Pricing and Price Caps

The Postal Accountability and Enhancement Act of 2006 (PAEA) changed the way the Postal Service sets rates. It divided postal services into two broad categories: market dominant (mailing services) and competitive (shipping services). Market dominant products constitute about 90 percent of postal revenue. They include First-Class Mail, Standard Mail, Periodicals, and some Package Services. Products such as Priority Mail, Express Mail, and bulk Parcel Post are considered competitive. The PAEA placed a cap on price increases for market dominant products.

 

A Penny for Your Thoughts?

Stamp prices are traditionally in whole cent increments. That means it is difficult to target a particular percentage increase. For instance, a one-cent increase on the 42-cent stamp would have been 2.4 percent; while the two-cent increase was 4.8 percent.

 

Periodicals

Since the earliest days of the Post Office there has been a public policy goal of promoting the dissemination of information throughout the country. This goal was also part of all 14 of the rate cases conducted under the Postal Reorganization Act. By law, rates had to consider “the educational, cultural, scientific, and informational value to the recipient of mail matter.” This provision generally tempered the increases for Periodicals, or at least kept the “institutional cost burden” for Periodicals to a minimum.

 

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Recent Comments

  • 2 days 6 hours ago
    Ricky, I'm having the same issue. I mailed out about 20 or more vendor bill payments on April 10th, all are missing and have not cleared the bank. The post office said they are having major...
  • 2 days 6 hours ago
    I mailed about 20 to 30 vendor bill payments (checks) out on April 10, 2017. None of them have processed the bank, a second vendor had called today looking for a very important check we mailed out...

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