Top 3 Ways to Respond to the Direct Mail Postage Rate Increase Coming in July

USPS postage rates are set to increase on July 10, 2022. This is a large increase. Our last postage rate increase was in August of 2021, which was also a historic rate increase. It’s not all bad news in that direct mail still is very effective and driving response, we just have to get more creative to save on postage. So, what do the new rates mean for you?

First Class Regular

• One ounce stamped letter size pieces will increase to $0.60 each
• One ounce metered letter size will increase to $0.57 each
• One ounce Flats size pieces remain the same at $1.20 each

First Class Presorted

• Mixed AADC letters will increase to $0.515 each
• Mixed AADC cards will increase to $0.372 each
• Mixed ADC Presorted flats will increase to $0.934 each

Standard Mail

• Mixed AADC Letters will increase to $0.349 each
• Mixed ADC Flats will increase to $0.854 each

Nonprofit Mail

• Mixed AADC Letters will increase to $0.207 each
• Mixed ADC Flats will increase to $0.648 each

The biggest takeaway from these rate changes is that presorted first class mail and flats are growing more and more expensive. Flats do have better ROI than letter size pieces even at increased postage though, so make sure you take that into consideration before you choose to no longer send flat size mail.

The Postal Service is offering 6 promotional discounts. Do you have a planned strategy to not only save money on postage but really stand out and increase your response rate? Check out the special programs with the USPS to save on your postage in 2022. There are a variety of programs to choose from, so you should be able to find at least one that is a good fit for you. If you want you can actually participate in all 6!

Direct mail postage rates are rising, but you can still get great results! Consumers like and respond to direct mail. There are many things you can do to keep your costs under control. Here are the top 3:

1. Make sure to clean your list of bad addresses, use a move update service like NCOA to make sure you have current addresses, and suppress deceased people.
2. Make sure to design with postal regulations in mind so that you don’t get stuck paying extra postage. Your mail service provider can check your design before you print.
3. You will also want to segment your list to select the right targets for your message. Sending the right offer to the right person is key to increasing your response rates.

Don’t let the postage rate increases scare you away from this important marketing channel. Direct mail has the highest ROI of all marketing channels when done correctly. On average the postage rates increased by less than a penny per piece so they are not going to drastically increase your overall direct mail budgets, but it is important to account for the additional postage funds. It’s time to get creative and send direct mail that is interesting as well as cost effective. Are you ready to get started?