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.
When you run a business, you need to ensure the revenues from your products at least cover your cost of providing them. Pretty basic business principle. But for the U.S. Postal Service, it’s much more than that — it’s a legal requirement. Specifically, the Postal Accountability and Enhancement...Read More