USPS Files for 2021 Price Increase

Released October 14, 2020

On Thursday, October 9, 2020, the U.S. Postal Service filed with the Postal Regulatory Commission (PRC) a price adjustment notice, effective January 24, 2021, on "Market Dominant" products.

The Postal Service, per postal law, is not only allowed to use the changes in the Consumer Price Index for all urban consumers -- but in addition, include a combination of Unused Pricing authority from the 2020 price increase and the ability to reserve pricing authority for future years. Using a combination of all three strategies, the recommended average percentage price adjustment is 1.836% for First-Class Mail, 1.509% for Marketing Mail (aka Standard Mail), 1.456% for Periodicals Mail, 1.460% for Package Services Mail and 1.458% for Special Services. The chart below provides a more detailed picture of the products within each of the major mail classes. Products with percentages displayed in "red" exceed their respective class average. As was the case in 2020, the filing includes six promotional discounts in Calendar Year 2021, which include: Emerging & Advanced Technology; Earned Value Reply Mail; Personalized Color Transpromo; Tactile, Sensory and Interactive; Mobile Shopping; and Informed Delivery.

The PRC will likely take 30+ days (approximately November 9) to review the filings and confirm whether the proposed price increases are consistent with applicable postal law. If approved by the PRC, increases are scheduled to take effect on January 24, 2021.

Additional highlights from the USPS filing by major class of mail include:

First Class Mail

The one-ounce Single-Piece Stamped Letters price will remain at 55 cents.
Letter additional ounce increases from 15 to 20 cents.
Share Mail Letter and Share Mail Card rates will both decrease by 9 cents.

Marketing (Standard) Mail

PRC directed price increase above Class Average to Flats, Parcels and C/R mail.
DSCF discounts are lowered by 7.7%; DNDC discounts not changed.
High Density Letters increasing 5.4%.

Periodicals Mail

Most larger-circulation publications will pay 0.4% to 6% more in postage.
Nonprofit publications will increase by 0.8% to 1.2%.
Above-average increases for trays, sacks, pallets, and bundles
Increased incentive to prepare basic Carrier Route presorted mail.

Package Services Mail

Above average increases to the Media/Library Mail products.
BPM Flats will decrease by .001%.

Special Services

Most products are increasing within a range of 0 to 5%
Address Management Services are increasing by 6.5%.

USPS (Proposed) 2021 Avg. Price Increases

(revised 10/14/2020)

Class of Mail	Approved % Increase
First-Class Mail (Overall)	1.836
Single-Piece Letters/Postcards	1.370
Presort Letters/Postcards	2.163
Flats	1.260
International - Outbond Single-Piece	0.000
Inbound Letter Post	7.549
Marketing (Standard) Mail (Overall)	1.509
Letters	0.771
Flats	3.553
Parcels	16.791
High Density / Saturation Letters	2.373
High Density / Flats and Parcels	0.989
Carrier Route	3.529
Every Door Direct Mail	0.524
Periodicals Mail (Overall)	1.456
Outside County	1.469
Within County	1.202
Package Services (Overall)	1.460
BPM Flats	-0.001
BPM Parcels	0.000
Media and Library Mail	3.579
Alaska Bypass Service	1.429

RRD Postal Affairs will continue to provide you with important updates as they become available.

Additional information (i.e. price charts) including RRD unique postal calculators and tools will be updated and tested over the next several weeks. Please reach out to your RRD Account Representative to help you discover how this price increase will affect your business. For questions, please contact Postal.Affairs@rrd.com.

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