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Open Roads Forum  >  Around the Campfire  >  General Topics

 > Why Is The USPS Losing Money?

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Stressor

Whitefish Bay, Wisconsin

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Posted: 09/21/09 01:46pm Link  |  Quote  |  Print  |  Notify Moderator

Dutch_12078 wrote:

hershey wrote:

Sounds like they are going to make money, now the package will have to be shipped a second time, so twice as much profit.
Sorry, but your right.
The U.S. Post Service
was established in 1775 - they've had 234 years to get it right; it is broke,
and even though heavily subsidized, it can't compete with private sector FedEx
and UPS services.

For the confused folks who think the USPS receives subsidies from the taxpayer/federal government, the USPS has been self supporting since 1982. When they lose money they sell bonds for future repayment, just like any other major corporation. The USPS was in the black as recently as 2006.

Dutch



Don't they have a monopoly on first class mail and did they have to purchase their facilities on the open market like other corporations? Aren't their competitors regulated? Is this not an implicit subsidy? I think I read that the issue is complicated.


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Doug4.7

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Posted: 09/21/09 02:04pm Link  |  Quote  |  Print  |  Notify Moderator

Kajtek1 wrote:

Did you try to talk to the manager at the office?
It works .. sometimes.
Give then 3 days to update the computer.
That was one person I did talk to. When I called this morning, the story was I had to produce the little yellow slip to get my package. Good that I did not try to go by the Post Office as it was out on their delivery truck (to get her by early this afternoon).

CatandJim

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Posted: 09/21/09 02:28pm Link  |  Quote  |  Print  |  Notify Moderator

When everything settles down and your package arrives no matter when that might be.....




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8.1 Van

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Posted: 09/21/09 03:07pm Link  |  Quote  |  Print  |  Notify Moderator

It's funny how people like to talk on both sides of their face. Everytime they want to stop Saturday delivery people complain. BTW the only thing the USPS tracks with a tracking # is Express Mail. They have delivery confirmation # that shows when it was delivered if you pay extra but it's not a tracking # like UPS or Fedex. The USPS is losing money because it has to deliver mail to every house in the US six days a week and there is no company on the planet that is going to make money doing that. And it can't raise the price to cover actual operating costs because it has the kiss the butt of the USPS Board of Governors to get any kind of rate increase.


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Stressor

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Posted: 09/21/09 03:09pm Link  |  Quote  |  Print  |  Notify Moderator

8.1 Van wrote:

It's funny how people like to talk on both sides of their face. Everytime they want to stop Saturday delivery people complain. BTW the only thing the USPS tracks with a tracking # is Express Mail. They have delivery confirmation # that shows when it was delivered if you pay extra but it's not a tracking # like UPS or Fedex. The USPS is losing money because it has to deliver mail to every house in the US six days a week and there is no company on the planet that is going to make money doing that. And it can't raise the price to cover actual operating costs because it has the kiss the butt of the USPS Board of Governors to get any kind of rate increase.


I wish that they would charge the originator what it costs to deliver all the bumfodder to my mailbox six days a week.

Dutch_12078

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Posted: 09/21/09 03:45pm Link  |  Quote  |  Print  |  Notify Moderator

Stressor wrote:

Dutch_12078 wrote:


For the confused folks who think the USPS receives subsidies from the taxpayer/federal government, the USPS has been self supporting since 1982. When they lose money they sell bonds for future repayment, just like any other major corporation. The USPS was in the black as recently as 2006.

Dutch


Don't they have a monopoly on first class mail and did they have to purchase their facilities on the open market like other corporations? Aren't their competitors regulated? Is this not an implicit subsidy? I think I read that the issue is complicated.

Yes, it is complicated, but if you're referring to the "the USPS’s competitive products operations enjoy an estimated implicit subsidy of between $39-$117 million a year." mentioned in your link, I'd say that's pretty well balanced out by the restrictions the USPS operates under by law, that don't apply to their competitors. Compared to the USPS' annual revenue of about $75 billion, that's a pretty small drop in the bucket. Any of the newer postal facilities that I'm aware of were contracted via competitive bidding as far as I've seen. Isn't that what other private corporations do as well? I don't think the NALC let's them get away with too much, especially if it might hurt brother AFL-CIO members in the construction trades.

Dutch

Doug4.7

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Posted: 09/21/09 03:55pm Link  |  Quote  |  Print  |  Notify Moderator

lwmuddy wrote:

Has anyone seen a P&L sheet from the USPS?
Where is the "Transparency?

A man behind a counter, 240 lbs, 6 ft 6", handing out stamps and little envelopes and he makes HOW MUCH PER HOUR? and benefits too?
I'm confused, what's wrong with a 240 lbs, 6 ft 6 inch man making a living selling stamps and getting "benefits" along with it? Not everyone should be paid minimum wages and not have benefits (I am certainly not, and all I do is think and stare at my computer all day).

And what's a P&L sheet?

PopcornJunkie

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Posted: 09/21/09 04:20pm Link  |  Quote  |  Print  |  Notify Moderator

8.1 Van wrote:

Everytime they want to stop Saturday delivery people complain.....The USPS is losing money because it has to deliver mail to every house in the US six days a week and there is no company on the planet that is going to make money doing that.


I don't understand why people can't live with mail delivery 5 days a week. It seems the easiest way to save money, though the downside would be the loss of income for workers.

Yes, it would be hard to make money having to deliver to every residence when some residences are out somewhere by themselves. Don't know of a good solution since I think being able to count on timely delivery of mail is essential to both the sender and receiver of the mail. I wonder if there are some far out of the way places where they only deliver every other day.

Jean

Kajtek1

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Posted: 09/21/09 04:23pm Link  |  Quote  |  Print  |  Notify Moderator

The daily junk mail barely fit into my oversize box.

Doug4.7

Hartselle, AL, USA

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Posted: 09/21/09 04:44pm Link  |  Quote  |  Print  |  Notify Moderator

Kajtek1 wrote:

The daily junk mail barely fit into my oversize box.
I read somewhere that junk mail was the reason the USPS is losing money: there isn't enough of it (they are all going to "free" e-mail spam).

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