USPS Postage Rate Increase 2025: How Large-Volume Direct Mailers Can Still Win

By: Brooke Thompson, Pragmatic Client Partner

It’s time to check your direct mail budgets. The U.S. Postal Service is rolling out another postage rate hike in July 2025 – and for companies in direct mail-heavy industries like financial services and energy, this could mean tens or even hundreds of thousands in added mailing costs. Below, we’ll break down how much postage is increasing (and why), what that means for your campaigns and, most importantly, strategies to mitigate these cost increases.

Why stick with mail?

Even with the hike, large-scale direct mail still out-converts most digital alone, drives tangible brand lift, and benefits from first-party data in a cookie-less world. Treat the new rates as the push to tighten operations, not abandon the channel. With smart planning and cost-saving tactics, you can absorb the USPS increase without derailing your growth goals. Let’s dive in.

What’s Changing and Why?

The USPS has filed notice for new mailing rates effective July 13, 2025. USPS projects an average 7.38% increase for Marketing Mail rates, but the exact change varies by format and presort level – with some rates climbing well above the average.

It’s part of the Postal Service’s Delivering for America 10-year plan. 

With declining mail volumes and rising costs, USPS is using above-inflation price hikes to boost revenue. The extra funds aim to offset volume declines, invest in infrastructure, and modernize operations.

Six Moves to Neutralize the Hike

1. Stack every USPS incentive you qualify for

• Enroll in USPS postage promotions for 1-5 % off - integrated technology through AI, addition of tactile/sensory components, etc.

• Ensure every piece is Full-Service IMb to grab the extra per-piece rebate.

2. Go deeper on postal logistics

• Commingle and add co-palletization / SCF drop-ship—often saves 3–4 ¢ per piece.

• Print/mail closer to heavy-volume zones.

3. Kill waste before it hits the truck

• Run monthly NCOA, ACS, CASS and dedupe to cull bad addresses.

• Model low-propensity names and shift them to cheaper digital touches.

4. Engineer the piece for the cheapest rate that still converts

• Stay with a letter format whenever possible—flats add ≥ 20¢.

• Use lighter stock to drop an ounce tier.

• Test cheaper formats like a snap pack or postcard. 

• Test 6 × 9 presort First-Class postcards when speed matters.

5. Police the pennies on vendors & fees

• Demand SCF handling, commingle, freight, IMb tracing, tax, etc., up-front in every quote.

• Consolidate more volume with fewer MSPs to boost lane density and pricing power.

• Add an Informed Delivery ride-along (free second impression).

6. Continuously bid out print & freight

• Solicit fresh quotes every quarter for paper, press time, and trucking—prices swing fast.

• Leverage Pragmatic’s vendor network for proprietary pricing and quality vetting.

Bottom line

For marketers mailing 500,000 to multi-million pieces, the July increase is real money—but every dollar of it can be offset with smart incentives, sharper logistics, cleaner data, leaner formats, and disciplined vendor sourcing. Start now, lock in savings, and keep direct mail a growth engine in 2025.

---

Need help determining your strategy? Let Pragmatic’s postal & production team run the numbers before July 13 and determine how to mitigate the hike.