Postage will go down for many newspapers next year

Paul Boyle | News Media Alliance

The U.S. Postal Service on October 12 proposed new rates for 2017 that may significantly decrease postage costs for many newspapers using the nation’s postal system to deliver Total Market Coverage (TMC) products (e.g. ad inserts to non-subscribers). As a result of the change, some major market metros could see a reduction in postage costs by hundreds of thousands of dollars next year, particularly if the TMC package is heavier in weight.

Why the decrease? The Postal Service is simplifying the rate structure by removing Flats Sequencing System pricing for Marketing Mail (formerly Standard Mail) and increasing the “piece pound breakpoint” for Saturation, High Density Plus, and High Density flats from 3.3 to 4.0 ounces. Because of this increase in the piece pound breakpoint, newspapers could see a rate decrease of up to 11 percent for TMC packages. Important note: The rate changes will depend upon the volume and weight of mailings, and where the mail is entered into the system. We encourage newspapers to calculate the potential rate decrease (or increase for lighter packages) when planning for budget purposes.


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