Effective January 22, 2012 the price of a first class stamp will increase, yet again, by one cent. Making the cost 45 cents to mail a letter. Consumers that purchase the Forever stamp at 44 cents before the price increase will not require additional postage after the USPS one cent price increase.
The Postal Service said the cost to mail a postcard will go up three cents to 32 cents, letters to Canada or Mexico will increase five cents to 85 cents, and letters to other international locations will increase seven cents to $1.05.
Postmaster General Patrick Donahoe said in a statement:
“The overall average price increase is small and is needed to help address our current financial crisis. We continue to take actions within our control to increase revenue in other ways and to aggressively cut costs. To return to sound financial footing we urgently need enactment of comprehensive, long-term legislation to provide the Postal Service with a more flexible business model.”
The Postal Service has been in a major financial crisis because of more people using electronic mail, in resulting mail volumes to decrease. People have also been using competitors such as FedEx and UPS (United Parcel Service) to ship larger packages. This price increase will only make a very small dent in the Postal Services losses. It also doesn’t come close to helping them fund the requirement of medical benefits to future retired workers.
USPS mail volume declined 20% in the four year period through fiscal year 2010 resulting in net losses of over $20 billion.
In fiscal year 2010, the Postal Service suffered a $8.5 billion net loss, compared to $3.8 billion the prior year.
The United States Postal Service has already been taking major actions in cutting costs by closing post offices around the U.S. They are now considering closures to mail-processing facilities which will result in thousands of jobs being lost among people.
- Mailing a letter to cost a penny more next year (seattletimes.nwsource.com)