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Postal Service Proposes Rate Hike
Under the proposal, which would affect a variety of mail, the U.S. Postal Service plans to raise stamp prices by 2 cents, to 46 cents.
Posted 7/ 6 10 at 1:00 PM | News, Money, Advertising & Marketing, Home-based Business, Taxes & Accounting, Online Business
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After posting massive losses in fiscal year 2009, the U.S. Postal Service today proposed a 2-cent increase to first-class stamps, which would raise the rate to 46 cents.The stamp increase is part of a broader plan to raise rates on a variety of mail, including periodicals, advertising mail, and packages. If approved, the changes would take effect on Jan. 2. The Postal Regulatory Commission, which oversees the Postal Service, has 90 days to weigh in.
The Postal Service lost $3.8 billion in 2009, cut 40,000 jobs, and proposed cutting Saturday mail delivery in March. The Postal Service, which receives no tax funding, is legally permitted to raise rates to keep up with inflation, and may increase the rate even more given the dramatic losses.
In March, postal authorities cited "profound technological and social changes" to explain reduced revenue, even after a rate increase in March 2009, which brought first-class stamps up to 44 cents a piece.
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Comments (Page 1 of 2)
The Post Office will continue to raise prices and cut back on service until we all start using it more. That's the business plan for making the Post Office profitable. Yeah, that'll work. That'll work good.
Thanks for the laugh this morning, I needed it.
My thoughts exactly, the more they raise the fees, the more I find other ways to do things, and send as little as I can.
God bless, Mary
They need to quit raising prices and start cutting costs.
Wage decreases, lower benefits, fewer paid holidays.
Increaseing prices and giving less service is not the answer.
I agree. We'll just stop using the mail. If they'd charge the "Junk-mail" mailers & Bulk mailers 42 cents instead of FOUR CENTS they wouldn't be broke. What's the matter weith their brains? They're raising the price to the wrong people!
Amazing ... This must really be hurting sellers on eBay. It's getting to the point where the cost of postage will exceed the value of the item. I haven't been selling on eBay, and with postal rates as they are, I certainly haven't been purchasing anything. Can't see spending $6.00 postage on a vintage paperback values at $3.
Back to Pony Express! The Postal Service is running out of oats!
Forty years ago we used to send business mail from Seattle to Manhattan for a 10 cent Air Mail stamp. The mail was delivered next next afternoon!
In those days there was hardly any automation and not too many jet aircraft. Today Priority Mail does not do as well -- at forty times the price! Something has gone sour within the system.
As a retired Postal Service worker, I have seen both sides here. The raises do keep up with the inflated prices, costs of fuel and labor. LABOR is outrageous! It is one thing to pay a worker to carry the mail, but totally ridiculous to pay for the Postmaster's, Supervisor's or Manager's mistress, girlfriend, sister, or wife to do nothing at 80 grand per year. I saw this for 30 years, and my Master's degree was worth less than a pair of 38 inch silicone tits. Yes, you can see the bitter here... and why not. Most Postal Workers are dedicated and want to do what is best... but, when a few 80K relatives do the job that you can do at half the cost, this company needs to be reorganized.
I 'm thinking because of the terrible condition our country is in now it's time to cut a lot of fat from goverment spending. First in line is cut all postal workers back to min wage Federal of course,and all the supervisors (ALL) $11.00 and hour no exceptions.No medical insurance unless 1/3 portion is paid by the employee's ( All ). Five day operation only, no overtime for any reason (NO O/T ) Reduce the cost of first class back to .15 cents. Adjust all rates to spur better use of the system. Some may say that's not fair I say nothing in life is fair fall in line with the millions of Americans that are unemployeed and their funds have expired.
Just saying
Elwood, Maybe you haven't mailed anything with UPS lately? They charge 25%-30% more for ground packages that take 5-7 days to deliver than USPS charges for same package shipping by Air and delivered in 2-3 days
What?! Come ON! Because of email they do FAR LESS work than ever before and they want to keep raising the price of stamps?! I can see if their work load was INCREASING but its FAR from that. I understand that it is BECAUSE of e-mail overall that the post office is feeling the pinch but it is what it is. I dont think the american public should continuously have to bail out postal workers just because new tech is hurting them. New tech has affected ALLOT of industries over the years but they didnt answer back by giving their employees RAISES. Take the newspaper industry for instance. The print version of newspapers is basically "dead man walking," and they are having to lay people off, give away MORE newspapers for LESS, and LOWER the pay of the employees that they DO keep. This post office thing is the exact opposite. If they go under LET them. We'll find some other way to handle mail. Even if we have to hand it all over to one of the other package services like UPS for example. If the post office cant handle it without continuously jacking up the cost of postage I say to HEL with them all. I think UPS can handle packages AND regular mail. Postal workers outlook right now is that they are expendable and are basically untouchable with their cush government job. Keep jacking postage up and we'll SHOW them how expendable they are when they are in the unemployment line next to everyone else who's job has suddenly been rendered obsolete.
As a carrier for the U S Postal service I can understand the anger and frustration of the people of our country,and yes the mail is getting less and less,I too have to pay that amount each time i send out a letter or package,but you are paying for service alone.Now I know that too has been bad but that is where the true change needs to be done
When the Social Security System said it would no longer be sending checks in the mail (only direct deposit or bank cards can be used) I told my wife that postage would be going up. If the gov't finds it way to save $ who can blame Avg Joe for doing the same. The higher they go the less they're used or needed.
Bloated government, the more you feed it the more it eats, if you " WORK"
for the government and retire, you recieve 80% of your pay, congressmen recieve six figures and they want to cut social security!!!!! How about cutting the FAT!!!!
They claim not to receive any tax funding, but they do get financial preferences that other business don't. For example, they don't pay property tax on their buildings, tax-reduced gasoline, no license plate tax.
In this day of instant communication from so many different sources for timely messages, why doesn't the Post Office become productivity oriented with radical change. Deliver mail to half the people on Monday, Wednesday & Friday, and deliver the other half on Tuesday, Thursday & Saturday. Nothing comes in my daily mail that is so important that a 24 hour delay would be a problem. Immediately, a huge chunk of the USPS workforce, management and labor, becomes excess.
As a postal worker, we are constantly have our workload increased by having our routes lengthened. When I became a city carrier six years ago, my office had 15 1/2 routes with 20 carriers (accounting for a five day work week and six days of service) to carry the mail. Now we have 12 1/2 routes with 15 carriers. Each route is set up to be eight hours for the regular carrier. Our routes have increased in length to compensate for decreased mail volume. If anything postmen are working harder everyday.
The USPS offers Universal service to every house in the U.S. If the only piece of mail you have coming is a postcard, it gets delivered, even if UPS or FedEx would consider it "out of the way" or "not profitable."
The rate increase is barely keeping up with inflation. UPS, FedEx, and others raise rates however they want and charge extra for Saturday delivery. How much has the cost of everything else gone up? How much extra do you pay for fuel, medicine, transportation, etc.? I'll bet it is a whole bunch more than the price increase to send that vintage doll or those care packages to our soldiers overseas.
PATTI's post at 3:01pm is right on the target. You left out the discount to non-profits.
John "Jack" Potter should have been fired years ago. His solution, which is not working, is always the same: raise the rates. Jack, I want your job and I will take it without all the little and big benefits most do not know about.
Back in the good old days; in 1883 the U.S.Congress passed a bill to lower postage rates from 3 cents to 2 cents.
The result was a massive increase in the number of mailings. As I recall reading, there was a 1000% increase. Did those fellows have more brains back then? Were they eating better? Perhaps We The People voted in better people or better people ran for office, did their service and went back home to work.
Potter you should be fired. When and if you are, I really want the job. I promise to follow the good work of Franklin, our first Postmaster General.
tim cunningham 7-08-2010 11:14PM
Tim, You may want to rethink this one buddy. Saving on postage was not the reason. You seem so innocent; which is a good thing, a dying quality.
Under what business plan does increasing the price to the customer increase sales? People are moving to other means because they find it cheaper other places or more efficient for the additional cost of others. The Postal Service has never made money with rate increases. Do the same over and over again and expect a different result?
This is a typical examp;e of government run business and they want to run the banks,and health field. I don't think so.