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Wednesday, July 7, 2010

Increasing Prices for Mediocre Services

I read yesterday that the U.S. Postal Service wants to increase its rates.  Not only are they seeking to increase the cost of stamps by 2 cents, but they also want a 5.6% increase in standard mail rates.  What justification do they use for these proposed price increases?  They need money. 

I don't use the U.S. Postal Service very often these days.  There's just not much that they do better than their competitors.  If I'm sending something urgent, I use UPS or FedEx because they're faster and more reliable.  Anything I purchase online get sent to me via UPS or FedEx (usually) because large company accounts make it too convenient for online retailers not to use them.  I almost never mail a check anymore: it's all done instantly online.  Pretty much the only time I mail something is an occasional birthday card.

Instead of increasing rates for services that are increasingly unwanted, shouldn't the U.S. Postal Service try to find out what services their customers really do want?
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