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USPS Price Increases Above Inflation Rate

 
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Posted 12/21/2019   04:46 am  Show Profile Bookmark this topic Add Torin to your friends list Get a Link to this Message
Based on the article in the link below, future stamp price increases may be larger than in the past. What do you all predict the 1oz first class mail rate will be in five years?

I wonder what the future holds for Priority Mail price increases?

https://www.linns.com/news/us-stamp...stamp-prices
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Posted 12/21/2019   06:05 am  Show Profile Check 51studebaker's eBay Listings Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
1. Assumes inflation rates remain around 2% per year (i.e. no major shift in political landscape after 2020 election)
2. Assumes there is no way that Congress allows UPSP to charge more than rate of inflation

2020 - $0.55
2021 - $0.57 (2%)
2022 - $0.59 (2%)
2023 - $0.61 (2%)
2024 - $0.63 (2%)

If the 2020 election changes the direction of the US towards a socialist or 'green' movement, I would question if daily 'last mile' delivery would survive. I have no idea how this might impact First Class mail delivery costs.
Don
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Posted 12/21/2019   06:50 am  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
I find it so interesting a board can declare a rate increase too high when the company is losing money by the billions. Any USPS change has to go through Congress. First class and flat rate package delivery are still a bargain compared to UPS and FedEx, etc.
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Al
Edited by angore - 12/21/2019 5:54 pm
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Posted 12/21/2019   09:13 am  Show Profile Bookmark this reply Add BlackJag to your friends list  Get a Link to this Reply
In Canada, the first class domestic mail rate is $0.95 per single stamp if you buy a pane, coil roll, souvenir sheet or booklet. A single stamp purchase is $1.00. We don't have Saturday delivery and all mint stamps purchased from a Canada Post Office or sub-Post Office are subject to Federal and Provincial taxes. In Ontario, the combined tax rate is 13%.
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Posted 12/21/2019   11:24 am  Show Profile Check wheelman's eBay Listings Bookmark this reply Add wheelman to your friends list  Get a Link to this Reply
No problem with them raising price greater than the rate of inflation as long as they adopt the same policy on our annual cost of living increase for social security!
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Posted 12/21/2019   1:34 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Mail delivery vehicles powered by the methane generated in the halls of Congress should be explored.
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Posted 12/21/2019   4:33 pm  Show Profile Bookmark this reply Add ikeyPikey to your friends list  Get a Link to this Reply
'
Tying postal rates to the rate of inflation only 'works' if nothing else is changing.

One something else that is changing is the volume of first class mail.

Other something elses include the changing volume of eCommerce deliveries, and the changing mix of carriers who deliver them.

https://www.profgalloway.com/fckdex ... on the future of FedEx

Cheers,

/s/ ikeyPikey (who almost always enjoys Professor Galloway, agree/not)



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Posted 12/21/2019   10:23 pm  Show Profile Bookmark this reply Add No1philatelist to your friends list  Get a Link to this Reply
Blackjag, correction on your postage rate quote, as the postage rate in Canada is still only .90 for 30 gram envelope or less if you buy multiples in booklets etc, and $1.05 if you buy a singles for mailing plus 15% hst in Nova Scotia. It is posted on the website that the rates are going up again in January 2020 to .92 in multiples and to $1.07 + that harmonized sales tax for a single stamp. If mailing to the US the rate is $1.27 + the tax presently but going up also, probably to $1.30. Funny part is that if you are purchasing and applying the postage of $5.00 or more for mailing to the U.S. than there is no tax applicable.

A bit off topic ......
But yet they took away the small packet option in Canada a couple years ago, and it costs me twice as much and more to ship a tiny parcel interprovincially to the next province as compared to send a small packet across the continent to someone in Arizonia or California.

My rant for today.

Edit: And today, Sunday of all days, my brother received his expresspost parcel from me in PEI which was posted Wednesday. I knew they made deliveries on Saturdays for three weeks before Christmas, but Sundays? But it was a courier delivery service on contract.

Mike
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Edited by No1philatelist - 12/22/2019 10:03 pm
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Posted 12/22/2019   10:42 pm  Show Profile Bookmark this reply Add BlackJag to your friends list  Get a Link to this Reply
No1philatelist, you are correct about the current domestic 90 cent rate being increased to 92 cents when buying coils, booklets or souvenir sheets.

The new USA rate is $1.30, Oversized Mail rate is $1.94, International rate is $2.71 and single stamp purchases are $1.07,.
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Posted 12/23/2019   01:07 am  Show Profile Bookmark this reply Add TheArtfulHinger to your friends list  Get a Link to this Reply
After the last USPS rate change, guidance was that they would opt for less frequent but larger increases, with a goal towards keeping rates in "round" numbers, i.e. divisible by 5 (hence the quotes around the word "round"). If they hold to that, the next increase would be to 60 cents in 2022 or so, 65 cents 2-3 years later, etc, assuming inflation rates hold roughly steady.
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Posted 12/23/2019   06:50 am  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
We already have more than 1 definition of rate of inflation (depends on what components you use), If I declared the inflation rate is the rate of increase cable streaming fees then it would go up a lot more!!
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Al
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Posted 02/05/2020   7:58 pm  Show Profile Bookmark this reply Add Torin to your friends list  Get a Link to this Reply
"The study blamed the price cap that limits stamp price increases to no more than the rate of inflation"

https://www.linns.com/news/us-stamp...ure-for-usps

Forever stamps sound like a good investment based on this article.
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Posted 04/15/2020   04:11 am  Show Profile Bookmark this reply Add Torin to your friends list  Get a Link to this Reply
If the USPS becomes insolvent due to a lack of government assistance or the agency becomes privatized, will stamps become worthless for postage purposes? If a private company takes over the USPS, will they accept stamps for postage? If Congress does not give the USPS a "bailout", is it likely that the USPS will seek an obtain permission to raise the price of a Forever stamp to $1 so it can remain solvent and pay its worker retirement plan obligations?

Apparently, there is a #SaveUSPS social media movement encouraging people to buy stamps in the absence of government funding. Excellent idea, but if people don't buy $13 billion (their projected shortfall this fiscal year) and they go bankrupt or get purchased by a private equity firm, are those stamps people bough worthless for postage?

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Posted 04/15/2020   07:15 am  Show Profile Bookmark this reply Add angore to your friends list  Get a Link to this Reply
Does the USPS even have an inventory of stamps needed to get into mid-billions of value?

I would not be surprised that this is some maneuver in brinkmanship to force long term changes at USPS.
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Al
Edited by angore - 04/15/2020 07:18 am
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Posted 04/15/2020   7:01 pm  Show Profile Bookmark this reply Add Torin to your friends list  Get a Link to this Reply
Do you think the long term changes might mean significant increases in the first class letter rate or a zoned passed pricing system for it?
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