Post office plans to announce new rate increase

Associated Press ^ | July 6, 2010 | Randolph E. Schmid

[Zakeet]

Battered by massive losses, the Postal Service wants to raise rates to bring in more money.

Postal officials scheduled a briefing Tuesday to discuss the amount of the increase, which will go to the independent Postal Regulatory Commission for review.

The boost comes as no surprise. Postmaster General John Potter said March 2 that a rate increase would be necessary for the agency, which does not receive tax funds for its operations.

The current 44-cent first-class rate took effect May 11, 2009.

While that change will be the most visible, rates for other types of mail will also go up, raising concern among business groups and nonprofit organizations.

Under the law, the post office is generally limited to increases no more than the rate of inflation — 0.9 percent for the year ended in May.

However, the agency is allowed to seek a larger increase in unusual circumstances. Potter said in March he planned to take that step.

[Snip]

The agency lost $3.8 billion last fiscal year despite cutting 40,000 full-time positions and making other reductions. It has continued to face significant losses this year.

The weak economy has sharply reduced mail volume as companies cut their advertising. At the same time there has been a significant drop in lucrative first-class mail, with more and more people turning to the Internet to communicate with each other as well as to receive and pay bills.

[Zakeet]

It is more important for us to protect union jobs by robbing taxpayers and screwing customers than to allow free enterprise to compete in delivering mail

[pnh102]

That’s the ticket, stir up demand for product by raising prices.

[abb]

Retaliate. Use online banking whenever possible instead of mailing paper checks in an envelope with a stamp on it.

[Texas resident]

Raise prices and eliminate Saturday delivery.

[DYngbld]

With the amount junk mail I get there should be NO shortage of funds. A one cent increase per mailing by Discover card, will keep the USPS above water for decades.

[pnh102]

Use online banking whenever possible instead of mailing paper checks in an envelope with a stamp on it.

Way ahead on that one. I can't remember the last time I ever mailed out a paper bill.

[DustyMoment]

This is why government should NEVER be considered the solution for ANYTHING . . . . . except (maybe) fighting wars. Only government would see a rate increase for a failing postal system as the solution to inefficiency, waste and absurdly high salaries in the face of declining business. If the USPS were TRULY a private corporation instead of a government sham, they would either make massive changes and improvemnets to their business model - or file for bankruptcy and (likely) close!!

[Oceander]

"which does not receive tax funds for its operations"

That's incorrect. The USPS receives a "subsidy" - I suppose technically it's fraudulently accounted for as consideration for services rendered - of about $3B a year.

[Shannon]

This reminds me of all the tax increases that have happened in NY and NJ. Raise the taxes too high and people leave. So now the gov gets 100% of nothing. It'll be the same with the post office. People will just start paying more bills on-line. The post office will actually end up making less money despite any increase in postage. Brilliant. /sarc

[TSgt]

Privatize it and reduce mail delivery to Monday through Friday.

The USPS sucks compared to UPS or FedEx.

[E. Pluribus Unum]

I'm not sure if this has anything to do with it, but there's this new-fangled thing called the Interwebs that does a lot of the same things as the postal service but faster and cheaper.

[DeaconRed]

RAISE EM
More will stop using the post office.

[DM1]

with online banking and bill pay i am surprised the losses have not been more pronounced. Only thing keeping these guys alive are probably online retailers and auction sites that need them to ship items.

[Daisyjane69]

Maybe they should operate in a more customer-friendly manner.

Open on weekends, evenings...stop making it so hard to do business with them.

Employ people who act like they actually enjoy dealing with customers.

Offer occasional “Sales” on things.

naaaa....that’s too much. Never mind.

[FourPeas]

I’m looking forward to these same people running my health care. </sarc>

[ClearCase_guy]

“UPS and FedEx are doing just fine, right? It’s the Post Office that’s always having problems.” – Obama attempting to make the case for government-run healthcare, while simultaneously undercutting his own argument, Portsmouth, N.H., Aug. 11, 2009

[FourPeas]

Open on weekends, evenings...stop making it so hard to do business with them.

No kidding. A nearby Post Office closes for the day at 4:00pm.

[TomGuy]

Retaliate. Use online banking whenever possible instead of mailing paper checks in an envelope with a stamp on it.

The only check I regularly mail is to the county tax assessor, because they charge $3.50 fee if I use online (via credit card) pay system. I do nearly everything else via online bill pay.

The only mail I regularly receive via P.O. is my Netflix DVDs and junk mail circulars.

[Cringing Negativism Network]

So the USPS is experiencing reduced revenues.

Revenues, for the USPS, come from stamps.

The USPS “solution”? Recently they removed all those coin-operated stamp vending machines from the lobbies.

That should help revenue...
Geniuses.

[Le Chien Rouge]

I use online banking or UPS whenever possible....too many Cliff Clavins and Newmans working at the post office.