Inflation watch : 2014 postal rate

[MichaelB]

From the news this morning. This will hit our budget, we still use the mail regularly.

The cost of first-class postage stamps is going up by 3 cents — but only until the Postal Service makes up losses that it has estimated it accumulated during the recession. The increase — to 49 cents from 46 cents — will go into effect on Jan. 26.

Let's see. 100 stamps over the year, $.03 per stamp, comes to an additional $3.00. That's one and a half double espresso over at StarBucks.

I think $0.49 is an amazing bargain. Still, those forever stamps are alluring so I'll go buy a hundred or so. Starbucks will not benefit from our thrift, but I'm sure we will find a way to use the extra cash we are saving.

 

[audreyh1]

Love those forever stamps.

We bought several last Jan (before the last increase). And we haven't even used one yet!

We so rarely mail anything anymore. I might have used 5 stamps this year in total?

 

[REWahoo]

Whenever I see an announcement of a postal increase I have flashbacks to my w*rking life. We had a legacy (read ancient, inefficient, designed by Rube Goldberg) system to price delivery for our thousands of customers who each had unique contract pricing for thousands of individual products. The process to understand the changes to all the postal rate classifications, then calculate and implement the new rates by the effective date was grueling.

It is an understatement when I say I'm very happy all that is no longer my problem to oversee...

 

[rbmrtn]

I've still got part of roll of 32 cent stamps I'm trying to use up... I maybe use a couple in a year. Like paper checks, I don't think I wrote any paper checks during the year.

 

[Dawg52]

Love those forever stamps.

We bought several last Jan (before the last increase). And we haven't even used one yet!

We so rarely mail anything anymore. I might have used 5 stamps this year in total?

I used all mine up mailing a few Christmas Cards. I mail my monthly water payment to the city due to them charging for online payments. Idiots. So I guess I will go buy 20 or so stamps before the increase.

 

[rbmrtn]

I mail my monthly water payment to the city due to them charging for online payments. Idiots.

My banks BillPay service will send a paper check when they can't do ACH. My water system has no online presence so they get a paper check via BillPay, doesn't cost me anything.

 

[Danmar]

An amazing and unsustainable good deal. The Canadian rate was just announced to go to $.85 from around $.50 I think. Also, they announced a gradual phasing out of home delivery using community drop boxes instead. As far as I am concerned we could easily phase the postal service out completely. We hardly ever get anything in the mail that means anything to me and these could easily go electronic within a short time.
I am always amazed when in Arizona how good the US postal service is, how cheap it is, and how resistant to service reductions Americans are. Why not just scrap it!!

 

[ziggy29]

I work at the PO here in town tomorrow and at a town down the road on Saturday. I wonder if there will be a rush on the "forever" stamps while they are still 46 cents each. I hope the regular postmasters bought more stock than usual!

It is said that 2 of these 3 cents are supposed to be "temporary" (anyone believe that?), because of the major losses caused by a burdensome retiree health care requirement that no other employer, public or private, has to meet -- a requirement to pre-fund retiree health insurance for 75 years.

 

[foxfirev5]

Oh no. One more end of year investment decision.

 

[REWahoo]

It is said that 2 of these 3 cents are supposed to be "temporary" (anyone believe that?), because of the major losses caused by a burdensome retiree health care requirement that no other employer, public or private, has to meet -- a requirement to pre-fund retiree health insurance for 75 years.

Look on the bright side - at least the PO isn't in the news as another 'failed pension system unable to pay future obligations'.

 

[Lakedog]

I think I used two stamps last year. The price of postage should be raised to whatever level is required to cover USPS costs rather than 2-3 cents at a whack (while they continue to operate in the red). Even a 50% increase would still be a bargain.

 

[aja8888]

An amazing and unsustainable good deal. The Canadian rate was just announced to go to $.85 from around $.50 I think. Also, they announced a gradual phasing out of home delivery using community drop boxes instead. As far as I am concerned we could easily phase the postal service out completely. We hardly ever get anything in the mail that means anything to me and these could easily go electronic within a short time.
I am always amazed when in Arizona how good the US postal service is, how cheap it is, and how resistant to service reductions Americans are. Why not just scrap it!!

How good it is? Lucky you are in Canada.

This year so far:

Two instances of gift cards that were mailed to me never showed up in my mailbox (and senders said they were mailed). Plus I tracked them via a tracking number.

Two priority mail (with tracking numbers) deliveries did not show up and the postal web site showed them as "delivered". When questioning mailman, he had no clue. Mysteriously, two days later, the deliveries were in my box.

It is not possible to file a written complaint against the post office's service anymore.

Numerous times my mail is put in other people's boxes and vice versa.

One tax bill was never delivered to me this year.

I can go on, by you get the message.

Oh, at work, our firm no longer uses the USPS services. Several of our clients insist on it.

 

[Danmar]

How good it is? Lucky you are in Canada.

OK maybe because I hardly ever get anything of importance, it just seems good? Why don't we just scrap it? I guess the pension costs would be a huge issue.

 

[W2R]

According to my records, I use 7 stamps/year on average.

Guess I won't worry too much when I compute my annual withdrawal for 2014.

 

[aja8888]

According to my records, I use 7 stamps/year on average.

There should be a thread on how many postal stamps one uses per year and for what purpose.

We use them for:

Christmas cards,
Property tax bills (to avoid the charge for an online payment fee),
Important correspondence (certified, return receipt),

That's about it...maybe 40 stamps per year.

 

[easysurfer]

Stock up on those forever stamps while you can.

I got about $200 worth back when they were about 42 cents each and the stamps are stored in my safe

 

[REWahoo]

Stock up on those forever stamps while you can.

I got about $200 worth back when they were about 42 cents each and the stamps are stored in my safe

Are you the one who started this 2011 discussion over on Bogleheads?

Bogleheads - Forever Stamps as an Investment?

 

[NW-Bound]

...
I am always amazed when in Arizona how good the US postal service is, how cheap it is, and how resistant to service reductions Americans are. Why not just scrap it!!

Don't you think the postal worker union has something to do with that, more than the public at large?

 

[Ready]

Doesn't Costco still sell stamps at a discount?

 

[REWahoo]

Doesn't Costco still sell stamps at a discount?

I think maybe they do - but I don't consider discounting a roll of 100 stamps by a total of $0.05 (not per stamp, per roll) to be significant enough to warrant my attention.

 

[GrayHare]

On ebay you can buy US stamps at about a 25% discount. They are typically a mix of older first class rate stamps, such as 13 cents, 15 cents, etc. that you can combine on an envelope to reach 46 (or 49) cents.

 

[aaronc879]

An amazing and unsustainable good deal. The Canadian rate was just announced to go to $.85 from around $.50 I think. Also, they announced a gradual phasing out of home delivery using community drop boxes instead. As far as I am concerned we could easily phase the postal service out completely. We hardly ever get anything in the mail that means anything to me and these could easily go electronic within a short time.
I am always amazed when in Arizona how good the US postal service is, how cheap it is, and how resistant to service reductions Americans are. Why not just scrap it!!

I have several relatives who have never owned a computer and don't plan to get one anytime soon. They, and millions of other americans, rely on the post office. The post office won't be scraped entirely for a long time. I do think we can go to 5 day delivery and community drop boxes to reduce the cost significantly. Although the community drop boxes may make things difficult for some elderly or disabled people. They may need some sort of assistance.

 

[Ready]

On ebay you can buy US stamps at about a 25% discount. They are typically a mix of older first class rate stamps, such as 13 cents, 15 cents, etc. that you can combine on an envelope to reach 46 (or 49) cents.

Now I thought I was good at LBYM, but if you are actually doing this I give you the honorary Most Frugal Person of 2013 award!

 

[MichaelB]

I think maybe they do - but I don't consider discounting a roll of 100 stamps by a total of $0.05 (not per stamp, per roll) to be significant enough to warrant my attention.

Just wait 'til after the increase. There will be a run on $0.03 stamps, for folks with excess $0.46 stamps, then a run on $0.01 stamps. When the local post office runs out of both, even if for a few days, these people will complain so loudly it'll make you think their life was in danger. Extreme crankiness for a couple of pennies.

 

[ziggy29]

Just wait 'til after the increase. There will be a run on $0.03 stamps, for folks with excess $0.46 stamps, then a run on $0.01 stamps. When the local post office runs out of both, even if for a few days, these people will complain so loudly it'll make you think their life was in danger. Extreme crankiness for a couple of pennies.

Not really. There are very few stamps with pre-printed 46 cent values. Virtually all stamps currently worth 46 cents of postage are the "forever" stamps that will be "worth" 49 cents as soon as the rate change takes effect.

Now there may be a bit of a run on 4-cent stamps, since the current 2-ounce rate is going to go from 66 cents to 70 cents (and the 66-cent stamps are generally preprinted with that value). And if people have 20 cent stamps for additional postage (for each additional ounce), they will need some 1-centers when the additional ounce rate goes to 21 cents.