Postal rates increase May 14
by MCL staff writer

The United States Postal Service has announced yet another rate increase. This increase will become effective May 14, 2007. The new rate for first class stamps will be .41 cents per letter. Priority mail will increase from $4.05 to $4.60. The USPS submitted the request in May of 2006, just four months after receiving a 2 cent increase that raised postage from .37 cents to .39 cents.

Along with this increase, the USPS also received approval for a "Forever Stamp." The Forever Stamp will sell at the new .41 cent rate beginning in May of this year. This stamp can be used forever to mail first class letters and will always maintain the value of the one ounce letter rate. Regardless of how many rate increases occur, the "Forever Stamp" will never require additional postage. It would be advisable for consumers to purchase a large number of these stamps when they become available to prevent feeling the effects of future rate hikes.

The request of the USPS to increase the Priority Mail Flat Rate Box from $8.10 to $9.15 was denied by the Board of Governors, and is currently being reconsidered. The pricing chart made public on the USPS website lists separate pricing for First-Class Mail, Wedding Invitations, Postcards, Priority Mail, Express Mail, Parcel Post, Bank Statements, and Utility Bills. This list may be viewed by visiting the USPS website.

In recent years we've seen numerous price increases from the USPS. These increases are intended to cover the cost of the services they offer; however, these hikes have some frequent mailers frustrated. A large number of people use the USPS to ship products they have sold at internet venues like ebay, one of the largest online marketplaces. These people are concerned that the rate hikes will affect their sales. Buyers frequent ebay in search of a good deal; when a potential buyer sees a high shipping cost, the sale can be lost.

The USPS has reported on their website that when fuel prices increase one cent their costs increase $8 million dollars. The postal service wants to be very clear that the organization receives no tax dollars from any source. The agency is self-supporting, and the increase is solely to raise revenue to pay expenses.

"A forever stamp would help ease the transition to any future price adjustments," said Board of Governors Chairman James C. Miller III, in a USPS press release. The Board of Governors did not suggest a price for a "forever stamp."

Among factors justifying the proposed postage rate increase, USPS cited increasing costs for fuel and employee health care. "The Postal Service is not immune to the cost pressures affecting every household and business in America," said Postmaster General John E. Potter, who went on to point out that First- Class postage had increased by only a penny a year during the last five years, "less than many other consumer products and services."

In 2005, the cost of providing health insurance to the more than 621,000 current employees and 445,000 retirees of the U.S. Postal Service hit a total of $6.6 billion.

According to a history of postal rates, first class postage has more than tripled since September 14, 1975, from 10¢ per ounce. It more than doubled from 1975 to 1981, and has more than doubled again in 2007.

Looking at the increases, there is nothing that could be a better purchase than the "forever stamp" at 41¢ considering how postage has increased to date.

A forever gallon of gas would also look good at this time.