Tag: USA

The US Postal Service has unveiled proposed new pricing incentives that would effectively reshape the future of mail and provide benefits to both business customers and the Postal Service. The current pricing structure for postal products relies primarily on a weight based system. The new plan – sent to the Postal Rate Commission (PRC) as part of a 2007 price adjustment proposal package – combines weight with shape to allow the Postal Service to better align prices with processing costs to ensure every type of mail covers its costs. Price changes would not occur before May, 2007.

The Postal Service said today it wants to raise the price of a first-class stamp by 3 cents – to 42 cents – and proposed a “forever” stamp that people could use as hedge against future rate increases. The changes would take effect in the spring of 2007 if approved by the independent Postal Rate Commission. “A forever stamp would help ease the transition to any future price adjustments,” board Chairman James C. Miller III said. Postmaster General John E. Potter said the agency would not be making a rate change if it were not necessary. “The Postal Service is not immune to the cost pressures affecting every household and business in America,” he said.