The New Year is upon us, which means it's time to consider the new postage rates the United States Postal Service has set to go in effect January 26, 2020.
We highly recommend estimating the impact of these changes now. Even the smallest of fluctuation can generate significant variance in total communication spend year-over-year.
Awareness and proper analysis of the new changes will help you establish a more accurate budget and allow for ways to offset exposure or discover opportunities to save.
To help start the 2020 analysis, below are some highlights we find to be most pertinent to you:
· The AADC rate for letters, #10's, is going up by $0.007, from $0.412 in 2019 to $0.419 in 2020. Mixed AADC (MAADC) is also increasing, from $0.428 last year to $0.439 this year. Based on the information above, provided volume stays in-line with 2019, while total dollars spent on postage for Invoices and Notices to policyholders will go up.
· New Business Policies and large Renewals will be impacted by the following changes: 5-digit rates are going down for flats (9x12’s) weighing 2 ounces or less. Mail pieces weighing 1 ounce or less will recognize most of the savings, with the rate being down 11.5% vs prior year. Postage for flats weighing over 2 ounces goes up in 2020. The higher the weight, the more prominent the change versus last year.
· Parcel Select Ground charges for packages weighing between 1 lb. - 6 lbs. will go up, around $0.023 more per pound as compared to 2019. Carriers distributing bulk/large packages to their agents will be impacted by this change.
· While the charge of $0.50 for metered mail remains flat to last year, Certificate of Mailing fee will increase by $0.02, from $0.41 in 2019 to $0.43 in 2020.
· Certified Mail will cost more in 2020 than it did for the past 12 months, going up from $3.50 to $3.55 per piece. Also increasing are Return Receipt fees. Electronic copy will cost you $0.10 more than it did in 2019.
If you are a MassPrinting client and have questions about the 2020 postal rates change and how it impacts your business, feel free to contact us! We are happy to walk through the changes with you.