posted on November 20, 2002 05:01:52 PM new
You must mean public sector. I don't think it will be the same, because UPS and FedEx are private companies. The thing about USPS is that they do a lot of things like a private company (like sponsor teams, and advertise) when they really should not be doing such things. Also, the USPS basically is guaranteed by congress to continue to exist no matter how much they screw up, or how many houses or bonuses they give their execs. If FedEx or UPS make bad decisions, they get to declare bankruptcy and face going out of business. The USPS just needs to go to congress to ask for more money, or go to us to pay for their mistakes.
posted on November 20, 2002 05:08:07 PM new
No... I meant the "private sector" because of the other threads bashing the USPS for raising rates. Perhaps I'll edit it to make it more clear.
Also, the private sector is baled out by the govt all the time. From the auto industry to the airlines, they all get baled out by the govt.
posted on November 20, 2002 05:13:15 PM new
If Fedex or UPS went under, there would be no bailout. It's really in times of exceptional crisis and are necessary to our infrastructure such as the auto industry or the airline industry. Even with the government invervention, individual companies go under. It's really not the same thing.
posted on November 20, 2002 05:21:27 PM new
The govt would bale them out. The USPS could not handle the volume increase if UPS and FedEx went under. USPS would be on of the first parties up on Capital Hill asking the govt to bale them out.
posted on November 20, 2002 05:32:56 PM new
First of all USPS is a "quasi" public company. In other words they have to do it on their own, no tax dollars to run it. They can't go bankrupt, they have to keep raising rates to stay afloat. That is the law, they can't go to Congress & ask for a hand out. You are right, they couldn't handle the increased load if either UPS or FedEx went under. You young'uns don't remember when there used to be a fight every year as to how much Congress would give the PO to keep the postage rates at 3 cents or what ever it was at that time.
That's 1.3 Billion in tax dollars that they wanted. They didn't get it, and why should they, they are one of the worst managed entities in the US. But they can and DID (and will continue) to ask
posted on November 20, 2002 06:13:24 PM new
UPS has a rate increase every year and the costs go up between 10 and 20 cents depending upon the zone you are shipping to.
The increase used to be in February, but I think it was last year or the year before it was launched in January, as it is this coming year.
The rates are reasonable since they include $100 worth of insurance at no additional charge. Plus, you can track your package from the time it leaves your facility until the time it arrives.
I don't know if many people know this, but they offer guaranteed delivery for ground service. If they say they will deliver in 4 days and don't, you contact them and they refund shipping charges.
I think there is a black out period at Christmas time.
I've used UPS for 16 years and have had only 1 lost package and one package that busted open and only partial was received by the customer. Claims for both were handled quickly and painlessly.
I attempted to sign up with FedEx for a daily pick up account, but unfortunately, they couldn't give me a set pick up and delivery time. Their service is limited in my area.
posted on November 21, 2002 08:45:01 AM new
There's a big Big difference in the small 4 to 5% rate increases UPS and FedEx have each year and the huge increase USPS has seen in the last two years!
posted on November 21, 2002 08:55:30 AM new
That's absolutely true Lindajean - On January 1, 2001, it cost $3.20 to send a 2 pound package from California to Florida. On July 1, 2002, 18 months later, it was $5.75 - That is a huge 55% increase in cost. I'm actually amazed that people buy as much as they do online, and that it has not hurt business as much as I thought it would.
posted on November 21, 2002 09:49:57 AM new
ahc3: The $$ that USPS was asking for was to clean up after the anthrax situation, not for ordinary operating expenses.
FedEx announced on 11/20 that they were raising FedEx Ground rates by 3.9% as of January 6th. UPS is also raising rates by about 3%.
posted on November 21, 2002 10:08:03 AM new
Yes, the anthrax scare was their justification, but they had been seeking big bucks before that. It was a good reason for them to put in a new request, though it is questionable how much would have been needed for the anthrax cleanup, since they did not get funded, yet have dealt with the costs of cleanup. The latest postal increase was rammed through without opposition because of the post 9/11 climate, and the USPS used that to their advantage to bring lots of organizations who protest increases on board. USPS and Fedex raise by 3-4% (still high, rate of inflation is about 1.5%) but there are other costs that have skyrocketed, like electricity. Anyway, these pale in comparison to the last increase of the USPS that raised prices as much as 55%
posted on November 21, 2002 03:58:37 PM new
Just imagine the USPS run like any other private company...
Why deliver to rural areas? That can't be too profitable.
Post Offices in every town? Two or three per state should do it - if people can drive to the mall, they can get to the post office.
You wouldn't catch the private companies schlepping a letter across the country for 37 cents, why should USPS do it? $10 minimum I say.
posted on November 21, 2002 04:12:31 PM new
I have mixed feelings on privitization of the post office. However, that being said, there are things that really bug me about them. Advertising on television and print ads seems unnecessary. Can there be a person in the US who does not know what they do (yes, I know they deliver for you, which is their slogan)
Should they be sponsoring things like cycling teams, and race car drivers? I don't think so. They aren't a private company. While they are not part of the government anymore, they still are rather connected. They are an inbetween status, and that is the problem. Either they have to go completely seperate, or they have to be folded in to the government.
They are presently being run like a private company, with all the luxury and security of being a government agency. It is a failed experiment that has gone on for 31 years now.
1st class mail is less and less relevant every year. It's true that it is being subsidized, but 10 years from now, all those things you wrote about might be true even if the USPS is not privatized.
posted on November 21, 2002 05:36:43 PM new
"The thing about USPS is that they do a lot of things like a private company (like sponsor teams, and advertise) when they really should not be doing such things."
They're running a business just like a private company so they should advertise and promote their service otherwise companies like Fedex will steal customers away. No customers=no business.
"Can there be a person in the US who does not know what they do "
Does anyone in the U.S. not know what a Coke, or McDonalds are? Those are two of the biggest advertisers in the world. Companies that have #1 market share have to maintain that share by reminding consumers they are still there.
"They are presently being run like a private company, with all the luxury and security of being a government agency."
Somewhat true. Mailing letters and packages is an essential industry that receives special backing of the government, but it goes the same with private companies like airlines or car manufacturers too. Even NFL football team's receives tax money to build a new stadium; Target and Walmart often receive special tax incentives to build a store in a certain community.
You're right, finacially supporting a dying businesses is a failed experiment, however, there are some Senators who know this, so hpefully things will change.
posted on November 21, 2002 11:09:32 PM new
you also have to take into account that there is no company even remotely ready to step in that has the infrastructure to move around letters. Sadly enough it is a shame that the USPS leases instead of purchasing quite a bit of their branches. I think any of the carrier companies could do a better job than the USPS.
posted on November 22, 2002 03:14:32 AM new
Some of the private companies have long wanted to go into the first class mail business but were prevented from doing so by the government.
They wanted to "cherry pick" the lucrative routes/metro areas, and leave the unprofitable ones to the USPS.
posted on November 22, 2002 04:51:42 PM new
I also have used UPS for over 20 years. They have a splended record.
My only complaint is that they have a fuel charge "sometimes" added but only on the statement after the item is long gone. I can not add that back in to my invoice and it does not show up.
I also get POed when a street name is misspelled and they charge $5.50 to correct it. A couple of weeks ago one of my customers filled out the Auction Watch winning bidder form and spelled Laurel Street as Lauel Street. UPS charged me $5.50 for the spelling correction.
I use UPSP for one pound or less priority mail. I have found UPS to be less expensive in the long run, especially for packages in the 5 pounds or more weight range.
