Postal Service Announces Price Change Proposal

The Postal Service today filed a proposal with the Postal Regulatory Commission (PRC) to change the prices of mailing services on January 2, 2011. Click here for the PDF presentation and here to read the press release. The filing, approved by the Postal Service Governors, seeks an average 5.6 percent price increase for its “market dominant” products, which include First-Class Mail, Standard Mail, Periodicals, Package Services and Special Services. The recommended changes would increase the price of a First-Class Mail stamp 2 cents to 46 cents and the price of a postcard would increase 2 cents to 30 cents.

The proposed price changes, if approved, will raise about $2.3 billion for the first nine months of 2011. The PRC has 90 days to issue its decision on the proposal. This would mark the first price increase for market dominant products in almost two years. This price change is just one part of several actions — outlined by PMG Jack Potter in an announcement March 2 — the Postal Service will take to help close a financial gap resulting from the economic recession, unprecedented declines in mail volume, increased use of electronic communications and USPS obligations to prepay retiree health benefits. Other actions outlined in March included changes in delivery frequency, restructuring prepayments of retiree health benefits, creating a more flexible workforce, and expanding access to products and services to places more convenient to customers.

• First-Class Mail stamps would increase to 46 cents.
  
• First-Class Mail postcard prices would increase 2 cents to 30 cents.
  
• Periodicals would receive an 8 percent increase.
  
• Recommended increase for flat-size catalogs is 5.1 percent (5.6% overall).
  
• Standard Mail parcels would increase about 23 percent.
  

Full details of the filing are posted on the usps.com Newsroom. Average increases:

• First-Class Mail 5.4%
  
• Standard Mail 5.6%
  
• Periodicals 8%
  
• Package Services 6.7%
  
• Special Services 5.2%