Why is Postage so Expensive

First-class stamp postage rates will increase to 60 cents beginning in July 2022, a 2-cent increase over the 2021 rate. Inflation and increased operating costs are driving higher prices. According to the U.S. Postal Service, they’ve increased by 3.45% since last year. Will stamp price increases stop? The cost of first-class stamps has increased 76 percent since 2001 and 20 percent since 2018. You can’t help but wonder about the price: Why is postage so expensive?

Rising stamp costs amid inflation-driven price increases

While no one wants to pay for anything anymore, the rising cost of postage pales in comparison to the dramatic price increases in fuel, food, and housing. “All postage price increases appear to be justified. as inflation and operating costs rise, these price adjustments will help implement the Delivers for America program,” the Postal Service said in a statement, referring to its plan to invest $40 billion in upgrading its infrastructure. Even with the new rates, the Postal Service will continue to offer the lowest rates for letter postage in the industrialized world, the statement said.
According to the USPS, the new rates for First-Class Mail can be summarized as follows:

July 2022 First-Class Mail Prices
First-Class Mail	Current Price	Proposed Price
One-ounce letter, domestic	$0.58	$0.60
Single-piece letter, additional ounce	$0.20	$0.24
Metered mail 1-ounce	$0.53	$0.57
Postcard stamp	$0.40	$0.44
One-ounce letter, international	$1.30	$1.40

In addition to the stamps listed on the form, other postage increases will take effect July 10:

Metered letters – 57 cents instead of 53 cents.

Two-ounce stamps – from 80 cents to 84 cents.

International stamps – from $1.30 to $1.40

It’s safe to say that it will be more expensive to mail Christmas cards this winter than last year. In recent years, the USPS has raised stamp prices several times to offset rising costs. Stamps will likely be more expensive again next year.

In August 2022, Postmaster General Louis DeJoy told the Postal Service Council that he believes another price increase will be necessary for January 2023, given ongoing budget constraints and continued high inflation. First-class mail accounted for less than one-third of Postal Service revenue last year, and individual letters accounted for less than 10 percent. The bulk of the Postal Service’s revenue comes from parcels and packages.

Postage increases are also affecting many small businesses

For many small businesses, postage and shipping costs can be a huge cost of doing business. Mailing one or two letters may not break your budget, but if you send out hundreds of letters or ship products to customers every month, shipping and postage costs can significantly cut into a company’s bottom line.

Postage and mailing costs in the U.S. eat up a certain percentage of a small business’s budget each year if it sends out a lot of marketing cards. In July 2022, the new postal rates will go into effect. The impact of this move on businesses will be even greater. The price of first-class stamps will rise unchanged to 60 cents and increase to 24 cents for each additional ounce, and the fee for postage-paid letters will rise to 57 cents. According to the USPS, Priority Mail and Priority Mail Express fees will also increase to some extent.

To better communicate and market to customers and deliver goods on time and at a lower cost, it is still the most cost-effective to use USPS mailing services, but at this time, companies of all sizes need to pass the lowest possible mailing and transportation costs. and benefit.

Soaring fuel bills and labor pay let shipping get so expensive

Small and medium-sized enterprises are dissatisfied with the courier company’s rising freight and high transportation costs every year. But the reasons behind shipping costs can be complex and opaque. Shipping itself is a complex process with separate costs at various stages that increase steadily, resulting in higher prices.

For example, Shipping fuel costs must be considered when fulfilling an order, labor must be paid. The driver must also be paid when delivering packages etc. This step-by-step process has continuously added costs to couriers, which are naturally passed on to consumers and online merchants.

In addition to all of these, different couriers’ pricing of package weight, size, value, and destination can have a large impact on the final price. Large, heavy packages are known to take up a lot of “space” in delivery trucks, so it’s no surprise that shipping costs more. Likewise, the fuel and labor costs of shipping a package from New York City to Hawaii are much higher than shipping a package a few miles away, thus incurring higher shipping costs.

How to reduce mailing and shipping costs?

Switch to email

The first thing you should do is switch to email and avoid sending documents via US mail. If your client agrees, you can email invoices, proposals, presentations, contract terms, or even signature documents. (Many office printers can scan documents and save them as PDF files. So to send a signed document, simply print it, sign it, scan it, save it as a PDF, and send it as an email attachment. However, for some important vacation greeting cards, traditional paper cards are more considerate than email.

Weigh each piece of mail

Have several stamp values on hand and weigh each piece of mail to determine the exact postage amount for each piece of mail you send, then use the exact postage amount you need. Be aware of size and price differences when shipping cardboard packages. Shipping costs for packages are based on the weight, size of the box, and destination.

From time to time, compare your shipping costs at the post office with those of other dropshipping companies and see if you can save on shipping costs by combining shipping boxes of different sizes.

Choose lighter samples

If your designer recommends sending very heavy samples, get samples of the paper and envelopes you plan to send and weigh them to then figure out how much it will cost to ship. If the weight of the document increases the postage, ask the designer to choose a lighter alternative.

Use standard-size envelopes and postcards

You’ll be charged the extra postage for odd-sized items or items that do not fold, and that’s not cheap. Send postcards instead of letters when sending holiday greetings. If you send a full-size (1st class) postcard, you will save about 30% compared to sending a letter (1st class). Place ads and promotions for other products and services you sell when you send invoices to customers or send items in the mail. Marketing ads can be delivered to customers without additional postage, as long as the weight of the printed paper does not drive postage costs into the next rate range.

Have several face-value stamps on hand

Have several stamp values on hand and weigh each item to determine the exact postage amount for each item you mail. Be aware of size and price differences when shipping cardboard packages. Shipping costs for packages are based on the weight, size of the box, and destination. From time to time, compare your shipping costs at the post office with those of other dropshipping companies and see if you can save on shipping costs by combining shipping boxes of different sizes.

Go to some boutique websites

Boutique websites such as Stampshop allow you to buy stamps that are no longer for sale at the USPS. Forever stamps will never be National Flags, and in good condition, you can save forever mailing in the 1st class. And there are enough discounts, especially on bulk purchases, to save a lot of money, which can be a big win.