Rate Hike Jan. 8—

Postal Service Customers Put In Their Two-Cents Worth

By Nancy K. Crevier

Area residents are preparing for the January 8 US Postal Service rate increase, the first in four years, by supplementing their 37-cent stamps with two-cent stamps to keep their first class letters moving smoothly through the mail system.

“We have about 100,000 two-cent stamps available, and have gone through about 20,000,” says Hawleyville Postmaster Mark Favale.

It is not just the early birds stocking up on supplemental stamps that is easing the transition from the 37-cent first class postage rate to the 39-cent rate, says Mr Favale. What makes his job a little easier this time around, as with the last rate increase, is that the new 39-cent stamp has been available for purchase since December 7. This creates less of a last minute scramble for him and for his customers on the day of the rate change.

From 1885 to 1958, first class postage costs stayed at two to three cents an ounce, the higher rate predominating during WWI. But since then, Americans have seen postage rates creep up every three years or so. In 1963, a first-class letter cost only a nickel to mail. By 1978, that cost had tripled and as the new century approached, first-class postage was at 34 cents for the first ounce. A 2003 federal law required the US Postal Service to put $3.1 billion in escrow by October of 2006 to offset anticipated future costs. The new price increase will fund this escrow.

The one or two cents collected is virtually painless for most, but it does add up. For small businesses, the postage pinch will hurt.

“[The rate increase] will definitely have an impact on doing mailings,” says Kathleen Barton, one of the partners at Graceful Planet on Berkshire Road. The yoga studio uses brochure mailings to advertise its services. Adhering to the adage that “a penny saved is a penny earned,” Ms Barton says, “We will probably do more postcards than brochures, now,” in order to keep down costs. Post card rates will go up just one cent, to 24 cents, on the 8th of the month.

Judy Grabarz, owner of Newtown Florist on Church Hill Road is not looking forward to the rate increase. Because the florist does a lot of house billing, all of it first class mail, this rate increase will affect her overhead costs. “The cost varies from month to month,” she says, “but, yes, we will feel the impact of an increase.”

International rates will increase on January 8, too, the new rates being based upon the domestic rate changes. Expect to pay more for priority mail, too. A one pound piece sent priority in December cost $3.85. To send that same piece of mail next week will take another 20 cents. A one-half pound package sent express mail will cost 75 cents more in 2006 than it did in 2005.

Most rates and fees will increase approximately 5.4 percent across-the-board. That means that services such as delivery confirmation and certified mail will jump five to ten cents this year, as will costs for return receipts and money orders.

New rates mean new stamps, so it is not all bad news for everyone. Stamp collectors might be disappointed with the limited commemorative stamps currently available, but that will quickly improve as the year goes on. Currently, only the 39-cent Lady Liberty and The Flag stamps and the Love: True Blue stamps are available for purchase, says Postmaster Favale. By the end of February, though, philatelists will find stamps dedicated to the Winter Olympics, Black History Month, and Favorite Children’s Book Animals for sale, he says.

Brides-to-be may purchase special Our Wedding stamps on sale in March. The booklet of elegantly designed stamps will contain two-ounce stamps for mailing the wedding invitation and enclosures, as well as one-ounce stamps for RSVP envelopes.

Sugar Ray Robinson, Katherine Porter, and Disney are among others to be featured on 39-cent 2006 commemorative stamps, giving collectors much to anticipate.

Fundraising stamps will not be affected by the new rate increase. Breast Cancer Research stamps and Stop Family Violence stamps will remain at 45 cents, with the six cents above the postage rate being donated to support the cause commemorated by the stamp.

The postal service may believe that “Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds,” but hopefully, with email rapidly eclipsing “snail mail,” the latest rate hike will not stay the letter-writers from swift completion — and mailing — of their letters.