The United States Postal Service implemented a rate increase for letter mail, postcards and flats that went into effect on Aug. 29. The organization also announced a proposed temporary rate adjustment for the 2021 holiday season that would go into effect Oct. 3.
After reaching a peak of about 213 billion units in 2006, the postal service has experienced a decline in mail volume every year since. By 2020, the number dropped to 129.2 billion units, according to statista.com. So why would any organization that is experiencing a steep decline in the purchase of its product or service raise its rates? Wouldn’t that simply speed up the decline? The short answer is… yes. The longer answer is… because they can. Here’s why.
The Postal Regulatory Commission recently completed a review of rules that determine how much the USPS can raise rates in a year, and the regulator determined that the postal service should have the ability to raise prices above the rate of inflation. So rather than waiting until the traditional October announcement and January implementation date, the USPS decided to move up the rate change. Hmmm. So if there is less desire for your product or service, charge more. Does anyone else see a problem with this logic?
Let’s be honest. How many people even know what the cost of a postage stamp is today? Well, it is 58 cents, an increase of 3 cents or 5.45 percent. Many of the remaining folks who buy stamps today are using the “Forever” version that doesn’t have a price printed on it. As such, we simply forget the cost. That’s an ingenious move, actually.
To be fair, the USPS has its share of troubles, and there isn’t an easy fix. My friend Kirk Denison, who worked for the post office for years and is an avid reader of this newsletter, often says if hindsight were 20/20, the USPS could have had an incredible solution to its revenue woes. What if the post office owned email delivery like they do postal delivery, he pondered? What if every person had a government-issued email address, and the USPS could charge a fee for each sent email, much like a letter?
Imagine the revenue possibilities. Imagine how much less junk email we would receive. Imagine the bureaucracy. OK, don’t imagine the last one.
I know, this idea is easier said than done, and it would destroy email newsletters like this one, but it’s still fun to wonder… what if?
Meanwhile, I hope you enjoy this free newsletter. Signed, sealed and delivered.
Have a wonderful Wednesday, and thanks for reading.
Shane Goodman
President and Publisher
Big Green Umbrella Media
shane@dmcityview.com
515-953-4822, ext. 305 | 
