As featured in The Wall Street Journal, Money Magazine, and more!

Posts tagged as:

mail

The U.S. Postal Service has not been a thriving business for a while, and the recession has worsened its condition. In order to save $7 billion, the government is evaluating about 3,200 offices out of the total of 32,741, and 700 of these are currently marked for closure.

Personally, I am a fan of the U.S. Postal Service. I’ve found their services to be less expensive than other shipping options and just as reliable. The biggest drawback I have experienced is when visiting the facilities. The lines are often too long and the hours are inconvenient. Post office employees, those that I have seen, often seem disgruntled, frustrated and overworked. There are never enough works available to assist customers, and from what I understand, my experiences are not unique.

The U.S. Postal Service is disadvantaged against the capital available for their competitors like UPS and FedEx. They have no competition for the millions of people who first began communicating my phone rather than letter, and later, by email and text messaging. There are many people, possibly even a majority, who would be happy to see the U.S. Postal Service disappear.

People living in the areas served by the 700 offices slated for closing might be the first to experience life without USPS. If not, they will have to travel farther to the post office, make use of more expensive mailing options, and possibly receive mail less often. But the complete disappearance of the U.S. Postal Service would have a devastating effect. Households receive mail every day. Much of it is unwanted marketing, but it’s unlikely that will stop. Without the Postal Services, other companies will have to fill the void with standard daily mail delivery. And the great pricing that the U.S. Postal Service offers customers for this mail — and the even better pricing offered for bulk mail and non-profit organizations (and religious organizations) — would disappear as well.

If the website is available, you should be able to download the list of the 700 stations to be closed here. More information is available at the Postal Regulatory Commission’s website.

{ 8 comments }



In all likelihood, this will be a yearly reminder. The US Postal Service is no longer required to go through a lengthy approval process to raise postage rates if the increase is below the “inflation rate.” That presents a good chance that each May, we will be required to pay about one cent more for sending a letter.

In May 2008, the rate for mailing a standard letter will increase from $0.41 to $0.42. The “forever stamps” purchased at $0.41 will still be valid, however. So if you’re crazy enough to stock up to “beat the price increase” and use inflation to your advantage, then start hoarding stamps now.

This won’t affect most of the people I know. E-mail has been the main form of communication for me for 18 years or so. USPS hasn’t yet announced the increase for Express Mail and Priority Mail, most likely my only use for the postal service.

Snail mail gets more expensive [CNN Money]

{ 8 comments }