Postage rate increase takes effect

The U.S. Postal Service Jan. 8 put into effect a rate increase for all types and sizes of mail. Mailing a first-class letter weighing 1 ounce or less now costs 39 cents, while presorted first-class mail rates increased to 37.1 cents per piece.

Springfield Postmaster Bill Brayman said the increase - the Postal Service's first since 2002 - is a result of a federal law passed in 2003, requiring the Postal Service to place $3.1 billion in an escrow account. Congress will determine the use of those funds at a later date.

Despite the increase, local mailing companies say they and their clients are not too upset.

“It was a pretty low increase, and for the most part, you're only talking a couple of pennies,” said Dan Williams, president of AAA Mailing Service in Springfield. “It's not a major deal for these guys - it's been publicized well enough, they knew it was coming, so we just raise the postage rates and nobody's had a problem so far.”

AAA Mailing, which Williams acquired in November, recorded revenues of $3.2 million last year folding and sorting bulk mail for other businesses.

Mailing companies save their customers money by collating and presorting mail before it is sent to the post office, securing lower postage rates. In return, the mailing company charges its client a fee, usually a few cents per piece of mail.

“It's our job to get the lowest postage rate we can for (our customers),” Williams said. “There's a lot of ways to manage the system; you can sort mail to a three-digit (ZIP code beginning), five-digit (ZIP code) or by (mail carrier) route. The more you make it easy on the post office, the more of a discount you get from the post office.”

One of the biggest customers for AAA Mailing, and for the Springfield post office in general, is Bass Pro Shops. Company spokesman Larry Whiteley declined to comment on how much mail the company sends, but he said the company was prepared for the hike.

“We knew that this was coming, we budgeted for this, and we're not increasing (charges) to our customers at this time,” Whiteley said.

Thomas Barr, president of Ozark Mailing Service, said that, while he never likes to see postage rates increase, the increase could serve to make people more aware of the services that businesses like his offer.

“Someone who sends a first-class piece of mail through us pays 37.1 cents a piece as opposed to the 39 cents they'd be paying if they just put a stamp on it or ran it through their meter,” Barr said. “It gives us an opportunity to offer our services to clients who haven't used presort services in the past.”

How much does it cost to mail a letter?

First class mail (up to 1 ounce):39 cents, up 2 centsEach additional ounce: 24 cents

Postcard (up to 1 ounce):24 cents, up 1 cent

First class presorted mail (up to 1 ounce): 37.1 cents, up 1.9 centsEach additional ounce: 23.7 cents

For more rates, visit www.usps.com.