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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (1424)	3/9/2001 3:29:05 PM
From: GraceZ	Read Replies (2) of 24758

What is interesting about the postal service is that as a government service (Is it privatized, I know there was some talk about that?) it is priced so much under it's main competitors. Especially when you consider the price of bulk mail which is far less than what individuals pay for a first class letter. Then consider that businesses like mine use Fedex all the time because we don't or can't trust the postal service for critical documents. Now contrast the $.34 you'd pay to send a first class letter with the $7-13 you pay to send an overnight letter, then factor in that that is a tax deductible expense and my using Fedex costs the government tax revenues. An overnight letter results in $3-5 tax write off. So the government is subsidizing a service that someone else performs because the one they offer can't be trusted. We used to beat up on the post office all the time around here. I've sent more than one complaint letter myself to the local postmaster here in Baltimore. In the last five years the postal service has improved 300%. I feel confident sending most things through the mail, but my clients still insist on Fedex for safety and tracking ability.

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