United States Postal Service proposes another price hike

October 1, 2013

The United States Postal Service has been experiencing financial issues for quite some time and will issue a one to two cent increase on stamp prices to keep up with inflation, according to Quartz. This time around, the agency is proposing to uptick the price by three cents, costing Americans 49 cents to send a letter–a 6.5 percent jump that hopes to bring in $2 billion.

"Of the options currently available to the Postal Service to align costs and revenue, increasing postage prices is a last resort that reflects extreme financial challenges," Board of Governors Chairman Mickey Barnett said in a letter to customers recently.

Mailings that weigh over one ounce will be charged one cent per ounce up to 21 cents, while postcards will now cost 34 cents, NBC News reported. This change also impacts the price of packages. Because this proposed surcharge is higher than inflation, the USPS will need to be approved by the Postal Regulatory Commission before mail rooms can charge Americans these rates.

Businesses that send heavy paper contracts and invoices may need to consider changing their data processes to improve operations while reducing the bottom line. Other markets, like the print magazine industry that rely on mailings, these prices could be extremely costly to them.

"No private company would increase prices when sales are already plummeting," President of the Association of Magazine Media, Mary Berner told USA Today. "[This] will cause significant declines in mail volume and further job losses across the industry without addressing the USPS' core issues."

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