Last month, the United States Postal Service (USPS) announced a price increase, that will be implemented on January 21, 2018.
The new price schedule includes increases to competitive products, market dominant products, and letter mail. Kurt Ruppel, Director of Postal Policy and Marketing Communications at IWCO Direct, does a great job of breaking down the increases per category. Click the link for the article, or see the highlights here.
Impact on Competitive Products
Competitive postal products include expedited services like Priority Mail, parcel shipping services, and international mail options such as International Priority Airmail (IPA) and International Surface Air Lift (ISAL). These products will generally see a 3.9% price increase, with the Postal Service’s bulk ground shipping products Parcel Select (4.9%) and Parcel Select Lightweight (7%) seeing the highest increases.
2018 Postage Rates for Market Dominant Products
Market dominant postal products include First-Class Mail, USPS Marketing Mail (formerly known as Standard Mail), as well as Periodicals, and are the rates most often used by marketers. Increases in these rates are controlled by an inflation-based price cap applied at the class level. This means that although the average increase for both Marketing Mail and First-Class Mail is about 1.9%, individual rate cells within each class can see changes that vary from the average as long as the result is within the rate cap when they are combined with all other mail in that class.
Looking More Closely at Letter Mail
First-Class Mail commercial letter rates are increasing about 1.25%, while single-piece rates are up a little over 2%. The number that will be in the news is that a Forever Stamp will now cost 50¢.
The Mailing Services price changes include:
The domestic Priority Mail Flat Rate Retail price changes are: