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Decreasing Postal Service Deficit Nicely



 
 
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  #1  
Old February 9th 05, 12:59 AM
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Default 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.

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  #2  
Old February 9th 05, 11:25 AM
Roger Smith
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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


  #3  
Old February 9th 05, 02:36 PM
John Mycroft
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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


  #4  
Old February 9th 05, 03:04 PM
Roger Smith
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"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


  #5  
Old February 9th 05, 08:21 PM
Victor Manta
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Default

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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  #6  
Old February 9th 05, 09:00 PM
Steve Frazer
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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)


  #7  
Old February 9th 05, 09:21 PM
Roger Smith
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Default


"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


  #8  
Old February 10th 05, 09:47 AM
Franz Heymann
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Posts: n/a
Default


"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



  #9  
Old February 10th 05, 09:47 AM
Franz Heymann
external usenet poster
 
Posts: n/a
Default


"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


  #10  
Old February 10th 05, 06:36 PM
Victor Manta
external usenet poster
 
Posts: n/a
Default

"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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