After five consecutive semiannual price hikes, the U.S. Postal Service (USPS) is taking a break and holding stamp prices steady this January, bringing some much-needed relief to direct mail catalogers.
For more than 15 years, the USPS has faced financial struggles, despite its mandate to sustain itself without taxpayer funding. To combat inflation and reduce losses, the agency has enacted a series of aggressive price hikes, which have impacted businesses and consumers alike.
The most recent price change in July raised the cost of a “Forever” stamp to 73 cents, marking a 33% increase from the 55 cents in 2021. However, the USPS broke tradition by announcing no further price increases for January 2025. The agency cited that previous adjustments have boosted revenue and expressed optimism that stabilizing inflation will help manage costs.
Postmaster General Louis DeJoy highlighted this positive outlook in a September news release: “Our strategies are working, and projected inflation is declining. Therefore, we will wait until at least July before proposing any increases for market dominant services.”
Despite this optimistic view, the USPS reported a loss of $9.5 billion for fiscal year 2024 and expects further losses in 2025. While stamp prices remain flat, shipping costs are set to rise on January 19, if approved by the Postal Regulatory Commission. Proposed changes include a 3.2% increase for Priority Mail and Priority Mail Express services, a 3.9% increase for USPS Ground Advantage services, and a 9.2% increase for high-volume shippers using Parcel Select services.
Additionally, the USPS is expected to again increase the “Marketing Mail” category, which affects the postage rates for catalogs and other marketing materials. However, there is a price incentive of $0.001 per mailpiece for mailers who meet the new catalog requirements as well as a continuation of the USPS postal promotions. Dingley will continue to keep you updated on how to qualify for the postal savings promotions.
As direct mail catalogers, it’s important to remain adaptable and prepare for potential cost increases. By understanding these trends and adjusting your strategies, you can continue to deliver value to your customers and maintain your competitive edge in the market.
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Source: https://money.com/usps-stamp-prices-shipping-costs-2025/
