USPS wants to offer 'Forever Stamp'

[JEDI]

CNN

""Forever Stamp", a stamp that would continue to cover the cost to mail a first-class, one-ounce letter even if the Postal Service instituted another rate hike."

Why would they implement this? it's sacrificing future revenue for current.

 

[amdskip]

Isn't the first class stamp similar to this?

 

[AndrewR]

Because everyone HATES those stupid one and two cent stamps that you need whenever they switch the postage rate. They are probably counting on people not hoarding stamps, which is probably a good bet except for a few select cheapskates.

 

[slpaulson]

If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

 

[bobdelt]

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

 

[bignateyk]

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

 

[slpaulson]

Originally posted by: bignateyk

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

Plus, I doubt the post office is making much on those 1 cent stamps anyways.

 

[bignateyk]

Originally posted by: cRazYdood

Originally posted by: bignateyk

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

Plus, I doubt the post office is making much on those 1 cent stamps anyways.

yeah.

I guess you also have to factor in the lazy people like me, who instead of buying 1c stamps for the old stamps they already have, they just go out and buy all new stamps, and pitch the old ones.

I usually do this because I only ever mail like 3 letters a year, so it doesnt seem like a big deal to drop a few bucks for new ones. In this case, the post office makes quite a bit.

 

[batchusa]

Stamps? What are those? Haha, seriously though I probably use 10 stamps a year (mostly for rebates).

 

[Parasitic]

Didn't we just have a hike?

 

[imported_weadjust]

How much does if cost to make a 1 cent stamp? A lot more than a penny

 

[Suspicious-Teach8788]

Originally posted by: bignateyk

Originally posted by: cRazYdood

Originally posted by: bignateyk

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

Plus, I doubt the post office is making much on those 1 cent stamps anyways.

yeah.

I guess you also have to factor in the lazy people like me, who instead of buying 1c stamps for the old stamps they already have, they just go out and buy all new stamps, and pitch the old ones.

I usually do this because I only ever mail like 3 letters a year, so it doesnt seem like a big deal to drop a few bucks for new ones. In this case, the post office makes quite a bit.

Oooh, that's me. I mail 3 letters a year. Well I mail rebates, but other than that, it's like 3 letters a year. Kinda sad huh? I was surprised when I learned there were 2 cent stamps. And usually, you don't buy that many 37 cent stamps that you will have 20 leftover so that you even need to go buy 2 cent stamps. For me its usually easier to just toss the old stamps cuz it's usually not too many I'm tossing. That's why you should gauge your usage so that you kinda run out by the time they switch the stamp rates =]

 

[toekramp]

Originally posted by: weadjust
How much does if cost to make a 1 cent stamp? A lot more than a penny

you get your data from where exactly?

 

[mugs]

Originally posted by: bignateyk

Originally posted by: cRazYdood

Originally posted by: bignateyk

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

Plus, I doubt the post office is making much on those 1 cent stamps anyways.

yeah.

I guess you also have to factor in the lazy people like me, who instead of buying 1c stamps for the old stamps they already have, they just go out and buy all new stamps, and pitch the old ones.

I usually do this because I only ever mail like 3 letters a year, so it doesnt seem like a big deal to drop a few bucks for new ones. In this case, the post office makes quite a bit.

Hah, I'm the same way - except I don't throw the old ones away, I just use two at a time (so I'm paying nearly double, but I get rid of my old stamps).

 

[herkulease]

this is great for our office. We mail quite a bit of stuff but not enough to justify getting the scale and electronic stamp. Plus the post office is just around the corner.

But seriously they need stop hiking the rate.

 

[SarcasticDwarf]

It probably is a response to customers being pissed off that you need to buy the 1-2cent stamps every year now.

 

[jimmyjam]

Instead of throwing old stamps in the trash wouldn't is make more sense to just put two of the old stamps on your letter and avoid buying new stamps?

 

[dullard]

From 4 cents in Aug 1, 1958 to 41 cents in May 2007, we can calculate the typical rate increase. In this case, the USPS has a typical increase of 4.89% per year.

4 cents * (1+4.89%)^(48.75) = 41 cents

So, lets assume the rates still go up at a rate of 4.89% per year. If the USPS can take money in now for the Forever stamps, and invest it to make more than 4.89%, then they actually earn MORE money with the forever stamp than they do now. Earning >4.89% is a piece of cake if you invest properly.

And all that doesn't include the reduced costs to the USPS. They won't have to print, market, or sell the 1, 2, and 3 cent stamps any more. Think about how simple the vending machines will be with just one stamp. Think about the shorter post office lines with just one stamp. Think about the time spent demanding one more penny from people who accidently used an older stamp. Etc. The cost savings alone should easilly make up for the lost 4.89% yearly increase.

Heck, we don't even know if the forever stamp would be at the same 41 cents per stamp. I could see this forever stamp price being at a different price level. So even there they could end the complain about lost revenue.

 

[SagaLore]

I'm sure this "Forever Stamp" is going to be something like 50 cents, which will be years before we it gets hiked to that. In which case they'll win both ways - a quick surge of money to invest, while beating inflation by years.

 

[MrBond]

Man, I *just* found almost a whole book of 37 cent stamps in my checkbook. I was going to pick up 2 cent stamps today for them.

I guess I'll get 2x the amount I need because of the rate hike in May, then hope they stick to the 2 cent increase.

On a somewhat related note, our cable bill was returned to us because I accidentally used one of the 37 cent stamps without realizing it. Don't they deliver anything "postage due" anymore?

 

[FoBoT]

Originally posted by: jimmyjam
Instead of throwing old stamps in the trash wouldn't is make more sense to just put two of the old stamps on your letter and avoid buying new stamps?

that is what i do when they raise the rates

not that i keep more than ten stamps at home, but when they raise the rates, i just put two of the old ones on until i run out, buying 1-2 cent stamps is too much work

 

[Zenmervolt]

Originally posted by: amdskip
Isn't the first class stamp similar to this?

That's what i thought too. I've got a whole book of stamps at home that just say "First Class" and have no value on them anywhere.

ZV

 

[Golgatha]

Originally posted by: mugs

Originally posted by: bignateyk

Originally posted by: cRazYdood

Originally posted by: bignateyk

Originally posted by: cRazYdood
If people hoard up a lot of stamps, they could invest that extra initial revenue and probably make more on that return than 2 cents per stamp hoarded.

yeah. And most people wouldnt hoard stamps to save a few cents here and there. It would just be nice not to have to worry about adding x# of 1c stamps to your letter to make sure you have the right postage.

Plus, I doubt the post office is making much on those 1 cent stamps anyways.

yeah.

I guess you also have to factor in the lazy people like me, who instead of buying 1c stamps for the old stamps they already have, they just go out and buy all new stamps, and pitch the old ones.

I usually do this because I only ever mail like 3 letters a year, so it doesnt seem like a big deal to drop a few bucks for new ones. In this case, the post office makes quite a bit.

Hah, I'm the same way - except I don't throw the old ones away, I just use two at a time (so I'm paying nearly double, but I get rid of my old stamps).

Finally, someone with half a brain! Why would anyone throw away stamps? At least just use two at a time rather than throw them away.

 

[toolboxolio]

There is something seriously wrong with the USPS if they keep hiking their prices up like this.

If they are trying to make-up for lost revenue due to email and other competition... hiking prices for simple letters every year isn't helping at all.

Management at USPS should have been overhauled as many times as it needed to be after email came to be popular.

 

[miniMUNCH]

Edit: I obviously didn't read anything except for the OP...