Ready, Get Set, Go

As soon as possible to your local U.S. post office or any other place you buy first class postage stamps.

Why the rush?

In case you haven't heard, it's because currently in the U.S. the cost of a first class postage stamp is 55 cents, but in less then two weeks on Sunday, August 29, that same stamp will cost 58 cents — a 5.5 percent increase. This is the second USPS postage rate increase in 2021 since a January 24 increase of 1.8 percent overall that raised rates for the additional ounce on first-class postage, metered mail, certified mail, postcards. Priority mail services increased 3.5 percent overall for flat-rate envelopes and boxes.

A first-class stamp covers the price of a one-ounce first-class letter. While the current 20 cents charge for an additional ounce costs won't change, which increased 5 cents in Jan 2021. 

There's a way to avoid the increase

Stock up now on First-Class® Mail Forever stamps. The Forever in the stamp's name means that even after the August price increase, a single stamp bought for paid 55 cents will still send a one-ounce letter to any U.S. address without needing more postage. Plus, if you have any Forever stamps stashed away, you can still use them until your supply runs out. 

Forever stamps, introduced in 2007, always equal the current price of a first-class stamp. An original First-Class® Forever stamp purchased then for 41 cents or any in following years are still OK to mail a first-class letter with no added postage. Since 2011, nearly all U.S. first-class stamps sold have been Forever stamps.

Forever stamps also can be used for outbound international letters, but still may need more postage to get to the correct amount. There are Forever stamps for international letters, so if, like myself, you send international letters, you might want to stock up on a few of these before Aug 29 — that cost is going up too and more than the U.S. increase. For example, a first-class letter sent to a UK friend will go from $1.20 to $1.30 — Yikes! That's a 10 cent increase so, yes, I've stocked up on some of those, ahead of pre-increase time, as well.

Here's some overall highlights of what you can expect with the August 29 USPS increase.

• First Class Mail Letter (1 oz.) rises from 55 cents to 58 cents 
• Each added ounce for First Class Mail remains at 20 cents (no change)
• Metered letters would rises from 51 cents to 53 cents
• Domestic postcards rises from 36 cents to 40 cents
• Outbound international letters rises from $1.20 to $1.30
• One-ounce flats rises from $1 to $1.16

According to the USPS, this rate increase impacts Market Dominant products, services, like First Class Mail letters, postcards and mailing services. It doesn't include Competitive products, like First Class Package Service or Priority Mail. Of course, this could change in the future.

Where's the blame fall?

Convenience seems to be the culprit. Widespread use of email for bill paying, online ordering, correspondence, and the increasing shift to online banking have all affected the USPS bottom line. Folks are buying fewer stamps for letters and bill paying and even sending greetings online. Businesses have determined that customers can be reached faster and with less costs by email instead of through mailings via the postal system. Of course, while this may reduce junk mail, there's also the risk of increased  spam and junk mail in your online mailbox.

The USPS generally receives no taxpayer money for operating expenses. According to a May 28 statement, the proposed postage price hikes are a first step in a plan to reverse a projected $160 billion in operating losses over the next decade.

The Post Office Department was created in 1792 with the passage of the Postal Service Act. It was elevated to a cabinet-level department in 1872, and in 1970 was transformed by the Postal Reorganization Act into the United States Postal Service as an independent agency, a government-business hybrid that has received no taxpayer monies for operating expenses since 1982 but remains subject to congressional oversight. 

In a 2020 report, the Universal Postal Union ranked the postal services of 170 countries. The top five countries were Switzerland, Austria, Germany, Netherlands and Japan, followed by France, U.S., UK, Canada, Singapore. India Post is considered the largest postal system in the world. The most expensive place to mail a letter is Norway along with Denmark, Finland, Switzerland. While mail services are cheaper in some countries like Peru, Bangladesh, Thailand, and Malta the cost of postage has to be weighed against the economy. 

What I'll be doing 

Personally, I'm still  sending postage required (snail-mail) letters and cards which are generally enjoyed by recipients. I'll also mail holiday cards again this year, although the list will be re-checked (like Santa's) and most likely undergo cutbacks. Extra stamps were bought after the 2020 holiday to prepare for this holiday season. Yes,  I expect to buy a few more before Aug 29 arrives.

And, here's a surprise gift thought — if you know someone who likes to send letter/cards and perhaps is on a limited budget, send them postage stamps in your next card or letter.

Will the USPS postal increases affect your correspondence?