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re: USPS/Amazon losing money question...

Posted on 1/1/18 at 8:16 pm to
Posted by The Pirate King
Pangu
Member since May 2014
57655 posts
Posted on 1/1/18 at 8:16 pm to
quote:

I once read that the USPS losing money was not due so much to its delivery system, but rather all the money tied up in its pensions


This is the correct answer. I knew one of the local postmasters. Guy was a veteran, then retired from the post office as well. Dude was raking it in.
Posted by gthog61
Irving, TX
Member since Nov 2009
71001 posts
Posted on 1/1/18 at 8:24 pm to
quote:

Modelo is a Mexican beer. It’s called targeted advertising, you tool.



frick you,promoting illegal immigration has nothing to do with beer.

The idea that people who want border control are against legal immigration done the correct way is a God damned lie.
Posted by OysterPoBoy
City of St. George
Member since Jul 2013
35074 posts
Posted on 1/1/18 at 9:49 pm to
quote:

USPS lost $5.1 billion in 2014, $5.6 in 2015, $6.7 in 2017


But they make it up in volume.
Posted by cave canem
pullarius dominus
Member since Oct 2012
12186 posts
Posted on 1/1/18 at 10:10 pm to
quote:

These marketing departments are having a tough time learning a lesson.


White male conservatives were not the target market silly.

Watch the comercial again and pretend you are a Mexican immigrant, the target audiance, and it is a bit more appropriate.
Posted by TheMidasTouch
Member since Oct 2017
440 posts
Posted on 1/1/18 at 10:43 pm to
quote:

If they raised rates on Amazon, Amazon would just start using FedEx or UPS and USPS would lose even more

So Amazon is actually making them money by keeping their deficit lower than it would be if they did not ship for Amazon.

In short, Trump is full of shite with his tweet about Amazon and the Postal Service and his sheep fall for it like everything else.
This post was edited on 1/1/18 at 10:46 pm
Posted by tigerterrace
Mobile, Alabama
Member since Sep 2016
3397 posts
Posted on 1/1/18 at 10:46 pm to
Raise the price of the postage stamp.

Deliver mail three times a week cutting the need for personnel in half in bigger cities. Create Group One and Group Two. Group One gets Monday, Wednesday and Friday delivery and Group Two gets Tuesday, Thursday, Saturday delivery.

Posted by Ebbandflow
Member since Aug 2010
13457 posts
Posted on 1/1/18 at 10:49 pm to
You guys are real pieces of work. You really have a problem with pensions and making sure people are taken care of when they retire. Do you even hear yourselves? bunch of douchebags.

Posted by barry
Location, Location, Location
Member since Aug 2006
50340 posts
Posted on 1/1/18 at 11:00 pm to
You can’t make changes quickly, it’s too political. It used to serve a valuable function to the community but that’s not really the case with email. Something on the order of 50% of their volume is junk mail.
Posted by Lsuchs
Member since Apr 2013
8073 posts
Posted on 1/2/18 at 2:43 am to
quote:

Watch the comercial again and pretend you are a Mexican immigrant, the target audiance, and it is a bit more appropriate.


I think they know there is a border, as they made a point to be on this side of it.

I’d think legal immigrants would be proponents of a secure border. They chose not to live Mexico. No border and they are back in “Mexico” in months.

Do you mean they are catering to illegal immigrants? Well I guess it’s a much larger market than it was 8 years ago
This post was edited on 1/2/18 at 2:50 am
Posted by skinny domino
sebr
Member since Feb 2007
14330 posts
Posted on 1/2/18 at 2:56 am to
quote:

So Amazon is actually making them money by keeping their deficit lower than it would be if they did not ship for Amazon. In short, Trump is full of shite with his tweet about Amazon and the Postal Service and his sheep fall for it like everything else.
nailed it!
Posted by NC_Tigah
Carolinas
Member since Sep 2003
123869 posts
Posted on 1/2/18 at 3:52 am to
quote:

quote:

Trump is full of shite with his tweet about Amazon and the Postal Service and his sheep fall for it like everything else.

nailed it!
Not really.
The truth is somewhere in the middle.

While package shipment is profitable, the USPS has undercharged average per parcel pricing by up to $1.50/pkg. They are still making money. Just not as much. However, in Amazon's case, cost of Sunday delivery must also be factored. When it is, profitability is questionable.

The USPS ships ~40% of Amazon's goods. Would they lose that business if they raised their rates? Possibly. Would that increase % of deficit? Yes.
Would it also shrink the size of the USPS workforce? Probably. Would the combination of a smaller operation with a higher deficit fraction shrink the size of the USPS cost to taxpayers? The answer is probably so, but it's not cut-and-dry.

The USPS runs chronic deficits. Those deficits are due in large part to pensions and other employee benefits. Cutting the size of the workforce could well cut the deficit, not necessarily as a % of earnings, but as a gross number. i.e., taxpayer cost of a $25Billion company running a 25% deficit vs a $15Billion company with a 35% deficit. Obviously neither is desirable, but the 35% deficit actually saves $1Billion/yr.

So that is where the Amazon deal gets dicey,

Posted by SirWinston
PNW
Member since Jul 2014
81596 posts
Posted on 1/2/18 at 6:11 am to
I had been under the impression that Amazon had helped USPS cut their operating deficit dramatically.

This is absolutely ridiculous. I resent subsidizing Amazon while their owner contributes to globalism and anti-Trump activism.
Posted by mindbreaker
Baton Rouge
Member since Dec 2011
7633 posts
Posted on 1/2/18 at 7:16 am to
quote:

I once read that the USPS losing money was not due so much to its delivery system, but rather all the money tied up in its pensions


it's part of it. It's a combination of three things

Guaranteed pensions

Unionization of the postal workforce (guaranteed yearly raises regardless of performance, nearly impossible to fire anyone) They had a postal worker caught on camera in baton rouge literally getting into a fist fight with someone and he still has a job.

Inability to raise postage costs to reflect inflations due to government bureaucracy.
Posted by the LSUSaint
Member since Nov 2009
15444 posts
Posted on 1/2/18 at 8:26 am to
USPS is a government operation. Why is it allowed to cut deals w Amazon without approval from Congress, or at least higher up approval.
I guarantee you that's why Trump is attacking bezos.....gonna bring his ads to the table.
Posted by oauron
Birmingham, AL
Member since Sep 2011
14511 posts
Posted on 1/2/18 at 9:02 am to
quote:

You guys are real pieces of work. You really have a problem with pensions and making sure people are taken care of when they retire. Do you even hear yourselves? bunch of douchebags.

Well, TD isn't a fan of participation trophies.
Posted by Quidam65
Q Continuum
Member since Jun 2010
19307 posts
Posted on 1/2/18 at 9:05 am to
quote:

I once read that the USPS losing money was not due so much to its delivery system, but rather all the money tied up in its pensions


The pension issue is a problem (as Congress is requiring it to fully fund all future liabilities currently, something it can't do and no private company is required to do), but it isn't the only problem.

They are also hurt by subsidizing junk mail deliveries. So YOU pay to have your mailbox flooded with garbage that ends up in your garbage can (or recycling bin).
Posted by the LSUSaint
Member since Nov 2009
15444 posts
Posted on 1/2/18 at 9:06 am to
My guess is that a lot of this is inside jobs.....USPS driver gets a homeboy to follow him on route and tips him off to the packages that he should swipe after delivered.
Posted by Napoleon
Kenna
Member since Dec 2007
69068 posts
Posted on 1/2/18 at 9:07 am to
Pensions kill them. They actually profit on delivery they lose on pensions.
Posted by TheFonz
Somewhere in Louisiana
Member since Jul 2016
20367 posts
Posted on 1/2/18 at 9:12 am to
I just throw it into the ditch. Garbage cans and "recycling bins" are for Commie hippies.
Posted by Napoleon
Kenna
Member since Dec 2007
69068 posts
Posted on 1/2/18 at 9:12 am to
after 25 years they get 60% of their highest pay for life.

After 30 I think it's 65%.

Pension no 401k.

Pretty sweet seeing that management is a six figure position.
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