leadership dot #2048: forever

Without any fanfare at all, the US Postal Service again raised its rates for First Class stamps. I doubt you have noticed, but as of Sunday, stamps now cost 50 cents each.

It used to be that an increase in rates was accompanied by a flurry of activity as everyone scrambled to buy the one-cent stamps or “letter” stamps that were put into production before the final rate was known. But once the USPS transitioned over to Forever Stamps that do not require a price supplement, they used this convenience as a way to increase more frequently and stealthily.

In the 1990s, there were three postage increases. Since 2007, when the Forever Stamp was introduced, there have been ten First Class rate hikes, approximately one every year. Rates in the last decade have gone up 21% -- from 41 cents to today’s 50 cents.

Think of how you can you learn from the (albeit self-serving) genius of the Forever Stamp. Is there a service you offer that frequently rises in price that you can offer on a pricing model that makes the increases less impactful for your customers? Can you offer a Forever rate for one of your key products as an incentive? If you haven’t increased prices lately, could you offer a “Forever” rate or a “For-a-Long-Time” rate and capitalize on your stability?

Maybe there is a way for you to put your stamp on a pricing model that makes sense in the long term.