Posted on 04/25/2020 4:56:55 AM PDT by SanchoP
It’s a good rant by the President, but the Postal Service doesn’t actually lose money on its Amazon business.
BTW, I see U.S. Mail trucks everywhere on Sundays now. They have people in civilian clothing driving them and delivery Amazon packages exclusively. Maybe Amazon should just buy the US Postal Service and be done with it.
I'm not seeing the problem here. Sure they lose money on every package, but they make it up in volume. Can I get an overpaid USPS board seat now? Besides I really like that Amazon Prime free shipping.
If the USPS raises their prices to Amazon, who pays that?
There is a long list of suggestions to help the USPS but years of expensive management studies purchased by government agencies go ignored because they just want bigger budgets and more money.
If I try shipping the same package with the same weight through the Postal Service it costs me a lot more money.
They don't lose $10,000 delivering the 200 packages in the bundle for Amazon. They lose it shipping my package at a "bargain basement" rate that is subsidized by Amazon.
I don’t know details of USPO revenue.
However, itcanbe argued that the package revenue, even though inadequate on a package by package basis, provides funding that pays overhead. With out the package revenue, the USPO couldn’t exist
Speak for yourself. I won’t buy jack shiite from Amazon.
When they deliver for Amazon on Sundays, they lose money. Period.
So,it’s OK for the taxpayers to bail out the USPS,as long as you can get cheap deals on Chinese crap from Amazon?
If I have a delivery business that costs $100,000 per year to operate and I deliver 10,000 packages, then the average cost is $10 per package. But if 80% of my cost is from operating a building and buying delivery vehicles and 20% of the cost is from paying staff and fueling the vehicles for delivery, then I can still make money by delivering a bunch of packages for $5. That’s because the cost of the building and buying the vehicles is a FIXED cost that I have already paid regardless of how many packages I deliver.
Like most government entities, the USPS is burdened with a spending problem.
Unions have forced them to retain inept, worthless, brain dead employees. A private company would run lean and mean.
Being supported by tax dollars, there is little oversight, no accountability, and way too much overhead.
So they lose money on every deal but it’s volume that counts? Sounds like a Democrat-run business.
was an article years ago that Amazon makes over $1 per package sent through USPS. Amazon subsidized. to me that says likely adds up to a loss for USPS from that part of their business.
You may be right, but I would have to see the numbers to support that.
I have a cousin that worked 30 yrs for the USPS that would agree 100% with that statement. (Single mom with 3 kids,that’s why.)
“””””’BTW, I see U.S. Mail trucks everywhere on Sundays now”
Same here in the Minneapolistan area.
One of my cousins retired from the post office recently.
He has always been a hard worker at whatever he did.
He sorted mail in a huge building.
He said that during his time there, four of his peers were like him, ignoring the union hacks.
When good workers were hired, the union guys intimidated them and got them to slow down.
Told them they got paid no matter if they worked or not.
That answers that.
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