Postal Rate Hike Beginning 01-22-12

[mriddick]

For those of you stocking up... be sure to buy the "Forever Stamps". Whatever you buy them for at today's rate (.44 cents), even if postage goes up to $1.00 per letter in 10 years, they still have to honor that stamp at that day's future cost.... that's why they're "Forever".

Over a year's course of business... I probably spend about $1500 in postage sending out patient recall reminders when they're cleaning is coming up, when they're overdue, or sending out monthly billing statements.

A 1 cent hike on letters isn't huge... but the .29 cent increase on postcards is HUGE when it pertains to business ramifications... this means that I will raise the fee for an adult cleaning another dollar to cover the cost sending out patient postcards... I know, raising the cleaning fee from $75 to $76 dollars doesn't seem like a big deal... but when you add up all those post cards I send out each year... why should I eat another $1000 when it should be passed onto the patient/consumer? The postage increase will influence the costs of not only my business... but ALL businesses across AmeriKa.

So the cost of sending a post card goes up by cents and your services go up a $1?

[LAGC]

So the cost of sending a post card goes up by cents and your services go up a $1?

Sounds like someone is getting a little greedy.

[Kadmos]

So who's going to cover that 5 and a half billion they're short this year and asked congress to cover...venture capitalists?

Actually, they probably would if given a reasonable chance.

USPS has to actually ask congress in order to do layoffs, cut service days, or do a price increase. It takes an act of law to make these changes.

Which means, the post office knows it needs some major overhauls to stay solvent, but they also know it takes a long time and convincing other people (congress) to kindly allow any changes.

So they try to get a bill put in to cut a service day, and they need a congressman to sponsor it.

When that process takes too long they say they will have a shortfall and ask for cash.

Normally, they get a small postal rate increase instead and it works out.

Look up what the post office has actually asked for in the last couple off years, dropping a service day, laying off thousands of workers.

They can't respond without an act of congress.

Any other business, especially that size, would raise capitol during tough times by selling stock, bonds, or through loans. The post office has much more limited options because of the nature of the setup.

But for those who didn't actually read the thing

A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. With 32,000 retail locations and the most frequently visited website in the federal government, usps.com, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 29th in the 2010 Fortune 500.

Sorry for the wait Jefferson, I went to sleep.

[mriddick]

The USPO is a shining example of what happens when private business is operated under strict guidelines from the government.

The management of the postoffice wants to do layoffs, close unprofitable offices and cutback some on service. Their union is pushing to offset their pension. Who do you think is going to win that one?

[weevil]

Well it wasn't a private enterprise until 1970.

Prior to the adoption of the Postal Reorganization Act of 1970, the U.S. Postal Service functioned as a regular, tax-supported, agency of the federal government.


What we are actually seeing is what happens when a govt mandated agency that's intended to provide a public service is turned into a private company.

[El Jefe]

The USPO is a shining example of what happens when private business is operated under strict guidelines from the government.

The management of the postoffice wants to do layoffs, close unprofitable offices and cutback some on service. Their union is pushing to offset their pension. Who do you think is going to win that one?

Bingo. Some just can't handle the facts.

[Kadmos]

The USPO is a shining example of what happens when private business is operated under strict guidelines from the government.

What we are actually seeing is what happens when a govt mandated agency that's intended to provide a public service is turned into a private company.

I know.

It really is amazing what a success story that has been. Despite the requirement to get permission from congress on so many things, our post office consistantly manages one of the worlds largest workforces, pays them a good wage, with good benifits, efficently carries out its duties of delivering mail to 150 million "customers" a day.

Then to top that off it is able to carry out those duties for two and a half years, during extremely difficult economic times without a price increase, in spite of a very changing society that depends more and more on email.

It really is something to be rather proud of.

[Mark Ducati]

So the cost of sending a post card goes up by cents and your services go up a $1?

The average patient in my office gets 3-4 post cards per year.

[mriddick]

I know.

It really is amazing what a success story that has been. Despite the requirement to get permission from congress on so many things, our post office consistantly manages one of the worlds largest workforces, pays them a good wage, with good benifits, efficently carries out its duties of delivering mail to 150 million "customers" a day.

Then to top that off it is able to carry out those duties for two and a half years, during extremely difficult economic times without a price increase, in spite of a very changing society that depends more and more on email.

It really is something to be rather proud of.

I'm not sure I'd call it a success story quite yet, afterall the final chapter has not been written and they are running 5+ billion (with a B) in the hole yearly. The management has done a pretty good job despite being hobbled by regs from Congress although I now fear their union has taken the playbook from the government unions and have decided now they should forget about negotiating as much as using politicians to regulate what they want. It seems odd the union is campaigning that Congressional interference is the root cause of their problem (the dirty dogs won't let them bill the future taxpayers for their pension) so they are asking for.............


wait for it..................


wait for it.....................


more Congressional interference so they can . Yes that's right, even the union agrees it's Congress's meddling that's kept them from being profitable so in their wisdom they want more Congress's involvement.... You'd think with as good a job their management has done they'd be more apt to listen to them, instead they are asking for the opposite.

[Warthogg]

It really is something to be rather proud of.

uh huh


Wart

[mriddick]

The average patient in my office gets 3-4 post cards per year.

And do they get a service for each card? My wife and I get 4 cards a year from our dentist which works out to an extra $1.16 in postcards, if our cleanings go up $1 for each then thats $4 extra dollars the dentist charges, he should be pocketing an extra $2.84... Sounds like you should be supportive of the rate hike

[Kadmos]

I'm not sure I'd call it a success story quite yet, afterall the final chapter has not been written and they are running 5+ billion (with a B) in the hole yearly.

You mean it's projected to be 5 billion in the hole next year. Thus far it has run fine.

Think about it, if I recall correctly the last postal worker strike was 1970. Delivery rarely has had any sort of interference or stoppage. There is no doubt the job gets done.

But consider as well some of the other big business lately, they've gotten huge cash infusions from the government, and that's with the ability to do their own scheduling, set their own prices, have layoffs, etc. They can actually respond to the market much much more freely and they still failed.

Also consider the issue from a larger level, the post office is asking for the cash, or to be able to lay off workers, or to be able to cut delivery days, or be able to raise rates...then you can see what asking for the money really is, it's a negotiating tactic.

[mriddick]

As I said the management has done a pretty good job. Although I think we are a juncture where the tax payers will either go back to subsidizing the PO so they can enjoy benefits out of whack to the marketplace or they can tighten their belts and pay for the benefits a 44 (or 45, or 50 whatever the market can support) cent stamp can afford.

I'm not sure I'd bet against Congress taking on the extra debt at this point, whats another couple billion over the next few decades right? I'm sure the next generation is good for it, we're sticking them with everything else why not this too

[Warthogg]

You mean it's projected to be 5 billion in the hole next year. Thus far it has run fine.

Think about it, if I recall correctly the last postal worker strike was 1970. Delivery rarely has had any sort of interference or stoppage. There is no doubt the job gets done.

But consider as well some of the other big business lately, they've gotten huge cash infusions from the government, and that's with the ability to do their own scheduling, set their own prices, have layoffs, etc. They can actually respond to the market much much more freely and they still failed.

Also consider the issue from a larger level, the post office is asking for the cash, or to be able to lay off workers, or to be able to cut delivery days, or be able to raise rates...then you can see what asking for the money really is, it's a negotiating tactic.

I haven't checked to be sure but I think the USPS is bumping against their borrowing limit of $15 billion.

Dubya Bush and Barry Obama bailed out the UAW, GM, Chrysler, banks, insurance companies......Barry loaned
money to Brazil so they can drill for oil assuring the Brazilians the US would be their best customer.....

Bail out the USPS ?? You bet. Matters not anyway.


Wart

[Kadmos]

As I said the management has done a pretty good job. Although I think we are a juncture where the tax payers will either go back to subsidizing the PO so they can enjoy benefits out of whack to the marketplace or they can tighten their belts and pay for the benefits a 44 (or 45, or 50 whatever the market can support) cent stamp can afford.

I'm not sure I'd bet against Congress taking on the extra debt at this point, whats another couple billion over the next few decades right? I'm sure the next generation is good for it, we're sticking them with everything else why not this too

Extremely good management. With a very diligent workforce as well. And considering their situation of needed congress to decide on such important details, it really is an amazing system that is generally greatly effective.

Perhaps the government will end up bailing it out, I truly hope not, I hope they will allow the USPS to take the actions necessary to continue to operate without tax dollars, and I have the feeling congress will do the right thing, for many people it has been a rather good point of pride, an organization that has been envied by nearly every other country in the world.

Not bad for government work

[Warthogg]

.....and I have the feeling congress will do the right thing........

I'll not even attempt a reply.


Wart

[Gunreference1]

Postal Service Looks to End Overnight Mail Delivery

Published December 03, 2011| FoxNews.com

The Postal Service on Monday plans to formally propose eliminating "overnight standards" for first-class mail, as it makes sweeping changes in a bid to avoid insolvency.

Sue Brennan, Postal Service spokeswoman, confirmed to Fox News that the service is moving forward with the overnight standard change. If approved, it means first-class mail would generally take more than a day to reach its destination.

To read the rest of the story click the link below.

http://www.foxnews.com/politics/2011...est=latestnews

Steve

[chiak47]

And do they get a service for each card? My wife and I get 4 cards a year from our dentist which works out to an extra $1.16 in postcards, if our cleanings go up $1 for each then thats $4 extra dollars the dentist charges, he should be pocketing an extra $2.84... Sounds like you should be supportive of the rate hike

Over the years I have realized more and more that your an undercover lefty on most issues.

[mriddick]

I've found most here can't do basic math or take a joke, welcome to that club...

Actually I bet fiscally I'm much more of a traditional conservative then most, that is I'm the type who simply says if you want a program pay for it (today). I would also bet I'm far to the right then most on social issues. In this thread I'm for the post office but if they want federal pensions and benefits they need to pay for them today. If they can't operate in the marketplace paying for such benefits then they either need to cut back or go out of business, going to the fed and getting billions more in loans they can never pay back should not be an option.