Stamp Prices May Soon Increase Again [Report]

    May 10, 2013
    Chris Crum
    Comments are off for this post.

You know how the U.S. Postal Service keeps raising the price of postage? Well, get used to it, because it looks like the price of stamps may soon be rising again.

A report out from CNN Money says USPS board chief Mickey Barnett said the board has directed the USPS to “evaluate price increases,” while also noting that, “as a board we are loathe to pursue this approach.”

It’s no secret that the post office is struggling to make ends meet these days. You’ve most likely heard of the grand plan to eliminate Saturday mail service, but that approach was recently shut down, or at least delayed, as Congress, last month, passed a resolution that the USPS said gave it no choice but to backtrack. More on that here.

In April, the U.S. House Oversight and Government Reform Committee held a hearing in which Postmaster General Patrick Donahoe discussed the Postal Service’s losses.

“In the past two years, the Postal Service has recorded $21 billion in losses, including a default of $11.1 billion in payments to the United States Treasury,” he said. “The Postal Service has exhausted its borrowing authority and continues to contend with dangerously low liquidity. We are losing $25 million a day, and we are on an unsustainable path.”

First class mail use has dropped 28% since 2007, he said, complaining that restrictive laws governing the Postal Service prevent it “from fully responding to these changes in consumer behavior.”

Something has to give somewhere. Unfortunately for consumers, that may mean paying more to send mail.

  • Eileen O’Brien

    The expression is “loath to pursue” NOT “loathe…”

  • Evvie Williams

    Raising the price on stamps, I am all for!! Congress started all of this and only Congress can the Post Office out of this. I use the mailing system, as I do not like to pay my bills online!!!!! Keep it up USPS and keep doing what you are doing!!!! Thank you!

  • teddy bear

    If they cut out all of the expensive advertising that is not producing any additional patrons, the operating cost would drop considerably. After all who doesn’t know about the Postal Service and what they offer???? Get employees who want to work and are willing to put out some effort. We have seen many dedicated employees who are an asset to the Service.

  • http://www.singularfore.com/ Anfréa

    Tem que analizar bastante o modelo deles.

  • http://www.singularfore.com/ Anfréa

    Tem que analisar bastante o modelo deles.

  • http://www.quantisoft.com Howard Deutsch

    USPS is in a downward spiral. Technology has made the need to mail things using snail mail less important and this trend will continue. Postage increases are acceptable for many of us but some people and companies will find more ways to stop using snail mail as postage pricing increases. Maybe the time has come to cut back on the number of days mail is delivered.

    I also wonder what the USPS can do to compete head on with FedEx and UPS?