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How to Reduce the Impact of Higher Postage Rates

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When we think of USPS, we tend to associate the postal service with efficiency at affordable rates. However, USPS has announced that the Postal Regulatory Commission (PRC) has approved to increase its rates with an average of 6.9% effective on August 29, 2021, impacting First Class, Marketing Mail, and Bound Printed Matter. As we are approaching the holiday season, it is no surprise that the upcoming months will be the busiest time of the year for our postal services. However, many businesses are starting to operate in full-swing and will need to rely on postal services to function effectively. What can businesses do to reduce the impact of higher postage rates? In this article, we will discuss six effective strategies.

Adjust Mailing Schedule

As we are wrap up the year, the last few months will be jam-packed with holidays. In a few weeks, we will be celebrating Labor Day and while we celebrate with family and friends, postage rates will be at a new and more expensive price. Instead of shipping out mail and packages during Labor Day weekend, try to adjust your mailing schedule and send them a few days or a week before instead. As postal services such as USPS do not operate during holidays like Labor Day, early mailing will ensure that your customers still receive their packages and letters while also saving you a few hundred dollars.

Start Using Metered Mail

In order to combat higher postage rates, try using metered mail instead of expensive retail stamps. When using metered mail, small and large businesses can easily improve their mailing process and mailing accuracy as a postage meter will quickly print mailing denominations. This option allows businesses to address their bulk mail more quickly compared to retail stamps.

Consider Digital Options

If there are customers that prefer to switch to digital mail, this option will reduce the impact of higher postage and save you a couple bucks. Going paperless saves your employees time because they won’t have to print, scan, fax, or post documents. In addition to this, going paperless will obviously reduce the money spent on paper, printer ink, and printer maintenance.

Utilize Presort Options

When it comes to making huge savings on shipping, presort mailing is a useful tool, especially for bulky shipments. A presort mailing option is more affordable because you will be doing some of the work yourself. This option requires you to group your mail according to the receiver’s zip code, neighborhood, state, or region. If you are not able to presort yourself, consider presort services from USPS or other partners with the lowest rates.

Update Your Database

An inaccurate database will lead to unnecessary postage purchases. Every year, many Americans change addresses, so it is wise to keep your database and mailing lists updated. If you do not have the resources to continuously update your database, consider using the address list correct service provided by USPS.

Target Marketing

While we head towards a more digital society, direct mail marketing continues to play an important role in marketing strategies. Utilize database marketing to learn about known interests and past buying history to reduce the costs of postage rates for customers that you know will not work with you and your business.

In the past decade, postage rates have continuously risen. As we transition to a more digital society, it is easier than ever to save on postage rates. However, there will always be customers that prefer to receive their mail through traditional carrier options. If that is the case, try these tips out to reduce the impact of higher postage rates on your business.


Posted In: Customer Service, Money

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