Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
January 27 is the day the rates will go up to $.55 but extra ounce down from $.21 to $.15. Link to article below
https://www.al.com/news/2018/11/stamps-set-for-largest-ever-price-increase-in-january-2019.html
(Modified by Moderator on 2018-11-14 16:33:51)
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The media is not being honest. This increase is raising prices by 2.5% across all mail services, and by 10% for first class mail.
There have been larger increases in the past. For example, in 1991 they raised first class price by 4 cents, a 16% increase.
Don
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In 1917, they raised first class a penny for 50%increase and raised post cards the same amount for a 100% increase.
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i should have purchased a ton of forever stamps when all the wise people were in line for them . To us in the USA a 6 cent bump seems like a lot, eventually the cost will have to be passed on to buyers.
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Just this week the USPS announced their 2018 fiscal year numbers; total volume decline of 3.2 billion pieces and a total net loss of a whopping $3.9 billion. First class mail volume continues to shrink but parcel service continues to grow. So frankly they should have raised the prices to 70-80 cents for first class mail (which would be more in line with the rest of the world).
http://about.usps.com/news/national-releases/2018/pr18_093.pdf
Don
Edit: And good news for members of the Informed Delivery program... we will soon be able to digitally sign for 'signature required' packages online. We will not have to be there to sign for the parcel.
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First class mail is still a bargain when compared to other countries in the developed world. The cost of handling the basic mail piece, irrespective to its weight, must be a loosing proposition for regular first class mail, even with all the automation....so it makes sense in my viewpoint to raise the base postage rate. Incremental weight pricing is a remnant of the old days when weight limitations on air service played a much bigger role. I wish the price increase would be accompanied but better service, because I would not mind paying more to have the level of service one expects in other Western countries.
Lately our postal delivery is skipping about one day a week...Monday or Friday it seems are optional delivery days? (to get longer week-end time off?), yes we are lucky to get 4 deliveries a week?...and one never knows if they will eventually make it late to deliver (ie 8:00 pm), or skip it all together. Makes me think of "Neumann" of Seinfeld fame!
Where do they store all the mail they failed to deliver?
rrr....
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Still, the entire process of rate raises by postal services throughout thew world is the antithesis of bad retail practices.
Postal services say that less and less people are using postal services. What do the postal services do? Raise their prices, of course. Then they complain that even less people are using the services. What do they do? Raise the rates, again! If a retail outlet is losing money due to diminishing sales, lowering the prices, trimming the "fat" from operations, cutting unnecessary and redundant outlets, warehouses, processing centers, etc., reducing staff all would be on the table to try to reverse the lowering revenues. I don't think one postal service in the world is doing this. They just keep complaining that sales are going down, and then they keep raising the prices in what can only be called a death spiral.
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Several years ago, when I was still working, I would stop for lunch at a gas station convenience store whose parking lot looked over to the rear of a post office. On many occasions, I saw the same postal clerk push a cart filled with tubs out to the dumpster. She would routinely dump tubs and tubs of mail into the dumpster. They had 3 large dumpsters. Post offices actually throw away a lot of "junk" mail.
Linus
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Hi Michael,
What percentage of the drop in first class mail volume would you attribute to the internet (email and other online messaging) vs the price increases you mention?
Don
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Carol can correct me if I'm wrong, but I would suspect that what is being thrown away is the "standard mail" that is returned as undeliverable. Such mail is not returned to sender like first class and package services mail is.
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Don, does it really matter? If a drug store has been operating on a corner for ten years, and a rival drug store opens across the street, the older one will lose customers to the new store. The postal service is losing first class mail revenues due to the internet and cell phones. A company either adapts to changing times, or goes out of business. Of course postal services get funding to cover deficits from government revenues, so that prolongs operations. In the same vein, government often interferes with post service operations, forcing it to not make changes that would cut deficits.
Go back to the 1960s and 1970s with the railroads. The government built interstate highways and large airports with taxpayer dollars. That cut back drastically on the revenues, both freight and passenger services of the railroad companies. The government also forced private railroad companies (which paid plenty of taxes and had no government funding) to continue to run passenger trains on non-profitable routes, even if no one road on those trains. The postal service also stopped using the railroads to haul mail across the country, putting the mail on trucks and planes. That was the sword that slew the railroads.
Interestingly, some years ago, the postal service resurrected using the railroads to haul mail. The postal service found it to be more reliable and a lower cost to do so than using airlines and trucks. Of course, lobbyists for the airline and trucking industries protesting the trial, and the postal service went back to the trucks and airlines.
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It is also a problem for the Royal Mail but I wonder how much the Philatelic market adds to the revenue. How many stamps are never postally used?
https://www.bbc.com/news/business-46219336
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Probably the number of stamp collectors is relatively small compared to actual revenues.
Regarding advertising mail (called "Standard Mail" by USPS), USPS is again messing things up by requiring any advertising mail that contains anything other than paper to be sent first class. Standard Mail actually is a big revenue driver for the post office. Pushing advertisers who send samples over to First Class is going to result in less advertising mail, that could have resulting in first class packages from orders received as a result of the samples.
The USPS mentality is the same as government officials. "If you need more money, just raise taxes." In this case it's simply raise the postage rates every 12 months and watch revenues continue to drop.
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@anglophile, having been in Canada for the past fifteen years I'm not sure but having holiday there this year the branch post offices in even large towns (like Honiton)were closed down and were within shops like W H Smith (stationers) or in small corner grocery stores.
It was difficult even getting everyday Machins other than "make-up values". Presentation packs seemed to be very rationed even on the day of issue.
The privatisation has bitten deep, very much like Beechings railway cuts, but at least it is now showing a profit albeit not as much as the workforce or shareholders would wish.
I tend to buy new issues that I want direct online from their website.
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This is the price from Uk to States.
Royal Mail International Standard up to 100 g.
More details 5 to 7 working days delivery aim. Up to £20 for loss or damage. Not Tracked £2.25
This is approximately $2.87 at today's exchange rate.
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Sounds cheap really.
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"Royal Mail International Standard up to 100 g."
You sure it is 100 g? (like
1/4 lb for us in the US)
rrr...
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Using an exchange rate of £1.00 = $1.30
Royal Mail International Standard Charges for Non-tracked Mail:-
Letters, to 5mm thick.
Up to 20 gms:--$1.89
Up to 100 gms:--$2.93
Large Letters to 2.5cm thick
Up to 100gms:--$4.29 or $4.49 for Oceania
up to 250gms:--$6.31 or £6.70 for Oceania
Up to 500gms:--$9.23 or $9.75 for Oceania
These prices will increase in March/April 2019
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Is there no differentiation between correspondence/documents and merchandise like the UPU stuck us with here ??? We also can't put customs form on a "letter" anymore.
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There is no definition of merchandise within any leaflet available to the public in my area.
The Price List only lists either Letters, Large Letters, Small Parcels, Large Parcels, the size, weights and thicknesses allowed in each category.
The postal clerks will ask you what is in the package, not whether it is merchandise but whether it is on the prohibited list ie perfumes, corrosive liquids, lithium batteries in electrical items etc etc etc.
There is no mention of the word "merchandise".
However this may change when the new Price List comes out in March/April!!...(IF indeed the merchandise nonsense is a directive of the UPU or whether it is a recommendation/guideline from the UPU.)
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Got a little Booklet from the Post Office today.
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Looks like you're post is going the UPU way too with high-cost international mail. Of course that will mean that less people will be mailing international, so regular mail costs will have to go up to make up for the lost international revenue. Post office officials are clueless to allow the UPU to run amuck with postal rates, because of the nations that are well-off have to make up for the nations that are not. Last I knew, China was considered one of the nations not well off. They actually categorize such nations as "developing nations".
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International mailing is greatly impacted by "Terminal dues".
Part of the summary...
"In the long term, the terminal dues system should reflect the true cost of inbound delivery. In the interim, the United States should continue to work with the UPU to support the separation of competitive small packages containing merchandise from documents and letters. While letters would continue to fall under terminal dues, small packages would be subject to self declared rates that reflect cost and are available to all — posts, competitors, and shippers alike."
https://www.uspsoig.gov/sites/default/files/document-library-files/2015/RARC-WP-16-003.pdf
Even though the UPU is ‘one country – one vote’ I am assuming that the US is influencing the UPU into adopting changes to level the playing field for lightweight packets.
Don
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" the United States should continue to work with the UPU to support the separation of competitive small packages containing merchandise from documents and letters."
A very interesting phrase.
Using the words "support the separation" hints that not all members of the UPU agree with this "merchandise nonsense" and are not adhering to this rule/guideline.
Looking at the Irish Price List listed by Nikki I notice that there is no unanimity of
language and pricing between the UK and Ireland.
Royal Mail is now a Public Company no longer owned by the British Government and they may well feel, as a Private Company, that they can do as they please and ignore any rules/guidelines laid down by the UPU.
Login to Like
this post
Meanwhile I'll get at least a dozen Lands End catalogs before Christmas. If they had to pay what I pay for sending something like that, I'd be lucky to get one.
Watch what happens to the cost of stamps/packages when Amazon last Mile kicks into full gear. The next step after that will be for Amazon to offer to pick up any packages from anyone. My carrier already told me without Amazon parcels there are really almost no parcels to be delivered. Take away parcel delivery and junk mail and there is very little for the PO to deliver. I have a big beef with the PO in their accountability for delivering parcels. I'd love to see them be privatized.
Greg
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this post
If you had purchased Forever Stamps back when they first came out, the return on investment probably has beat the stock market!
The post office runs in a quasi-private state. Congress still has too much say over how they run with little regard to financial ability to do so. For instance, Saturday residential delivery... USPS wanted to cancel that with huge cost savings. I'd be fine with it.
There's also the issue of over funding pensions. I don't know all the details, but I understand that this alone could straighten out USPS issues. I am for people getting pensions, but let's fund it properly.
Post offices - there have been proposals to close small, low use post offices. I was in Bergen County NJ yesterday and visited 5 post offices within a 2 mile circle. That was just the postmarks I needed. I believe there were over a dozen offices. They could easily close half of those.
First Class Mail to every address in the USA - the very basis of the US Post Office! Some of it gets a bit out of hand. I saw a news show once that showed mail being delivered daily via Cessna to a ranch out in the middle of nowhere, I think it was Wyoming or other western state. That's a bit much!
On the other hand, create a level competition for USPS, UPS and others. A few years ago someone said UPS was competitive and better delivery. I had two packages for model car swaps, where guys sent me a model and I was to send one back. Think, 2 lb shoe boxes. I used the very same packing and boxes, and went to UPS. BOTH of the addresses were listed as "outside of normal delivery area" and they wanted a big premium to deliver them. It was over double USPS rate. I turned around and went to the post office and mailed them for half the UPS rate! So UPS gets to pick and choose what and where they deliver. Make all the services match the USPS delivery areas. That would straighten out a lot.
And let's get Amazon under control once and for all! Last I heard the Amazon deal with USPS was under cost! And now they have their own contractor delivery service, undercutting all delivery services by taking advantage of underpaid people. I read an article by a fellow who did Amazon deliveries for a week, and basically said nobody could earn a living doing so. Let's legislate them into compliance!
Okay, I feel much better now! 
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A friend just sent me the following:
January 27 is the day the rates will go up to $.55 but extra ounce down from $.21 to $.15. Link to article below
https://www.al.com/news/2018/11/stamps-set-for-largest-ever-price-increase-in-january-2019.html
(Modified by Moderator on 2018-11-14 16:33:51)
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
The media is not being honest. This increase is raising prices by 2.5% across all mail services, and by 10% for first class mail.
There have been larger increases in the past. For example, in 1991 they raised first class price by 4 cents, a 16% increase.
Don
1 Member
likes this post.
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re: USPS set for largest-ever price increase in January 2019.
In 1917, they raised first class a penny for 50%increase and raised post cards the same amount for a 100% increase.
Login to Like
this post
Auctions
re: USPS set for largest-ever price increase in January 2019.
i should have purchased a ton of forever stamps when all the wise people were in line for them . To us in the USA a 6 cent bump seems like a lot, eventually the cost will have to be passed on to buyers.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Just this week the USPS announced their 2018 fiscal year numbers; total volume decline of 3.2 billion pieces and a total net loss of a whopping $3.9 billion. First class mail volume continues to shrink but parcel service continues to grow. So frankly they should have raised the prices to 70-80 cents for first class mail (which would be more in line with the rest of the world).
http://about.usps.com/news/national-releases/2018/pr18_093.pdf
Don
Edit: And good news for members of the Informed Delivery program... we will soon be able to digitally sign for 'signature required' packages online. We will not have to be there to sign for the parcel.
Login to Like
this post
Retired Ap. Book Mod, Pres Golden Gate Stamp Club, Hi Tech Consultant
15 Nov 2018
04:24:38pm
re: USPS set for largest-ever price increase in January 2019.
First class mail is still a bargain when compared to other countries in the developed world. The cost of handling the basic mail piece, irrespective to its weight, must be a loosing proposition for regular first class mail, even with all the automation....so it makes sense in my viewpoint to raise the base postage rate. Incremental weight pricing is a remnant of the old days when weight limitations on air service played a much bigger role. I wish the price increase would be accompanied but better service, because I would not mind paying more to have the level of service one expects in other Western countries.
Lately our postal delivery is skipping about one day a week...Monday or Friday it seems are optional delivery days? (to get longer week-end time off?), yes we are lucky to get 4 deliveries a week?...and one never knows if they will eventually make it late to deliver (ie 8:00 pm), or skip it all together. Makes me think of "Neumann" of Seinfeld fame!
Where do they store all the mail they failed to deliver?
rrr....
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Still, the entire process of rate raises by postal services throughout thew world is the antithesis of bad retail practices.
Postal services say that less and less people are using postal services. What do the postal services do? Raise their prices, of course. Then they complain that even less people are using the services. What do they do? Raise the rates, again! If a retail outlet is losing money due to diminishing sales, lowering the prices, trimming the "fat" from operations, cutting unnecessary and redundant outlets, warehouses, processing centers, etc., reducing staff all would be on the table to try to reverse the lowering revenues. I don't think one postal service in the world is doing this. They just keep complaining that sales are going down, and then they keep raising the prices in what can only be called a death spiral.
1 Member
likes this post.
Login to Like.
re: USPS set for largest-ever price increase in January 2019.
Several years ago, when I was still working, I would stop for lunch at a gas station convenience store whose parking lot looked over to the rear of a post office. On many occasions, I saw the same postal clerk push a cart filled with tubs out to the dumpster. She would routinely dump tubs and tubs of mail into the dumpster. They had 3 large dumpsters. Post offices actually throw away a lot of "junk" mail.
Linus
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Hi Michael,
What percentage of the drop in first class mail volume would you attribute to the internet (email and other online messaging) vs the price increases you mention?
Don
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this post
re: USPS set for largest-ever price increase in January 2019.
Carol can correct me if I'm wrong, but I would suspect that what is being thrown away is the "standard mail" that is returned as undeliverable. Such mail is not returned to sender like first class and package services mail is.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Don, does it really matter? If a drug store has been operating on a corner for ten years, and a rival drug store opens across the street, the older one will lose customers to the new store. The postal service is losing first class mail revenues due to the internet and cell phones. A company either adapts to changing times, or goes out of business. Of course postal services get funding to cover deficits from government revenues, so that prolongs operations. In the same vein, government often interferes with post service operations, forcing it to not make changes that would cut deficits.
Go back to the 1960s and 1970s with the railroads. The government built interstate highways and large airports with taxpayer dollars. That cut back drastically on the revenues, both freight and passenger services of the railroad companies. The government also forced private railroad companies (which paid plenty of taxes and had no government funding) to continue to run passenger trains on non-profitable routes, even if no one road on those trains. The postal service also stopped using the railroads to haul mail across the country, putting the mail on trucks and planes. That was the sword that slew the railroads.
Interestingly, some years ago, the postal service resurrected using the railroads to haul mail. The postal service found it to be more reliable and a lower cost to do so than using airlines and trucks. Of course, lobbyists for the airline and trucking industries protesting the trial, and the postal service went back to the trucks and airlines.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
It is also a problem for the Royal Mail but I wonder how much the Philatelic market adds to the revenue. How many stamps are never postally used?
https://www.bbc.com/news/business-46219336
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Probably the number of stamp collectors is relatively small compared to actual revenues.
Regarding advertising mail (called "Standard Mail" by USPS), USPS is again messing things up by requiring any advertising mail that contains anything other than paper to be sent first class. Standard Mail actually is a big revenue driver for the post office. Pushing advertisers who send samples over to First Class is going to result in less advertising mail, that could have resulting in first class packages from orders received as a result of the samples.
The USPS mentality is the same as government officials. "If you need more money, just raise taxes." In this case it's simply raise the postage rates every 12 months and watch revenues continue to drop.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
@anglophile, having been in Canada for the past fifteen years I'm not sure but having holiday there this year the branch post offices in even large towns (like Honiton)were closed down and were within shops like W H Smith (stationers) or in small corner grocery stores.
It was difficult even getting everyday Machins other than "make-up values". Presentation packs seemed to be very rationed even on the day of issue.
The privatisation has bitten deep, very much like Beechings railway cuts, but at least it is now showing a profit albeit not as much as the workforce or shareholders would wish.
I tend to buy new issues that I want direct online from their website.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
This is the price from Uk to States.
Royal Mail International Standard up to 100 g.
More details 5 to 7 working days delivery aim. Up to £20 for loss or damage. Not Tracked £2.25
This is approximately $2.87 at today's exchange rate.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Sounds cheap really.
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this post
Retired Ap. Book Mod, Pres Golden Gate Stamp Club, Hi Tech Consultant
16 Nov 2018
12:37:48am
re: USPS set for largest-ever price increase in January 2019.
"Royal Mail International Standard up to 100 g."
You sure it is 100 g? (like
1/4 lb for us in the US)
rrr...
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Auctions - Approvals
re: USPS set for largest-ever price increase in January 2019.
Using an exchange rate of £1.00 = $1.30
Royal Mail International Standard Charges for Non-tracked Mail:-
Letters, to 5mm thick.
Up to 20 gms:--$1.89
Up to 100 gms:--$2.93
Large Letters to 2.5cm thick
Up to 100gms:--$4.29 or $4.49 for Oceania
up to 250gms:--$6.31 or £6.70 for Oceania
Up to 500gms:--$9.23 or $9.75 for Oceania
These prices will increase in March/April 2019
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Is there no differentiation between correspondence/documents and merchandise like the UPU stuck us with here ??? We also can't put customs form on a "letter" anymore.
Login to Like
this post
Auctions - Approvals
re: USPS set for largest-ever price increase in January 2019.
There is no definition of merchandise within any leaflet available to the public in my area.
The Price List only lists either Letters, Large Letters, Small Parcels, Large Parcels, the size, weights and thicknesses allowed in each category.
The postal clerks will ask you what is in the package, not whether it is merchandise but whether it is on the prohibited list ie perfumes, corrosive liquids, lithium batteries in electrical items etc etc etc.
There is no mention of the word "merchandise".
However this may change when the new Price List comes out in March/April!!...(IF indeed the merchandise nonsense is a directive of the UPU or whether it is a recommendation/guideline from the UPU.)
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Got a little Booklet from the Post Office today.
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
Looks like you're post is going the UPU way too with high-cost international mail. Of course that will mean that less people will be mailing international, so regular mail costs will have to go up to make up for the lost international revenue. Post office officials are clueless to allow the UPU to run amuck with postal rates, because of the nations that are well-off have to make up for the nations that are not. Last I knew, China was considered one of the nations not well off. They actually categorize such nations as "developing nations".
Login to Like
this post
re: USPS set for largest-ever price increase in January 2019.
International mailing is greatly impacted by "Terminal dues".
Part of the summary...
"In the long term, the terminal dues system should reflect the true cost of inbound delivery. In the interim, the United States should continue to work with the UPU to support the separation of competitive small packages containing merchandise from documents and letters. While letters would continue to fall under terminal dues, small packages would be subject to self declared rates that reflect cost and are available to all — posts, competitors, and shippers alike."
https://www.uspsoig.gov/sites/default/files/document-library-files/2015/RARC-WP-16-003.pdf
Even though the UPU is ‘one country – one vote’ I am assuming that the US is influencing the UPU into adopting changes to level the playing field for lightweight packets.
Don
Login to Like
this post
Auctions - Approvals
re: USPS set for largest-ever price increase in January 2019.
" the United States should continue to work with the UPU to support the separation of competitive small packages containing merchandise from documents and letters."
A very interesting phrase.
Using the words "support the separation" hints that not all members of the UPU agree with this "merchandise nonsense" and are not adhering to this rule/guideline.
Looking at the Irish Price List listed by Nikki I notice that there is no unanimity of
language and pricing between the UK and Ireland.
Royal Mail is now a Public Company no longer owned by the British Government and they may well feel, as a Private Company, that they can do as they please and ignore any rules/guidelines laid down by the UPU.
Login to Like
this post
Auctions - Approvals
re: USPS set for largest-ever price increase in January 2019.
Meanwhile I'll get at least a dozen Lands End catalogs before Christmas. If they had to pay what I pay for sending something like that, I'd be lucky to get one.
Watch what happens to the cost of stamps/packages when Amazon last Mile kicks into full gear. The next step after that will be for Amazon to offer to pick up any packages from anyone. My carrier already told me without Amazon parcels there are really almost no parcels to be delivered. Take away parcel delivery and junk mail and there is very little for the PO to deliver. I have a big beef with the PO in their accountability for delivering parcels. I'd love to see them be privatized.
Greg
Login to Like
this post
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re: USPS set for largest-ever price increase in January 2019.
If you had purchased Forever Stamps back when they first came out, the return on investment probably has beat the stock market!
The post office runs in a quasi-private state. Congress still has too much say over how they run with little regard to financial ability to do so. For instance, Saturday residential delivery... USPS wanted to cancel that with huge cost savings. I'd be fine with it.
There's also the issue of over funding pensions. I don't know all the details, but I understand that this alone could straighten out USPS issues. I am for people getting pensions, but let's fund it properly.
Post offices - there have been proposals to close small, low use post offices. I was in Bergen County NJ yesterday and visited 5 post offices within a 2 mile circle. That was just the postmarks I needed. I believe there were over a dozen offices. They could easily close half of those.
First Class Mail to every address in the USA - the very basis of the US Post Office! Some of it gets a bit out of hand. I saw a news show once that showed mail being delivered daily via Cessna to a ranch out in the middle of nowhere, I think it was Wyoming or other western state. That's a bit much!
On the other hand, create a level competition for USPS, UPS and others. A few years ago someone said UPS was competitive and better delivery. I had two packages for model car swaps, where guys sent me a model and I was to send one back. Think, 2 lb shoe boxes. I used the very same packing and boxes, and went to UPS. BOTH of the addresses were listed as "outside of normal delivery area" and they wanted a big premium to deliver them. It was over double USPS rate. I turned around and went to the post office and mailed them for half the UPS rate! So UPS gets to pick and choose what and where they deliver. Make all the services match the USPS delivery areas. That would straighten out a lot.
And let's get Amazon under control once and for all! Last I heard the Amazon deal with USPS was under cost! And now they have their own contractor delivery service, undercutting all delivery services by taking advantage of underpaid people. I read an article by a fellow who did Amazon deliveries for a week, and basically said nobody could earn a living doing so. Let's legislate them into compliance!
Okay, I feel much better now!
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