Many of you saw in the news that the US Postal Service wants to raise rates again in January 2011. They only lost a few billion dollars and want to raise rates. I understand and am glad that the USPS has finally done what all the rest of the country did over the past couple years – downsize their payroll. Over 100,000 employees no longer work at the USPS, mainly through attrition, but at least the USPS didn’t automatically hire replacements.
Back to the rate increase – The Postal Regulatory Commission (PRC) rejected the exigent rate case. It was a unanimous decision and does demonstrate that the PRC is not just a rubber-stamp outfit. A quick interview is posted at http://multichannelmerchant.com/catalog/1006-ruth-goldway-on-exigent-rate-case-ruling/ with the PRC chairman. The USPS is appealing that ruling, but the message was clear. The USPS has to further control costs, improve efficiencies and try to expand their market. To that effect, they are giving away some FREE stuff – this is part of the expanding their market, not controlling costs.
If you ship with the USPS using their FREE boxes, you can save a lot on packaging because they are FREE. You can go to www.usps.com and order a variety of FREE supplies for expedited shipping services. I have received numerous emails in the past weeks promoting their FREE boxes, including the new FREE shipping kit and the new FREE large flat rate boxes. (My message is that there is a difference between emphasis and overkill. Proper message conveyance is a subject for the future.)
