The United States Postal Service (USPS) has informed the Postal Regulatory Commission (PRC) of upcoming pricing increases, which will go into effect on January 22, 2023. The price of a First-Class Mail Forever stamp has increased from 60 cents to 63 cents to account for these higher rates.
The Postal Service does not receive any budgetary appropriations from the federal government, so it relies on the sale of postage and postal bins to fund its daily operations.
The cost of transportation and fuel continues to have far-reaching effects. It is projected that these factors, along with others, will influence the cost of all forms of delivery for all consumables, including mail and in-home delivery.
Businesses that want to maximize their shipping operations in the face of increased fuel prices can find useful information in this article.
Yearly Postal Rate Increases
To account for rising prices and the ever-changing Consumer Price Index, annual postal hikes are par for the course. New postal prices are implemented every January after the approval of the Postal Regulatory Commission (PRC).
Price increases help the Postal Service generate the money necessary to achieve the long-term financial stability envisioned by its Delivering for America 10-year plan as operational costs grow. However, U.S. Postal Service rates continue to be among the lowest in the world.
The growing popularity of online shopping negatively impacts USPS since the postal service earns less money transporting packages than it does letters. Accordingly, USPS said it would increase prices again in 2023 to account for these shifting circumstances.
USPS needs to upgrade its fleet of delivery trucks, many of which are over 30 years old, powered by antiquated gasoline engines and lacking in modern safety features. As a matter of law, USPS must also be self-sufficient.
Is This Pending Increase Intended as a Motivator?
Because of these price hikes, smart marketers will boost their spending plans for future campaigns. To prepare for these price hikes, companies may implement various new and cutting-edge methods. For example, companies may provide postage optimization services, including a hybrid option that combines postage consolidation and commingling.
Companies must understand the significance of USPS’s increased investment in technology and the subsequent requirement for cutting-edge modernization in the direct mail sector.
Money-saving Opportunities Closer to Home
There are methods companies can implement to save money in the face of rising postal prices, such as implementing efficiency improvements, deploying warehouse satellites, and using reusable postal bins.
To keep prices down, you should review the information you already have. Trying to keep up with NCOA and CASS to maintain accurate records can help you save time and effort. Furthermore, segmentation merits a second look as a means to both save costs and create growth potential. Determine, using the RFM criteria, which consumers should get more mail from you. They are the most recent buyers, the most regular buyers, and the biggest spenders, all of whom are your top clients.
Email is becoming a medium that can integrate with other mediums in unique ways. Taking advantage of USPS’s discount promotions is a great method to maintain the relevance and vitality of your mail. The Postal Service included its suite of mailing programs for 2023 in its pricing submission. Six different discounts will be available again, four of which are repeats from the current year plus two new offers. All of these discounts allow for considerable reductions in postal fees.
Mailers must be resourceful and aggressive to cover the expenses of direct mail campaigns. Commingling and co-palletizing are two USPS-approved pre-shipment processes that may save costs.
How Your Company Can Save Money Using Corrugated Plastic Mail Totes
Plastic totes may be reused indefinitely, while cardboard boxes break down after a few moves. The plastic used in these containers is of the highest grade and will not break or crack easily. These totes are sturdy enough to be used repeatedly without risking your goods’ safety. Since plastic totes can usually be reused over and over again, you can reduce the frequency with which you purchase new containers.
The corrugated sides and surfaces of many totes make it so they can’t be shifted once they’re in place. Unlike cardboard boxes, which may easily slide out of position, your totes won’t topple over and crush each other.
Stackable containers are ideal for optimizing storage space in a warehouse. They provide a great method for storing your goods out of the way while not taking up too much space. You may stack boxes without worrying about destroying their contents or spending money on a costly shelf unit.
Ship Your Products Using Our Quality Postal Bins
PostalTotes is a plastic container company that offers a variety of nestable postal bins and corrugated plastic totes. These can be used for storing, transporting, and distributing goods and supplies. When it comes to plastic bins, we are your best option.
