![]() ![]() This puts the onus on rate payors which can backfire with a loss in overall mail volume. So basically, the USPS is raising rates in order to stem the financial losses that have been occurring for several years. Then they have mail delivery costs which they are mandated by congress to deliver 6 days a week and maintain all retail post offices even if they are losing money at them. The largest expense chunk falls into insurance, employee compensation and retirement which goes to arbitration with the unions for contracts where arbiters have been siding with the unions. ![]() Next, they ask why can’t the postal service reduce costs? Unfortunately, about 80% of their expenses are beyond their control. So, they approved an over the CPI cap rate increase. In November of 2020 the PRC found that the 2006 rate setting requirements were not meeting the USPS needs. First of all, why are the prices increasing so much? In 2016 the PRC started a mandated review of the 2006 postal reform rate setting. Many businesses that use the mail have questions about this price increase. The marketing budgets have already been set for 2021, so realistically this will mean businesses will mail less pieces to offset the postage increase until new budgets can be set. The main issue other than the price rates is the fact that the increase is happening before the end of the year. This is truly unprecedented since postal reform in 2006. These increases equal about the past five years of increases combined. tactile sensory and interactive engagement with a 4% discount.personalized color transpromo with a 3% discount.emerging and advanced technology with a 2% or 3%discount.earned value reply mail with a 2 cent discount.There are some savings to be had with the postal service announcement of the promotions for 2022, they are: For shippers using parcels the increase is 9.3%. Some of the steepest postage price increases are on flats and periodicals at a whopping 8.8%. The average price increases for marketing mail are: 6.5% for letters and 8.8% for flats. The additional ounce rate will remain at 20 cents. The non-machinable surcharge for letters will increase to 30 cents. The price for first class meter is increasing to 53 cents. They are increasing the first class stamp price from 55 cents to 58 cents. The USPS is trying to close the gap on losses they have incurred over several years. Finally non-compensatory which is a fixed 2% to be applied to cover postage rates that are not covering their costs. Then retirement since the USPS has an unpaid balance which was calculated at 1.062%. First, due to density loss, basically the number of pieces per mail box which was calculated at 4.5%. New pricing authority was granted to the Postal Service under three provisions of a PRC order issued last November. The overall average price increase is 6.8%. The request is for the rates to go into effect on August 29, 2021. On Friday the USPS filed with the Postal Rate Commission a very large postage rate increase. Today on Printing Impressions newsletter.Top 100 Print Buyers Forecasted for 2022.
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