The US Postal Service needs a bailout?

**ruxCYtable** · 05-13-2011, 09:04 AM

$2.2 billion loss in 2nd quarter 2011.

I'm not a postal service hater like some. Despite all the jokes about the USPS, I don't think I've ever had a piece of mail lost in my entire life. That said, how is it that with all its built-in advantages over its competitors the USPS can't turn a profit?

There are those who say we should simply let the USPS fold because now everyone has email and we have access to private shippers like UPS, Fedex, DHL, etc. I would not go that far, but I have some thoughts on how the USPS can be saved and maybe even become profitable, in no particular order.

-First and most obvious is to raise the price of stamps to a level that will allow a profit. Of course this could have the opposite effect in that people might buy fewer stamps if the price goes up.
-Let the price of stamps float with fuel prices (their biggest expense). I believe UPS and Fedex float their rates, why not USPS?
-Reduce deliveries to once or twice a week. This would allow them to reduce staff and save gas. It works for the garbage man, why not for the mail?
-Hire people who are qualified. I took the test once when I was in college. I scored 100% and never heard a word from the USPS. My uncle scored 70%, but because he was a veteran he got hired. I love veterans, but the USPS is intentionally not hiring the best people for the job.

Any other thoughts out there?

**IcSyU** · 05-13-2011, 09:06 AM

I have to imagine cutting Saturday delivery would save a ton of money.

**bos** · 05-13-2011, 09:06 AM

I think a bailout would be foolish. If anything they need to reorganize and find some sort of service else has. Might be too little too late.

**LindenCy** · 05-13-2011, 09:09 AM

I think cutting a delivery day or 2 would be best, but we'll see if it happens.

**jdoggivjc** · 05-13-2011, 09:09 AM

Originally Posted by ruxCYtable

$2.2 billion loss in 2nd quarter 2011.

I'm not a postal service hater like some. Despite all the jokes about the USPS, I don't think I've ever had a piece of mail lost in my entire life. That said, how is it that with all its built-in advantages over its competitors the USPS can't turn a profit?

There are those who say we should simply let the USPS fold because now everyone has email and we have access to private shippers like UPS, Fedex, DHL, etc. I would not go that far, but I have some thoughts on how the USPS can be saved and maybe even become profitable, in no particular order.

-First and most obvious is to raise the price of stamps to a level that will allow a profit. Of course this could have the opposite effect in that people might buy fewer stamps if the price goes up.
-Let the price of stamps float with fuel prices (their biggest expense). I believe UPS and Fedex float their rates, why not USPS?
-Reduce deliveries to once or twice a week. This would allow them to reduce staff and save gas. It works for the garbage man, why not for the mail?
-Hire people who are qualified. I took the test once when I was in college. I scored 100% and never heard a word from the USPS. My uncle scored 70%, but because he was a veteran he got hired. I love veterans, but the USPS is intentionally not hiring the best people for the job.

Any other thoughts out there?

You're lucky. I sent my $1200 laptop to a reputable repairman (to replace a fried GPU) via USPS because the repairman "never had problems with USPS." Was sent via certified mail, received tracking receipts and everything. 16 months later I'm still "waiting" for USPS to deliver the laptop.

**bos** · 05-13-2011, 09:11 AM

Originally Posted by jdoggivjc

You're lucky. I sent my $1200 laptop to a reputable repairman (to replace a fried GPU) via USPS because the repairman "never had problems with USPS." Was sent via certified mail, received tracking receipts and everything. 16 months later I'm still "waiting" for USPS to deliver the laptop.

I smell a conspiracy between said repairman and the USPS. War is coming!

**cyclone13** · 05-13-2011, 09:11 AM

USPS was not created to be a for-profit organization but now is forced to act like for-profit organization.

**alarson** · 05-13-2011, 09:11 AM

Originally Posted by IcSyU

I have to imagine cutting Saturday delivery would save a ton of money.

drop down to 2 or 3x a week delivery and consolidate the number of carriers. 99% of residential delivery would be just fine getting their mail monday/thursday or tuesday/friday, anyone that needs it more often should pay extra for daily delivery. Then you could have one carrier handling their existing route monday/thurs, and a different route tues/fri

**acgclone** · 05-13-2011, 09:12 AM

There is very little need for everyday service. Think about all the mail you get and how much of it is vital. I could easily switch all my bill payments online and not need ANY mail service. I would estimate that 8 out of 10 pieces of my mail is some form of junk mail.

Slowly phase out postal service, by first eliminating Saturday delivery, then a couple years down the road go to 4 days/wk, then 3, etc. I think our country wouldn't skip a beat with 1 day/wk postal service. You could still have a priority (2-day type service) for a fee for things that need to be delivered ASAP, not to mention FedEx and UPS. Along with that, raise rates on junk mail (thereby reducing junk mail) and 2 or 3 deliveries/wk would be easily handled by the USPS.

**bos** · 05-13-2011, 09:13 AM

Originally Posted by acgclone

There is very little need for everyday service. Think about all the mail you get and how much of it is vital. I could easily switch all my bill payments online and not need ANY mail service. I would estimate that 8 out of 10 pieces of my mail is some form of junk mail.

Slowly phase out postal service, by first eliminating Saturday delivery, then a couple years down the road go to 4 days/wk, then 3, etc. I think our country wouldn't skip a beat with 1 day/wk postal service. You could still have a priority (2-day type service) for a fee for things that need to be delivered ASAP, not to mention FedEx and UPS.

This.

**LindenCy** · 05-13-2011, 09:15 AM

Originally Posted by cyclone13

USPS was not created to be a for-profit organization but now is forced to act like for-profit organization.

Unfortunately, this is probably the major reason, which is why they pimp out a lot of services that they really shouldn't be doing.

**alarson** · 05-13-2011, 09:15 AM

Originally Posted by cyclone13

USPS was not created to be a for-profit organization but now is forced to act like for-profit organization.

it wasnt created to be a money hole either. the USPS didnt always offer flat rate postage, nor did it always offer daily delivery. now that snail mail is largely obsolete, there is much less need for this level of service, and it should be scaled down accordingly.

**acgclone** · 05-13-2011, 09:17 AM

Originally Posted by cyclone13

USPS was not created to be a for-profit organization but now is forced to act like for-profit organization.

Yes and it was created in a completely different era, technologically speaking. That is their problem, not trying to compete with private organizations.

**InAWord** · 05-13-2011, 09:18 AM

I read that back in the 70s they talked about eliminating the Saturday delivery, but it never passed. The money saving for that change alone is staggering.

Close a ton of offices. Go down to more central processing install of so many offices. Install more self serve kiosks. Do just basic mail delivery (letters or small packages). Let the private companies handle all large shipping. Eliminate all advertising.

**mred** · 05-13-2011, 09:21 AM

As a Netflix subscriber, 2 day/week service would be awful. Right now I get a disc in the mail, they receive it the next day and ship one out, and I get it the following day. Two day/week mail would mean it'd take at least a week to get a DVD after we send one out.