Continuing with the pattern it’s established over the past few years, the United States Postal Service (USPS) has released new postage rates that will go into effect on January 21st, 2024.

This is the first rate change of 2024, following the most recent that was implemented in July 2023. As USPS continues to follow its now established annual rate change schedule, we can expect the next to occur in July.

The January 2024 changes will result in an increase of approximately 2% for First Class mail, which USPS has deemed necessary to offset inflation.

As we do whenever 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 January analysis, below are some highlights we find to be most pertinent:

● Metered Single-Piece letters increased 1.56% in January to $.64. The AADC rate and Mixed AADC for #10s and 6 x 9’s are increasing $.01 to $.547 and $.571, respectively.

● As we saw with the July 2023 changes in flats, the smaller the package, the larger the increase.

● While all packages will see an increase, the heavier the package, the higher the increase. Zone 1 prices are noted below.

● The Certificate of Mailing fee will increase to $0.58, up $0.01 from $0.57 in July 2023.

● Certified Mail costs will also go up, from $4.35 in July to $4.40 in January. Electronic Return Receipts will raise by $.12 to $2.32.

If you’re a MassPrinting client and have questions about the January 2024 postal rate changes and how they will impact your policyholder communications, feel free to contact us! We’re happy to discuss the changes with you in more detail.