Postal rate increases take place Sunday

WORLAND – This Sunday, national postal rates will see some of the largest increases ever.

Prices will see an all-time high of 55 cents for the first ounce of a letter, increasing 5 cents from 2018 prices. Additional letter ounces will decrease from 21 cents to 15. Outbound international letters remain at $1.15 and postcards remain at 35 cents.

HISTORY

According to their website, the United States Postal Service (USPS) was first founded in 1775 with Benjamin Franklin as their first post master. However, stamps weren’t issued until 1847 by Rowland Hill and John Gault. Prepayment of postage wasn’t required until 1855.

March 3, 1863, letters, postcards and packages were 6 cents an ounce. By October of 1883, over 20 years later, the prices had decreased by 2 cents. Two years later, in July of 1885, USPS’s prices were the cheapest they’ve ever been at 2 cents per ounce for letters and packages. Postcard rates reached an all-time low of 1 cent for the first time in 1898.

One of the largest increases first seen was in 1975 when prices had gone from 10 to 13 cents for first ounce, then 11 cents per additional ounce.

By April 1988, letters and packages were a full 25 cents for first ounce, then 20 cents per additional ounce. In January of 2001, letters and packages were 34 cents for their first ounce, and 21 cents per additional ounce. Since then, the largest increase of postal rates took place in 2014 when prices had gone up to 49 cents for the first ounce of a letter and 21 cents per additional ounce and $2.32 for the first ounce of a package and 17 cents per additional package.

OTHER INCREASES

The proposed domestic priority mail retail rate price changes increase the price for small and medium flat rate boxes by 70 cents, large flat rate boxes and air and fleet post office large flat rate boxes by $1.05. Prices for regular and legal flat rate envelopes will increase by 65 cents, while padded flat rate envelopes now cost an additional 70 cents.

As of Sunday, small flat rate boxes will cost $7.90, medium flat rate boxes are $14.35, large flat rate boxes are $19.95, Army Post Office and Fleet Post Office boxes are $18.45. Regular flat rate envelopes will be $7.35, legal flat rate envelopes will be $7.65 and padded flat rate envelopes will be $8.

REASONS

According to Linda Neill, USPS spokesperson, the Postal Service adjusts mailing services products annually based on the consumer price index while shipping service products are adjusted according to market condition.

“Three years ago, we actually reduced the price of a first class stamp,” Neill said. “This year, they’re going up…”

“The finances of the Postal Service are being challenged by electric alternatives and competition from other substitutes to hardcopy mail, which decreases our revenue,” Neill said. “At the same time, out cost to serve the American public are increasing in areas such as transportation, health care, etcetera, which further supports the need to change prices.”

According to Neill, the Postal Service is a completely self-funded operation. They don’t receive any tax dollars for operating expenses. Instead, it relies on the sale of postage, products and services to fund its daily postal operations.

The mailing services products prices will be raised approximately 2.5 percent, according to Neill. The shipping services products prices increases vary by product, however, with Priority Express increasing 3.9 percent, and priority mail increasing 5.9 percent.

Neill proposed that because first-class mail’s single-piece additional ounce price will be going down 15 cents, mailing will be cheaper. “A two-ounce stamped letter, such as a typical wedding invitation, will cost less to mail, decreasing from 71 cents to 70 cents.”

“In light of a decade of sharp declines in first-class mail volume, we need more than an incremental price change to effectively respond to our financial challenges,” Neill said. “The Postal Service is one of the most efficient postal administrations in the world, but volume for first-class mail – our most profitable product – has declined by 38 percent compared to 2007, and is expected to decline as a result of diversion to digital communications and the increase in online transactions.”

“The root cause of the Postal Service’s financial instability is a flawed business model that is imposed by law,” she said. “With absent changes to the USPS’s business model, net losses are expected to continue.”

According to Neill, the Postal Service’s financial situation is serious, yet solvable with continued aggressive management actions, advancement and passage of postal reform legislation and establishment by the Postal Regulatory Commission of a less rigid and more responsive pricing system.

Those who actively use the Postal Service may look to buying their Forever stamps soon, seeing as the price will be increasing 5 cents to 55 cents on Sunday. That being said, forever stamps hold their value – forever – meaning stamps purchased prior to the increase will remain good for first-class postage.

A complete list of Postal Service prices for all products will be found on the PRC website under the “daily listings” section at http://www.prc.gov/dockets/daily.