Friday, May 18, 2007

What Is Up With the Postal Rate Increase?

I realize that prices go up. I mean we are paying almost $4.00 for a gallon of gas. Thank goodness I work from home and a tank of gas will last me about a month.

But this Post Office rate increase is horrible if you ship packages. They are doing what UPS, Fed Ex and DHL have always done, charge by volume instead of weight. But they have gone overboard with it. A package that used to cost me $7.00 to ship through USPS now is double that amount plus insurance. At least with the other guys they cover you for $100 in insurance.

I raised the rates on my website when the postage rates went up but I think I am going to lower them back to the old rate and ship through DHL instead. I will also implement free shipping with a certain dollar amount purchase, I have not decided yet what that will be. It isn't fair to my customer's to have to pay such a HUGE shipping cost.

It will be interesting to see if the Post Office looses any shipping business or if they will increase their services.