New Postage Rate

[snomoman]

Hey everyone...
This has absolutely nothing to do with snowmobiling, but for all us "snail mail" users, the postage rate is going up 10% on Monday
from 50 cents per ounce to 55 cents per ounce. If you do a lot of mailing you might want to stock up on forever stamps which would
have to be bought before Monday. just a little info to help anyone that does a lot of mailing

 

[maddogg]

Thanks!

 

[slimcake]

Yep they could raise the rates to ten dollars and ounce and figure out how to loose billions of dollars every year. How has the sweet heart Amazon deal not been thrown out yet??

 

[dcsnomo]

The 2006 Postal Accountability Act makes it illegal for the USPS to price parcel delivery below cost, thus they are not losing money on Amazon. Parcel delivery is $20 billion, or 28% of sales. The USPS does price private shippers ($7 billion) at a competitive rate. Why? Well, this is a high fixed cost business. If that letter carrier is dropping off two letters at your house for $1 In revenue, it makes it a whole lot smarter to have him drop off a package for $1 plus the letters for $2 of revenue. Same truck, same employee, same distribution facility, higher margin.

The USPS is loosing money primarily due to the requirement that retirees benefits be "pre-funded". The losses would be much greater without Amazon Target, etc to offset fixed costs.

 

[1fujifilm]

The 2006 Postal Accountability Act makes it illegal for the USPS to price parcel delivery below cost, thus they are not losing money on Amazon. Parcel delivery is $20 billion, or 28% of sales. The USPS does price private shippers ($7 billion) at a competitive rate. Why? Well, this is a high fixed cost business. If that letter carrier is dropping off two letters at your house for $1 In revenue, it makes it a whole lot smarter to have him drop off a package for $1 plus the letters for $2 of revenue. Same truck, same employee, same distribution facility, higher margin.

The USPS is loosing money primarily due to the requirement that retirees benefits be "pre-funded". The losses would be much greater without Amazon Target, etc to offset fixed costs.

I agree on the legacy costs of benefits hurting many industries but wonder about the phrase "illegal for the USPS to price parcel delivery below cost" as typical business/government definitions of the word "cost" may vary.
It brings about the story of a peer of mine that was bonused by ownership on gross sales and not GOP. Well, he sure got sales going but overspent in customer acquisition costs and never really earned the company any bottom line net profit.

Bear

 

[saber1]

They put that poison pill in to fund retirees benefits 70 years in advance its obvious they are trying to privatize mail delivery Im sure UPS and Fed ex are lobbing hard for this to happen.

 

[old abe]

The 2006 Postal Accountability Act makes it illegal for the USPS to price parcel delivery below cost, thus they are not losing money on Amazon. Parcel delivery is $20 billion, or 28% of sales. The USPS does price private shippers ($7 billion) at a competitive rate. Why? Well, this is a high fixed cost business. If that letter carrier is dropping off two letters at your house for $1 In revenue, it makes it a whole lot smarter to have him drop off a package for $1 plus the letters for $2 of revenue. Same truck, same employee, same distribution facility, higher margin.

The USPS is loosing money primarily due to the requirement that retirees benefits be "pre-funded". The losses would be much greater without Amazon Target, etc to offset fixed costs.

They put that poison pill in to fund retirees benefits 70 years in advance its obvious they are trying to privatize mail delivery Im sure UPS and Fed ex are lobbing hard for this to happen.

You nailed it dcsnomo!

saber1, you need to add DHL to your list of lobbing interests.