US postal service

[jesmu84]

USPS doesn't have to pay taxes, or most other government fees that other delivery services incur.  Ever seen a USPS mail truck with a license plate?

USPS has all sorts of competitive advantages and still can't break even.

Does infrastructure maintenance break even?

[warriorchick]

I don't know.    What percentage is low profit bulk mail?

If by "bulk mail", you mean "junk mail", that is actually one of most profitable lines of business USPS has.

[The Sultan]

What percentage of the mail is delivered to places that Fedex or UPS don't service on a daily basis?

A large percentage.  The USPS delivers mail to almost every address in the country on a daily basis.  I doubt UPS or Fed Ex deliver to 10% of the addresses daily.

[warriorchick]

A large percentage.  The USPS delivers mail to almost every address in the country on a daily basis.  I doubt UPS or Fed Ex deliver to 10% of the addresses daily.

I was referring to service areas.  How many areas in the U.S. don't have daily service from UPS and/or Fedex, assuming that they have something to deliver? 

[tower912]

https://www.merchantmaverick.com/usps-vs-ups-vs-fedex-which-shipping-carrier-is-best/

[The Sultan]

I was referring to service areas.  How many areas in the U.S. don't have daily service from UPS and/or Fedex, assuming that they have something to deliver? 

All of them.

But my guess it is a lot more cost effective to deliver a package that people spend a couple $$ to deliver versus a few bulk mailings that cost about $.20 apeice. 

Don't get me wrong, I think there are a lot of inefficiencies at the USPS, but their business model stinks.  They deliver a TON of mail to almost every address in the country for very little money per piece.

Versus UPS and FedEx that deliver to much less household and can charge a relative premium.

On top of that, there are over 30,000 post offices nationwide.  Yes, they don't pay property taxes, but they all are staffed at least partially.  Now contrast that with 5,000 UPS stores, which are all run through a franchise arrangement.

The union is only a part of the problem.  The USPS business model absolutely stinks. 

[shoothoops]

USPS doesn't have to pay taxes, or most other government fees that other delivery services incur.  Ever seen a USPS mail truck with a license plate?

USPS has all sorts of competitive advantages and still can't break even.

The PAEA of 2006 required the USPS to prefund the retirement benefits of the USPS through 2056. No other public or private entity has had this requirement. $5 billion per year. Without this obligation the USPS turns a profit. It's a huge competitive disadvantage. Their parcel delivery service is profitable.

The USPS can only charge what Congress allows.

Unlike the private sector, the USPS is barred from lobbying Congress to change the rules.

Mail volumes have declined slightly  while package volumes have increased a lot.

The PAEA bars the U.S. postal service from pricing parcel delivery below cost.

Pricing, locations, hiring, funding, all limitations that the private sector does not have.

In 2006 the USPS had a $900 million profit. Congress changed that to inexplicably require a $72 billion fund to pay for post retirement healthcare costs 75 years into the future.

If the mandate was removed, the USPS would have annual profits.

[MUBurrow]

A lot of work goes into making this difficult.  If you want people in rural areas to be able to send or receive mail for $0.50 per piece - regardless of what kind of mail or why it is sent - then you take your lumps and live with USPS "losing money" (setting aside for a moment the mandate they prepay their reitrement benefits).  If you don't find mail service a compelling interest to be supported outside capitalistic competition, then USPS is increasingly unnecessary and redundant.  Anything else is just tinkering on the margins or window dressing.

[Hards Alumni]

A lot of people here acting like USPS is some enormous drain on the US budget.

Also a lot of people here acting like the USPS should be run like a business.

[Jockey]

This most likely because I would be considered rural, but USPS always wins in cheapest pricing and time.

I buy and sell way too much golf crap on various sites. It's always USPS both ways.

Buy and sell tons of vintage baseball cards - always USPS.

[Jockey]

The PAEA of 2006 required the USPS to prefund the retirement benefits of the USPS through 2056. No other public or private entity has had this requirement. $5 billion per year. Without this obligation the USPS turns a profit. It's a huge competitive disadvantage. Their parcel delivery service is profitable.

I mentioned that earlier when Wags blamed things on the union. That was passed strictly for the purpose to try to privatize the USPS. If the Rs could make sure the bottom line showed a huge loss, they could make a case to privatize. Been their goal since at least the mid-90s.

[shoothoops]

I mentioned that earlier when Wags blamed things on the union. That was passed strictly for the purpose to try to privatize the USPS. If the Rs could make sure the bottom line showed a huge loss, they could make a case to privatize. Been their goal since at least the mid-90s.

I posted a few helpful articles earlier in the thread that I'm sure some didn't see or read. They are worth a look for some, explaining how we got here, and in one, some possible solutions.

[Jockey]

I posted a few helpful articles earlier in the thread that I'm sure some didn't see or read. They are worth a look for some, explaining how we got here, and in one, some possible solutions.

Gracias.

[D'Lo Brown]

If you don't realize why the USPS is suddenly being made an issue in April 2020, given the circumstances of the country/world. Then you are either confidently ignorant (the #1 most desirable trait to political candidates) or just playing dumb.

Driving low turnout is a religion for some now.

[keefe]

And that strong union is why the USPS is a mess and losing money. Their labor, benefit, and pension costs far outweigh what they do best or do well. A downsized and scaled back USPS could find an efficient niche and profitability again, but that would mean layoffs and location closings, and the union would never allow such a thing. Unions are supposed to protect worker rights and benefits, not protect failing/inefficient business segments/industries and handcuff the natural progress and development of the market.

The USPS is great for letters and paper mailing, which is a rapidly declining area. Packages their only benefit is Smartpost or other JVs with other freight carriers. If they weren't federally backstopped and forced to make money on such segments, their price would rise and Fedex/UPS/etc... would just do it themselves. Nobody ships a package with USPS unless time is unimportant and lowest possible cost is needed.

To think the criticisms of the USPS as it currently stands is really only primarily to defeat a union by evil right wing hyper capitalists is silly agenda driven messaging. That's why I rolled my eyes.

Justin

Framing business cases for the unsophisticated is a Fool's Game. You know better than that.

How're things in these Altered States?

[#UnleashSean]

If you don't realize why the USPS is suddenly being made an issue in April 2020, given the circumstances of the country/world. Then you are either confidently ignorant (the #1 most desirable trait to political candidates) or just playing dumb.
Driving low turnout is a religion for some now.

Are you really saying the dismantling of the post office nationwide is simply a Republican ploy to lower absentee voting? Cause I'd say you've had a bit to much sauce.

[Jockey]

Are you really saying the dismantling of the post office nationwide is simply a Republican ploy to lower absentee voting? Cause I'd say you've had a bit to much sauce.

I think it is just a spite move by Trump against Bezos.

The fact that 100,000 Vets work for USPS doesn't even enter his "thought process". ( I know. Thought process and Trump in a sentence that doesn't use a negative seems kinda weird.)

[Jables1604]

IBTL

[D'Lo Brown]

Are you really saying the dismantling of the post office nationwide is simply a Republican ploy to lower absentee voting? Cause I'd say you've had a bit to much sauce.

I'm not predicting it will occur, I'm saying that it surely figures into their calculation. When you're down by 5 with 10 seconds left you tend to start throwing Hail Mary's.

[WellsstreetWanderer]

I think it is just a spite move by Trump against Bezos.

The fact that 100,000 Vets work for USPS doesn't even enter his "thought process". ( I know. Thought process and Trump in a sentence that doesn't use a negative seems kinda weird.)

Boy the tin foil hat crowd is out today. I don't see any evidence of anybody going after the USPS.
Thinking like that is why the D's have been "Rope A Dope"ed for three years

[Jockey]

I think it is just a spite move by Trump against Bezos.

The fact that 100,000 Vets work for USPS doesn't even enter his "thought process". ( I know. Thought process and Trump in a sentence that doesn't use a negative seems kinda weird.)

Trump confirmed this today. Either raise prices for Amazon or there will be no loan to USPS.

[mu_hilltopper]

I get a ton of Amazon packages .. I'd say maybe 10% are delivered by USPS.  Most are by Amazon Delivery   Their truck is going down my street at least 2x per day.

I imagine Amazon's delivery is focused on the 50 largest metro areas .. so raising prices on Amazon/USPS likely targets rural areas, Trump country. 

If Trump gets his 400% increase on Amazon postal packages, UPS will be cheaper and they'll switch to that .. further damaging USPS.

[The Sultan]

Trump confirmed this today. Either raise prices for Amazon or there will be no loan to USPS.

So they'll use FedEx instead. This is a monumentally stupid idea.

[MU82]

I get a ton of Amazon packages .. I'd say maybe 10% are delivered by USPS.  Most are by Amazon Delivery   Their truck is going down my street at least 2x per day.

I imagine Amazon's delivery is focused on the 50 largest metro areas .. so raising prices on Amazon/USPS likely targets rural areas, Trump country. 

If Trump gets his 400% increase on Amazon postal packages, UPS will be cheaper and they'll switch to that .. further damaging USPS.

This is why he already has backed off his initial, knee-jerk stance. Later Friday, he twitted:

"It has been mismanaged for years, especially since the advent of the internet and modern-day technology. The people that work there are great, and we're going to keep them happy, healthy, and well!"

As is often the case, he contradicts himself within hours of saying something.

[reinko]

C'mon y'all, ignore what he says, and just focus on what he does