Mailing, USPS, Postal Regulations

Lower Your Mailing Costs with USPS Growth Incentives

USPS Growth Incentives

To control your mail costs while building effective campaigns, the latest USPS Volume Growth Incentives offer an exciting opportunity. Optimizing your mailing plans for 2025 with these programs can build long-term growth for your First Class and Marketing Mail volumes. And getting started on them now can pay dividends later.

The Postage Rate Increases

In 2020, USPS was given additional pricing authority by the Postal Regulatory Commission following a period of predictable increases that only slightly exceeded inflation. Regular postage rate increases were considered necessary to achieve the financial stability required by Postmaster General Louis DeJoy’s Delivering for America plan.

The result:

  • Up through July 2024, USPS raised postage rates 6 times in 36 months, with increases higher than inflation

  • In July 2024, prices increased by 7.8% on average, with a First Class Forever stamp rising from 68 cents to 73 cents

However, the post office announced in September that due to lower inflation, a postage increase would not be recommended for January 2025. USPS Governors approved that change from recent practice. This move gives marketers and non-profits stability and allows them more time to plan future campaigns confidently.

Saving Money With USPS Growth Incentives

For well over a decade, the postal service has provided several promotions to brands and mail owners to test and use new and emerging printing and marketing technologies in mail campaigns. However, since 2010, no programs have been offered to address and reverse the decline in mail volume.

How the Incentives Work

In July 2023, USPS proposed a new Mail Growth Incentives program for both Marketing Mail and First Class campaigns mailed in CY 2024. The goal of the incentive was to drive higher sustained usage of mail by large mailers, as well as reward smaller and new mailers for mailing more. Due to the success in raising mail volumes for many mailers, the program has been continued with the same target structure for CY 2025.

The incentives rely on FY 2024 volume to set a baseline. Mailers who exceed 1 million pieces in 2025 but have yet to mail 1 million in 2024 will have their incremental volume start at 1 million pieces, not their FY 2024 volume.

Mailers can earn 30% credit on the future volume of mailings (after July 2025) for an overall volume exceeding 1 million pieces compared to their 2024 baseline.

The 30% credits will be paid out in three installments of 10% in July 2025, January 2026, and July 2026, and must be used by the end of 2026.

Enrollment begins in November 2024 through the USPS Business Customer Gateway.

Pairing Volume Growth Incentives with Other Initiatives

Taking advantage of the Volume Growth Incentives is one of several moves for your campaigns. With rate increases off the table until at least July 2025, you can reset your direct mail program, and rethink how your mail can have the same or better impact at lower cost.

In addition, the value of the volume incentives program can be increased by:

  • Working with USPS technology promotions for additional savings on campaigns

  • Testing new, lower-cost formats

  • Targeting more audience segments

  • Planning campaigns by seasonality factors and scale volume up or down accordingly

  • Achieving lower costs by using presort as well as commingling and co-pal services once minimum amounts are exceeded

Wrapping it up

USPS Volume Growth Incentives will save you money even on the largest of press runs. But optimizing the amount of pieces you mail is just one of the many factors that go into ensuring reliable and high-quality production and mailing of your campaigns while keeping costs affordable.

Here at mailing.com, we’re a trusted high-volume printing and mailing company with the expertise and technology to print and mail your campaigns efficiently, affordably, and accurately. We work with some of the largest and most demanding clients in the country to offer a comprehensive, end-to-end solution with unmatched customer service. Contact us for more details on how we can successfully partner with you.

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