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05/07/2015

PRC Approves USPS 2015 Price Increase

Postal Action Alert Banner 2015

Today, the Postal Regulatory Commission (PRC) approved the latest prices and promotions proposed by the United States Postal Service (USPS) scheduled for implementation on May 31, 2015.   The Commission found that the proposed price increases along with classification changes are consistent with applicable law and regulations.

The full response can be found on the PRC website - http://www.prc.gov/docs/92/92217/Order%20No.%202472.pdf


In summary, the price changes that will go in to effect on May 31 include –

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First-Class – previously approved, pre-sorted letters and postcards will go up an average of 2.4%.

Standard Mail – a total of 134 price changes, the revised prices now generate a 1.937% average price increase.   New FSS rate structure.

Periodicals – revised prices are higher, but are lower than the current advertising per pound prices, a 1.966% average price increase.   New FSS rate structure.

2015 USPS Promotions –

    • Earned Value promotion started May 1, 2015 and will run through July 31, 2015
    • Advanced and Emerging Technology Promotion scheduled for June 1 to November 30, 2015
    • Color Transpromo promotion will start June 1 and continue until November 30, 2015
    • Mail Drives Mobile Engagement will be in effect from July 1, to December 31, 2015 

Still pending is the DC Court of Appeals decision regarding the exigent rate increase.   As it stands today, the exigent amount of 4.3% will be rolled back once the Postal Service achieves $3.2 billion in revenue associated with the exigent increase.    At the current collection rate, it is estimated to occur in the July - August 2015 time frame.

Please reach out to your RR Donnelley Account Representative to help you determine how this price increase will affect your business, as well as how best to take advantage of USPS promotions and workshare programs that may help to mitigate your postage increase in 2015.

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For additional information, or to discuss postal mailing strategies, please contact your

RR Donnelley account representative or find us on the web at www.rrdonnelley.com

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