USPS makes “2nd Ounce Free” to boost First Class Mail volumes

The US Postal Service has said its “Second Ounce Free” pricing for First Class Mail presort letters, which took effect from Monday, has been the direct result of suggestions from its major customers. The move saw the first step of the First Class Mail pricing ladder for automation presort letters doubled from the previous one ounce weight limit.

It means the major users of presort First Class Mail letters – transactional mailers – will be able to include more pages within each mailing, without paying a higher rate.

USPS is aiming to use the offering to demonstrate the value of the physical mail channel for communications like bills and statements, thereby slowing the ongoing decline in First Class Mail volumes as more transactional communications move online.

Gary Reblin, the vice president for domestic prices at USPS, said the Second Ounce Free initiative meant greater flexibility for companies in including additional promotional offers with their bills, invoices or statements.

The “free” additional ounce could be used for informational or education purposes to strengthen customer loyalty, but there could also be creative benefits in making mailings further stand out in consumer eyes.

“Second Ounce Free provides business mailers with the option of using higher quality paper stock or larger envelopes to create greater impact,” said Reblin. “This makes transactional mail a highly effective medium for target marketing.”

USPS said the pricing initiative was very simple, since commercial mailers do not need to register or meet additional minimum volume thresholds to secure the free second ounce, although it does not apply to retail First Class Mail for consumers sending single piece letters.

The Postal Service pointed to the possibilities of mailers selling advertising space in their mailings to other companies to reach their customers through the free second ounce, with advertising income effectively lowering the cost of mail services.

Modern variable data printing (VDP) techniques mean advertising or other information can be personalised according to the individual to whom a mailpiece is being sent.

First Class Mail services, which account for almost half of USPS revenues, have seen their volumes reduce by around 25% in the last five years as a result of e-substitution.