The U.S. Postal Service is taking a new strategy to slow the steady and precipitous decline of mail volume, offering its largest customers a discount if they increase their usage of the system.
USPS painted the new offerings as a win-win that will provide savings to mailers while generating new revenue for the agency. The strategy will boost loyalty to the Postal Service, management said, while also improving the agency’s finances. All told, it expects to generate between $800 million and $1.3 billion in new revenue as part of the initiative.
The Postal Service will offer one incentive for First-Class mail and other for marketing mail. For every piece of mail after its 1 millionth that a customer sends in 2024, it will receive a 30% discount. If the user sent more than 1 million pieces in 2023, the discount will only kick in after it surpasses its total that year. Different mail products have different prices to the exact discount will vary, but will be calculated based on average-per-piece price for each customer.