USPS seeks 2007 stamp hike, proposes new pricing plans
By Purchasing Staff -- Purchasing, 5/5/2006 6:00:00 AM
U.S. Postal Service wants to increase postage rates in 2007 and has proposed a new pricing structure. USPS also proposed issuing a “forever stamp” that could always be used to mail a letter no matter how much postal rates go up. The price of a stamp just went up to 39¢ in January. The forever stamp would help soften the blow of a rate increase by allowing customers to stock up.
The current pricing structure for postal products relies primarily on a weight-based system. The new plan--sent to the Postal Rate Commission as part of a 2007 price adjustment proposal package--combines weight with shape to allow the Postal Service to better align prices with processing costs to ensure every type of mail covers its costs. Price changes would not occur before May, 2007. The new pricing plan would give shippers the opportunity to obtain lower rates by putting mail into shapes that reduce processing costs for the Postal Service. For example, if the contents of a first-class flat can be folded and placed in a letter-sized envelope, the mailer can reduce the postage by as much as 20¢ per piece. If a first-class parcel can be configured as a flat, the mailer will save 36¢. "Our pricing proposal recognizes changes in underlying costs and market conditions, and includes pricing initiatives to improve efficiency, which helps keep rates affordable for everyone," says Postmaster General John E. Potter. "We will work closely with our business mailers in the coming months to show them how they can take advantage of the new pricing to keep their mailing costs as low as possible."
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