Recent changes by the USPS will affect your current postage fees. Please read the following information to learn when these changes will take place and what you can do to prepare your media plans for the coming year.
United States Postal Service Announces Closure of Exigent Rates
As recently stated by the United States Postal Service, the Exigent Rate Case will cease to be in effect on April 9, 2016, at the conclusion of the business day. Beginning April 10, 2016, al lmailings will see a 4.3% average decrease on postage expenses.
The exigent rate increase was put into effect on January 26th, 2014 to recoup $3.2 billion in lost revenue from the recent recession. The measure was set to end the following year in the middle of the summer, but the realization of a calculation error revealed that there was actually a $4.6 billion deficit. The new calculation established a new maximum recovery number, thus extending the exigent rate increase period. The recovery of this lost revenue was listed by the USPS in Docket No. R2013-11. By February 14th, 2016, the USPS was able to recoup approximately $4.3 billion of the total deficit. The USPS is aware that this will greatly impact current marketing plans as mailers will have an opportunity to pay lower postal fees. The postal service remains hopeful that the extra savings will be allocated to expanding marketing efforts via mail.
Current projections, in accordance with information from the Bureau of Labor Statistics, estimate virtually no significant increase for USPS postage rates, which also reduces the possibility for future increases. A MTAC meeting held on November, 2015 has confirmed current speculation by stating that current CPI projections will not call for increased rates.