The United States Postal Service (USPS) has released its new postage rates, effective July 9, 2023. This is the second rate change of 2023, following one that was implemented in January, and this year also marks the beginning of ongoing twice a year rate changes that will occur annually in January and July.
The July 2023 changes will result in an increase of approximately 5.4% for First Class mail, which USPS deemed necessary to offset inflation.
As we always do when there are postage rate changes, we suggest you perform an analysis to determine the impact they will have on your policyholder communications. The increases can have significant effects on your policyholder communication expenses, especially for programs reliant on physical mailings.
Being aware of the 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 midyear analysis, below are some highlights we find to be most pertinent:
Metered Single-Piece letters are increasing 4.76% in July to $.63. The AADC rate and Mixed AADC for #10s and 6 x 9’s are increasing $.03 to $.537 and $.561, respectively.
As we saw with the January changes in flats, the smaller the package, the larger the increase.
For Parcel Select Ground charges, Zones 1 and 2 have been separated after being bundled in January. All packages of any weight will see increases; the heavier the package, the higher the increase.
The Certificate of Mailing fee will increase to $0.57, up $0.03 from $0.54 in 2022.
Certified Mail costs will also go up, from $4.15 in January to $4.35 in July. Electronic Return Receipts will raise by $.10 to $2.20.
If you’re a MassPrinting client and have questions about the 2023 mid-year changes to the postal rates and how they impact your policyholder communications, feel free to contact us! We’re happy to discuss the changes with you in more detail.