USPS wants another rate increase

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Hamburgerpimp

Diamond Member
Aug 15, 2000
7,464
1
76
Its strange how a company that has a monopoly can be losing money

That is why they lose money. There is no other way to send standard mail, they have no competition. When you have no competition, your company suffers. FedEx and UPS kick their ass all over the place with express mail. They have contracted FedEx to help them with their Express/Priority Service!!

That is why FedEx gives you extraordinary service. Because if they do not, they know you can always go to UPS. The Postal Service could care less, you have to send standard mail through them!! I have had Postal Clerks just shrug at me when I try to tell them something. They can honestly give a sh1t less!!
 

fragarific

Golden Member
Sep 29, 2000
1,355
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The approval of a rate hike takes MANY months

This will take place maybe a year from now!
 

AndrewR

Lifer
Oct 9, 1999
11,157
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Frankly, the extra one or two cents doesn't bother me much simply for the fact that it probably only amounts to perhaps a few dollars a year in extra postage. The increases in Priority Mail does make more of an impact, however, since I do resell some old computer parts on the FS/T forum.

However, what really bugs me are the stupid one cent stamps that you have to buy and which are not in stock anywhere when you need them. I wish they had a better system for the transition as that is extremely frustrating when it first happens.
 

jjm

Golden Member
Oct 9, 1999
1,505
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I think some of you don't have a great grasp of accounting. Just because the USPS reported a loss last year, that does not mean it was actually paying it in cash right then and there. It is possible to lose money based on accounting numbers for years without running out of cash. I think the USPS enjoyed some profits in several previous years too. Again, that does not mean the cash was all received right then and there.

The USPS is still limited by its tedious rate approval process. It is one of the best bargains around, but it is losing customers. It will be forced into building more efficiency in the future. And I do think that if it really hit a brick wall, Congress would bail it out. Hey, if they did it for the S&Ls and Chrysler, they'll do it for the USPS.
 

BigSmooth

Lifer
Aug 18, 2000
10,484
12
81
<< When you have no competition, your company suffers. >>

This is normally never the case. Theoretically, in any situation where one company is the only supplier of a product with any demand, that company will flourish because it can set the market price wherever it wants, namely where profit is at its maximum.

In this case, there is actually some competition for parts of the USPS' business (in the forms of express carriers) and there must be other forces (gov't price ceiling?) outside of normal supply/demand that are holding the price of regular mail down.

Seriously, what would companies do if the USPS said, OK, we need more revenue, 95 cents for all first class mail now? They would still have to use the USPS, because they are the only company with the existing infrastructure to deliver all the mail, and people need mail delivered in a real bad way. 95 cents would still be 10 times cheaper than FedEx to get your letter there in a few days.
 

Hamburgerpimp

Diamond Member
Aug 15, 2000
7,464
1
76
Then, why are they not flourishing?? I will tell you why, because it is a Government Service with no competition in Standard Mail Delivery. Postal employees are not motivated by the fact that the USPS can be profitable or not. You bet your ass that FedEx and UPS employees are!!! :)
 

Hamburgerpimp

Diamond Member
Aug 15, 2000
7,464
1
76
Let me rephrase my last quote, also:

&quot; When you have no competition, your company's CUSTOMER SERVICE suffers &quot;

It is a double sided sword with USPS, they have very tough competition with FedEx and UPS on their Express packages, but none at all for Standard Mail Delivery. Bad combination for them!!
 

BadMuleS

Senior member
Jul 30, 2000
875
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good thing there are such fine options other than UsPS to send your mail.. o wait they all blow... another hike and ill start driving it will be cheaper lol
 

Supradude

Golden Member
Nov 3, 2000
1,727
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i'm totally annoyed that i had to get a friggin page of 1 cent stamps so i could still use my 33 cent stamps ; P