Since our recent Arandell postal update, there are several developments to share regarding the Postal Service and its ongoing postage rate increases.
The most notable among them include the USPS’s new authority, as approved by the Postal Regulatory Commission, to adjust pricing on market-dominant products twice per year through 2024. The majority of Arandell client mail fits under the market-dominant category, which includes First-Class Mail, Marketing Mail, Periodicals, special services and Package Services.
Rates for market-dominant products will remain where they are currently until July 10th of this year, where an increase is expected to take place. The American Catalog Mailers Association is forecasting “as much as a 8.75% increase for Marketing Mail flats and Carrier Route flats and 6.75% for Marketing Mail Letters. – however, we believe the accelerated rate of inflation will factor in even greater increases than the ACMA is anticipating.
Beyond 2022, it is expected the USPS will make full use of its authority by increasing rates twice-yearly in January and July. Through 2024, the following schedule for filing and implementing rate increases should be expected:
- April: USPS will file for market-dominant price change
- July: USPS will officially implement changes
- October: USPS will file for market-dominant price change again
- January of subsequent year: USPS will officially implement changes
To calculate these rates for January, the USPS will use six months of CPI authority. In July, increases will use the other six months as well as retirement and density adders to calculate new rates.
At Arandell, we recognize that these twice-yearly pricing adjustments can place additional strain on our clients’ marketing budgets. In order to mitigate the challenges these price increases pose, we are strongly suggesting that all clients and mailers who need to make adjustments to their quantities do so as soon as possible and notify us of these changes.
Scheduling will again be a challenge for most printers. At Arandell, we pride ourselves on our ability to develop creative solutions for clients when challenges such as postal rate increases, lack of paper, and scheduling issues arise that still accomplish or surpass their marketing objectives.
We will continue to provide guidance and additional updates as postal rates are finalized later this spring. For more information regarding additional Arandell postal updates, the paper market and other industry-related news, please stay tuned to our blog.