Postal Increases Take Effect July 2023

Another postal rate increase is set to take effect July 9th, 2023, the third increase in twelve months. This is an unprecedented number of increases in such a short period of time and will impact our industry. Unfortunately, additional rate hikes such as the one in July are planned for the upcoming months.


What to Do – Short Term?

Talk to your entire marketing team and determine what consequences this rate hike will have on your direct mail ROAS (Return On Ad Spend) as well as your MER (Marketing Efficiency Ratio). Is there an opportunity to scale another tested channel such as PPC? If you are considering cutting circulation, pages or changing format, don’t rely on an unproven channel to make up the difference such as TikTok or influencers. Mine your own data for what channels are working best, talk to the individual managers of said channels about where you can grow and where you have hit your saturation point.

Take advantage of the promos the USPS is offering in 2023.  The Tactile, Sensory, & Interactive Mailpiece Engagement Promotion and Emerging & Advanced Technology Promotion (now including Mobile Shopping) are generally easy to qualify for and offer 3%-5% savings on postage.  We can help!

Direct Mail Promotions & Incentives | USPS

Know that more changes are coming, if you did not have a plan in place for this rate hike, start thinking ahead for the next one. And the next one. And the one after that. The July increase will not be the last one. Research what others are doing, talk to connections in your industry, explore new paths forward. Start testing now while you anticipate the future. Consider a new format like a slim-jim, or differing page counts for buyers vs. prospects, postcards or folded flyers for additional contacts and incremental sales where catalog circulation has been decreased.  Any of these options should be tested depending on your overall strategy!


What to Do – Long Term?

There are things we can do to push back against rate hikes. Although the direct mail industry is small when compared to others, our voice can be heard if we band together and lend our support to one another. Join organizations that are tackling the problems of the USPS (United States Postal Service). At Lett Direct, we recommend involving yourself with both the ACMA and Keep US Posted.

Involvement is more than just signing up for a newsletter or sending a form letter to your representative. Not to say that isn’t helpful, it is! Every small action contributes to the greater goal. But if we want to make real progress, if we want to truly be both heard and have more control over rate hikes, we need to do more than the bare minimum.

The best thing is, a deeper involvement offers benefits outside of reaching a mutual goal. By engaging with the organizations mentioned above, you’ll meet people who have faced similar solutions and can perhaps offer you solutions. You’ll grow your network, learn from other brands, and expand your knowledge base all while working on the long-term goal of preserving the sustainability of direct mail.

Go ahead, click the links and start preparing for the next postal rate increase. At the same time, talk to your marketing managers, understand how this rate increase will impact your business and learn where there is opportunity within other channels if needed.