Offering volume incentives is a common business practice in the U.S. and around the world. Although the U.S. Postal Service offers incentives to businesses that presort their mail, the agency does not offer incentives based strictly on the volume of packages shipped. One reason might be that offering volume incentives would lower the profit margin on each package shipped; yet, the potential volume increase of items shipped would make up for the smaller profit margins.
By its very nature, the U.S. Postal Service is a labor-intensive organization. In fact, labor makes up three-quarter of total postal costs — or $57 billion.
Controlling these costs is essential to the long-term viability of the postal system. That’s why our latest...Read More