USPS Wins Approval for Largest-Ever Price Increase for Stamps

[maryovaleensfabrics]

November 13, 2018

The U.S. Postal Service’s regulator on Tuesday approved the largest-ever price increase for the cost of a stamp, cementing a 10 percent spike to bring the price tag for sending a letter to 55 cents.

The Postal Regulatory Commission approved the jump after determining the Postal Service’s proposal complied with requirements, such as ensuring any price surge is not more than inflation. Prices will increase across the agency’s offerings by an average of 2.5 percent, the inflationary cap.

Individual offerings, such as the stamp for regular, first-class mail, will outpace that rate. Packages sent as Priority Mail will see costs rise by 5.9 percent, while Priority Mail Express will have 3.9 percent higher rates. The new prices will go into effect Jan. 27.

Collecting State Taxes and Shipping . . . my income just got smaller.   Think Ebay will take this into consideration?

[berserkerplanet]

Guess it was wishful thinking to hope the rate increases wouldn't be approved, or at least would be toned down a bit (the zoned FCP is going to be the big one for me, and the sunsetting of commercial plus will be moderately annoying)


>>Think Ebay will take this into consideration?

Ha.   Ha Ha. (repeat for 5 minutes, with rolling around on floor...)

eBay makes the same money, and your income decreased . From eBay's viewpoint, I fail to see the problem. System is working (for eBay) as intended.

[div_style]

"zoned FCP is going to be the big one "

Yes, for those who ship a lot of FCPs and use stamps, not eBay labels.

Fortunately one can print out a zone chart that shows what zone every zipcode is from your own zipcode.   https://postcalc.usps.com/DomesticZoneChart

Enter your 3-digit zip and the chart magically appears.

[richard1rst]

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@maryovaleensfabrics wrote:

cementing a 10 percent spike

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WOW - a whole FIVE CENTS - Yep that’s going to drive me into bankruptcy.

Oh wait - like most people here I use first class mail PACKAGES so the 5 cents doesn’t bother me at all. Neither does the new FCM package zoned rates. Costs change, selling prices change. Offset.

my income just got smaller.

Um - NO. Any time ANY cost goes up a business rightfully adjusts their selling price to compensate. Postal rates go up every year. So does, necessarily, selling prices. My income, and yours if you are doing it right, will be unaffected by new postal rates.

[johnrj1226]

One thing about shipping lable price increases all shippers will equally  affected.  Signifcant price increase for UPS and FedEx  in  2019 are in the  works too.  https://www.ups.com/us/en/shipping/rates-update.page https://www.reveelgroup.com/fedex-2019-general-rate-increases/ 

USPS prices  increases & discount reductions (i.e. commercial rate & commercial rate plus) happen every year like clock work.

  The 5 cent  increase in the postage stamps has  little effect on us as a book of stamps will last us  about one year to send Birthday Cards  we pay all  bills on line and  never uses stamps to ship  eBay orders - I realize some sellers that sell  light weigh flat items (stamps, decals, sports cards, etc will be  affected but they just need to increases their prices by a nickel/stamp + added eBay/PayPal Fees.

[stmoore0]

Collecting State Taxes and Shipping . . . my income just got smaller. Think Ebay will take this into consideration?
____

You mean you don't pass your expenses on to your buyers?

[guybemis]

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@maryovaleensfabrics wrote:

November 13, 2018

The U.S. Postal Service’s regulator on Tuesday approved the largest-ever price increase for the cost of a stamp, cementing a 10 percent spike to bring the price tag for sending a letter to 55 cents.

The Postal Regulatory Commission approved the jump after determining the Postal Service’s proposal complied with requirements, such as ensuring any price surge is not more than inflation. Prices will increase across the agency’s offerings by an average of 2.5 percent, the inflationary cap.

Individual offerings, such as the stamp for regular, first-class mail, will outpace that rate. Packages sent as Priority Mail will see costs rise by 5.9 percent, while Priority Mail Express will have 3.9 percent higher rates. The new prices will go into effect Jan. 27.

Collecting State Taxes and Shipping . . . my income just got smaller.   Think Ebay will take this into consideration?

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For acceacy that is not even close to the lagest ever price increase. For example in 1971 they incresed stamp prices  33%. Before that, there were several 50% increases. People complain too much about nothing these days.

[nobody*s_perfect]

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@maryovaleensfabrics wrote:

November 13, 2018

The U.S. Postal Service’s regulator on Tuesday approved the largest-ever price increase for the cost of a stamp, cementing a 10 percent spike  ...

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The 5-cent increase is the biggest price increase, but 10% is far from the highest percentage.  

As noted above, a 1-cent increase in the early years could be a significant percentage (from 2 cents to 3 cents is a 50% increase).  Going up from 6 cents to 8 was a 33% increase.  In 1975, the cost of a 1-ounce letter was raised from 10 cents to 13 cents, which is a 30% increase.  By 1981, after 2 more increases, the cost was 20 cents, which is a 100% increase in just 6 years.

https://en.wikipedia.org/wiki/History_of_United_States_postage_rates

[steelernation2007]

Unfortuantely I have even worse news to add.  The USPS is increasing prices significantly for all packages, yet AGAIN.     http://about.usps.com/news/national-releases/2018/pr18_086.htm

I'm starting to think this is going to be an automatic yearly thing. Just because the economy is good (for some) they are going to milk it for all they can. Every year they raise it we continually get reminded what a "bargain" mail service continues to be.

[ed8108]

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@richard1rst wrote:

Um - NO. Any time ANY cost goes up a business rightfully adjusts their selling price to compensate. Postal rates go up every year. So does, necessarily, selling prices. My income, and yours if you are doing it right, will be unaffected by new postal rates.

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Will likely only affect sales to a very few ebay buyers that lack deep pockets?

Ah yes, the wisdom of increase the cost & make more sales.

[richard1rst]

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@steelernation2007 wrote:

I'm starting to think this is going to be an automatic yearly thing.

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WOW - you are only now STARTING to think this an annual thing?

The post office issues new rates EVERY January for as long as I can remember (and it is LONG memory).

we continually get reminded what a "bargain" mail service continues to be

Well, get a quote for a 2 pound package from, for example, New York to California, by Priority Mail (which goes by air and gets there in about 2-3 days). Then compare that same package with FedEx or UPS which goes by truck and can take a week.

Now, with a really straight face, convince me that the postal service is not a bargain.

[mudshark61369]

@maryovaleensfabrics, and others

johnrj1226 's reply is correct except for one thing.

"One thing about shipping lable price increases all shippers will equally  affected.  Signifcant price increase for UPS and FedEx  in  2019 are in the  works too.  https://www.ups.com/us/en/shipping/rates-update.page https://www.reveelgroup.com/fedex-2019-general-rate-increases/ 

USPS prices  increases & discount reductions (i.e. commercial rate & commercial rate plus) happen every year like clock work".

The price increases will not affect chinese and several other Asian nation sellers as much as domestic ones. That is because of a U.N. administered organisation called the Universal Postal Union. It sets domestic postal rates for items shipped internationally.  It was intended to give emerging economies a chance to compete in a global market.  However, China the worlds 2nd largest e-commerce economy, through the use of some chicanery has manipulated the organization into continuing to rate them at the lowest economic level equal to that of Botswana's.

  As a result while domestic rates will increase for us, chinese sellers packages will be shipped anywhere domestically for a flat $2.50 (if a 1lb package enters the US in Ca. it is shipped and delivered in N.Y. by the USPS for that amount) Their Govt. already subsidizes their international shipping so they have an even greater advantage over domestic sellers. No wonder our president wants to pull us out of that treaty.   Read the link below

https://www.washingtonpost.com/business/economy/trump-ditches-144-year-old-postal-pact-that-boosts-c...

[berserkerplanet]

>>Well, get a quote for a 2 pound package from, for example, New York to California

But do the math for a 15x12x12 5lb pkg from California to New York and USPS doesn't look so good.

Priority Mail: $42.65 (2-4 days)
Parcel Select: $21.02 (realistically at least a week and more likely 10 days)
FedEx Home Delivery: $21.83 (5 days)
FedEx Ground (If destination is commercial): approx $18 (5 days)
FedEx Smartpost: $15.67 (about 7-10 days)

About the same for UPS, and as weight goes up, USPS prices look even worse (unless shipment fits in flat rate packaging).


Starting on June 23, 2019 when Priority Mail dimensional weight divisor changes from 194 to 166 and dim weight begins applying to all zones, and a dim weight with a 166 divisor starts applying to Priority Mail Express and Parcel Select for all zones, USPS pkg services are going to look much worse comparatively for larger pkgs except under the right circumstances.

(after 1/27/19 when PM balloon pricing for z1-4 and PS balloon pricing for all zones goes away, but dim weight changes haven't kicked in, there will be a sweet spot where large, light pkgs will ship more better. PS oversize still applies starting 1/27/19)


The right tool for the right job.

[bosmingfarg]

So if we live long enough, a first class stamp will be 75 cents one day ?

[berserkerplanet]

>>So if we live long enough, a first class stamp will be 75 cents one day ?

Probably. As use of First Class letter mail decreases, costs will rise.

Since we are all going to transitioned to being immortal talking heads in jars, 75¢ for a first class stamp is a sure bet at some point.

Our only hope of avoiding the 75¢ first class stamp apocalypse is an alien invasion or WWIII (with lots of nuke topping).