Postage Changes 2022: Reduce Postage Costs with Postal Mailing Optimization Tips

Additionally, in April 2022, there will be an additional $1.50 fee for packages larger than one cubic foot or with a box length greater than 22 inches. If packages must be hand-sorted if dimensions exceed sortation requirements, rate adjustments will be $4 or $15, depending on size.

Priority Mail Express Flat Rate

All package types in this category will see new pricing. Flat-rate envelopes go from $22.75 to $23.50. Legal flat rate envelopes will now be $23.75, up from $22.95. Padded flat rate envelopes are $23.95 from $23.25.

Priority Mail

The average increase for Priority Mail over the nine zones is 2.7%. Zone 8 has the smallest increase of only $0.88. Those in Zone 9 (U.S. territories) had the largest increase at 15%. There are some decreases as well for Zones 5-8 for packages over 8 lbs. Zones 1-8 will also be less for packages 11 to 24 lbs.

The same April 2022 fees for Priority Express Mail apply to this category, as well.

Priority Mail Flat Rate

There are both increases and decreases in this category for 2021. Increases range from $0.35 to $0.50. While the largest boxes will be $0.10 less.

First Class Package Service

Across the zones and weights, the increase overall is 7.5% for First Class Package Service. The postage changes range from $0.37 to $0.30.

2022 First Class Mail Letter Rates Have No Increase (So Far)

The new postage rates do not impact First Class Mail letters, large envelopes, or postcards. However, there is a rate increase scheduled for July 2022.

Postage Increases: New Schedules

In July 2022, USPS will have scheduled First Class Mail postage increases twice yearly in January and July.

The July 2022 rate authority will include 10 months of CPI (consumer price index) plus retirement, density, and non-compensatory class authorities.

The scheduled January rate changes will include six months of CPI and any unused rate authority. The July rates, beginning in 2023, will consist of six months of CPI plus the retirement, density, and non-compensatory class authorities and any remaining unused rate authority.

Why the Postage Changes?

Per their announcement, these new rates and future changes represent USPS’s 10-year plan “Delivering for America” to achieve financial sustainability and service excellence.

What’s the Impact on Your Business?

The effect of these rate changes varies for each business, depending on the volume and type of mailings you do through USPS. In most cases, the bulk of transactional mail, which has highly compliant, secure, and personal information, is First Class Mail.

Things will stay the same for now, but rate hikes are coming. You may currently have processes in place to reduce postage costs, such as address hygiene, presorting discounts, or the use of Intelligent Mail® barcode (IMb). Those are good practices but often hard to manage and maintain unless you have dedicated equipment and labor for your print and mail operations.

The best ways to reduce postage expenses are commingling to group like mail and having an extremely high volume. If your company administers print and mail with an in-plant, you likely won’t be able to capitalize on these. In fact, you might see volume decreasing due to customers requesting digital-only correspondence or other reasons.

So, how can you save money on postage? Outsourcing to a transactional printer like PCI Group. What we pay for postage is substantially less because of both our processes and volume.

The reality is that it will get more and more expensive to operate an in-plant. It’s not just postage that will eat your budget. Paper costs are rising. Equipment needs to stay up to date, and operating expenses will increase.

You can see a dramatic change in the dollars you spend on print and mail by moving to an outsourcing model. With our advanced technology, you’ll also enjoy enhanced accuracy, quality, and compliance.

See how outsourcing can address the cost issues with mailings today.