Mailers react to USPS® ten-year plan
In 2021, the USPS announced a sweeping 10-year plan that includes higher rates and longer delivery times. More than half of respondents to a survey conducted in Q4 2021 expect these changes to impact their businesses.
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What does this mean for you? Click on a topic below to learn more…
You don’t have to go it alone.
6.8% mid-year rate increase for First-Class Mail®
Similar increases for some other classes
Extended delivery windows (up to 5 days) to ensure on-time performance
Realigned network facilities to improve the flow of mail and packages
USPS changes in 2021 included:
Big changes, with more to come
1. Big changes, with more to come
Rate increases are likely to be higher and more frequent than in the past.
Mailers will need an ongoing strategy to plan for budget changes, mitigate rising costs and adjust to new delivery standards.
January and July rate changes are expected starting in July 2022
January rate changes will be tied to inflation
July rate changes will be higher and include inflation plus increases tied to mail volume and employee retirement costs
Survey respondent profile:
Survey findings: What we learned
2. Survey findings: what we learned
Most are national mailers who send:
Consistent performance is the top priority:
33% of mailers reported being both aware of changes and concerned about the impact on their business.
Less than half were aware of USPS changes:
Pushback from customers
Concerned mailers are worried about:
3. CRITICAL issues
Extra effort may
be required to:
Mitigate or offset higher costs.
Adapt business processes to changing circumstances.
Educate consumers that it might take longer to receive payments.
Lower customer satisfaction
Impact on cash flow due to slower delivery
Need to increase remittance windows
Concerned mailers are adapting by:
4. Best practices
Small adjustments now can avoid big headaches later.
Smart mailers are taking a proactive approach to change.
Giving more mail to third-party providers to qualify for deeper discounts
Encouraging digital adoption to reduce print and postage costs
Accelerating print and mail production to induct mail sooner, reducing impact of longer delivery times
Adjusting mail frequency or volume to mitigate rising postage costs
Working with clients to adjust SLAs to manage their expectations
The USPS is focused on financial stability
Moving forward: learning to manage uncertainty
5. What’s next?
Mailers must be aware and vigilant.
Complexity is here to stay.
Expert help is here when you need it.
Future rate changes may
be more market driven
Mailers must be nimbler as rates rise and mail quantities fluctuate
Work with a partner that can help you navigate change
Talk to the mailing experts at Pitney Bowes >>>