USPS Updates & July Price Increase
PROPOSED USPS RATE CHANGES:
On April 9, 2025, the USPS filed a rate case with the Postal Regulatory Commission (PRC). If approved, the new rates will take effect on July 13, 2025. The PRC is expected to complete its review by May 30, 2025.
It’s worth noting that USPS has indicated it does not plan to implement another price increase in January 2026. However, some structural changes to mailing services are expected around that time.
Below is an estimated breakdown of the proposed rate changes. Please note that the actual impact will vary based on each mailer’s presort level and dropship discounts.
First Class: 8.1% increase
Periodicals: 9.385% increase
Marketing Mail:
Letters: 10.9% increase
Flats: 13.3% increase
Package Services: 7.385% increase
Your increase will vary based on presort, destination entry, and piece weight. To understand how you are specifically impacted, please get in touch with your Royle Sales Rep for an analysis. Our analysis has shown that Marketing Mail flats eight oz. and greater are seeing a decrease. That goes to five oz if you take the Catalog Insights Promotion.
Eliminate DNDC Drop Ship Discounts: With the completion of the NDC unwind initiative, there is no value to the USPS to dropship mail at NDC facilities. Mail that would have taken this discount will now be locally entered.
Expansion of Marketing Mail to Support Bound Printed Matter: Expand Marketing Mail Flats weights to 20 ounces and 24 ounces for Carrier Route. Introduce a new Heavy Printed Matter rate category.
NEW CATALOG PROMOTION:
The USPS is proposing to remove the Catalog Incentive of $1.00/M effective July 13, 2025, and introduce a Catalog Insights Promotion of 10% effective October 1, 2025. This would run through June 2026.
To qualify, the mailer must meet the definition of the catalog below:
A catalog is a bound (stapled, stitched, glued, or fastened together along one edge) mail piece with at least 12 pages, providing an organized listing of products or services offered for sale. A catalog mail piece may be letter-shaped, flat-shaped, or parcel-shaped and is mailed at USPS Marketing Mail or Bound Printed Matter. The product listing must include images, photographs, or illustrations of the products or services, descriptive details, fulfillment information, and prices, or contain an alternative method for the reader to determine the process. Catalogs must contain enough information to allow an order to be placed, e.g., an order form, a phone number, a web address, a QR Code, or the means to access a website.
USPS PROMOTIONS CHANGES FOR 2026:
The USPS stated in its filing that it plans to continue all base/primary and add on promotions from CY2025 except for the Reply Mail IMbA promotion. The Catalog Insights Promotion will only apply to Marketing Mail.
Integrated Technology discount will increase to a 5% discount in 2026. The current discount in 2025 is 3%.
Tactile discount will increase to a 5% discount in 2026. The current discount is 4%.
Continuous Contact will increase to a 5% discount in 2026. The current discount is 3%.
Both the Sustainability and Informed Delivery Add Ons will stay the same at 1% each.
Catalog Insights Promotions will be 10% discount star.ng in October 2025 through June 2026.
ADD-Ons: Mailers are eligible to take advantage of both add-ons throughout the year. These will remain the same.
Sustainability – 1%
Informed Delivery – 1%
Please feel free to reach out to your Royle Sale’s Rep or Todd Kintopf, Royle’s Mailing Director if you have immediate questions, tkintopf@royle.com.
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