Pricing and Price Caps

The Postal Accountability and Enhancement Act of 2006 (PAEA) changed the way the Postal Service sets rates. It divided postal services into two broad categories: market dominant (mailing services) and competitive (shipping services). Market dominant products constitute about 90 percent of postal revenue. They include First-Class Mail, Standard Mail, Periodicals, and some Package Services. Products such as Priority Mail, Express Mail, and bulk Parcel Post are considered competitive. The PAEA placed a cap on price increases for market dominant products.

 

Total Factor Productivity (TFP)

When people try to discover whether the Postal Service is operating more efficiently or not, they often talk about TFP. What is TFP? TFP stands for Total Factor Productivity. It measures the ratio of the Postal Service’s outputs to its inputs, in other words, how much output the Postal Service produces with the inputs it uses.

 

At the Post Office

Last Monday was predicted to be the busiest day of the year for Post Offices™ across the country. Have you visited a Post Office recently? If so, we would like to hear your story.

Why were you there? What worked well? What didn’t work well?

Has your local Post Office adopted any best practices that should spread across the country? Are there any low-cost improvements that would improve the retail experience?

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Revenue Protection

If the Postal Service is to recover from its current financial problems, it needs revenue. In addition to identifying additional sources of revenue, it must protect the revenue it is already due whether it comes in from the post office window, meters, online postage accounts, or from Permit accounts for business mailers. Ensuring that the Postal Service collects all of its revenue will help secure the agency’s position as a trusted service provider for years to come.

 

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  • 1 day 2 hours ago
    Scanning has improved business for USPS from FedEx and UPS. Cutting corners to scan before or after the delivery point will lose business. Need Trust. The customer is paying for a service and...
  • 1 day 4 hours ago
    Lisa, I don't think you work for the USPS. If you did you wouldn't have made the accusation that the carrier is falsely scanning your packages as delivered. You would KNOW that it'...

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