posted on February 26, 2007 10:27:50 AM
Another hand being held out! Blames the lack of mail for bills, letters etc.. UMMMM..I would have thought that FeeBay alone keeps them going a good mile or two, along with all the other online business. Priority, Media and Bound did not change or insurance, well, so far.
02/26/2007 11:51:59 EST Commission Backs 2-Cent Postage Hike
By RANDOLPH E. SCHMID
Associated Press Writer
WASHINGTON - A postal regulatory commission recommended a 2-cent increase in the cost of mailing a letter Monday and urged the Post Office to introduce a "forever" stamp valid for first-class postage even when rates rise.
The recommendation to increase postage to 41 cents was a penny less than the postal service had requested.
The commission recommended a 26-cent rate for post cards, also a penny less than the Post Office had sought.
The first ounce of a first-class mail would rise to 41 cents, but each additional ounce would cost 17 cents under the proposal. Currently, each additional ounce of first-class mail costs 24 cents.
The matter now goes back to the Board of Governors of the Postal Service for a decision on whether to accept the recommendation or ask the commission to reconsider. If the governors accept the recommendations the new rates could be implemented in 60 days.
A key part of the plan is the so-called forever stamp, which would allow consumers to hedge against future rate increases.
The stamp, which would not show a denomination, would sell for the first-class rate at the time of purchase and would remain valid for mailing permanently, even if rates increase.
That means folks who stocked up on forever stamps could say goodbye to those annoying 2-cent or 3-cent stamps that have to be added to letters every time rates go up.
For the average consumer, the most visible change would be the proposed increase to 42 cents for mailing letters, although the broad-ranging rate proposal covers a multitude of types of mail.
Letters, cards, bill payments and other first-class mail items have been declining in recent years as people turn to the Internet. At the same time, there has been an increase in advertising mail.
And Postmaster General John E. Potter has pointed out that "the Postal Service is not immune to the cost pressures affecting every household and business in America."
For example, each penny increase in the price of a gallon of gasoline costs the post office $8 million, and the post office cannot simply add a fuel surcharge to its rates.
Proposed rate changes included:
_Express Mail, flat rate up from $14.40 to $16.25.
_Two-ounce barcoded bank statement, down from 54.5 cents to 48.6 cents
_Bulk-mailed weekly newsmagazine, up from 17.9 cents to 20 cents.
_Presorted catalog, up from 32.1 cents to 33.6 cents.
_Postcard, up from 24 cents to 27 cents.
The cost of a first-class stamp went from 37 cents to 39 cents in January 2006. Before that, the price had been unchanged since 2002.
posted on February 26, 2007 12:31:29 PM
So. . . one idea would be to buy LOTS of the "forever stamps" because, once postage again increases, you won't be paying that increase. Small non-profits that don't use bulk mail would be wise to stock up, too, and small businesses.
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posted on February 26, 2007 12:41:05 PM
Sorry, don't agree. Rate increases seem frequent to us, but aren't really: only two rate increases in the last seven years. You'd be tying up your money for a very long time in postage stamps. Though I'm sure USPS would love to show fat surpluses as a result of forever stamps paid for but unused.
Far smarter for small businesses and non-profits is to do business with one of the philatelists who routinely sells U.S. postage at a discount off face value. There it actually makes sense to buy far more than you have an immediate use for. I have a solicitation in my in-box from a stamp dealer who wants to sell me 39 cent stamps at a 10% discount.
posted on March 1, 2007 06:10:18 PM
Here's an editorial from some national newspaper today with some thoughts about the forever stamp:
EDITORIAL
Welcome to forever, stamps
The Postal Service's new 'forever' stamp takes the sting out of rate hikes. But is it a good investment?
March 1, 2007
PSSST — LOOKING FOR a hot investment? Something with a better chance of paying off than that "sure-fire" stock touted in an e-mail you received this morning? Then we've got just the thing for you: a 41-cent stamp.
This is not just any 41-cent stamp. It's the new "forever" stamp that the U.S. Postal Service is expected to issue later this year. These babies will always be good for first-class delivery; whenever the Postal Service raises the price of stamps, they'll increase in value. Automatically. Talk about a sure thing! If you buy them for your Christmas cards in December, they'll still be good when you finally get around to mailing those red envelopes in 2011. And all those thank-you cards you've been after your daughter to mail since her 16th birthday? Now she can wait to mail them till she gets to college.
The Postal Service came up with the idea last year as a way to ease the sting of rate increases, and the independent Postal Regulatory Commission endorsed the plan Monday. The new stamp won't have a value printed on its face; instead, it will sell for whatever the current rate is for first-class letters, starting as early as May, when the price of a first-class stamp will rise from 39 cents to 41 cents.
The idea is a winner for the Postal Service because it reduces the need for money-losing 1- and 2-cent stamps every time a new rate goes into effect. Those increases have come at an accelerating pace — the hike approved Monday will be the sixth since 2000, compared to 12 increases in the previous 40 years. Whether it makes sense for consumers, however, depends on the rate of inflation and the gains made by other investments.
The "forever" stamps seem like an insane bargain, particularly over the long term, but that doesn't mean they're a good investment. Given that the Postal Service raises stamp prices at almost exactly the rate of inflation, the new stamps will rise in value at that rate as well. In other words, they gain 2% to 3% a year — more than the money in your checking account but probably less than you're earning in your IRA.
In the meantime, the cash parked in "forever" stamps can be invested by the Postal Service; after all, each stamp that's hoarded represents a letter that doesn't have to be delivered. So the smartest route for consumers would be to snap up some "forever" stamps just before the next rate hike, but only enough to last for a year or two.
On the other hand, given all the ups and downs in global stock markets lately, maybe hoarding stamps is a good idea.
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_____________________
People who want to share their religious views with you almost
never want you to share yours with them.
