What the Postal Rate Decreases Mean for Marketers, Business

Calling all Marketers, calling all mailers. The 4.3% surcharge for postal products and services is coming to an end, and postage rates will decrease on Sunday, April 10th, 2016.  This will be the first time that postal rates have decreased in nearly 100 years!

You are probably aware that last year the 4.3% postal surcharge was applied to postage because of uncertain financial conditions of the Postal Service. This increase enabled the Postal Service to operate and make up revenue as a result of a declining economic environment within the USPS due to the recession.

Congress had the option to keep the surcharge in place, but decided against it due to legal restrictions and a cap on postal inflation (and its correlation with the Federal Reserve’s evaluation of inflation rates). Though there are differing schools of thought from the Postmaster General and CEO Megan J. Brennan, who was quoted saying:  “The exigent surcharge granted to the Postal Service last year only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone. Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition.”

On the flip side, the postal decrease is good for Businesses & Marketers and will have a positive impact in stimulating the overall economy. This means a decrease in the cost of doing business in industries like healthcare and universities — which send hundreds of thousands of letters and direct mail per day, per month.

As Target Marketing recognizes, these rate decreases will add up in saving marketers money over time. For Fineline clients, this means increased audience, additional campaigns and re-purposed or upgraded budget for specialty orders. Fineline’s Director of Sales and Client Services, Beth Coleman Valdettaro is already working with clients on the strategy of how postal rate decreases can positively impact their businesses.

Below is the current mandated reduction for First Class Mail by item:

new pricing chart

Fineline is also equipping our clients and partners with a complimentary postal chart with these new rates. To get your office its own updated mail chart please visit our website to request your new postal pricing chart with decreased rates.

Thanks and happy mailing!

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