Mail Volume Drops, USPS Price Increases 15%

I awoke this morning to a news report of the USPS increasing postage by $0.02 today.  The report went on to mention that USPS rates have increased across the board with an average increase no greater than the Consumer Price Index of 3 – 4%.  CNN reports that, “The increase will cost the typical family about $3 a year.” Sounds pretty harmless right?  Wrong.

Apparently CNN did not check with businesses dependent on standard mail.  For the third year on a row, businesses shipping flats, parcels and NFMs are being nailed by 10% – 15% rate increases.

The USPS justifies the rate increase stating that they need to make up for decreasing mail volume due to the economic slowdown.  Much like the USPS has been impacted by the slowdown, so have retail stores.  When I walk down Columbus Avenue, NYC, I see price reductions in every window.

Is it just me or does increasing prices during a business slowdown sound like a bad idea.

by Bob Makofsky bmakofsky@conformerinc.com

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