Prepare for a 10% hike on your Priority coin mailings.
Coinstartled
Posts: 10,135 ✭✭✭✭✭
CNN) — The US Postal Service is asking for the biggest price jump on stamps in its history.
The Postal Service on Wednesday proposed raising the price of 1-oz. letters from 50 cents to 55 cents, which would be a record nominal increase if approved. The price of each additional ounce would go down slightly.
The request was made by the USPS' board of governors, which has been operating on an emergency basis because of a lack of confirmed members. It will have to be approved by the Postal Regulatory Commission.
"The Governors believe these new rates will keep the Postal Service competitive while providing the agency with needed revenue," the USPS said in a press release. "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."
Rates for mailing services -- which includes catalogs and magazines as well as letters -- are pegged to consumer prices. Those have been rising faster this year, but still limited the price hike for that category to 2.5 percent.
Prices for packages, however, can float with market rates. The USPS wants to boost Priority Mail prices by an average of 5.9%. A small flat-rate box that costs $7.20 to ship, for example, would next year cost $7.90.
Comments
Holy crap!
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
Best buy some forever stamps now.
Paper money eventually returns to its intrinsic value. Zero. Voltaire. Ebay coinbowlllc
They have to make up for all the losses piling up from shipping packages over 5,000 miles in the continental US. I see it every week when tracking my sales and purchases.
Imagine the notion of investing $1,000 in forever stamps 2 years ago...
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USPS used to advertise Priority as 2 pounds for $3.
That slogan is long gone.
...I don’t like leaving my states unless I absolutely have to...so the juice is worth the squeeze to me
Thanks for the heads-up !!!
They could still advertise 70 pounds for $12
Hell, they may have to raise Amazon to $1.10 a package.
Still very cheap as far as I am concerned.
Coin people spend hundreds of dollars on a single "rare" coin and then begrudge the USPS people a proper living.
I completely agree.
3 ounce small package has tripled in price in a dozen years. Meanwhile USPS has switched to lower paid and often inexperienced contract employees. Somewhere their is a management sieve that needs to be addressed.
Delivery boys ain't what they used to be.
Still the best mail service.... I have lived and worked in other countries, and their mail service cannot compare to the U.S. Postal Service. Cheers, RickO
Because it is NOT the incremental cost of shipping your one package. It is the fixed costs of the entire system in an environment where 1st class mail volume has been decimated.
Think of how challenging their mission is: deliver to EVERY HOUSE in America on EVERY DAY except Sunday. When the mail was full of junk mail and 1st order mail, there was a lot of mail volume. Their mission is exactly the same: EVERY HOUSE, EVERY DAY. But now there is little junk mail and little 1st order mail. The money that came from those sources used to help to pay the bills and so an incremental package had a marginal additional cost. Now, the total cost of the infrastructure is spread across a smaller base.
There is no "management sieve". There is a fundamental shift in their business which they have been forced to adjust to. Increasingly, it is more and more packages and less and less 1st class. They are still cheaper than FedEx and UPS and those operations don't have to ship to EVERY HOUSE, EVERY DAY.
I'm confused. Your headline said 10% rate increase on priority mail, but the article said 5.9%. Where did you get the 10% increase on packages from?
In defense of Coinstartled, it does say "average" of 5.9% so some could be going up more.
In prosecution of Coinstartled, he's just trying to make a negative comment about the USPS.
I'm old enough to remember when a small flat rate box was $4.95.
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With the number of packages I ship, especially priority, could effect the bottom line substantially.
Sounds like you didn’t read the last sentence of the OP. Which seems odd because you obviously read the previous sentence.
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
The new higher price will still be a bargain.
Until you have to eat higher postage costs on eBay and wherever else buyers insist on free shipping.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
Do you actually know anyone who thinks that way?
Doggedly collecting coins of the Central American Republic.
Visit the Society of US Pattern Collectors at USPatterns.com.
When talking to the local postmaster, he says they jump through all of Amazons hoops. It sure works great though in our small town.
They could make a ton of money charging for delivery of packages arriving from China. It costs me a minimum of $2.66 to ship a one ounce parcel across the street while I can order a battery for my car key from China for $0.99 with free shipping. There is something wrong with this picture.
it's crackers to slip a rozzer the dropsy in snide
Ya, about half of the forum members .....
Let's remember that the politicians forced the USPS to pay billions up front to pay for defined benefit pensions in spite of it not being actuarily necessary. Peace Roy
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I live in a rural community with a central mail house. No USPS delivery to my door - never has been and never will be. They deliver mail to your keyed box and also deliver parcels in parcel lockers (keys placed in your keyed box).
Over the last couple of years, the parcel volume has exploded. They tripled the number of parcel lockers and there still aren't enough every day. Plus, they have not changed the manpower in any way I can detect (but it is possible they shifted/added elsewhere).
I attribute this to the "Amazon Effect" - especially with the free Prime Shipping for a fixed annual fee. People are now opting to shop on line instead of B&M stores, and the goods arrive at your door in a couple of days. This model is what ebay is pressing sellers to emulate.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
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Thank you for the seller perspective. Margins are always tight on quality, PCGS graded coins. Those that will buy a $60,000 auto begrudge coin dealers a proper living.
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He's free to start a better cheaper service.
Let's back up for a moment. The opening post was picked up from CNN. I deleted a snarky inference to Trump from it, as this was to be an informational thread, not one of truculence and snowflakery.
While I appreciate the suggestion Bajjerfan, to start a cheaper service, that is a bit out of the realm. It would take a deep pocketed guy like Warren Buffet or TDN to even consider such an undertaking.
I have been a fan of the USPS for some time and have often commented on the high success of package delivery that they usually accomplish.
As a customer of theirs though, one is certainly entitled to address matters of cost. particularly as they have seemingly (but refuse to disclose) a sweetheart deal with Amazon that the rest of us are likely subsidizing.
As a coin customer, the hikes are of little concern and are generally absorbed by the seller. A ten percent increase to a volume seller is a profit sapper which is worthy of ones attention.
Those who do not question the actions of governments and their agencies are doomed to life in a dark work cubicle, hoping that their ticker and knees hold out until they are Medicare eligible.
I prefer FedEx to usps, they were around the same on a medium priority recently, usps would have gotten there in half the time though at the $12 or more price. They need to do what is necessary to remain viable including claw backs on pensions and other excess benefits.
Well, that ASE that cost $25 will now cost ya $26...
So more money is buying less now, whats new about that?
It was a little TIC and while it's ok to offer criticism, the invent a better fishhook mantra is always an option. As the old saw goes, "there is no such thing as a problem, only an opportunity."
me and have often commented on the high success of package delivery that they usually accomplish.
Again, this misunderstands the business. They deliver to EVERY HOUSE, EVERY DAY. Adding Amazon packages to your route does not create as much incremental cost as you are assuming. They are already running the routes. A volume shipper like Amazon actually helps increase the mail volume and distribute the FIXED COSTS over a broader base. No subsidies required, no subsidies given.
Welcome to America. Semper Fi!
https://washingtonpost.com/news/wonk/wp/2018/04/04/is-the-post-office-making-or-losing-money-delivering-amazon-packages/?noredirect=on&utm_term=.95003e118246
I suppose the Feds losing so much money with the postal service delivering Amazon packages for free they had to do something.
It’s alright, we’ll pick up the tab. Of course this is just my take on the subject.
After 25 years of low inflation, the prospect of yearly inflation rates of 5% to 8% are alarming to most everyone.
The postal rate can cause inflation but are mostly a barometer of inflationary pressures.
Time to buy gold and silver and rare coins if you have not been already.
Do you by chance know who owns the Washington Post?
It is Jeff Bezos....founder of Amazon!
W O W !!!! The post started off with an excerpt from CNN about a raise in postal rates and somewhere along the lines we begrudge a living to postal workers and coin dealers . Face it and look at facts. The Mantra of " every home, every day " is archaic in todays world. Businesses have to evolve with the times or become extinct. Government facilities believe that the fix for any problem is to throw more money at it. Raise rates to keep up with costs. Postpersons walk or drive by many customers who receive no mail except for junk mail. WHY ? Why does mail have to be delivered every day. What's wrong with mail delivery 3 times a week instead of every day. What's wrong with having community drop boxes in a central location instead of every house. Evolve or die. Just because we did it that way 25 years ago and should do it today because that's the way we did it before sounds the death knell for that organization. The post office is top heavy with management and being drug down with High benefits payout because they invested poorly and managed poorly in the past and its time to pay the Piper. As for them delivering for Amazon and loosing money. They Made The Deal. Amazon didn't force them. Another example of poor management and grasping for straws to keep afloat. All the indicators are there. The written word is a dying dinosaur. Its heart has stopped, its breathing has ceased . The massive blood flow has oxygen left in it and the brain just hasn't gotten the message yet. If you want a package delivered across the country, You're going to have to pay for it. That means cutting your profit levels or raising your cost to the consumer to cover the increase and we all know what that decision is. Like I said before , the solution is " Throw More Money At It".
Bob Sr CEO Fieldtechs
American Airline flies from Phoenix to New York everyday. Assuming that a seat is available on Friday, should they fly me there for the incremental fuel charge of $15, as they will going there anyway. Of course not.
Amazon and the PO should disclose this mutually beneficial deal so that we can all see just how mutually beneficial it is.
I was having a conversation with someone at lunch today, and ended up wondering when Amazon will try to buy UPS or FedEx.
Keeper of the VAM Catalog • Professional Coin Imaging • Prime Number Set • World Coins in Early America • British Trade Dollars • Variety Attribution
Last week, I sent a priority mail letter to Brooklyn, NY. Over one week later, the envelope is still sitting in the Long island distribution center and we had to launch an investigation as to the problem. All for $6.70. Yet, a 1st class letter got there with no problem.
Actually, are you familiar with flying "standby"? Look at last minute bookings on cruises. they do heavily discount seats to try and make sure the ship/plane is full. So, thank you for bringing up another excellent example of incremental vs. fixed costs.
I do. And yet that is not a counter argument to the analysis in the article which remains an excellent discussion of incremental vs. fixed costs.
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How about CBS?
https://cbsnews.com/news/post-office-lose-money-amazon-contract-usps-fact-check-trump-tweets-again-today-2018-04-03/
FedEx USPS and UPS Secretly own Ebay. It is a deep sinister plot to get people to pay to move their junk all around the country. Without ebay, the Triad of Shipping would go bankrupt.
This is my last post, as they will hunt me down for exposing the Ultra Secret.
Many of my usps expresses are arriving substantially late; yesterday I dropped off an express that was not tracked after the one at the post office. I called the usps help line and not only didn't the automated system recognize my clearly enunciated english entering tracking, etc., is cluttered with unnecessary and redundant introductory information in their message, finally after trying over an over again to repeat my information, I was put through to the human wait line, which was going to be over an hour before I spoke to someone. A badly broken system.