• on Oct 13th, 2009 in Strategy & Public Policy | 15 comments
    When the topic of competition for the Postal Service comes up in casual conversation, the discussion usually involves FedEx or UPS. However, packages are a relatively small part of the Postal Service’s business. Certainly, these firms are direct competitors, but are there other competitors for Postal Service business? What alternatives compete with each of the various Postal products? What, if anything, can the Postal Service do to better compete in each product line? This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).
  • on Oct 5th, 2009 in Pricing & Rates | 23 comments
    Stamp prices are traditionally in whole cent increments. That means it is difficult to target a particular percentage increase. For instance, a one-cent increase on the 42-cent stamp would have been 2.4 percent; while the two-cent increase was 4.8 percent.

    Postal price increases are now limited by an inflation-based “cap” for each class of mail, and in First-Class Mail, the price of a stamp is a major component of the average revenue per piece for First-Class Mail. As such, the price change for the “stamp” plays a large role in the calculation of the average for the class. Other prices in First-Class Mail have to be set to bring the average back to the cap. This can make it difficult to meet many of the other pricing objectives in the class such as setting workshare discounts equal to the cost savings. It might be easier to meet the objectives if the stamp price were in a smaller increment.

    In any event, how important is it that the stamp’s price is in whole-cent increments?

    Since stamps are generally purchased in booklets or coils does it matter whether the individual price is rounded to a penny? Could increments larger than a penny be accommodated in the price cap environment? What other issues should be considered regarding the stamp price?

    This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).

  • on Sep 28th, 2009 in Labor | 190 comments
    Silly Signs, Silly Rules –- Know Any?

    Workplace rules exist for a reason. Some rules are designed to protect employees’ rights and their safety, while others protect the employer and workplace. Then there are some rules that are just plain silly, and we ask ourselves why are they even are in place.

    Sometimes the best way to find these rules is to ask. Last March, Major General Michael Oates of the Army’s 10th Mountain Division asked for information on the stupidest rules or policies in the Army in his Mountain Sound Off blog. Soldiers commented on everything from uniform regulations to policies on leave. FederalTimes.com borrowed the same idea and asked its readers, “What are the dumbest workplace rules affecting you?”

    Since we know you aren’t shy, we thought we’d ask you the same question about the Postal Service. What Postal Service workplace rules are hindering you from doing your job? Are there rules or processes in place that no longer apply or need to be changed to meet today’s business needs? Let us know what you think.

    This blog is hosted by the OIG's Risk Analysis Research Center (RARC).

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