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Postal increase not painful for average household: Ripple effect brings concerns

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The postal increase goes into effect at the end of this month, which is causing concern among some folks. This means stamps will cost three cents more from today's price of 46 cents. On Jan. 26 when the cost jumps to 49 cents the average household probably won’t feel any pain, but some big businesses will, according to Web Pro News on Jan. 1.

Two cents of the increase is temporary, but the stamps will permanently go up by a penny. The Postal Service is looking to recoup part of their loss from the recession, which they claim is the culprit for the several billion dollars they lost in revenue this year.

The Postal Regulatory Commission doesn’t agree with the Postal Service’s claims that the deficit is due to the recession. They claim the deficit is due to the huge increase in online communications and the push on paperless billing. It appears that both sides have a legitimate point and maybe it is both factors that put the U.S. Post Office in the red this year again.

On January 26 the price of a stamp will jump to 49 cents. It will eventually decrease to 47 cents, but it is not clear when that will happen. This temporary increase is expected to raise $1.8 billion in revenue, which will help the Postal Service recoup at least some of their losses.

A three cent increase will most likely go unnoticed for the average household, but this isn’t the case for the industries that rely on the mail to do business. One such industry is the magazine media. Mary Berner, who is the president of the Association of Magazine Media trade group in New York, claims the postal increase will have a ripple effect. Berner said:

“It will drive more customers away from using the Postal Service and will have ripple effects through our economy – hurting consumers, forcing layoffs, and impacting businesses.”

As the stamp rounds 50 cents, it isn’t too far-fetched to imagine the day when mailing a letter will cost a dollar. If you think about it, you get a letter delivered right to someone’s front door for under 50 cents today. It really isn’t a large sum to pay for this type of service. Granted it takes days to get there, but what more would you expect for this low price?



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