US Postal Service Proposes Rate Increase Effective January 2, 2011

The USPS has proposed a rate increase effective January 2, 2011.  This has the following immediate implications:

• First-Class Mail stamp increases two cents to 46 cents and would add less than 13 cents a month to the average American household’s budget.
• Each additional ounce will cost 18 cents.
• Postcard stamp increases to 30 cents.
• The first ounce of a large envelope (flat) will cost 92 cents.

This will have a mixed impact on the newspaper industry, particularly in regard to preprints.  For those newspapers that are carrier delivered, this will be a benefit, as the their operating costs will not be impacted, while shared mail and direct mail costs will rise, thus making the carrier deliver papers more financially attractive to advertisers.

As for mail delivered newspapers, some will benefit and some will suffer.  As Editor & Publisher points out, depending on the size and volume of inserts a mailed newspaper (or mailed product) deals with, they may still come out ahead.  Some products will see only a 4% rate increase, instead of the 8% that others will see. While 4% isn't good news, it is better than 8%.