The U.S. Postal Service has pledged not to increase prices for any “market dominant products including First-Class Mail, Standard Mail, periodicals, [and] single-piece Parcel Post,” according to a statement released to various customer groups by the USPS yesterday. “There will be no exigent price increase for these products.”
Citing “pessimistic speculations [that] has suggested that postal prices could increase by as much as 10 percent,” the USPS decided to squelch these rumors with yesterday’s statement. The USPS is desperate to generate increased revenue after suffering 11 losses in 11 of the past 12 quarters, but a rate increase now would likely drive down mail volumes significantly.
“This is the right decision at the right time for the right reason,” said the USPS in its statement. “Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.”
The Postal Service has tried to be proactive in its relationship with mailers in recent months with new incentives including its Summer Sale and contract pricing; still, a troubled bottom line has the USPS considering such cost-cutting moves as the closure of several processing and distribution centers and even the elimination of Saturday delivery.