SEE NEWS DIFFERENTLY
Now You Know

WHEN “FOREVER” IS
JUST TEMPORARY

 

 

The price of a stamp is rising 5¢ while the U.S. Postal Service hasn’t made a penny in profit in over a decade.

Now You Know

WHAT’S HAPPENING?

  • Cost to mail a first-class letter will rise to 55¢ from 50¢ on January 27th.
  • Nickel increase is largest percentage rise since 1991.
  • Reminder: Forever stamp can be used no matter when it was purchased or how much prices may change in the future.
  • SHN tip: If you mail letters, buy stamps before Sunday to save.
Now You Know

WHAT’S TO BLAME?

  • Fewer people send mail: Postal Service needs $$, but its main source of revenue (first-class mail) dropped 3.6% in 2018.
  • Retirement & healthcare costs: USPS owes federal gov’t nearly $7B to fund employee pensions & health benefits.
  • Bottom line: USPS lost nearly $4B in 2018 & is more than $120B in debt.
Now You Know

FOREVER RISING

First Forever stamp went on sale in 2007; it cost 41¢.

Prices have risen consistently ever since, except in 2016 when they dropped 2¢.

Nearly all stamps sold today are Forever. WHY? To avoid customers needing to add additional stamps to make up difference on price hikes.

Now You Know

WHY IT MATTERS

  • Historically, stamp prices are tied to inflation & rise 1¢ to 3¢.
  • New price rise follows a 10-year review of the USPS allowing it to charge for “inflation + 2%”.
  • BUT… this new 5¢ Forever stamp increase is equal to a 10% jump.
  • USPS says it offers the “lowest letter mail postage rates in the industrialized world.”
Now You Know

It's not just the cost of stamps rising, prices for Priority Mail will also jump on average of 5.9%. However, prices for letters over one ounce, like an oversized wedding invitation, will drop from 21¢ to 15¢ per ounce extra.

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