Distance-Based Pricing with the USPS is a Possibility
Marketers may see some changes in postage prices in the next year or two. Currently, marketing mail is shipped across the United States at a flat rate, but this may change under the Delivering for America overhaul with the USPS. While there are no concrete details yet, the USPS will soon begin to explore zone-based or distance-based pricing with marketing mail.
What will distance-based pricing entail?
The implementation of distance-based pricing with marketing mail will increase costs for mail that travel across postal zones. Essentially, zone-based pricing for marketing mail could operate the same way that parcel shipping is priced today.
When will the USPS decide to implement zone-based pricing?
As of now, there are no definitive dates set for implementing distance-based pricing. What we do know, however, is that the Postal Regulatory Commission (PRC) is expected to revisit the topic of zone-based pricing for marketing mail at the beginning of 2026. Their main objective is to ensure that the post office maintains efficiency and financial sustainability with pricing that accurately affects the transportation and labor costs associated with their services. If the PRC deems that distance-based pricing is the best course of action, marketers could see this policy implemented as soon as late 2026 or the year after.
Why is the USPS making changes?
The USPS is undergoing big changes through its 10-year plan called the Delivering for America initiative. This bold plan focuses on modernizing the USPS, improving efficiency, and customer service while increasing revenue where necessary to ensure financial viability. You can learn more about Delivering for America by clicking here.
The main objectives lined out in Delivering for America include:
- Avoid $160 billion in projected losses by developing a strategy to reach break-even status once the overhaul is complete
- Boost performance and service nationwide to residences and businesses by focusing on efficiency and implementing improved technology
- Make wise investments in modernizing vehicles, parcel sorting equipment, and IT systems to streamline services and delivery
How can marketers respond to USPS changes wisely?
Although changes to the USPS’ pricing can feel distressing to marketers, staying up to date with USPS changes and careful planning can help mitigate increased costs associated with postage prices.
There may also be solutions available to certain types of organizations and businesses, such as campaign automation. Pel Hughes offers Storefront, an online platform for managing marketing collateral. This user-friendly platform is ideal for organizations and businesses with franchise-style organizations or numerous business locations. Rather than centralizing the printing and mailing of corporate/organizational materials, individual branches, franchises, and locations can access pre-approved marketing materials and mail their campaigns locally or regional to avoid zone-based pricing.
Our team at Pel Hughes will keep a close eye on USPS changes so that we can help our clients adjust to new policies. Serving businesses and organizations nationwide, Pel Hughes offers direct mail, cross media marketing, campaign automation, database services, and graphic design. Give us a call at (504) 486-8646 to discuss your next project.
