Investment in efficiencies drives USPS price increases

The U.S. Postal Service raised the cost of First-Class forever postage stamps for letters from 66 to 68 cents.

Even with the 2 cents increase, it is still a bargain to mail a letter to anywhere in the county.

This is the sixth increase in the past three years.

The organization says it needs to raise rates to invest in long-term efficiencies.

“We're expecting and shooting for an increase in revenue of $2.4 billion. The lion's share that really is in first class mail, and then the largest component shipping and packages," said USPS Governor William Zollars.

The postal service wants customers to know it “generally receives no tax dollars for operating expenses” and a 2020 YouGov survey found a plurality of Americans believed the agency was underfunded by the government. Which suggests there’s sympathy for the institution’s $6.5 billion net loss last year.

“We believe this plan will be critical in ensuring that the Postal Service has the resources, personnel and infrastructure needed to continue performing its vital services to the American people," added the organization.

Based on the numbers, it also suggests some more wiggle room for future adjustments to what the postal service claims is a stamp price “among the most affordable in the world.”

Did you notice the two cents increase?

A hundred years after the Civil War, you could mail a letter for less than a nickel.

The USPS did not keep up with inflation over the years. Fast forwarding to 2024, the USPS is still one of the most affordable ways to mail a letter.

Today’s price is pretty much on par with the cost of a stamp 40 years ago and even 140 years ago.

First-Class Mail Postcards will cost 2 cents more, from 51 cents to 53 cents. The cost of stamps for international letters and postcards will increase by 5 cents, from $1.50 to $1.55.

Along with stamp increase, USPS is also hiking up prices for some package shipping services. USPS Ground Advantage cost will go up 5.4%, Priority Mail will increase by 5.7% and Priority Mail Express will go up 5.9%.

The company shares that despite substantial reductions in the cost of operations and growth in their package revenues, they will not reach breakeven results in 2024 either.

According to an early-January poll from YouGov, 87 percent of U.S adults did not even know the exact price of a stamp.

You’ve got to wonder - will Americans even notice another two-cent increase?