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Nate Finch

My wife has an online business selling individual Lego parts. About half her shipments are first class - it's amazing how much you can fit in 13 ounces. Everyone thinks about letters, but packages can go first class as well. That's not to say it doesn't still have problems - but it sounds like the problem is subsidizing the deliveries. Why not just stop subsidizing them? Yes, prices would go up - and they should.

As for the problem of less mail with delivery people staying the same, this is exactly what UPS and FedEx do, and they're ok. They're just more expensive.

Tom Karlo

The problem is that the cost structure is broken - it's not going to scale with the rapidly declining volume of first class mail overall. So this year they're 9bn short, next year they might be 20bn short... and so forth. It's not like they're having a bad year and they need things bridged: their business model is fundamentally no longer aligned with where the market is going. Throwing more money at them won't fix that; changing the business model itself - moving from physical delivery to electronic delivery - would. It's like Netflix killing their own DVD business to switch to streaming because they see that the DVD-by-mail biz is going to die in a few years anyway.

UPS and Fedex, by comparison, use about 1/3 the people that the post office does per volume of packages delivered - they're almost 3X more efficient from a labor standpoint.

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