In recent years, the cost of paper and postage has seen significant increases, driven by various economic factors and industry changes. Because these costs have a direct impact on how we bill clients, keep reading to better understand the current landscape and its impact on our business operations.
Paper Costs
The price of paper has been on a steady rise due to increased demand and reduced supply. Several factors contribute to this trend:
- Supply Chain Disruptions. The global supply chain has faced significant disruptions, leading to shortages and delays in raw materials required for paper production.
- Increased Demand. As economies recover and demand for paper products grows, the pressure on the supply chain intensifies, pushing prices higher.
- Energy Costs. The energy-intensive nature of paper production means that rising energy costs directly impact the price of paper.
These factors combined have led to a substantial increase in paper prices, affecting industries that rely heavily on printed materials.
Postage Rates
The United States Postal Service (USPS) has announced multiple postage rate increases over the past few years. The latest changes include:
- Biannual (twice a year) price increases for marketing mail since 2021, typically ranging from 3% to 8% per adjustment.
- A cumulative increase of over 50% in postage rates since 2021.
These rate hikes are part of the USPS’s efforts to address financial challenges and adapt to evolving market conditions. The trend of regular rate hikes is expected to continue as part of the USPS’s strategy under its 10-year “Delivering for America” plan.
How Paper and Postage Affects Our Pricing
Given these rising costs, our decision to adjust pricing is a necessary step to maintain the quality and sustainability of our services. By understanding the broader economic context, we aim to provide transparency and clarity about these changes.
What have we done to reduce costs?
- Printing. In 2024 we conducted a formal RFP of print vendors to ensure we are utilizing the most cost-effective printer partners and paper mills.
- Paper. Heavier paper costs more to purchase and to mail. We reduced our paper weight in 2024 to 30lb newsprint to lower the cost of printing and postage.
- USPS rebates. We stay informed on any rebates offered by the USPS and ensure that we take advantage of any postage savings.
The chart below shows the relationship between postage costs, printing costs, and our rate cards from January 2021 through July 2024. The data demonstrates that postage and paper have increased 50% and 35% respectively, whereas our rate increases during that time have not matched this pace.
For more information on USPS rate changes, please visit the following sites: