Postage stamp price increase will take effect May 14

The governors of the U.S. Postal Service approved an increase in the price of a first-class stamp to 41 cents, authorized the issuance of the Forever Stamp and approved shape-based pricing. These new prices will take effect Monday, May 14.

However, they delayed implementation of new prices for periodicals and requested reconsideration for some mail classes.

Forever Stamp

The governors approved the Forever Stamp, which will sell at the new 41-cent First-Class Mail one-ounce letter rate.

The value on these stamps will always be the one-ounce letter rate and can be used for any future one-ounce letter mailing without extra postage.

"The Forever Stamp is a consumer innovation that delivers convenience and value and will help ease the transition for mailing letters when prices change," said Board of Governors Chairman James C. Miller III.

Shape-based pricing

The new prices also reflect differences in the costs of handling letters, large envelopes (flats) and packages. Mailers are encouraged to consider options available to reduce postage costs.

For example, if the contents of a first-class large envelope are folded and placed in a letter-sized envelope, mailers can reduce postage by as much as 39 cents per piece.

Request for reconsideration

The governors requested reconsideration of the Postal Regulatory Commission's rate recommendations for standard mail flats (catalogs), the nonmachinable surcharge for first-class mail letters and the priority mail flat-rate box.

Standard mail flats

The governors are concerned that price increases recommended by the PRC may impose an unnecessary "rate shock" on the catalog industry, particularly small businesses.

The recommended increase for some catalog mailers is as much as 40 percent, which is more than double what the Postal Service had proposed.

Nonmachinable surcharge

The PRC decision on first class mail 2-ounce and 3-ounce letters does not differentiate between machinable and nonmachinable.

The governors believe this warrants further analysis to ensure there are incentives for mailers to provide letters that can be processed at lower cost on efficient sorting equipment.

Priority mail flat-rate box

The PRC recommended a rate of $9.15 for the priority mail flatrate box, which is $1.05 above the current rate.

The governors believe a rate below $9 would be more appropriate for this popular consumer and business product and would be cost-justified.

Delayed implementation

The Board of Governors also delayed until July 15 implementation of the new prices for periodicals (magazines and newspapers) to allow time for the publishing industry to update computer software and adjust to the complexity of the PRC-recommended rate structure for periodicals.

The Postal Service had proposed a single container charge for periodicals, but the PRC recommended 55 different prices based on container type, entry point and level of sortation.

The Postal Service has annual revenues of $73 billion and delivers nearly half the world's mail.

Following are the increases in postage prices, effective May 14.

+First-class mail: letter, bill payment, greeting card. From 39 cents to 41 cents.

+Wedding invitation (2ounce): From 58 cents to 63 cents.

+Postcard: From 24 cents to 26 cents.

+Bank statement (2ounce, 3digit, barcoded): From 55 cents to 46 cents.

+Utility bill (5-digit, barcoded): From 29 cents to 31 cents.

Priority mail

+Flat-rate envelope: From $4.05 to $4.60.

+Flat-rate box: From $ 8.10 to $9.15.

+12-pound (Chicago to Los Angeles): From $19.80 to $24.10.

Express mail

+Flat-rate envelope: From $14.40 to $16.25.

+1-pound package: From $18.80 to $19.50

Parcel post

+1-pound package: From $3.95 to $4.50.

+5-pound (Chicago to Los Angeles): From $9.11 to $9.50.