The United States Postal Service (USPS) has released its new postage rates, effective January 22, 2023. Beginning this year, the USPS will be increasing postal rates twice per year in January and July.

These January 2023 changes have resulted in an increase of approximately 4.2% for First Class mail which was made to offset rising inflation.

We recommend that you analyze the impact of these changes on your policyholder communications now. The increases, especially in areas where significant, can have a big impact on your policyholder communication mailings spend year-over-year.

Being aware of these changes and applying a thorough analysis will help you more accurately estimate your budget, preventing potential issues later in the year. A timely analysis can also help you find ways to offset exposure or discover new savings opportunities.

To help you start your January 2023 analysis, below are some highlights we find to be most pertinent:

● Metered Single-Piece letters are increasing 5% in January to $.60. The AADC rate and Mixed AADC for #10s and 6 x 9’s is increasing $.016 to $.507 and $.531, respectively.

● Reviewing the changes in flats, the smaller the package, the larger the increase. There will most likely be an increase in the Presort Fees for flats which will be determined closer to January 22.

● For Parcel Select Ground charges, Zones 1 and 2 have been separated. If the package is local (Zone 1), there will be a decrease of 3.29% for packages weighing 1 pound or less. For Zones 2 through 9, packages weighing 1 pound or less the prices will stay the same.

● The Certificate of Mailing fee will increase to $0.54, from $0.50 in 2022.

● Certified Mail costs will also go up in January, from $4.00 in 2022 to $4.15 in 2023. Electronic Return Receipts will raise by $.10 to $2.10.

If you’re a MassPrinting client and have questions about the changes to the 2023 postal rates and how they impact your policyholder communications, feel free to contact us! We’re happy to walk through the changes with you.