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by kochb 395 days ago
Either it is able to fully fund itself through sender fees and other operations, or the net losses are ultimately paid for by other government revenues, primarily taxes.

I enjoy Christmas cards and personal letters as much as anyone, but with electronic payments and telecommunications taking more of the volume, it is increasingly becoming an advertising service. If it is operating unprofitably, we are paying a form of subscription fee to receive those ads.

2 comments

As a business that ships physical products through USPS because they have been WAY more reliable than UPS or FedEx, I wouldn't mind paying more for the service (well passing it on to customers), so long as it improved the service. But the non-government run parcel services can't compete (in my experience) with the USPS, even with the recent rate hikes that have been going on every few months.

Right now I have about a 1% lost/damaged package rate (averaged over 12 months - it's a tiny amount and it is insured), but come Christmas, that shoots up to around a 10% lost/damaged package rate through USPS - some of those packages do eventually resurface, and I let the customers keep them (I've already filed the insurance claim and shipped a replacement).

UPS was at 5% on average - never used them around Christmas - so no data for that - they might be better than USPS and the were close enough in cost just further away from my workshop.

FedEx (only used for 2 weeks) cost double and 30% of my packages were lost or damaged - can't average it out since there isn't enough data, but having to file claims for 1 in 3 packages after already paying 2x USPS rates wasn't going to fly.

It always surprises me how different people's experiences very so widely between UPS, FedEx, and USPS.

We ship packages via UPS, and have <1% lost/damaged. Not sure how long it's been now since a damaged/lost package - maybe 300?

It probably helps that our smallest packages are ~1000 cu inch and 6 pounds. Hard to lose.

I don't like dealing with UPS customer service, but I really like the actual shipping service. And it's very fast and predictable. Very rare that it takes any longer than UPS WorldShip predicts. 1 day shipping to most of our customers in our state, and some in neighboring states.

From my memory (I didn't record lost and damaged separately, just "claims") it was mostly damages (I think same with all of the carriers), but I have no idea how solid oak/walnut/cherry trays that are 3/4" thick wrapped in bubblewrap and in a bubble mailer gets damaged by anything other than someone stomping on it.

ETA: Except Christmas, that is basically 100% loss, though, about 50% of those losses seem to show up after the claims have been submitted.

We ship perishables (cheese) in styrofoam coolers. When we have a damage claim, what usually happens is that the cooler is broken or even smashed completely, and the cheese got too warm and separated.

And then UPS won't pay out a claim, since they don't cover perishables, even when it's their fault for smashing the cooler. So we started self-insuring at $3 per order, plus we've learned how to package the cheese in the cooler better so it's less likely to break.

And as I mentioned it's very rare now to get a damaged one.

I tried to follow the link in your profile to find your store but it seems to ultimately go nowhere. Could you post it?
It's my family's business, not my own, hence the link not taking you anywhere. It's www.jasonwiebedairy.com.
More charitably, it's a cost-sharing scheme for last-mile delivery to rural communities and deep suburban sprawl – as, to be fair, is often true for other rural services with significant federal funding like healthcare and higher education.
At some point, we should do what we can to promote urbanization. Being able to deliver government services more efficiently is one benefit.
A lot of the people who don't want to live in urban/suburban areas also view "government services" as a bad thing to begin with. Probably because they've never had good access to services.
I think they view government services as a bad thing for a few reasons, despite having access to good government services. These two stick out to me:

The ubiquitous conservative media bombards them with lies about the quality, quantity and cost of these services, along with who receives the benefits.

They also haven't taken a step back to consider all the things they enjoy that are provided as government services, like roads, police, education, subsidized mail delivery, unemployment, support for dairy products, etc.

Alternatively, they view government services as a bad thing when they are terrible, which they very often are because of the retreat from public investment that's been going on since the 80s; and when they view them as good, they also view them as temporary. Because they will be.

No efficient service will be allowed to survive long in the US, if anyone has any power to cut it. An efficient service is just one that temporarily lacks enough middlemen to increase costs, or enough red tape to reduce enrollment. If neither of these things happen, that means no one with any power has any personal interest in it, so it will be cut arbitrarily at some point in order to make a budget target.

The reason USPS has lasted so long (even in its degraded state) is just because it has lasted so long previously, and is deeply integrated into society. But there's been a bipartisan effort to privatize it and sell it off (to each other) for nearly a generation now. They've taken the steps of lowering its quality and level of service, barred it from entering lines of business that private companies have taken over, and played accounting games with it in order that people will depend on it less. This is not something "conservatives" did, but both Democratic and Republican Congresspeople have even dropped into deceit to try to make happen, and they publicly blame each other for the inexorable progress of dismantling USPS during each administration to distract extreme partisans.

Democrats talked a lot of trash about DeJoy before not firing him when they had the opportunity. It's like how they screamed about DeVos being horrible and out of touch, but Arne Duncan, the school privatizer-in-chief, got to play the "cool" white guy who plays basketball with the "cool" president with virtually identical policy positions.

Once people have stopped depending on the USPS because it is bad, they can give it the Royal Mail treatment that they've always wanted. Mail privatization in the UK was a massive success if you don't care about the mail. The people who got it made a lot of money. The mails there became so brutally expensive and unreliable that it probably affects exports and it still doesn't matter.

edit: sometimes I feel optimistic, though. There was a recent announcement that while hiring for a new person to run public transportation in Chicago, the city has decided that, this time, they will look for somebody with experience in transportation. This is unusual because the job is usually filled by political patronage, by someone with no experience.

Don't we all believe that! I think the challenge to do it politically without ending up getting entangled into culture warring over urbanisation (e.g. "15 minute city" conspiracy theories [1]). The best we can do is endless suburbia...

[1] https://www.npr.org/2023/10/08/1203950823/15-minute-cities-c...