The USPS has proposed an 11.6% average postage increase for Marketing Mail, set to take effect in July 2025. While this is a notable jump, there are plenty of ways advertisers can keep their mailing costs under control.
Why is this happening?
The rate increase is tied to USPS’s ongoing financial and operational adjustments, incorporating cost factors like inflation, delivery density, and previous discounts. The bottom line? Postage will cost more, but mailers who take advantage of available discounts won’t feel the full brunt of the increase.
How can you reduce your direct mail costs?
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Leverage USPS Promotions
- The USPS offers discounts of 3-5% for using Informed Delivery, interactive elements, and emerging technologies in mail.
- Promotions like Tactile, Sensory & Interactive Mail Engagement and Retargeting Mail can help advertisers reduce postage costs while enhancing engagement.
- These promotions change yearly, so taking advantage of them before they expire can maximize savings.
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Optimize Your Mail Design
- Certain formats, like letter-sized pieces instead of flats, can qualify for significantly lower rates.
- Reducing weight and ensuring mail meets automation requirements can unlock savings.
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Utilize Workshare Discounts
- Presorting mail and drop shipping to USPS entry points can cut postage expenses.
- Using co-mailing and co-palletization services helps share costs with other mailers.
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Stay on Top of Incentives
- The Mail Growth Incentive rewards businesses that increase their year-over-year mail volume with discounts as high as 30%. Registration for the 2026 incentive ends May 30, 2025. Please reach out to us to learn more.
Final thoughts
Yes, postage is increasing—but that doesn’t mean direct mail has to become prohibitively expensive. With smart planning and strategic use of discounts, advertisers can continue running effective campaigns without blowing their budgets.
If you’d like to discuss how to adjust your direct mail strategy ahead of this change or are interested in learning more about discounts, please reach out to us today. We can help identify the best cost-saving opportunities for your business.
Photo by Element5 Digital
