posted on July 20, 2006 11:40:49 PM new
Doing my weekly searching over new regulations on the USPS website and noticed that they have the "Proposed" fee increase for Spring 2007 published. Yep, that's right folks, another fee increase. This should make alot of folks day's, especially the ones with ebay stores. Sorry to be the bearer of bad news but someone has to do it and I guess I'm the one.
To start with please read the overview of each class of mail. They are making some changes to how first class and priority mail are calculated and to ballon rate's.
http://www.usps.com/ratecase/welcome.htm
Proposed rate fee chart links. Please look at them VERY CAREFULLY!!! The rate may go up at a low weight but the weight for heavier packages in many cases is going down. Really strange. There's no straight across the board increase. Depending on the weight it may go up and then again it may go down. Talk about strange, they must be taking lessons from the ebay pinks.
So what's it come down to. More money of course. DC going up to 18 cents, looks like all fee's are going up. Ho hum.
Interesting to note insurance is going both up and down depending on the value (rather strange if you ask me). Up to $50 going FROM $1.35 to $1.65 (up), $50 to $100 going FROM $2.30 to $2.05 (down), $100 to $200 going FROM $3.35 to $2.45 (down), then $200 to $300 going FROM $4.40 to $4.60 (up), $300 to $5,000 going FROM $4.40 plus $1.05 for each $100 or fraction thereof over $300 //to//$4.60 plus $0.90 for each $100 or fraction thereofover $300 (up but each additional going down).
I know it's a little early to worry about the USPS rate hike but I just thought I would post the proposed fee's to give you all a heads up. At least you have until early next year to get ready for it. It would be a good idea to get ready for it if you use flat rate shipping. Maybe a month or so before the rate change you should reevaluate what you charge so you are ready when it takes effect. Better to be ready early then to be pulling your hair out the day the new change comes and end up in a panic trying to edit all your listing's.
As far as what they call "Proposed" I have never seen a Proposed rate change denied so I would expect it to go through as it is listed on the USPS site.
1 out of 4 people are mentally unbalanced. Take a look at your 3 closest friends. If they seem alright, you're the one! - Kyle Stubbins, CMS
[ edited by mikes4x4andtruckrepair on Jul 21, 2006 01:47 AM ]
Yup, saw that announcement the other day. Hmm, buy 5,000 forever stamps if they do make them and save them for about 50 years and when postage is up to $8 for the first ounce you could use your 42cent stamps. Someone in the PM Generals office must have had a brain fart when they thought up this one.
Don't see the real reason for it though. Any other time they have a rate increase they release a letter stamp (or like last time it didn't have a letter) that covers the additional postage needed to use a older stamp. Why a forever stamp? Don't see how this would smooth the printing transition over, they will still have to print a additional stamp.
1 out of 4 people are mentally unbalanced. Take a look at your 3 closest friends. If they seem alright, you're the one! - Kyle Stubbins, CMS
posted on July 21, 2006 06:21:04 AM new
Ok, I read the first class explanation and they lost me at some point. Unmachinables under 13 ounces will have a separate class and will no longer be eligible for first class rates? Must keep everything flat. That was a little confusing.
As to less cost for higher weights and less insurance cost - this is so that the post office can be more competitive with UPS, FedEx, etc. I've encountered that problem where after a certain weight, the other carriers were more economical for shipping cost plus they include insurance free for up to a certain amount.
The Forever Stamp seems to be a way to generate upfront revenue from a product that is dying a slow death. How many people do you know who now do everything on line (myself inlcuded) from paying bills to sending "letters" via email to friends and family. About the only time I use a stamp (other than for Ebay sales) is birthdays and Christmas cards. Remember the days when you bought a book or a roll of stamps and still kept running out?
I can't remember the last time I bought stationery and wrote an actual letter.
posted on July 21, 2006 02:31:20 PM new
I guess that makes sense. Decrease the fee's on heavier packages to compete with commercial carriers. Seem's a little odd though, the US government having to compete with the free market. Should be interesting to see if when this proposed rate change goes through if it has any effect on the commercial carriers like FedEx, UPS, DHL and their rates.
1 out of 4 people are mentally unbalanced. Take a look at your 3 closest friends. If they seem alright, you're the one! - Kyle Stubbins, CMS
posted on July 21, 2006 02:49:48 PM new
'Hmm, buy 5,000 forever stamps if they do make them and save them for about 50 years and when postage is up to $8 for the first ounce you could use your 42cent stamps.'
Or at some time in the future when first class, one ounce is $8 you could sell your stamps on the new conglomerated company to be known as GoogHooUSPSbay for say $7 plus postage of 42 cents. Make a heck of a profit.
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[ edited by piinthesky on Jul 21, 2006 02:50 PM ]
posted on July 21, 2006 03:21:55 PM new
iceicepenguin - Actually the new system for 1st Class makes alot of sense to me. Let's see if I can clarify it a little for you.
Currently if you have a 4 ounce letter, 4 ounce flat (a large envelope) or 4 ounce parcel (a box) they all cost you the same, that being $1.11.
The proposed rate system would charge less for items that don't take up much room, those being letters and then next flat's. Box's (parcel's) would cost the most because they take up the most volume or room.
So with the new system the same 4 ounce letter would cost you only $1.02 (a decrease in cost), the 4 ounce flat (a large envelope) would cost you $1.22 ( a 11cent increase) and the 4 ounce parcel (box) would cost you $1.60 (a 49 cent increase).
So as you can see the smaller the size of your item the less it cost. It makes sense if you think about it this way.
Let's say a mail delivery truck can hold 10,000 letters. It may only be able to haul 5,000 "flat's" and 1,000 "parcel's". They may weigh the same but the larger items just take up more room for shipping and therefore to ship the larger items requires more vehicles and manpower to transport, hence the increase in fee's for bigger items.
Hope I didn't confuse you even more.
1 out of 4 people are mentally unbalanced. Take a look at your 3 closest friends. If they seem alright, you're the one! - Kyle Stubbins, CMS
posted on July 21, 2006 03:47:04 PM new
Thank you, Mike.
It makes more sense now. I just hope the buying public understands the three-tier pricing for first class when it becomes effective.
I think I'll print out your explanation and forward it to all my customers to save time. :0)
posted on July 21, 2006 08:34:31 PM new
Yep if it is flatthen no delivery confirmation either I guess. I put 3-5 peanuts in flat envelopes so I can send it with Delivery confirmation now on first class. Of course it can't be in a regular letter envelope to get the Delivery confirmation. Tried that once it didn't fly. LOL
**************
If we are what we eat,
then I'm easy, fast,
and cheap!
1 out of 4 people are mentally unbalanced. Take a look at your 3 closest friends. If they seem alright, you're the one! - Kyle Stubbins, CMS
[ edited by mikes4x4andtruckrepair on Jul 21, 2006 01:47 AM ]
If we are what we eat,