Direct Mail Consultants Brace for Postage Rate Hike
Direct mail just got a little more expensive.
The U.S. Postal Service increased rates for all first-class mail on Sunday as part of an ongoing effort to bolster its finances amid lingering challenges. Under the new pricing structure, the cost of Forever stamps will rise from 73 cents to 78 cents; metered letters will go up to 74 cents from 69 cents; and postcards will increase to 62 cents from 56 cents.
At first glance, the price hikes may seem insignificant. But for Forever stamps alone, the hike represents a 6.8 percent increase. For postcards, the new price is nearly 11 percent higher than before.
Despite the growing focus among political professionals on digital, direct mail remains a staple of campaigning. A post-2024 white paper from USPS and the American Association of Political Consultants found that 84 percent of voters reported receiving direct mail during the last election cycle.
At the same time, according to the study, 90 percent of political consultants surveyed said that direct mail remains strategically important. For campaigns that send thousands of direct mail pieces each cycle, the latest price increases could make a real financial impact.
USPS argues that the rate hikes are strategically necessary as officials seek to put the service on the path to long-term financial sustainability as part of its 10-year “Delivering for America” plan.
The Postal Service posted a staggering $9.5 billion net loss in fiscal year 2024 – significantly more than the $6.5 billion loss it posted the previous fiscal year. USPS has also seen a dramatic decline in mail volume over the past 15-plus years. First-class mail – including letters, postcards and large envelopes – fell 50 percent between 2008 and 2023, according to the service, while marketing mail volume decreased 40 percent in the same time period.
“Declining volume reduces mail density and therefore makes mail delivery increasingly less profitable per address served; as each delivery point becomes less profitable, the delivery network becomes more difficult to sustain,” the Postal Service’s Inspect General Office wrote in a September 2024 report.
The stamp price increases are expected to continue in the coming years. USPS outlined a plan last September to raise the cost of stamps twice a year for both 2026 and 2027, although the Postal Regulatory Commission – which oversees the Postal Service’s rates – is considering a rule change that would restrict the rate increases to one per year.
