What You Need to Know About Postage Rates in 2020

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If you are using direct mail marketing to reach your leads and connect with customers, then it’s important to familiarize yourself with current postage rates to better budget for direct mail costs throughout the year. While postage rates in the US haven’t increased as much this year as they have in previous years, they could still have a significant impact on your marketing mail.

The new postage rates USPS announced at the end of last year will be in effect starting January 26, 2020. Here’s what you need to know about postage rates in 2020 and how they might impact your direct mail costs.

Overview of Postage Rates 2020

In October 2019, USPS announced proposed postage rates for 2020, which were then approved by the Governors of the Postal Service to take effect this January. While the price of a single stamp remains at 55 cents and a book at $11.00, postage rates in the US have increased in other aspects. Mailing service product prices have increased by about 1.9 percent. Domestic letter, postcard, and 1 oz. flat rates have stayed the same as last year, but international postage rates have increased with an outbound international letter now costing $1.20 (as compared to its 2019 price of $1.15).

Shipping service prices vary based on the product, but there is an increase in these rates as well. On average, Priority Mail Express increased by 3.5 percent and Priority Mail has increased by 4.1 percent. Here are the new prices for the flat-rate packaging:

  • Small flat-rate box – $8.30
  • Medium flat-rate – $15.05
  • Large flat-rate box – $21.10 
  • Regular flat-rate envelopes – $7.75
  • Legal flat-rate envelopes – $8.05 
  • Padded flat-rate envelopes – $8.40

Postage Rates 2020: A Closer Look at Impacts to Marketing Mail

Here are a few things you need to know about how increased postage rates in 2020 may impact marketing mail:

No Increase for Metered Mail

Just as the stamp has seen no increase in 2020, neither has metered mail. A single-piece metered is 50 cents in 2020, just as it was in 2019. Given that these prices have not increased, it’s a great time for businesses that are not currently using metered mail to make the switch. By taking advantage of these affordable metered mail rates, businesses can lower overall costs for direct mail marketing materials.

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Small Increase for Presorted Mail

Presorted mail postage rates are experiencing only a slight increase in 2020. Presorted letters are 46 cents, and these prices remain the same up to 3.5 ounces. The presorted flat is 81 cents for the first ounce, which increased from 79.9 cents in 2019. The postage rates for a presorted flat for each additional ounce is 20 cents, which actually decreased from 21 cents in 2019.

Lower Costs with Better Sorting

Presorting your mail can result in lower postage rates for marketing mail. Since you are doing some work to presort the direct mail, USPS offers cost savings through commercial postage prices. Presorting mail requires you to sort mailers and group together by zip code and sort into general areas. All leftover pieces are combined. This is a great way to lower costs for mailing marketing materials.

Takeaways

  • The first-class stamp price is staying the same in 2020 at 55 cents.
  • Metered mail rates have not increased in 2020.
  • Presorted mail rates are experiencing only a small increase.
  • Possible increases for marketing mail costs will depend on presorting efforts.

Reduce Postage Costs and Delivery Times with Commingling

If you are looking for a way to reduce direct marketing campaign costs in 2020 despite the increased postal rates, commingling benefits your business in a number of ways. Not only can you take advantage of bulk mail discounts, but you are better able to predict postage rates and benefit from consistent delivery dates.

Want to learn more about how commingling works? We are happy to answer any questions that you have and show you how to use this powerful tool to significantly decrease your direct mail marketing costs. Give us a call to learn more: (973) 305-1500 or visit our website