USPS introduced a discussion draft postal reform bill calling for postal employee benefits and pension reform. If approved, we will see a 2.15% increase in postal rates for market-dominant products (a 1 cent increase for a First-Class stamp).
USPS also filed a request with the Postal Regulatory Commission for approval on a rate adjustment for First-Class Mail parcels as well as its 2017 Direct Mail Promotions.
If approved, we will see a $.02 increase in the price of First-Class Mail parcels, bringing the price from $2.60 to $2.62 effective August 28, 2016. The 2017 direct mail promotions will include one new promotion and five continuing promotions, the first of which will take effect January 1, 2017.
Direct Mail Starter Promotion, the only new promotion on the list, is intended to encourage small business mailers and non-profit organizations to use QR codes and other qualifying technology to drive consumers to their mobile-optimized websites. QR codes are barcodes that direct consumers to specific information when scanned by mobile phone. To scan a QR code, download a QR code reader app in iTunes or Google Play. Small and mid-sized businesses participating in the promotion will save 5 percent off of postage on eligible mailings, up to 10,000 pieces per mailer.
The other five direct mail promotions will remain the same, with updated durations and expanded eligibility:
- Emerging and Advanced Technology/Video in Print Promotion
- Tactile, Sensory and Interactive Mailpiece Engagement Promotion
- Earned Value Promotion (BRM/CRM)
- Personalized Color and Transpromo Promotion
- Mobile Shopping Promotion
This request was filed in May 2016 in an effort to give mailers the time they need to prepare for the promotions. Full details are available here.
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