Postage Pricing

Pricing

Recently, USPS announced potential price changes for 2014. Some of the proposed changes include:

  • Letters (1 oz.) — 3-cent increase to 49 cents
  • Letters additional ounces — 1-cent increase to 21 cents
  • Letters to all international destinations (1 oz.) — $1.15
  • Postcards — 1-cent increase to 34 cents

The changes, which would go into effect in January 2014, are intended to generate $2 billion in incremental annual revenue for the Postal Service.

The Postal Service isn’t alone in adjusting its pricing. Last week, Post Danmark announced it was raising First-Class prices by 12.5 percent and Standard Mail by 8.3 percent. During that same week, France’s La Post also announced it would be increasing prices, with its retail letter costs rising by 5 percent. Both changes take effect in January 2014.

As the digital revolution continues to apply a greater amount of downward pressure on letter mail volume each year, it will also have a positive impact on parcel shipping due to Internet-based consumer shopping. While the shipping business is projected to increase substantially in the foreseeable future, its impact is not likely to entirely compensate for the continued decline in letter mail revenue.

Besides future price increases, what other opportunities do you think USPS should explore to increase revenue?

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5 Comments

  1. Anonymous

     /  October 9, 2013

    There wouldn’t be an increase if we eliminated upper level managers who do NOTHING but collect a paycheck every two weeks…

  2. Postal worker

     /  October 9, 2013

    While I can appreciate the frustration in the above commentor’s reply, those kinds of remarks really aren’t helpful. There are many days that I also feel that way – it seems like all people really care about (both staff & management) is how to save their own job and not necessarily how to do their job better and more efficient. I wish I had some ideas for you Benny; our organization really does need to find some creative revenue generating ideas. I hope that some one out there will respond with some.

  3. Grannybunny

     /  October 9, 2013

    I think USPS should establish business centers in Post Offices, where individuals could come and have access to computers, printers, copiers, faxes, etc., all for a fee.

  4. Jonn

     /  October 9, 2013

    I think that’s an excellent idea, Granny. I’ve been thinking that same thing for years. Post Offices could scan documents for people, offer wifi, and more. I’d like to see photo kiosks in POs too. People can print out photos and send them to others in the mail in one convenient location. Maybe the machine can even turn the photos into postcards by placing the appropriate marks on the back of each photo. That would be a unique service. There’s so much usps can do to enhance its business, but its hands are tied by congress. Now with the budget thing is going on, I don’t think congress is going to do anything again this year for usps. Maybe in 2014.

    • Grannybunny

       /  October 9, 2013

      Thanks! I meant to also mention offering giftwrap and packing services, too.

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