Jack Potter, (our Postmaster General) announced last week that there will not be an exigent rate increase for the Market Dominant products that are normally adjusted in May. Normally these products that you know as First Class Mail, Standard Mail, Periodicals and single piece Parcel Post have their prices adjusted by an amount that does not exceed the increase in the national CPI. In extreme or “exigent” circumstances the Post Office can still increase the rates beyond the CPI. You could certainly argue that the USPS has a good case to do so with tremendous year over year declines in mail volumes and financial losses.
Mr. Potter puts forth his reasoning quite eloquently: “This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.”
“While increasing prices might have generated revenue for the Postal Service in the short term, the long-term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products — Priority Mail, Express Mail, Parcel Select, and most international products — are under consideration. We expect to announce a decision in November.”
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