Posted on 04/25/2020 4:56:55 AM PDT by SanchoP
The Postal Service is a joke because they’re handing out packages for Amazon and other internet companies, and every time they put out a package, they lose money on it,” Trump said.
The president commented on the postal service after reporters asked him at the White House about a possible bailout.
He argued that the postal service should raise their prices to help get them out of debt.
“The Post Office – if they raise the price of the package by approximately four times – it’d be a whole new ballgame,” Trump said. “But they don’t want to raise because they don’t want to insult Amazon.”
Treasury Secretary Steven Mnuchin said Friday that over $10 billion was authorized for a Postal Service loan in the coronavirus emergency rescue funding CARES act, but that the administration was demanding reform.
“We are going to put certain criteria for a postal reform program as part of the loan, and we’re [looking] forward to — the board is recruiting a new postmaster general and doing postal reform,” he said.
Trump said if the postal service did not raise their package prices, he would not authorize any aid.
(Excerpt) Read more at breitbart.com ...
So they make money on the dedicated “free delivery” service. Why don’t they pick cheap items, send them out free to customers and make their money on the delivery? Now that is one great system they’ve got.
We have those Amazon delivery vans around here, too. My point was Amazon’s competitors need the PO a lot more than they do. Changes to the PO will hurt Amazon’s competitors more than it will hit Amazon’s bottom line.
I was at the postal service for a year many years ago as a clerk. It was true then that if you worked too fast a union person would complain that you were making them look bad so they would transfer you to another task. It amazed me that anything ever got done in that lazy jungle. No one could be fired for anything it seemed.
They also need to raise the junk mail/third class rate.
A monopoly on a necessary service...they could charge whatever they wished.
We had casuals who never took the test. One was my son. But he seldom handled mail. More building maintenance work.
It's their own delivery service for their own packages. It saves them from having to pay Fed Ex, UPS, or USPS. I wouldn't have thought it was a difficult concept to understand but obviously I was wrong.
I have heard the prime van jobs are contract. they rent you the van and pay you by delivery.
No, it’s not difficult to understand. They don’t make money delivering. Its part of their overhead, an expense. When the USPS can do the job cheaper than Amazon can themselves, it’s due to the billions the taxpayer is subsidizing the post office. If Amazon had the USPS with the billions in subsidies they could do what the USPS does, deliver their merchandise with taxpayer support. You understand but are too stubborn to admit you were wrong.
Amazon IS doing more and more of their own deliveries, they have big white vans EVERYWHERE now!! They actually do a much better job than USPS I have had packages arrive the very next day AMAZING!!
Amazon IS doing more and more of their own deliveries, they have big white vans EVERYWHERE now!! They actually do a much better job than USPS I have had packages arrive the very next day AMAZING!!
LOL! You think it's logical that Amazon by the Postal Service and I'm the one who's wrong?
I talked to the delivery guy one day and he said he made $25.00 an hour BUT they do time them on their deliveries if they are doing a great job bonuses are involved PLUS all benefits!!
I bet with the lack of traffic they are making even more ;)
But its giving Amazon huge subsidies. Free use of trucks and USPS infrastructure. Any CFO worth his salt would tell the USPS that the overhead burden should be shared equally across all its operations.
It’s as if a major hotel started charging some of its guests only the direct cost for the maid, the daily water consumption, and the little bars of soap rather than the amortized unit cost for their debt and their executive, administrative, and sales staff.
I bet that would mean Amazon would pay only $49/night for its room. Sure, the hotel it isn’t “losing money on Amazon” but they would be seriously damaging its profitability by not charging $250/night.
If the hotel usually charges $250/night and it has 100 rooms, that's $25,000 in potential revenue that they get every night. Suppose the cost of buying the property and building (and upgrading) the hotel comes out to $10,000 per day over the life of the business, and the cost of staffing and servicing the hotel comes to $50 per occupied room per day. If only 50% of the rooms are occupied at the full price, then the hotel is generating $12,500 in revenue (half of $25,000) and expending $12,500 in costs ($10,000 + [50 rooms x $50]). The hotel is just breaking even.
If ten customers call the hotel at 7:00 PM and offer to take rooms for $100 each, this is a steep discount in the room price but generates another $1,000 in revenue at an additional cost of only $500 (10 rooms x $50). Why wouldn't the hotel jump at the chance to give those rooms away for $100 each?
The Post Office is obsolete ~ gone the way of Blockbuster...
Interesting, in my town (upscale suburban) there are 2 or 3 branches...one even has lobby transaction hours on Sunday. My town is considered very high tech...5G, etc...
So is Post Office really obsolete?
the post office is not obsolete and I love it.
“BTW, I see U.S. Mail trucks everywhere on Sundays now. They have people in civilian clothing driving them and delivery Amazon packages exclusively.”
I was surprised by that when an Amazon package was delivered last Sunday.
This is what so many overlook. First class mail has statutory and case law 4th amendment protections that require a warrant.
Read the fine print on UPS and FedEx. They will snoop through your package if they feel like it and they won’t ask law enforcement for a warrant.
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