The USPS wants to start raking in the dough
This is a big deal… because the US Postal Service (USPS) has proposed the biggest price increase on stamps in its history. So actually, this is only a big deal if you like to pretend you’re living in the 1800s and still send letters through the mail. Just kidding – it is important for other reasons (you know we wouldn’t waste your time).
The price increases… will hopefully provide the agency revenue and keep USPS competitive within the industry. You will also see more costly Priority Mail packages, which are expected to increase by around 5.9%. And they aren’t just hiking prices for the hell of it – USPS is required to pre-fund the cost of retiree health benefits which has put quite a dent in the agencies wallet.
And a mailing industry update… we are seeing letters being replaced by e-mail and online advertisements. Revenue from first-class mail has dropped from $28.4B in 2015 to $25.6B in 2017. On the other hand, package revenues are up $4.5B from 2015 to 2017. Meh, we’ll take the good with the bad.