Comments on: US Postal Stamp Futures http://dave.matusiak.org/weblog/2007/05/31/us-postal-stamp-futures/ Don't shoot the bodhisattva, man. Thu, 20 Nov 2008 11:21:09 +0000 http://wordpress.org/?v=2.6.3 By: joeyo http://dave.matusiak.org/weblog/2007/05/31/us-postal-stamp-futures/#comment-28938 joeyo Fri, 01 Jun 2007 12:33:15 +0000 http://dave.matusiak.org/weblog/2007/05/31/us-postal-stamp-futures/#comment-28938 You think that the price of stamps will rise faster 5% or whatever you can get for a reasonable CD. Faster than inflation even? You think that the price of stamps will rise faster 5% or whatever you can get for a reasonable CD. Faster than inflation even?

]]> By: Amanda http://dave.matusiak.org/weblog/2007/05/31/us-postal-stamp-futures/#comment-28724 Amanda Thu, 31 May 2007 22:46:40 +0000 http://dave.matusiak.org/weblog/2007/05/31/us-postal-stamp-futures/#comment-28724 I was thinking this, myself. My guess as to why they did it: Less people are sending things through the mail (duh - hooray, interwebs!), so they're not making the money they're budgeting for. They can't raise the rate to compensate (people are already bitching about cost...), so how can they make the money they need without scaring away customers? The Forever Stamp. The hope is likely that people will stock up on these, trying to lock in to the "low rate" so when prices go up, again, they're covered. I mean, think about it - stamp prices are never going down... it would be smart to buy a lifetime supply, now, while they're cheap, right? This way, people buy more stamps than usual at a higher rate, and the post office makes more money. However, they're kind of screwing themselves, I think. First of all, like you've said, people are going to see this as a great way to make money. They're going to stock up and sell 'em when they can turn a profit. Smart investment. Also, I think the USPS is relying on people losing these stamps, or using them up rather than saving them. While I see the potential, here, I think those trying to capitalize on the stamps are going to swoop in on those people. So, what happens when the rates increase? They're gonna make more money right now, but then the rates will go up and fewer people will buy stamps. I, personally, intend to buy a crapload of Forever Stamps and just save them. I'll buy regular $0.41 stamps for mailing things until the rate goes up (in case the pull the Forever Stamps before the rate increase, which would be smart). I truly think the USPS is going for instant gratification, and is screwing itself for the future. But, what do they care? They all hate their jobs, anyway, right? I was thinking this, myself. My guess as to why they did it: Less people are sending things through the mail (duh - hooray, interwebs!), so they’re not making the money they’re budgeting for. They can’t raise the rate to compensate (people are already bitching about cost…), so how can they make the money they need without scaring away customers? The Forever Stamp. The hope is likely that people will stock up on these, trying to lock in to the “low rate” so when prices go up, again, they’re covered. I mean, think about it - stamp prices are never going down… it would be smart to buy a lifetime supply, now, while they’re cheap, right? This way, people buy more stamps than usual at a higher rate, and the post office makes more money.

However, they’re kind of screwing themselves, I think. First of all, like you’ve said, people are going to see this as a great way to make money. They’re going to stock up and sell ‘em when they can turn a profit. Smart investment.

Also, I think the USPS is relying on people losing these stamps, or using them up rather than saving them. While I see the potential, here, I think those trying to capitalize on the stamps are going to swoop in on those people.

So, what happens when the rates increase? They’re gonna make more money right now, but then the rates will go up and fewer people will buy stamps. I, personally, intend to buy a crapload of Forever Stamps and just save them. I’ll buy regular $0.41 stamps for mailing things until the rate goes up (in case the pull the Forever Stamps before the rate increase, which would be smart).

I truly think the USPS is going for instant gratification, and is screwing itself for the future. But, what do they care? They all hate their jobs, anyway, right?

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