Monday, April 12, 2010

Pricing market dominant mailing products – hurting the bottom line?

One of the six stated objectives for a viable postal future is to “ensure pricing of Market Dominant mailing products is based on demand for each individual product and its costs, rather than capping prices for every class at the rate of inflation.”

As you may know, First-Class Mail can only rise to the cost of the Consumer Price Index. Other products like Priority Mail and Express Mail can adjust to whatever the market will bear.

Since First-Class is still our bread-and-butter, snagging a big percentage of our revenue and volume. Is it self-defeating to keep us from adjusting these prices higher than the CPI. After all, the CPI excludes volatile food, health care and energy prices. What do we use a lot of? Fuel for our vehicles and our buildings.

What do you think about this? Click here.


Anonymous said...

It's what we asked for before. Beware what you ask for.

Anonymous said...

I'd be wary of raising prices too much or we can lose customers. It's always amazing how when stamp prices go up even one or two cents that customers complain that we're "always raising the price" and that they're so expensive - and these are just the casual household mailers. But many spend far more on coffee, soda, candy, cigarettes and other things without a second thought. However rate increases can have a big impact on our large mailers so we have to make sure we don't lose their business. Hopefully when we have more alternative fuel vehicles it will help keep fuel expenses down.