase by an above-average increase of 9.664% to cover attributable costs
- The Automation discount will increase from $0.003 to $0.005 per piece
- The Seamless discount will increase from $0.001 to $0.002 per piece
Marketing (Standard) Mail:
- New pricing structure for flat-sized qualifying mail above 4 ounces
- Unfavorable changes to drop-ship discounts for SCF and NDC entered letters and flats (4 oz.)
- Nonprofit flats will receive an above-average increase of 16.3%
- The automation discount will increase from $0.003 to $0.005 per piece
- The seamless discount will increase from $0.001 to $0.002 per piece
- New Catalog incentive (letters or flats or BPM) providing a discount of $0.001 per piece. For more information, please read RRD’s Postal Action Alert: New Catalog Proposed Incentive
Periodicals Mail:
- Both within-county and outside-county mail are subject to an additional 2% of PRC-directed rate authority due to their attributable cost exceeding revenue for the class
Package Services Mail:
- Media Mail and Library Mail will receive an above-average rate increase of 9.867 percent to cover attributable costs
2025 Mail Growth Incentives
Additionally, the USPS has filed to continue offering First-Class and Marketing Mail Growth Incentives for 2025 to encourage increased mail volumes. The incentives will offer a postage credit for incremental volumes over the previous fiscal year and will be structured by mail class and specific mail products. For more information, please read RRD’s Postal Action Alert: USPS Files for the 2025 Mail Volume Growth Incentive.
RRD Postal Affairs will continue to provide you with important updates as they become available. Additional information (i.e. price charts) including RRD’s unique postal calculators and tools will be updated and tested over the next several weeks. Please reach out to your RRD Account Representative to help you discover how this price increase will affect your business. For questions, please contact postal.affairs@rrd.com.