It seems the pricing of parcels in today’s market is a lot like the story of Goldilocks and the three bears (with the U.S. Postal Service playing the role of Goldilocks): If USPS sets prices too high, it opens the door for the big retailers to come in and make their own deliveries. If it prices them too low, it loses money. It needs to price parcel delivery services just right.
In any organization the size of the U.S. Postal Service, financial forecasting plays an important role. Accurate forecasting of revenue, volume, and expenses is essential to planning budgets, understanding future cashflows, identifying risk areas, and deciding where to invest capital.