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Stamp Of Disapproval

Just when you thought it was safe to go back to the Post Office . . .

This story appears in the May 2000 issue of Entrepreneur. Subscribe »

Ready for another postal rate increase? Ready or not, the U.S. Postal Service board of governors recently requested an overall 6.4 percent rate increase that would go into effect in January 2001. The largest proposed increase--14 percent--is for some automation flats, or catalogs, because of the increased cost of processing flat-shaped mail.

Also important is a proposal to increase the Priority Mail rate. The 1-pound rate would rise 7.8 percent, but the flat rate for anything that fits in a Priority Mail envelope--would increase 20.3 percent, from the current $3.20 to $3.85. If approved, the USPS expects these rates to stay in place for two years.