Why Does Postage Keep Going Up?

If you’ve noticed postage rates rising more often lately, you’re not alone. Whether you’re mailing a letter, sending out marketing postcards, or shipping packages for your business, those extra cents can add up. But why does postage keep getting more expensive, and what exactly are you paying for?

Let’s break it down.

The Real Cost Behind a Stamp

When you buy a stamp, you’re paying for more than just delivery from Point A to Point B. You’re helping cover the costs of a massive operation. The U.S. Postal Service (USPS) delivers to over 160 million addresses, six days a week, in all weather, across the country. That takes a huge network of trucks, planes, equipment, and most importantly, people.

Labor is one of the biggest costs. USPS employs nearly 600,000 workers.  These workers deserve fair pay, benefits, and retirement plans. As wages rise over time, so do operating costs. That’s one reason you’ve likely seen postage rates creep up year after year.

Inflation and Fuel Costs 

Like everything else, the price of postage is affected by inflation. When fuel prices rise or the cost of paper, ink, and shipping supplies increases, it affects the USPS. The Postal Service must keep pace with these changing costs to try to maintain a smooth-running system.

Transportation alone is expensive. Every day, millions of pieces of mail are moved by trucks and planes. Keeping those vehicles fueled and maintained is expensive, and when fuel prices rise, it directly impacts postage rates.

Less Mail, Higher Postage Rates

Another reason for rising costs is that we don’t mail as much as we used to. As more people send emails instead of letters and businesses move to digital billing, the volume of mail has dropped. That means fewer pieces of mail are helping to cover the system’s total costs.

But the catch? The USPS still has to visit every home and business, regardless of the volume of mail. It costs just as much to run a daily delivery route with 50 letters as it does with 500. So as volume drops, the cost to deliver each piece goes up, and that cost is passed along in postage rates.

What Can You Do? Need Help Navigating Postage Rates?

It’s more important than ever to make every piece of mail count. Well-designed, personalized mail can make a stronger impact and drive better results. Instead of sending more mail, focus on sending smarter mail.

If you're a business that mails regularly, consider tools like presorted mail, metered postage, or bulk discounts if you qualify.

At Hatteras, we know how to maximize the value of your mail. From creative direct mail campaigns to postage-saving strategies, we’re here to help you save money and improve results. Contact our team today for help with your next direct mail campaign.