Thursday, February 12, 2009

Yet ANOTHER Rate Increase by the United States Postal Service



Groan. They've done it again (or, at least, they're about to do it). The Governors of the USPS announced yesterday that they have approved new rates for First-Class Mail, Standard Mail, Periodicals (newspapers and magazines), Package Services (retail Parcel Post), and Special Services, effective May 11, 2009. The price of a First-Class Mail stamp will increase two cents to 44 cents.



Many Postal Service shipping prices were raised in January 2009 and thankfully they will not increase again in May. But in addition to the First-Class Mail stamp, other postal rates that will go up May 11 include: postcard stamps increasing by a penny - to 28 cents; the first ounce of a large envelope (flat) increases 5 cents to 88 cents; and the first ounce of a parcel increases 5 cents to $1.22. The new, increased First-Class Mail International postcard and letter rates (first ounce) are: Canada - 75 cents, Mexico - 79 cents, and other countries - 98 cents.



The likely result of these increases? We think enough is enough. There have been entirely too many rate increases lately, and they're coming faster and faster than ever. My goodness, the last postal rate hike was just last month! There is a breaking point, and we may be rapidly approaching it. People just may react by sending more emails and making more phone calls, sending fewer letters through the mail. Postal revenue may go down instead of up - the opposite effect that the USPS wants. I mean, good grief, it's now cheaper to place a telephone call to just about any country in the world - and talk for more than a few minutes, too - than it is to send a one ounce letter to the same place.



What's wrong with the USPS? They need to get as lean and mean in conducting their business as the rest of us have had to become, not price people out of using their service. USPS, you need to get much more efficient in how you do things, not raise your rates yet again. That's what makes a business successful in these hard economic times.

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