“This price increase is not intended to cover projected losses but instead be a moderate increase to help with the financial shortfall without decreasing customer traffic,” said Deborah Yackley manager, of Capital Metro Corporate Communications.
Postal officials announced on Tuesday a proposal for up to a five percent increase, touching on first class mail, advertising mail, periodicals and packages.
First-Class Mail stamps would increase to 46 cents. First-Class Mail post cards would increase by two cents to 30 cents. Periodicals would receive an eight percent increase. The recommended increase for catalogs is a little over five percent and standard mail parcels would increase about 23 percent.
The request will go to the independent Postal Rate Commission for review. They have 90 days to respond. If approved the rate increase would take effect on Jan 2.
The Postal Service has been trying to save money since March and the agency is facing a $7 billion dollar loss in 2011.
“Any price increase results in lower volume, however, we have made this increase moderate in order to discourage loss of volume,” Yackley said. “As far as another increase, we do not plan any additional increases in the future at this time.”
The U.S. Postal Service posted a net loss of $1.9 billion on declining volumes of 88.1 billion pieces of mail for the six months ending March 31.
According to Postmaster General John E. Potter it is further evidence that the Postal Service continues to face incredible challenges.
Volume discounts and free additional weight are included in the proposed price changes the U.S. Postal Service filed with the Postal Regulatory Commission were discussed.
The filing includes two incentives designed to retain and grow profitable mail volume.
For the individuals that have purchased or will purchase “Forever” stamps they will still be honored even if there is an increase.
“The ‘Forever Stamps” are always the price of a first class stamp, the cost is whatever the first stamp cost is at that time,” said Enola Rice of corporate communications.
Hollie Nivens can be reached at (910) 997-3111 ext. 19 or by e-mailing at firstname.lastname@example.org.