Wednesday, April 11, 2007

Forever Stamp Save Money?

USPS Forever Stamp
Image courtesy USPS
Will you Save Money with the Forever Stamp?

The Forever Stamp issued by the United States Postal Service (USPS) is a new 1st class (1oz or less) stamp that will save you money when a rate increase occurs. The Forever Stamp is not good from the 2oz to maximum 13oz tiers of 1st class mail.

Will you save much money, enough money worth mentioning, by running out and purchasing a bunch of these Forever Stamps?

For the average person who only mails a few 1st class letters per month it is not worth your time to purchase these Forever Stamps. With past rate increases being 2-3 cents, you will only save a few cents. In order to save any money worth talking about you will have to send large volumes of 1st class mail.

For a test of exactly how much we could save, we compared purchasing various amounts of the Forever Stamp to our usage of 12 letters per month with a $0.03 rate increase every 2 years. It took an initial expense of $1000.00 dollars and approx 8 ½ years to finally see our savings of $97.20. This is all assuming the USPS will even sell us $1000.00 dollars in Forever Stamps at once. We also need to ensure no stamps are lost, misplaced, or rendered useless due to improper storage. 8 ½ years is a considerable amount of time to have $1000.00 dollars tied up in the shoe box as Forever Stamps that are not earning interest or any other type return. There are much better ways we can invest our $1000.00 dollars and yield a better than $97.20 return in 8 ½ years.

I could say; by not needing to run to the post office after every rate increase to buy the one, two, or 3-cent filler stamps will save me money. Then again, I will now need to run to the post office before every rate increase to get my allotment of the Forever Stamp, so what is the difference.

Do some calculations on your Forever Stamp (1st class 1oz or less) usage and see if you will realize any notable savings.

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