PMG continues to monitor the impending 6 to 8.5 percent postage rate increase and its impact on nonprofit mailers.
Steve Kearney, Executive Director of the Alliance of Nonprofit Mailers (of which PMG is a sponsor), reported last week that the rate increases are the most immediate and certain feature of the new USPS 10-year Strategic Plan. The USPS now plans to file the 2021 rate increase on May 28, with the new rates going into effect in late September, right as the peak mailing season begins.
Steve Kearney reports on three areas of hope related to the rate increase:
- The Alliance of Nonprofit Mailers‘ appeal in court has a good chance but will be decided after this year’s increase.
- Pressure from members of Congress might force the USPS to possibly delay rate increases as we are coming out of the pandemic. (See below on how you can help!)
- Three new Governors of the USPS should be confirmed by the Senate soon, and they could do a mid-course correction of the rate increase and the 10-year plan.
What We’re Doing to Mitigate the Impact
- PMG analyzes your mailing data to ensure the best possible postage rates for each campaign. Depending on the specific attributes of your mailing, we will recommend commingle, drop ship or a hybrid solution to maximize your savings.
- PMG is participating in the fight to stop these above-inflation rate increases by fully supporting the Alliance of Nonprofit Mailers’ relentless advocacy efforts. We also urge our nonprofit clients to contact their members of Congress directly to let them know how rate hikes will severely impact your ability to raise money and carry out your missions. For more information and to take action, visit nonprofitmailers.org.
- When the rate increase filing is disclosed on May 28, PMG will advise our clients on the specific postage increases for each type of mail, and how that impacts your mailing budgets.
Other Direct Mail Trends We’re Monitoring
Global Freight Issues: Shipping container shortages and port delays continue. No rollbacks on tariffs on China products are expected in the near future.
Paper Costs and Lead Times: Paper cost increases went into effect in March, and our suppliers are seeing additional price increases due to tight supply and wood pulp price hikes. Paper mill orders are full, which are increasing order lead times.
Mail Delivery: Marketing Mail delivery is slightly improving, yet still inconsistent. Postal logistics services like commingle and drop ship help keep your delivery times consistent and on schedule by skipping multiple facilities in the USPS system, getting your mail closer to its destination.
Your PMG Production Manager will advise you on how these trends may impact your campaign budgets and schedules.
Please contact us if you’d like more guidance on the postage rate increases or any other direct mail topics. We’re here to help!