What exactly do the postage increases pay for?

pulse8

Lifer
May 3, 2000
20,860
1
81
Even now when I go to the post office, they have 2 people working and 25 people in line. (This is not a joke. I actually got bored and counted. :p)

Are the costs of running the Postal Service really increasing that much? If not, what's being done with that money?
 

woodie1

Diamond Member
Mar 7, 2000
5,947
0
0
They use the extra money to build more facilities to store your mail until it is time for it to be delivered.

On a more serious note...my PO is the same way. Two workers, so slow you could use a sundial to clock them, and 15 people in line.
 

rahvin

Elite Member
Oct 10, 1999
8,475
1
0
The postal service is a public/private corp. They aren't funded by government but they are controlled by congress. All funding is used to cover costs. I'm frankly amazed that for .37cents I can send 2oz's anywhere in this country including hawaii and alaska and it will get there in 2-3 days most of the time and if it's close overnight. Frankly that is unfriggen believable.
 

HappyPuppy

Lifer
Apr 5, 2001
16,997
2
71
The postal service is a public/private corp. They aren't funded by government but they are controlled by congress. All funding is used to cover costs. I'm frankly amazed that for .37cents I can send 2oz's anywhere in this country including hawaii and alaska and it will get there in 2-3 days most of the time and if it's close overnight. Frankly that is unfriggen believable

2oz's of what? I once mailed a kilo of ......oh, wait, never mind.
 

pulse8

Lifer
May 3, 2000
20,860
1
81
Originally posted by: rahvin
The postal service is a public/private corp. They aren't funded by government but they are controlled by congress. All funding is used to cover costs. I'm frankly amazed that for .37cents I can send 2oz's anywhere in this country including hawaii and alaska and it will get there in 2-3 days most of the time and if it's close overnight. Frankly that is unfriggen believable.

Right, right. I understand that and I'm not saying the postal service is a bad deal. It's actually a very good one for the price. I'm just wondering where the hell all this money goes when it seems we pay more every year for the service and the level of that service remains the same. I find it hard to believe that costs are really going up that much every year or every few years.
 

rahvin

Elite Member
Oct 10, 1999
8,475
1
0
Originally posted by: ffmcobalt
The lack of revenue lost due to rising email usage.

nik

;)

That is actually playing a role, direct marketing is also on the decline last I saw and with the economy in a recession that hurts their revenue from in mail advertising. You also need to account for inflation. All those postal workers get cost of living increases every year to prevent them from going postal. Equipment gets old and needs to be repurchased. We all get to pay to nuke the mail going to congress so anthrax isn't spread again, etc. The most recent increase was a direct result of the anthrax thing last year.
 

Bluefront

Golden Member
Apr 20, 2002
1,466
0
0
Anybody who thinks they're getting a good deal with postal rates is nuts. What you have is a pure monopoly.....no-one is allowed to use your mail-box except the USPS. If your own mail box was opened up to competition, you would see a variety of competing services/companies. The cost of mailing a letter would no-doubt go down. I frankly think a first class letter to Easy Jesus, Cookomunga, should cost more than a letter between two large cities.....right now most mailers are subsidizing the costs to these small places. There are a million things wrong with the USPS.....it's mostly a big welfare place, hiring workers who don't work....screwing the rest of the public.
 

vegetation

Diamond Member
Feb 21, 2001
4,270
2
0
Well, part of it is going to pay for the POS overpriced Segway machines. Instead of using more economical transportation methods, the postmaster demands Segway units to be purchased at full price.


Originally posted by: pulse8
Even now when I go to the post office, they have 2 people working and 25 people in line. (This is not a joke. I actually got bored and counted. :p)

Are the costs of running the Postal Service really increasing that much? If not, what's being done with that money?

 

Kevin

Diamond Member
Jan 1, 2002
3,995
1
0
You've got to be kidding, right? The postal increases are for nice new beds in the post office and longer lunches.

You didn't know that?
 

rahvin

Elite Member
Oct 10, 1999
8,475
1
0
Originally posted by: Bluefront
Anybody who thinks they're getting a good deal with postal rates is nuts. What you have is a pure monopoly.....no-one is allowed to use your mail-box except the USPS. If your own mail box was opened up to competition, you would see a variety of competing services/companies. The cost of mailing a letter would no-doubt go down. I frankly think a first class letter to Easy Jesus, Cookomunga, should cost more than a letter between two large cities.....right now most mailers are subsidizing the costs to these small places. There are a million things wrong with the USPS.....it's mostly a big welfare place, hiring workers who don't work....screwing the rest of the public.

Well I'm glad you don't make policy decision because you would be out to screw everyone but yourself. Postal rates would NOT go down with competition, they would go UP UP UP. The US postal market requires HUGE capital expenses that if divided between multiple carrier would easily quintuple the delivery costs. Sensible people made the decision to remove government subisidies and make the postal system a private non-profit government regulated body. Anyone that thinks competition would make the system better needs to lay off the crack pipe.
 

woodie1

Diamond Member
Mar 7, 2000
5,947
0
0
[q

Well I'm glad you don't make policy decision because you would be out to screw everyone but yourself. Postal rates would NOT go down with competition, they would go UP UP UP. The US postal market requires HUGE capital expenses that if divided between multiple carrier would easily quintuple the delivery costs. Sensible people made the decision to remove government subisidies and make the postal system a private non-profit government regulated body. Anyone that thinks competition would make the system better needs to lay off the crack pipe.[/quote]


Who's on the crack pipe?
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126

"Money fight!" -- Smithers & Burns

Equipping every employee with Segways to scoot to the lunch room and water cooler ain't cheap.

Plus the bullets.
 

Frenchie

Moderator Emeritus<br>Elite Member
Oct 22, 1999
2,255
0
0
Typically the P.O. will raise the price of postage, and then be able to run at a profit for a year or two. After that they have a year where the break even. After that, they run a year or two at a deficit. After that, they raise the rpice of postage and repeat the above process.
 

Cyberian

Diamond Member
Jun 17, 2000
9,999
1
0
Originally posted by: woodie1
[q

Well I'm glad you don't make policy decision because you would be out to screw everyone but yourself. Postal rates would NOT go down with competition, they would go UP UP UP. The US postal market requires HUGE capital expenses that if divided between multiple carrier would easily quintuple the delivery costs. Sensible people made the decision to remove government subisidies and make the postal system a private non-profit government regulated body. Anyone that thinks competition would make the system better needs to lay off the crack pipe.


Who's on the crack pipe?[/quote]I don't see any companies scrambling to compete with the USPS.

 

Sluggo

Lifer
Jun 12, 2000
15,488
5
81
Originally posted by: Cyberian
Originally posted by: woodie1
[q

Well I'm glad you don't make policy decision because you would be out to screw everyone but yourself. Postal rates would NOT go down with competition, they would go UP UP UP. The US postal market requires HUGE capital expenses that if divided between multiple carrier would easily quintuple the delivery costs. Sensible people made the decision to remove government subisidies and make the postal system a private non-profit government regulated body. Anyone that thinks competition would make the system better needs to lay off the crack pipe.


Who's on the crack pipe?
I don't see any companies scrambling to compete with the USPS.[/quote]


You dont think UPS and Fed-EX would love to get a piece of that multi-billion dollar pie? I bet Fed-Ex would love to be able to use the mail boxes to drop off packages and have the packages covered by severe federal penalties if it was stolen.
 

Pliablemoose

Lifer
Oct 11, 1999
25,195
0
56
Those machines they irradiate your congressman's mail with are expensive...

9mm ammo prices are climbing as well;)
 

kherman

Golden Member
Jul 21, 2002
1,511
0
0
For the rates the post office typically charges, it is often referred to as one of the most efficient business ever!
 

snooker

Platinum Member
Apr 13, 2001
2,366
0
76
The increase is for a number of reasons, all of which has been listed already so I will not list them again.
 

GoingUp

Lifer
Jul 31, 2002
16,720
1
71
Originally posted by: Bluefront
Anybody who thinks they're getting a good deal with postal rates is nuts. What you have is a pure monopoly.....no-one is allowed to use your mail-box except the USPS. If your own mail box was opened up to competition, you would see a variety of competing services/companies. The cost of mailing a letter would no-doubt go down. I frankly think a first class letter to Easy Jesus, Cookomunga, should cost more than a letter between two large cities.....right now most mailers are subsidizing the costs to these small places. There are a million things wrong with the USPS.....it's mostly a big welfare place, hiring workers who don't work....screwing the rest of the public.

Considering a letter over here in Germany costs from 55 cents to a dollar to send, 37 cents is a bargin.