Heaven on earth for mailers: postal price reduction

More great news for Mighty Mail.

Effective Sunday the 10th, the U.S. Postal Service lifted the 4.3% exigent surcharge that had been in force since January 2014.  Direct marketers everywhere can now do the happy dance knowing that good old direct mail will be costing less to get into consumer mailboxes.

First Class Mail stamp prices dropped two cents to 47 cents on Sunday, postcards declined by a penny to 34 cents, and international letters went down 5 cents to $1.15. A full listing of rollback pricing files for all mail classes can be found here:

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The emergency price increase was a backfill move designed to recoup $4.6 billion lost when the Great Recession hit. The original restoration lift was to have been last August, but the USPS filed a series of legal wrangles to keep the price jump in place.  Sunday’s boomerang is bad news for them (the USPS is still in precarious financial straits), but great news for marketers of all types who rely on the heavy lifting of direct mail.

Especially grateful for the return to yesteryear’s prices are nonprofit marketers, who are heaving a collective sigh of relief that the long dark night is over.  According to DMNews, some are already using the more budget-friendly mailing environment to increase their mailings and increase contributions according to Stephen Kearney, executive director of the Alliance of Nonprofit Mailers. “In the coming days and weeks, the Postal Service has the opportunity to employ a successful business strategy of building the business with a general price reduction,” Kearney said.

Undoubtedly clients in the health care, insurance, and financial sectors have likewise planned how to leverage the news.

So what will you do now that postal costs are back down? Stash the cash, or increase your reach and frequency?

Direct Choice Inc. is a full-service direct marketing agency that has worked with national and regional brands in a wide variety of vertical markets. In addition to this blog, you can also find us on Facebook, Twitter, and LinkedIn

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