How Far Does Your 44 Cents Go?

When mailing a letter that weighs about one ounce, the U.S. Postal Service’s 44 cents is one of lowest First Class postage rates. Whether you are mailing a letter locally or sending a greeting card across country, it still only costs 44 cents now, but will increase to 45 cents in January. The graph below compares the U.S. Postal Service’s postage rate with other countries. As you can see, Norway charges the highest rate, which is nearly four times the cost U.S. rate.

 

Should the Postal Service Offer Volume Incentives to E-Retailers?

Offering volume incentives is a common business practice in the U.S. and around the world. Although the U.S. Postal Service offers incentives to businesses that presort their mail, the agency does not offer incentives based strictly on the volume of packages shipped. One reason might be that offering volume incentives would lower the profit margin on each package shipped; yet, the potential volume increase of items shipped would make up for the smaller profit margins.

 

Is the Price Right?

The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).

 

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Recent Comments

  • 18 hours 25 sec ago
    Thank you for your message. The OIG is an independent agency of the Postal Service and day-to-day mail delivery issues are outside of our jurisdiction. If you have not already done so, please try...
  • 19 hours 3 min ago
    Bell Gardens, CA 90201 post office. My media mail package, destined for San Diego, CA, arrived at Bell Gardens on 6-11 and remained there until 6-26. No reason. Called all morning. Does not...

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