Posted by Linda_in_MI on 1/4/06 11:53pm
Msg #86164

US Postal rates increasing 1/8/06

In case you haven't heard already . . .
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New Domestic Prices Effective January 8, 2006

The Governors of the U.S. Postal Service voted November 14 to accept the Postal Rate Commission's recommendation to increase most rates and fees by approximately 5.4 percent.

This price increase – the first since 2002 – is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. Among the adjustments, the 1 ounce single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents.

The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

FOR MORE INFORMATION AND RATES ON CERTIFIED/REGISTERED MAIL here is the link to the press release: http://www.usps.com/ratecase/welcome.htm

Reply by PA_Notary_II on 1/5/06 9:24am
Msg #86211

I wonder how much of the increase will be allotted to advertising. I can't imagine why USPS poured money into the Tour De France unless it was to justify increased prices. Leave it to the government to waste our $$$.

Reply by S_CA on 1/5/06 10:27am
Msg #86232

Advertising has absolutely nothing to do with the new rate increase. As the poster above stated, the Postal Service has been federally mandated to put 3.1 billion into a trust account this year. Had that not happened, rates would not be increasing at this time. There is no more efficient mailing industry in the world. Go to your local mail processing facility and take a tour sometime. You'd never take for granted how your letters get across the country for such an inexpensive rate. The Royal Mail in England just gave up their monopoly to competitors. Just for fun, watch how fast the rates go up for all consumers and how the term "universal service" will be a thing of the past. Now I'll get off my soap box.

Reply by PA_Notary_II on 1/5/06 11:54am
Msg #86263

Not trying to be difficult here, but $$$ spent on advertising by USPS is just $$$ wasted. They are not going to increase their business by spending $$$ on tv ads. No matter what you say....they still mis-spent money on unnecessary advertising. All expenditures require an income offset somewhere. Who the heck makes up the difference if it isn't us ?? (U.S.)

Reply by CaliNotary on 1/5/06 1:24pm
Msg #86288

You must be kidding. The USPS has plenty of competition - Fed Ex, UPS, online payment services, Western Union, private mailbox centers, etc.

Why do you think companies spend so much money on advertising? BECAUSE IT WORKS! The USPS is a brand name just like Nike or Pepsi. They are not just wasting money by sponsoring events and buying TV ads, they're doing what every other business does - trying to increase their visibility to increase sales.

And as for the postage increase, please, it's 2 freaking cents. How many other products out there increase their prices as infrequently as the USPS does? Not too many.

Reply by S_CA on 1/5/06 2:20pm
Msg #86305

Re: Couldn't have said it better, Cali

You are absolutely correct. Additionally, The Postal Service is not supported by tax dollars and hasn't been since 1971 when it went from the Post Office to the Postal Service. It is supproted by the consumers like most US businesses and is mandated to break even. And please don't even get me started on companies that gouge this country. Just go fill up your gas tank and see if you can drive away with a $.02 increase.