When it comes to postal products that don’t cover their costs, the U.S. Postal Service finds itself in a no-win situation. The law that governs the U.S. Postal Service, the Postal Accountability and Enhancement Act (PAEA), requires the Postal Service to make sure all products cover their direct costs. But it also caps the price increase on market-dominant mail classes at the increase in inflation.
U.S. Postal Service delivery points are increasing each year. Package volumes are rising steadily as well. And so are customer expectations. This paradigm tends to lead to an increase in customer complaints, especially when delivery performance doesn’t meet expectations.
Given these...Read More