If it wasn't for Standard Mail (what some call "Junk Mail", the postal service would have to shut down.
I'm with Michael on this, standard mail (A and B) drive the post office. They may not be priced high, like first class mail, but the sorting and bundling removes most of the PO's costs other than transportation and delivery, the latter something that they were going to do anyway. Standard A and B mail is VERY price sensitive, and to raise it significantly would drive many out of the mail business completely. Think about Linn's, whose costs are significantly affected by postal rates, far more than costs for paper, ink, press time, staff; now think about the subscription price, and you'll see how sensitive it is.
Standard mail (especially B) helps to keep what little first class mail they get coming, because some people still reply to offers via the mail, using the BREs enclosed (and that's a huge profit center, since they pay first class plus a surcharge that, last i looked, was 40c per, AND they're bar-coded for easy sorting).
One can not think of the USPS using traditional business models for several reasons. One is the union contracts that predate much of the automation that has made many employees redundant. Another is the matter of volume; volume is essential, because the postman is walking or driving the route regardless of what mail Jack or Jill receives, so you might as well put as much in the pouch as you can because the postman is getting paid, regardless.
Members:
If I was the President of the USA and wanted to appoint a Postmaster General to lead the USPS out of its quagmire, then I'd look at the Stamporama membership nominal roll to find a savior.
I do not say this in jest, just impressed with all the common-sense ideas that have been expressed in various discussions regarding the health and state of mail delivery in the USA and world-wide.
John Derry
Found this website while browsing - looks an excellent site for information on US Postage Rates and latest news on the subject, here is the quote from the editor at the bottom:
"The sheer volume of the US Mail is rather astonishing. But the Postal Service brings this burden upon itself by handling unsolicited junk mail at reduced rates, which leads to lower profits for them and more junk mail for us. There is one good thing to say about email spam and pop-up ads on the internet: They have made paper junk mail less economical"
Check it out :
http://www.akdart.com/postrate.html
re: An Excellent Webite for US Rates
If it wasn't for Standard Mail (what some call "Junk Mail", the postal service would have to shut down.
re: An Excellent Webite for US Rates
I'm with Michael on this, standard mail (A and B) drive the post office. They may not be priced high, like first class mail, but the sorting and bundling removes most of the PO's costs other than transportation and delivery, the latter something that they were going to do anyway. Standard A and B mail is VERY price sensitive, and to raise it significantly would drive many out of the mail business completely. Think about Linn's, whose costs are significantly affected by postal rates, far more than costs for paper, ink, press time, staff; now think about the subscription price, and you'll see how sensitive it is.
Standard mail (especially B) helps to keep what little first class mail they get coming, because some people still reply to offers via the mail, using the BREs enclosed (and that's a huge profit center, since they pay first class plus a surcharge that, last i looked, was 40c per, AND they're bar-coded for easy sorting).
One can not think of the USPS using traditional business models for several reasons. One is the union contracts that predate much of the automation that has made many employees redundant. Another is the matter of volume; volume is essential, because the postman is walking or driving the route regardless of what mail Jack or Jill receives, so you might as well put as much in the pouch as you can because the postman is getting paid, regardless.
re: An Excellent Webite for US Rates
Members:
If I was the President of the USA and wanted to appoint a Postmaster General to lead the USPS out of its quagmire, then I'd look at the Stamporama membership nominal roll to find a savior.
I do not say this in jest, just impressed with all the common-sense ideas that have been expressed in various discussions regarding the health and state of mail delivery in the USA and world-wide.
John Derry