Posted on 03/04/2010 7:45:24 AM PST by SeekAndFind
“Because the mail never stops. It just keeps coming and coming and coming. There's never a letup, it's relentless. Every day it piles up more and more, but the more you get out, the more it keeps coming. And then the bar code reader breaks. And then it's Publisher's Clearinghouse day!”
-- Newman, on Seinfeld
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The mail never stops?
With an estimated 10 billion “piece” volume decrease for the United States Postal Service expected in 2010, Newman may have to start applying for a new gig.
Faced by overpowering competition in the private sector and feverishly amassing debt, the USPS yesterday announced its revamped plan to eliminate Saturday delivery, raise delivery prices, reduce national workforce by 30,000 people, and reduce overtime opportunities.
The decision by the USPS to reduce to a five-day delivery week is an attempt to prevent a repeat of 2009, when the government service recorded a $3.8 billion deficit. The Postal Service currently struggles with a $10 billion debt, and it’s legally allowed to borrow only $15 billion.
However, as the USPS’ troubles mount, shipping companies in the private sector are having no problem staying afloat. Despite the slowdown associated with the recession, private, non-government affiliated services FedEx (FDX) and United Parcel Service (UPS) still reaped celebratory profits last year. In 2009, FedEx saw total revenue of $35.5 billion and $98 million in profits while UPS made $45.3 billion in revenue and $2.2 billion in profits.
This success isn't entirely a result of the business decay of USPS -- FedEx and UPS are actually negatively affected by the putrefying mess USPS has become.
Companies like UPS and FedEx depend on USPS to deliver more than 400 million of their ground shipments every year. A true “I scratch your back, you scratch mine” scenario, the USPS returns the favor by contracting FedEx and UPS to deliver packages via air. With USPS suspending Saturday service, these private shippers will have to sail off route.
But they’re not the only ones who’ll be immediately affected by the change.
Many e-commerce businesses like Amazon (AMZN), Netflix (NFLX), and eBay (EBAY) that rely heavily on USPS ground distribution will be forced to consult with private carriers to negotiate a partner service. If the private carriers assume this role, the USPS will suffer immensely.
It’s not like the USPS ever had it easy. Regulations on how the USPS can charge and handle everyday business have long crippled its ability to make a steady profit. Up against the private carriers who can charge as they please, the USPS is faltered with this governmental handicap, making it nearly impossible for it to gain an edge on its competitors.
Yesterday the USPS revealed its 10-year plan to curb its estimated $238 billion cumulative shortfall by 2020. Postmaster General John Potter expects these latest actions will amount to around $120 billion in saving throughout the present decade.
Of course, these are just the latest efforts in a series of cutbacks by the USPS. According to the Washington Post, since 2002, the USPS has cut costs by $43 billion by reducing overtime limitations, shrinking workforce, and renegotiating contracts.The USPS hasn't received any taxpayer funds to support operations since 1982, and it's responsible for covering all of its costs.
With Potter’s new “10 year plan” on the table, hope seems to be restored -- for now.
However, it seems inevitable that the authority and presence of the USPS, with all its regulations and deficits, will eventually succumb to the power of the private sector. As technology and modernization has slowly eliminated the need for newspapers, magazines, and other classical businesses, the US mail system may be the next victim of the smother.
Why the US Postal Service is Destined to Fail.Government operated time to sell it.
Speaking of that, I once used (or tried to use) the automated Priority Mail machine to mail some legal documents in oversized envelopes.
I had already addressed them in the traditional manner, and paid for the stamp, when out prints this 4"x6" sticker, with mostly white space, that I could not fit anywhere on the face of my envelope without covering the address and having to rewrite it somewhere on the edge of the envelope.
I then found out that the machine DID ask me to make sure that I had space for that absurdly large sticker, but I had missed it, assuming that the POST OFFICE (who ostensibly has some experience with stamps, envelopes, etc) would make "stamps" that will actually fit on the majority of envelopes on which they will be placed.
Am I wrong?
Yeah that’s one of the annoying things of the APC, the default label is insanely huge, so 99% of the people should push the “no I want the sane label” button, though the first time out many (including myself) don’t bother to read the dimensions and get stuck with the pyscho label which is almost useless on packages small enough to put in the drop shoot. I don’t know why they don’t default to the small actually useful label, while I think the USPS does a better job than generally credited I’ll certainly never say they’re without sin.
For a very brief period (I think it was 3 years running) of time in the mid-90s when junk mail made a serious jump in volume. Then junk mail tapered just a bit and those days ended.
I had the same problem the first time I used it. I can't for the life of me figure out WHY, if they can print a perfectly serviceable small stamp, the default position is to waste paper printing a huge one that won't fit onto the envelope.
As for the USPS going extinct, here's a quote (from memory) that fits, from Danny DeVito in the movie, "Other People's Money":
"I do know that the surest way to go out of business is to keep getting an ever-increasing share of a constantly shrinking market. At one time, there must've been dozens of companies in America making buggy whips. I'll bet the last one left made the best g*ddam buggy whip you ever saw."
Yeah, I think they're generally okay, so I'm not gonna slag them off too much. A reasonably good service for a reasonable price. I understand they're a business and have to control costs and generate reasonable revenues, so whatever they have to do (drop Sat. delivery, control costs on the salaries/pension side of the ledger, for example) to keep above water, well, that just doing what you have to do.
Still...there's no reason they can't come close to breaking even.
Billions in debt is...unacceptable.
But really they are close to breaking even. 1.6 cents a piece of mail is what their loss works out to. If it wasn’t for the fact that they’re expected to process over 190 billion pieces this year that wouldn’t add up to much of anything. The only reason it’s billions in debt is because of the hundreds of billions of items.
Odd, I’ve never been micromanaged to that level in any position I’ve held, in retail or otherwise. However it wouldn’t suprise me if it ended up being union thing.
In my experiance in retail, management doesn’t really care about anything other than the sales and overtime.
I don’t want them to drop Saturday, I almost always get Netflix delivered on Saturday. There are other good cost cutting measures, they really do have too many post offices in most cities, and they probably aren’t charging the junk mail people enough.
I have. I actually got chewed out for going on break 5 minutes after “plan”, and he didn’t want to hear about the 20 customers in the lobby. And there were no unions. I went round and round with this manager, eventually he quit because he gave the store manager a “him or me” (”him” being me and “me” being the annoying manager) ultimatum after one of our arguments, and the store manager said “but he was right and you’re being an idiot”. Years later I ran into the annoying manager and we buried the hatchet, he said he was too young for the job and felt insecure in his authority so anytime it got questioned he flipped out. Definitely not the only nutter manager I ever dealt with, but he has a special place in my memory for being the most intense, and for apologizing later.
And have for years. With very little problems.
That said...they need to operate in the black. Period.
I'd bet they can do that without raising prices...or cutting service. But they are hamstrung by the unions.
Unions probably aren’t helping. I just can’t get that excited about a loss of 1.6 cents an item. They probably come closer per “service” to breaking even than any other part of the government, and yet they get the most flack for being in the red.
Yes, I’ve only ever had one supervisor attempt to micromanage me.
My general experience has been that management has about 50,000 things more important to do than to worry about staff taking breaks late. (ant it usually involves putting out one of the days 20 or so fires, or at my current employer 2 hour meetings)
The good ones do, but the bad tend to obsess on their authority and respect, and they freak out about all the stupid stuff, and probably aren’t even aware of the real problems they should be solving.
I generally stick up for the USPS....
Because in my experience the service is just fine.
Could it be better? Yes.
Could it be more efficient? Yes.
Could it run in the black? Yes.
Oh, I’d like to keep it, too. I was just saying I understand that as a business they have to control costs and that may be one way to do it, although not preferable from a customer viewpoint.
Not without a layoff.....and if they can deliver the mail in 5 days...why does it take 6?
Go to a post office and wait in line and you’ll see at least part of the problem: the workers behind the counter move about as fast as a tree sloth. Am I to believe the ones in the back room move any faster?
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