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  1. #1
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    Government efficiency at its finest : USPS - $3.5Bil loss in 3rd Quarter

    Another "Success"

    http://www.reuters.com/article/idUSN0526654020100805

    WASHINGTON, Aug 5 (Reuters) - The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.

    The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.

    Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.

    "Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.

    Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.

    "It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.

  2. #2
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    Quote Originally Posted by petalpower

    Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.

    "It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.
    And you want the government to have some hand in your health care? ROTFLMAO.

    Ok, seriously, well not really, legislation to change contracts??? LOL. Much of the legislators are bought and paid for by these Public Employee unions. They are NOT going to renegotiate anything that takes away from union members, like 5.5 billion needed for health benefits.

    If they want the Post Office to be efficient and not lose money, then the would have to subcontract it to FedEx or something without any existing union contracts or commitments. Again, that will happen in 2129 when the aliens from Mars invade us. LOL

  3. #3
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    Postal usage is down, but people still want cheap mail delivery 6 days a week. Would someone be willing to pay $1.00 or more to mail a letter....I think not. The only way to make the USPS "profitable" on a business model is to significantly raise rates and I expect that would only drive more customers away. I don't see how we can have cheap mail delivery and a profitable Post Office, pick one or the other.

  4. #4
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    Quote Originally Posted by cdhbrad
    Postal usage is down, but people still want cheap mail delivery 6 days a week. Would someone be willing to pay $1.00 or more to mail a letter....I think not. The only way to make the USPS "profitable" on a business model is to significantly raise rates and I expect that would only drive more customers away. I don't see how we can have cheap mail delivery and a profitable Post Office, pick one or the other.
    fedex delivers a letter for me for $1?
    Blows your hair back.

  5. #5
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    Quote Originally Posted by cdhbrad
    Postal usage is down, but people still want cheap mail delivery 6 days a week. Would someone be willing to pay $1.00 or more to mail a letter....I think not. The only way to make the USPS "profitable" on a business model is to significantly raise rates and I expect that would only drive more customers away. I don't see how we can have cheap mail delivery and a profitable Post Office, pick one or the other.
    How is it that both FedEx and UPS are both cheaper to send boxes ( in my case, my bicycle from CO to NY ) than the US Post Office?

    ETA:

    Maybe if the USPO didn't have a monopoly on mailboxes here in the US, then maybe a competitor ( UPS, FedEX, etc ) could compete.

  6. #6
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    I like the idea of government services that could actually make money. Not many do.

    The thing to do is to do away with universal coverage.
    Last edited by BadHabit; 08-06-2010 at 10:36 AM.

  7. #7
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    I don't need mail on Saturday...that should save them some cash.

    I do have a hard time understanding the pension/pay system for USPS workers...many make much more than I do with no specialized training/education whatsoever....

  8. #8
    No Crybabies
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    cut back

    Raise rates, eliminate Saturday service. I don't care what the rates are. Only things I receive US Mail are things I don't want. Might send 10 letters a year, and that's only for bike events where they are too far behind the times to take on line credit card payments.
    [SIGPIC][/SIGPIC]

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  9. #9
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    Quote Originally Posted by petalpower
    How is it that both FedEx and UPS are both cheaper to send boxes ( in my case, my bicycle from CO to NY ) than the US Post Office?.
    Because they only charge you 43 cents to send a letter.

    maybe in another generation or two, when everyone has iPhones implanted in their brains, no one will care about mail.

    But I'd miss the postman coming by every day, rain or shine to see if I have any mail to send. I'd miss being able to drop a letter in a corner box. Doubt I'd miss junk mail, though getting rid of junk mail would pretty much kill the bulk of large printers around the country.

    Maybe we could buy a few less air superiority fighters or nuclear subs for a while?

  10. #10
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    Quote Originally Posted by petalpower
    How is it that both FedEx and UPS are both cheaper to send boxes ( in my case, my bicycle from CO to NY ) than the US Post Office?

    ETA:

    Maybe if the USPO didn't have a monopoly on mailboxes here in the US, then maybe a competitor ( UPS, FedEX, etc ) could compete.

    A monopoly on mailboxes? I can call to have FedEx or UPS come pickup a package at my house at least 5 days/week and maybe even on Saturday. They'll charge me $10 extra if I'm not on their regularly scheduled pickup route.

    FedEx and UPS is cheaper for package delivery for many reasons, one being that package delivery (note not letter delivery) is their specialty. Their entire organization is geared towards it. The USPS is geared to letter delivery. FedEx and UPS could not deliver letters for whatever the price of a postage stamp is without losing their shirts. They'd raise prices to cover the costs of revamping their businesses and the hiring of the massive number of personnel they'd need to do as good a job that the USPS does.

    I'm not saying that the USPS isn't wasting coin. I'm sure it is. I'm also equally sure that UPS and FedEx couldn't do the job at anything close to the same rates.


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  11. #11
    Palm trees & sunshine!
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    Quote Originally Posted by buck-50
    Because they only charge you 43 cents to send a letter.

    maybe in another generation or two, when everyone has iPhones implanted in their brains, no one will care about mail.

    But I'd miss the postman coming by every day, rain or shine to see if I have any mail to send. I'd miss being able to drop a letter in a corner box. Doubt I'd miss junk mail, though getting rid of junk mail would pretty much kill the bulk of large printers around the country.

    Maybe we could buy a few less air superiority fighters or nuclear subs for a while?

    That's what I missed in my response: the mailman comes 6 days/week whether or not there's mail to be delivered or picked up. FedEx/UPS only comes when they need to.


    supervillain

  12. #12
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    Quote Originally Posted by Fixed
    I don't care what the rates are.

    Hard to see a regressive effect.

    I used to ask, "Who delivered for you this year, Wall Street or the USPS?"

  13. #13
    AM999's Liberal Facist
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    Quote Originally Posted by KenB
    That's what I missed in my response: the mailman comes 6 days/week whether or not there's mail to be delivered or picked up. FedEx/UPS only comes when they need to.

    I dunno about where you are, but FedEx/UPS always comes at unpredictable times. The mailman always swings by at the same time every day at 2PM here.
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  14. #14
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    For smaller packages, USPS is "usually" cheaper and faster. I haven't shipped a bike through USPS.

  15. #15
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    No, about $15.......the $1.00 was a WAG, I have no idea what it would cost to make USPS a profitable business, the point being it is basically a government service and the cost is underwritten.

  16. #16
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    by that logic..

    Quote Originally Posted by ziscwg
    And you want the government to have some hand in your health care? ROTFLMAO.
    you would prefer that the federal government make a profit off of your health care?

  17. #17
    xxl
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    Quote Originally Posted by petalpower
    Another "Success"

    http://www.reuters.com/article/idUSN0526654020100805

    WASHINGTON, Aug 5 (Reuters) - The U.S. Postal Service reported a quarterly net loss of $3.5 billion on Thursday and said it will likely have a cash shortfall going into 2011.

    The agency, which delivers nearly half the world's mail, has reported net losses in 14 of the last 16 fiscal quarters.

    Revenue in the third quarter that ended June 30 fell $294 million to $16 billion from a year ago, while expenses were $789 million higher at $19.5 billion, due largely to higher workers' compensation costs and retiree health benefits.

    "Given current trends, we will not be able to pay all 2011 obligations," said Joseph Corbett, the agency's chief financial officer.

    Cash flow seems on track to handle 2010 operations, Corbett said, but it is uncertain whether sufficient liquidity will be in place for 2011 after the agency must make a $5.5 billion payment on Sept. 30 to prefund retiree health benefits.

    "It is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," Corbett said.
    A government agency, around since the days of Ben Franklin. Survived a civil war plus a couple of World ones, and a few regional wars, numerous panics, depressions, and recessions. Started running it "like a business" in more recent times, and what has that gotten us?

    The sad truth is that government isn't really the problem for USPS, marketwise; it's the Fed-UPS of the world, who've been able to skim the high-margin business off of Postal, leaving it the high-cost dregs...sort of like online bike shops vs. your LBS.

  18. #18
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    Quote Originally Posted by bahueh
    you would prefer that the federal government make a profit off of your health care?
    No, but I don't expect USPS to make a profit either. I think we all would be happen if just break even.

  19. #19
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    Quote Originally Posted by buck-50
    Because they only charge you 43 cents to send a letter.

    maybe in another generation or two, when everyone has iPhones implanted in their brains, no one will care about mail.

    But I'd miss the postman coming by every day, rain or shine to see if I have any mail to send. I'd miss being able to drop a letter in a corner box. Doubt I'd miss junk mail, though getting rid of junk mail would pretty much kill the bulk of large printers around the country.

    Maybe we could buy a few less air superiority fighters or nuclear subs for a while?
    I donít really donít use the USPS much anymore. Email and online banking as pretty much replaced USPS for me. I still get a bill or two via snail mail, but majority of bills are sent to me electronically. They all get paid via my online banking. The only thing I really get in my mailbox these days is junk mail. If UPSP went away tomorrow I wouldn't miss it.

  20. #20
    PRB
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    Quote Originally Posted by cdhbrad
    For smaller packages, USPS is "usually" cheaper and faster. I haven't shipped a bike through USPS.
    +1. I use USPS for everything other than bikes. One factor in that decision is that the PO is 2 miles away while FedEx/UPS are 20+ miles away but even if they were all the same distance I'd pick USPS every time for smaller stuff.

    The Postal Service is one of the few Fed Govt agencies specifically authorized by the Constitution. I say if we want to cut Govt spending we start with all those other agencies which don't have Constitutional authorization first.
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  21. #21
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    Living in real cities on the interstate hwy system and/or near airports, $.43 cents to send correspondence anywhere in the US maybe doesn't seem like a bargain? I think it's pretty darn good. But seriously, if this were in the hands of private enterprise, we'd see service outright discontinued to all those little podunk communities where service is a money loser.

    Seriously, I think USPS is between a rock and hard place. Folks want to scream at rate increases, but they want reliable service to every little hamlet. This is a classic example of a service where non-regulated private enterprise can't fill the gap, and regulated public enterprise (think the old "Ma Bell") isn't any better.

    Technology will likely moot the discussion eventually, but the mere fact that public mail service is a deficit proposition is no surprise.
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  22. #22
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    I agree, if this went private alot of places would never see service again. But then again the postal service needs to adapt and evolve with a changing world. Maybe it means a dollar a letter, still a bargin considering my morgage company wants 10 dollars to do an online bill payment. Maybe that would cut down on all the junk waste mail i get. Maybe we go to Mon, wed, fri delivery of regual mail, packages or special pieces of mail mon-sat.

    Honestly i look for just a few pieces of mail a month, for me it would be no real thing to tell the USPS to hold my mail an deliever just once a week. WOuldnt that work just as well for people also? Packages and special mail every day but sunday and those of us who want to , once a week delievery. Simple way to cut down.

    But it would take alot of people doing this, and honestly if your still going to have the same people walking the same routes mon-sat then there is no real savings. But maybe go to a mon, wed, fri delievery that could save some money.

    BIll

  23. #23
    ab aeterno
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    JayTee has it right. It's easy to live in a big city or get packages from big city to big city, it's the small town stuff that kills USPS. At the same time, these small cities rely heavily on USPS. I know lots of people in rural Alaska that rely on USPS for shipping groceries and losing Saturday deliveries will affect their ability to get groceries quickly.

  24. #24
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    and email

    has drastically cut into their business
    and everyone gets mad when their local post office gets closed due to cutbacks
    one nation, under surveillance with liberty and justice for few

    still not figgering on biggering

  25. #25
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    Charge more for "junk mail"
    I'm keeping my freedom, Bible, guns, and money....... You can keep your damn CHANGE.

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