Decreasing Postal Service Deficit Nicely
 

Because the USPS is facing decreasing revenue from mailing, I believe a
possible solution may be to re-introduce some stamps that may be used
for everyday and special occasions at a special rate, say three to five
cents less than first class postage. In the past, we have had "Thank
You", "Get Well", "Happy Birthday" and other such stamps. Stamps such
as these and stamps for holidays from Valentine's Day (the Love Stamp
comes to mind) to Christmas, if properly publicized, in the long run
might help to least dent the postal service's deficit.

wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I believe a
possible solution may be to re-introduce some stamps that may be used
for everyday and special occasions at a special rate, say three to five
cents less than first class postage. In the past, we have had "Thank
You", "Get Well", "Happy Birthday" and other such stamps. Stamps such
as these and stamps for holidays from Valentine's Day (the Love Stamp
comes to mind) to Christmas, if properly publicized, in the long run
might help to least dent the postal service's deficit.

This would of course increase the income from stamp collectors. A more
effective way of increasing revenue from the provision of a postal service
is to increase the amount charged. However if the situation in the US is
the same as in the UK, there would be accusations of monopolistic practices
and the regulator would limit any increases to those which it deems to be
"reasonable" in that context.

Regards, Roger

Easy way to reduce the deficit is to use the G W Bush accountig method and
simply ignore some expenses. I am doing it at home very successfully - we
are taking a 3 month world cruise later this year which I am paying for by
pretending that we're not taking it.

--
Cheers - John Mycroft
coryton_at_cobbsmill_dot_com

"John Mycroft" wrote in message
...
Easy way to reduce the deficit is to use the G W Bush accountig method and
simply ignore some expenses. I am doing it at home very successfully - we
are taking a 3 month world cruise later this year which I am paying for by
pretending that we're not taking it.

--
Cheers - John Mycroft
coryton_at_cobbsmill_dot_com
John

I hope you get further than the Isle of Wight.

Roger

wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I believe a
possible solution may be to re-introduce some stamps that may be used
for everyday and special occasions at a special rate, say three to five
cents less than first class postage.
snip for brevity

I don't understand how by charging less for its service the USPS will
increase its revenue.

Could you eventually ellaborate?
--
Victor Manta

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"Victor Manta" wrote in message
...
wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I believe a
possible solution may be to re-introduce some stamps that may be used
for everyday and special occasions at a special rate, say three to five
cents less than first class postage.
snip for brevity

I don't understand how by charging less for its service the USPS will
increase its revenue.

Could you eventually ellaborate?

Buy reducing price you increase demand. Increase price you lessen demand.
The million dollar question is whether you will gain enough more custom to
offset the reduce income from charging less.
--


Steve Frazer

http://homepage.ntlworld.com/steve_frazer/index.html
(updated Jan 31 '05)

"Steve Frazer" wrote in message
...
"Victor Manta" wrote in message
...
wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I believe a
possible solution may be to re-introduce some stamps that may be used
for everyday and special occasions at a special rate, say three to five
cents less than first class postage.
snip for brevity

I don't understand how by charging less for its service the USPS will
increase its revenue.

Could you eventually ellaborate?

Buy reducing price you increase demand. Increase price you lessen demand.
The million dollar question is whether you will gain enough more custom to
offset the reduce income from charging less.
--


Steve Frazer

http://homepage.ntlworld.com/steve_frazer/index.html
(updated Jan 31 '05)

It depends of course on whether the product is price-sensitive, as it would
be in a competitive market.

I doubt if I would send more Christmas cards if the cost of posting them was
less, just as I would probably grumble but still send the same cards if the
Post Office increased the price. For essential mail the items get posted
whatever the postage levied, within reason.

But times have changed of course and increasing levels of communication are
carried out instantaneously by fax and email, so that postal services
represent an ever-smaller proportion of the communications business and,
being labour-intensive, will probably have to increase their prices in real
terms to maintain the same financial position.

I am now waiting for a professional economist to contradict this.

Regards, Roger

"Roger Smith" wrote in message
...

wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I
believe a
possible solution may be to re-introduce some stamps that may be
used
for everyday and special occasions at a special rate, say three to
five
cents less than first class postage. In the past, we have had
"Thank
You", "Get Well", "Happy Birthday" and other such stamps. Stamps
such
as these and stamps for holidays from Valentine's Day (the Love
Stamp
comes to mind) to Christmas, if properly publicized, in the long
run
might help to least dent the postal service's deficit.

This would of course increase the income from stamp collectors. A
more
effective way of increasing revenue from the provision of a postal
service
is to increase the amount charged. However if the situation in the
US is
the same as in the UK, there would be accusations of monopolistic
practices
and the regulator would limit any increases to those which it deems
to be
"reasonable" in that context.

In the UK, the Post Office has nobody but themselves to blame for
their predicamrnt.
Over a period of nearly 20 years, they have systematically increased
their postage charges for letters at a rate of around half of the
prvailing inflation rate. This has resulted in the present state of
affairs in which, in real terms, their rates are only about half what
they were two decades ago. They have no hope whatsoever of making up
that lost ground in any reasonable time.

Franz

"Roger Smith" wrote in message
...

"Steve Frazer" wrote in message
...
"Victor Manta" wrote in message
...
wrote in message
oups.com...
Because the USPS is facing decreasing revenue from mailing, I
believe a
possible solution may be to re-introduce some stamps that may
be used
for everyday and special occasions at a special rate, say three
to five
cents less than first class postage.
snip for brevity

I don't understand how by charging less for its service the USPS
will
increase its revenue.

Could you eventually ellaborate?

Buy reducing price you increase demand. Increase price you lessen
demand.
The million dollar question is whether you will gain enough more
custom to
offset the reduce income from charging less.
--


Steve Frazer

http://homepage.ntlworld.com/steve_frazer/index.html
(updated Jan 31 '05)

It depends of course on whether the product is price-sensitive, as
it would
be in a competitive market.

I doubt if I would send more Christmas cards if the cost of posting
them was
less, just as I would probably grumble but still send the same cards
if the
Post Office increased the price. For essential mail the items get
posted
whatever the postage levied, within reason.

But times have changed of course and increasing levels of
communication are
carried out instantaneously by fax and email, so that postal
services
represent an ever-smaller proportion of the communications business
and,
being labour-intensive, will probably have to increase their prices
in real
terms to maintain the same financial position.

I am now waiting for a professional economist to contradict this.

And that same economist might comment on whether the junk mail
handling leads to a profit or a loss.

Franz

"Franz Heymann" wrote in message
...

In the UK, the Post Office has nobody but themselves to blame for
their predicamrnt.
Over a period of nearly 20 years, they have systematically increased
their postage charges for letters at a rate of around half of the
prvailing inflation rate. This has resulted in the present state of
affairs in which, in real terms, their rates are only about half what
they were two decades ago. They have no hope whatsoever of making up
that lost ground in any reasonable time.

Franz

This would mean that they have totally changed their general policy, which
is a bit strange. Usually the increase in the postal rates due to the
stately owned/controlled postal monopolies is higher than the inflation
rate. The reason is that the postal monopolies can do more or less what they
want, with the support from the government and the trade unions. See below
also some interesting results from Winston Williams, published in this ng.
Winston Williams
wrote in
article

lara.net...
Let's compare the increase of postal rates
with the general evolution of prices
for Great Britain. After all, GB is the
country with the longest history of
universal postage.


On its introduction in 1840 the basic rate
for inland mail was 1d (one old
penny). The basic rate is now 26p (new
pence). This is a 62-fold increase (1p
= 2.4d). Against this, the all items
retail prices index (and its predecessor
indices) has increased by almost exactly
40 times

and also

http://groups-beta.google.com/group/...c49736956b4e3d


--
Victor Manta


----------------------------------------------------------------------------
Philatelic Webmasters Organization: http://www.pwmo.org/
Art on Stamps: http://www.values.ch/
Romania by Stamps: http://www.marci-postale.com/
Communism on Stamps: http://www.values.ch/communism/
Spanish North Africa: http://www.values.ch/sna-site/
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