While each country is different, a number of factors may come into play when determining the price of postage. These include the weight of the piece, whether transport needs to be expedited, the distance traveled, the type of parcel it is and perhaps the dimensions it has. However, the price of postage is also determined by the fixed and variable expenses experienced by the postal service.
Most countries have a separate and independent body that is responsible for taking care of the mail, but yet remains under the direct supervision of the government. In the United States, this is the US Postal Service. In Great Britain, it is known as the Royal Mail. Various other countries may have different names. These responsible organizations look at expenses and projected income, as well as what would add to the cost of delivery, and come up with prices meant to reflect a sustainable business model.
There are traditional factors that also influence the price of postage. Factors like weight and size will have the most noticeable influence. Sending something overnight will cost substantially more than sending it by more traditional methods. International mail will often be much more expensive than domestic mail.
In some cases, the level of service will also help determine the price of postage. For example, first-class mail delivery, which most individuals are accustomed to using, and may only have the option of using, is one of the most expensive methods of standard postage. The second class postage price will be lower, but the service may not be as fast or it may only be for pieces of mail that meet certain qualifications.
In some cases, the price of postage is determined by the inflation rate. That is at least partially the case in the United States, where postage delivery goes as do the costs associated with its delivery. However, other factors may play a role, such as the usage of the postal service. If more pieces of mail are being delivered, the service operates more efficiently. Less mail means less income. However, this may not necessarily mean expenses are lowered. It costs nearly the same amount to move one letter from New York to San Francisco as it does two.
The history of postage prices have generally reflected an upward trend in the price of postage. However, that upward pressure has increased more so in recent years. This is due to other types of communication technology, such as telephone and email, taking the place of the traditional letter. Therefore, even as postage prices increase, many people may experience an overall decrease in the amount they spend on postage.