Sunday November 22, 2009 6:17 PM ET
SmartMoney
Published June 8, 2009  |  A A A
Deal of the Day by Lisa Scherzer (Author Archive)

7 Things You're Paying More Money For

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First-Class Postage Stamps

Price in April: 42 cents
Price now: 44 cents
Percentage increase: 4.7%

The U.S. Postal Service raised the price of a first-class stamp yet again last month -- the third increase in as many years. Other items that were affected: The first ounce for a large envelope rose to 88 cents from 83 cents (any weight over that amount remains at 83 cents an ounce), and the first ounce of a parcel package is now $1.22, up from $1.17.

Those rate hikes may not be enough to cover the agency’s cash shortfall: In May, the USPS announced that it had a year-to-date net loss of $2.3 billion, compared to a $35 million loss in the year-ago period. The agency, which recently asked Congress for permission to cut its delivery days to five days a week from six, blames its financial woes on the recession and revenue lost to email.

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User Comments
gonepostalgirl

1 Comments
Yes, postage went up. Unlike their competitors, the USPS can't increase their prices or add fuel surcharges whenever they want. The USPS had many years of zero or one cent price increase over the last 20 years. While rates have increased a few cents the last several years, given this country's fuel prices during that time frame, I believe it's one of the best deals in the country to be able to get a first class letter from one side of the country to the other in a few days. The USPS handles approx. 46% of the WORLD'S card\letter volume, delivering to over 149 million addresses six days a week, processing 203 billion pieces in 2008 alone - that's an avg of 667 millions pieces of mail per hour! The USPS drove over 1.2 billion miles in '08 in a fleet of 221,000 vehicles, of which 43,000 are "clean fuel" vehicles to get your important mail delivered to it's destination. No other mail or package service in the world can compete. Fourteen percent of the US population moves annually, su...(Read more of this comment)
Posted by: violette
Some price hikes are sneakier. Take a look at your cans of tuna fish next time you go to the grocery store. They used to be 6 oz. in size, but are now 5 oz. And you pay the same price. All the brands are doing it, too. I snatched up the last stash of 6 oz. cans way in the back of the shelf last time I was there. It seems like a small thing, but multiply that across a large number of products and it's costing you plenty. Remember a real half-gallon of ice cream? How about a pound bag of coffee? I saw some canned goods that now have tapered cans that look the same size, but are actually smaller in volume. They think a little nip and tuck here and there will escape notice. Sneaky buggers.
Posted by: emailman
Not much research done with the bit about postage increases. Postage is tied to the CPI and adjusted each May, competative products like Express mail and Priority are adjusted in January. The USPS's financial problems were created by Congress when they passed the PAEA (Postal accountability enhancement act)which required the USPS to PRE-fund their FUTURE retirees benefits. This requirement is unheard of in both the government and private sector. Had they not been hobbled by Congress the USPS would have finished last year in the black. The 5 billion (yes thats a "B")that the PAEA costs the USPS is nothing more than a "Back Door" tax on consumers.
hotdeals

17 Comments
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CashnsaveCeo

5 Comments
There's far more then 7 things we all paying more for! But the fact is, businesses even in a huge economy down fall still haven't figured out the #1 problem of fixing it all! It seems going out of business is much easier then redoing there prices to a much more fair and honest pricings from products to services! Crippled economy, and yet products and services pricings just keep going up! Consumers have had enough of being ripped off, the economy is just going to be crippled until businesses realizes, that demand, doesn't mean skyrocket there prices! Period. DEMAND for a Product or service you offer means you will stay in business much longer by providing the products and services, without all the price hikes because of any huge demand! But as you business owners can see, running your business on greed, is Only heading you to the Big Out of Business! Wake up businesses, you don't have much time left to save your businesses from Out of Business. Consumers have had enough, and to do nothi...(Read more of this comment)
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