Postal Increase Proposed for Late January, 2019

[Know Common Cents]

Heard from a friend the USPS is proposing a substantial increase in most classes of mail at the end of January, 2019.

I verified this on the USPS website. The initial impact will be the mailing cost of a First Class letter at $0.55. Other classes of mail (and especially all sizes of Flat Rate Boxes will also rise substantially). Those are scheduled to increase around the 5-10% range. I haven't done the math on all of these rates, but they'll certainly impact all of us when mailing Au, Ag, Ni, Cu and other metals to other RCers.

I guess the operative directive is to plan your mailings as best as possible before the increases.

On the personal side, it may be in everyone's interest to purchase as many Forever stamps as possible. That act will result in a net savings of 10% after the late January implementation date.

The release from the USPS is dated October 10, 2018, so this seems to be a fresh release. Of course the Postal Board of Governors still have to approve of the USPS' rate case for late January, but some rise seems inevitable.

[b]WASHINGTON — The United States Postal Service filed notice with the Postal Regulatory Commission (PRC) today of price changes to take effect Jan. 27, 2019. The proposed prices, approved by the Governors of the Postal Service, would raise Mailing Services product prices approximately 2.5 percent. Shipping Services price increases vary by product.

For example, Priority Mail Express will increase 3.9 percent and Priority Mail will increase 5.9 percent. Although Mailing Services price increases are based on the Consumer Price Index (CPI), Shipping Services prices are primarily adjusted according to market conditions. The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue. If favorably reviewed by the PRC, the new prices will include a 5-cent increase in the price of a First-Class Mail Forever stamp, from 50 cents to 55 cents.

[b][u]Here is the text of the USPS release from October 10.018.

The single-piece additional ounce price will be reduced to 15 cents, so a 2-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents. The proposed Mailing Services price changes include: Product Current Proposed Letters (1 oz.) 50 cents 55 cents Letters additional ounces 21 cents 15 cents Letters (metered 1 oz.) 47 cents 50 cents Outbound International Letters (1 oz.) $1.15 $1.15 Domestic Postcards 35 cents 35 cents The proposed domestic Priority Mail

Retail Flat Rate price changes are: Product Current Proposed Small Flat Rate Box $7.20 $7.90 Medium Flat Rate Box $13.65 $14.35 Large Flat Rate Box $18.90 $19.95 APO/FPO Large Flat Rate Box $17.40 $18.45 Regular Flat Rate Envelope $6.70 $7.35 Legal Flat Rate Envelope $7.00 $7.65 Padded Flat Rate Envelope $7.25 $8.00 First-Class Package Service, a lightweight expedited offering used primarily by businesses for fulfillment purposes, will move to zone-based pricing to better align with the cost of service and improve value based on distance.

The Postal Service has some of the lowest letter mail postage rates in the industrialized world and also continues to offer a great value in shipping. Unlike some other shippers, the Postal Service does not add surcharges for fuel, residential delivery, or regular Saturday or holiday season delivery.

The PRC will review the prices before they are scheduled to take effect Jan. 27, 2019. The complete Postal Service price filings with the new prices for all products can be found on the PRC site under the Daily Listings section at https://www.prc.gov/dockets/daily (see listing for Oct. 10). For the Mailing Services filing see Docket No. R2019-1. For the Shipping Services filing see Docket No. CP2019-3. The price change tables are also available on the Postal Service website at https://pe.usps.com/PriceChange/Index. The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products, and services to fund its operations.
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Please Note: For U.S. Postal Service media resources, including broadcast quality video and audio and photo stills, visit the USPS Newsroom. Follow us on Twitter, Instagram, Pinterest, and LinkedIn. Subscribe to the USPS YouTube Channel, like us on Facebook and enjoy our Postal Posts blog. For more information about the Postal Service, visit usps.com and facts.usps.com. More USPS holiday news, including shipping deadlines and Santa mail, can be found at usps.com/holidaynews.
For reporters interested in speaking with a regional Postal Service public relations professional, please go to about.usps.com/news/media-contacts/usps-local-media-contacts.pdf.
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[Recyclersteve]

I agree that postal rates here in the U.S. are very low compared to other countries (even our friends in Canada). That said, it is amazing to me that the USPS consistently loses money. I guess some would blame that on UPS and Fedex.

[johnbrickner]

Bring it on, jack the rates. I've got enough forever stamps to consider it a good investment, however small a fraction of my assets they are. I'm fond of calling them Zero coupon, inflation indexed, quasi-governmental, mini-bonds.

[Know Common Cents]

Word is getting around about the pending increase, but there doesn't seem to be any excitement about the 10% increase that's about to happen. I guess most folks are trying to insulate themselves by purchasing Forever Stamps between now and the rate increase at the current rate of 50 cents each instead thinking about the soon-to-be-effective rate of 55 cents.

There are many sites on eBay that offer discounts of 20-40% below face for the purchase of postal scrap. These are unused stamps from the 1970s through 1990s where the value of each stamp is many cents below face value. All it takes is the purchase of a glue stick rather than using your tongue to glue them to the envelope or box.

My Daughter lives in Alaska and I send FRBs to her on a regular basis. By plastering the FRB with low denomination stamps, I'm able to save almost half of the out-of-pocket cost of sending these to her. The postal clerk complains they have to hand-bump (cancel) the stamps, but, sorry, I'm not really in sympathy with them. Oh well.

I'm pleased to realize the savings of my efforts. Small price to pay when you consider the bucks saved for postal costs. BTW, I also use "postal scrap" to pay bills (Yes, I still send a few by mail instead of paying on line). It's a great deal. Especially during the Holiday season, be sure to take advantage of the discounted stamps available on line to smile thriftily as you hand the packages to the postal clerk. Works quite well for holiday cards, too.

[IdahoCopper]

The International Postal Union uses SDRs to settle accounts between national post offices.

A postage increase of this size is a direct reflection of the erosion of the USD value, against SDRs and other currencies.

It is one of the best measures of real inflation.

[Thogey]

Does anyone know if you can combine a postage label (like the ones printed form pay-pal, e-bay stamps.com) with stamps. I would like to use my old stamps on packages, but save a trip to the PO to get tracking.

Example,If I can I print a label for one pound on a two pound package and add the difference in stamps?

Has anyone done this? Does it cause problems of slow the package down?

[Rodebaugh]

Does anyone know if you can combine a postage label (like the ones printed form pay-pal, e-bay stamps.com) with stamps. I would like to use my old stamps on packages, but save a trip to the PO to get tracking.

Example,If I can I print a label for one pound on a two pound package and add the difference in stamps?

Has anyone done this? Does it cause problems of slow the package down?

I do it regularly. You are good to go Eric.

[Thogey]

Thanks Doc.
Do you use the commercial rate or retail rate to determine the final sum?

[natsb88]

Thanks Doc.
Do you use the commercial rate or retail rate to determine the final sum?

Any stamps on the package = retail rate because (theoretically) somebody has to count them / process the package. You'll have to calculate the total retail rate and subtract what you actually paid for the online label. If your online label doesn't show the amount of postage paid, it might get held up for verification somewhere. I don't recommend using this technique for anything time critical, like eBay packages where buyers expect them to show up on/by a certain date.

If you are sending something that is less than 13 ounces, you can use stamps for it all and just slap one of these tracking number labels on it:

https://store.usps.com/store/product/sh ... P_LABEL400

Stamped mail over 13 ounces has to be presented in person at the PO, but stamped mail under 13 oz can go in a drop box or get picked up.

[Thogey]

I don't recommend using this technique for anything time critical, like eBay packages where buyers expect them to show up on/by a certain date.

If you are sending something that is less than 13 ounces, you can use stamps for it all and just slap one of these tracking number labels on it:

https://store.usps.com/store/product/sh ... P_LABEL400

Stamped mail over 13 ounces has to be presented in person at the PO, but stamped mail under 13 oz can go in a drop box or get picked up.

Killer advice! Thanks.

Question:

I don't recommend using this technique for anything time critical, like eBay packages where buyers expect them to show up on/by a certain date.

Do you mean mixing stamps and labels period or just stamps and labels without postage total displayed. Have you had packages delayed doing this?

[natsb88]

Question:

I don't recommend using this technique for anything time critical, like eBay packages where buyers expect them to show up on/by a certain date.

Do you mean mixing stamps and labels period or just stamps and labels without postage total displayed. Have you had packages delayed doing this?

Mixing stamps and labels period, although I think it is much less likely to cause a delay in this scenario if the label has the dollar amount printed on it. If it gets kicked out at a sorting center to check the postage (more likely with mixing postage methods) they will calculate the retail rate and try to add up what is on the box. If the computer label doesn't have a dollar amount on it, it may get tossed to the side for somebody else to look up what was paid.

When it is only a computer generated label, not adding any stamps, then it's generally better to hide the postage amount. Some postal employees have retail rates in their heads and have been known to see the commercial rate printed on the label and mark it as postage due or return to sender Stamps.com gives me the option to display or hide the postage (unless I add extra services). I don't remember if USPS.com or PayPal give you the choice or not.

I rarely mix labels and stamps. About the only time is if I have a package where putting a packing slip / labels on it kicked the scale up 0.1 oz to the next bracket after I printed the label Most of the time I take my outgoing packages to the PO anyway, so if I'm going to use stamps, I'll wallpaper them all over that sucker and use them for the full amount

[coppernickel]

Thanks for the heads up. I bought some. Still using some from the origin of the forever stamps.