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USPS loses $2 billion this spring...
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<blockquote data-quote="Mugarolla" data-source="post: 1383655" data-attributes="member: 8481"><p>The main problem with the Post Office, besides not being able to raise rates without the PRC approval, is that they still subsidize parcel rates with first class mail revenue.</p><p></p><p>In order to compete with UPS and FedEx, the postal service has to charge less for their packages than what it costs to deliver them. They made up for it in the profits that first class mail generated through their monopoly. With first class mail dwindling due to faxes, e-mail, etc, they cannot make up for the losses in packages anymore.</p></blockquote><p></p>
[QUOTE="Mugarolla, post: 1383655, member: 8481"] The main problem with the Post Office, besides not being able to raise rates without the PRC approval, is that they still subsidize parcel rates with first class mail revenue. In order to compete with UPS and FedEx, the postal service has to charge less for their packages than what it costs to deliver them. They made up for it in the profits that first class mail generated through their monopoly. With first class mail dwindling due to faxes, e-mail, etc, they cannot make up for the losses in packages anymore. [/QUOTE]
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USPS loses $2 billion this spring...
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