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Post Office loses $3.8 Billion. (1 Viewer)

Good point. Hmmm....

Edit: I guess I would say that just because it has the right do do it doesn't mandate that they have to do it.
Nah, there will always be a post office. Doesn't mean it can't be run more effectively though.
The Post Office is a big money suck, and needs reform. I am not sure that opening up to competition is the right answer. Otherwise the government will end up only delivering to rural areas and lose the more profitable urban business to UPS or FedEx or whoever.Six day delivery is ridiculous.
A little more competition wouldn't hurt it, but that is always my fall back position. They should have gone to a 5 day delievery schedule a long time ago.
If they drop Saturday deliveries then they are going to lose a lot of business. One of the big advantages for me using USPS is the Saturday delivery that gets people their orders faster and keeps them happy. I can ship a Wednesday order and have it be delivered Sat. instead of people having to wait until Monday. Not a big deal to me, but many of my New Yorkers customers start complaining if they don't get their order in 3 days.
 
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Okay, usually I'm willing to give the Post Office the benefit of the doubt, but I might have to rethink that. I just tried to mail a golf club that I sold on eBay. The triangular box weighed 30 ounces and measured 42.5 x 6 x 5.75. I calculated the cost at USPS.com and it came to $7.90. So I bought the stamp and dutifully took the box down to the Post Office to drop it off.

But wait! This lady at the Post Office tells me that she has to verify the measurements before she can accept it. :rolleyes:

She liberally measures the box and comes up with numbers of 43, 7, and 7. Then she tells me that the price will be $26.30.

I say, "Wait, I checked the price online and it should only be $7.90."

Her: "I'm sorry sir, but we have to round up to the next inch and that means that your package is oversized."

Me: "But I entered the EXACT MEASUREMENTS at the Post Office website!"

Her: "I'm sorry sir but we have to round up."

Me: "But the website doesn't round up!!!"

Her: "I'm sorry sir but I am not qualified to do online calculations."

Me: "What does that even mean?!"

Her: :mellow:

Me: :hot:

So I went home, ripped the package apart, removed some of the bubble wrap, and cut the box down so that it was EXACTLY 41.75" x 6 x 5. I rechecked the postage: sure enough, it was still $7.90.

Then, for reasons that I can't explain, I decided to double-check the numbers that the girl had counted: 43 x 7 x 7.

The price? $7.90. :pickle: :angry:

So, not only did I just waste a trip to the Post Office, but I unwrapped and re-packaged this thing FOR NO GOOD REASON! :hot: :hot:

And of course what makes it even worse is that I can't even complain about it because it's a government agency. It's not like I can get some free stamps out of this or something.

 
Just deliver one day per week. Rotate deliveries like garbage pickup does so the same person can do all the neighborhoods. Do you need to get your bills and junk mail every day?

Cut staff. Cut benefits. Cut pensions. Save on gas and insurance. Pretty good start right there.

 
Just deliver one day per week. Rotate deliveries like garbage pickup does so the same person can do all the neighborhoods. Do you need to get your bills and junk mail every day?Cut staff. Cut benefits. Cut pensions. Save on gas and insurance. Pretty good start right there.
Our mail box is in a block of boxes 3 blocks from our house! We pick up our mail once a week unless we know something is coming. 90% of it is junk that gets thrown away without being read.I think we could phase out the USPS in about 5 years. That is the way to go.
 
junk mail - just stop sending
Isn't that like 95% of their business?
A large part of their revenue comes through "junk" mail. With more people going to paperless billing, it is tough to decide between either being ecologically responsible or keeping the U.S. Mail system pumped full of bills.Interesting thing here...if each letter to mail is $0.44 and they had 25 billion few "items" coming through...that is a net reduction of their "profits" in the tune of $11 billion...if they lost only $3.8 billion, I believe they are doing well...no?
 
I know it's tradition to rag on the Post Office, but don't they actually do a good job most of the time nowadays? I pay almost all my bills online, but it's pretty amazing that I can leave an envelope in my mailbox in Maryland on Monday and have it show up anywhere in the country I want it to go in 2 or 3 days, for 42 cents. I can't remember the last time I had a big problem with the Post Office.
Not to nitpick...but the cost of a postage stamp is 44 cents as of May 1, 2009.
 
Just deliver one day per week. Rotate deliveries like garbage pickup does so the same person can do all the neighborhoods. Do you need to get your bills and junk mail every day?Cut staff. Cut benefits. Cut pensions. Save on gas and insurance. Pretty good start right there.
:)the economy is already in the crapper enough so lets F more people. Put them out of their houses & repo their cars while we are at it.
 
Just deliver one day per week. Rotate deliveries like garbage pickup does so the same person can do all the neighborhoods. Do you need to get your bills and junk mail every day?Cut staff. Cut benefits. Cut pensions. Save on gas and insurance. Pretty good start right there.
Our mail box is in a block of boxes 3 blocks from our house! We pick up our mail once a week unless we know something is coming. 90% of it is junk that gets thrown away without being read.I think we could phase out the USPS in about 5 years. That is the way to go.
Awesome idea..of course you'll destroy a good portion of the small businesses in this country by forcing them to use Fed Ex or UPS and pay 3 to 4 times as much for small package shipments. Thus causing millions of jobs to be lost and sending the economy into an unimaginable tailspin. But other that, it seems you have really thought this through
 
I know it's tradition to rag on the Post Office, but don't they actually do a good job most of the time nowadays? I pay almost all my bills online, but it's pretty amazing that I can leave an envelope in my mailbox in Maryland on Monday and have it show up anywhere in the country I want it to go in 2 or 3 days, for 42 cents. I can't remember the last time I had a big problem with the Post Office.
Not to nitpick...but the cost of a postage stamp is 44 cents as of May 1, 2009.
Not to nitpick...but the price went up on May 11, 2009.
 
Post office's quarterly loss hits $3.5 billion

WASHINGTON — The Postal Service was $3.5 billion in the red for the third quarter and may not be able to make a required payment for future retiree health benefits, the agency said Thursday.

Losses for the April through June quarter were $1.1 billion more than the post office lost in the same period a year ago.

The post office has been rocked by declining mail volume as people and businesses continue switching to the Internet in place of letters and paper bills.

"Given current trends, we will not be able to pay all 2011 obligations," Joseph R. Corbett, the Postal Service's chief financial officer, said in a statement.

"Despite ongoing aggressive cost reductions totaling over $10 billion in the last three years, it is clear that a liquidity problem is looming and must be addressed through fundamental changes requiring legislation and changes to contracts," he said.

The Affordable Mail Alliance challenged the statement and contended that the post office will finish the fiscal year with $1.3 billion in cash.

"We're saddened to see these dubious claims by the Postal Service and would hope for a more constructive dialogue with customers," said Tony Conway, head of the coalition of high-volume mailers that is fighting the post office's plan to raise rates in January.

To stem the losses, postal officials have proposed raising rates, cutting out Saturday mail delivery and eliminating advance payments for retiree health benefits.

Some in Congress have been skeptical about the proposal to eliminate Saturday deliveries and a Senate Appropriations subcommittee voted to block the change.

On the House side, meanwhile, a subcommittee is looking at changing the requirement that the Postal Service pay more than $5 billion annually into a fund for future health benefits for its retirees.

The post office said its cash flow and the $3 billion it could borrow may not be enough to cover the $5.5 billion payment it is required to make into the benefit fund on Sept. 30.

Such payments are not required of other federal agencies, but federal budget officials have opposed eliminating them for the post office as that would — at least on paper — show up as an increase in the federal deficit.

Overall, the post office had income of $16 billion for April-June, which was down $294 million from the same period last year. At the same time expenses were $19.5 billion, an increase of $789 million.

The number of items mailed during the period was 40.9 billion pieces, down by 700 million.

The year-to-date net loss for the post office is $5.4 billion, compared to a loss in the same period last year of $4.7 billion.

The post office has cut spending and work hours in recent years but is restricted by union contracts. In addition, efforts to save money by closing or consolidating postal facilities often run into opposition from local residents and Congress.
shut it down!

 
I know how to make the post office profitable. Sell advertising on stamps. Increase the stamp size to say 1" x 4" etc., and charge corporations to have their name/logo, etc on the stamp.

Think how cool it would be to get a FBG stamp. You could have coupon stamps cut the stamp off and turn it in for say 20 percent off on a FBG membership. This would work.

 
Just deliver one day per week. Rotate deliveries like garbage pickup does so the same person can do all the neighborhoods. Do you need to get your bills and junk mail every day?

Cut staff. Cut benefits. Cut pensions. Save on gas and insurance. Pretty good start right there.
Our mail box is in a block of boxes 3 blocks from our house! We pick up our mail once a week unless we know something is coming. 90% of it is junk that gets thrown away without being read.I think we could phase out the USPS in about 5 years. That is the way to go.
Awesome idea..of course you'll destroy a good portion of the small businesses in this country by forcing them to use Fed Ex or UPS and pay 3 to 4 times as much for small package shipments. Thus causing millions of jobs to be lost and sending the economy into an unimaginable tailspin. But other that, it seems you have really thought this through
:goodposting: The US Postal service does a damn fine job. They aren't in it to make money -- they are there to deliver every citizens mail.

As I stated before, they could raise the rates higher and offset the ledger... but its paid by the same people regardless.
:thumbup: They suck! They are one of the most inefficient organizations I have ever dealt with.

 
Choke said:
I always get my mail. Fast.My mail always gets delivered. Fast.They are incredibly cheap. Its ridiculous really.This goes for both my business' and my home.
LOL seriously? I won't send a single thing that is time-crucial with the USPS. I have been burned way too many times.
 
The Post Office should be scaled back as the internet has replaced so many of the key functions of mail. However, I don't think the Post Office should be eliminated just because it loses money. They should definitely tighten up their spending and do a full evaluation of their operations, but it is not a private business and it's job is not to make money. It is a service that we pay for so we have convenient cheap daily mail. Maybe we are at a point where the Post Office is obsolete and FedEx/UPS can fill the void at a better cost without loss of quality? If that is what the evaluation reveals, then it should be dismantled.

 
The Post Office should be scaled back as the internet has replaced so many of the key functions of mail. However, I don't think the Post Office should be eliminated just because it loses money. They should definitely tighten up their spending and do a full evaluation of their operations, but it is not a private business and it's job is not to make money. It is a service that we pay for so we have convenient cheap daily mail. Maybe we are at a point where the Post Office is obsolete and FedEx/UPS can fill the void at a better cost without loss of quality? If that is what the evaluation reveals, then it should be dismantled.
I agree with most of this post.....-Post office has already been scaling down. They are selling properties as well as cutting staff significantly.

In regard to the bolded, the USPS always "prides" themselves on the fact they do not receive any gov't money :lmao: I will not get into this crap. However, they should run the USPS as if it was a private business and try to make money. I've argued for years that US mail service is a monopoly and has been run as such. If it were run in the free enterprise system I sincerely doubt we would have these issues. FedEx and UPS seem to be doing okay as far as not going bankrupt and they are in direct competition with each other. It's a farce that the USPS loses so much money. They are a case study in inefficiency. They do everything in their power to make it more difficult and more inconvenient to use their service. They will be raising rates again next year, and if the rate case passes, it will be significantly more than the cpi that they are allowed to adjust their rates for. And then, they will complain again how mail volume is down. You think?

You can't just shut down the USPS, they employ way too many people, it would be a political nightmare. But, something really needs to be done.

 
Choke said:
I always get my mail. Fast.My mail always gets delivered. Fast.They are incredibly cheap. Its ridiculous really.This goes for both my business' and my home.
There are some inefficiencies but I find it hard to believe that any private company would be able to deliver a piece of paper to any address in the US for less than $0.50 and do it as fast as the USPS.
 
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My Step Mom is a postmaster, it is outrageous how much she makes and how many vacation days she gets, and the union protects a ton of lazy a## people that shouldn't have jobs. That said, the USPS gets a bad rap, I think they get their job done pretty well.

 
There are some inefficiencies but I find it hard to believe that any private company would be able to deliver a piece of paper to any address in the US for less than $0.50 and do it as fast as the USPS.
The USPS can't either! I don't get mail delivery to my house, I walk 3 blocks to get it. So as deficits and rates increase, service decreases.
 
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Choke said:
I always get my mail. Fast.My mail always gets delivered. Fast.They are incredibly cheap. Its ridiculous really.This goes for both my business' and my home.
There are some inefficiencies but I find it hard to believe that any private company would be able to deliver a piece of paper to any address in the US for less than $0.50 and do it as fast as the USPS.
It is hard to know. I believe these companies are prohibited from doing so by law. These laws were passed explicitly to protect the USPS so they would not have to face competition.It seems that those of us who would like a public option in health insurance(because supposedly it would be cheaper and cut down costs) are afraid of any competition to the private option of mail service. I can understand how someone would view this as an odd contradiction.
 
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There are some inefficiencies but I find it hard to believe that any private company would be able to deliver a piece of paper to any address in the US for less than $0.50 and do it as fast as the USPS.
The USPS can't either! I don't get mail delivery to my house, I walk 3 blocks to get it. So as deficits and rates increase, service decreases.
You really have to walk three blocks to get your mail? That sucks...
 
Monday/Wednesday/Friday deliveries.
:football:
How about increasing productivity? I'll bet that never crossed anyone's mind.
I actually don't have a complaint about the service, it's just that I don't find that much of a need for them. Almost all of our billing is done online, most of what I do get is junk mail and catalogs. It's only real value for me is that they deliver my Netflix movies.edit: and even that won't last long with streaming.
 
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Monday/Wednesday/Friday deliveries.
:lol:
How about increasing productivity? I'll bet that never crossed anyone's mind.
I actually don't have a complaint about the service, it's just that I don't find that much of a need for them. Almost all of our billing is done online, most of what I do get is junk mail and catalogs. It's only real value for me is that they deliver my Netflix movies.edit: and even that won't last long with streaming.
I am not talking about service I am talking about employee productivity.
 
Phurfur said:
jamny said:
Phurfur said:
squidrope said:
Monday/Wednesday/Friday deliveries.
:ninja:
How about increasing productivity? I'll bet that never crossed anyone's mind.
I actually don't have a complaint about the service, it's just that I don't find that much of a need for them. Almost all of our billing is done online, most of what I do get is junk mail and catalogs. It's only real value for me is that they deliver my Netflix movies.edit: and even that won't last long with streaming.
I am not talking about service I am talking about employee productivity.
Rather than getting into a debate about productivity. I'd rather choose the path of least resistance. Three days of regular mail a week is more than enough for me. I do think they should continue next day deliveries on all days (skeleton crew).
 
One of the main reasons the post office has reported such big $$$ losses in recent years is due to the fact that the congress requires the post office to pre-pay retirement funds.

Here is a recent report and it will give you a better understanding on why the post office is in the "red" so deep. There is a lot of post office bashing in this and other threads, which I can understand to an extent, but I know alot of postal employees and the majority of them (including myself), really do care about the job we do and give a hard days work each and every day. There are bad apples in every business and the post office is no exception.

A new audit report from the Office Of Inspector General says that the USPS over-funded its FERS retirement obligations by $6.8 billion. The OIG reported several months ago that USPS overfunded its CSRS retirement obligations by $75 billion.

Excerpts:

Consistent with other retiree benefit obligations, the Postal Service is being unfairly burdened for its share of the FERS pension obligation. The OPM projected a $6.8 billion surplus in the Postal Service’s FERS obligation at the end of FY 2009. The OPM acknowledged that the federal government’s FERS obligation, excluding the Postal Service, was unfunded by $7.4 billion at the end of FY 2008.The funding status for the Postal Service, as well as the federal government, is calculated by subtracting the pension assets from the actuarial accrued liability. A higher liability results in an unfunded status, while a lower liability results in a surplus. According to the OPM, the liability is a projection for current and future benefit obligations and considers contributions paid into and disbursements from FERS. Overall, the liability is based on estimated demographics for the entire federal government, including the Postal Service.

However, the Postal Service’s benefits paid represent actual demographic behavior, such as early career turnover, and not the aggregate, resulting in a surplus status for the Postal Service and an unfunded status for the federal government.

Based on this data, the Postal Service’s overfunding issue is even larger than we previously reported. Similar to what we have noted in other OIG retiree benefit reports, Postal Service Based on this data, the Postal Service’s overfunding issue is even larger than we previously reported. Similar to what we have noted in other OIG retiree benefit reports, Postal Service ratepayers continue to pay more than their fair share of retiree benefits. It is important that the trend of overpayments does not continue. The Postal Service faces a challenging future and its responsibilities and the true cost of funding postal operations needs to be absolutely clear. To address that challenge, the Postal Service is making operational changes to bring costs in line with revenue projections. Additionally, it is pursuing legislative changes to address concerns raised about pension and retiree health benefit payments. We believe management should also consider the FERS overfunding issue as the Postal Service pursues legislative changes.

Having retirement expenses commingled with the federal government’s budget, while being expected to operate as an efficient business, puts the Postal Service in a precarious position. The surplus in the CSRDF effectively subsidizes appropriated tax dollars when it could be used to offset the Postal Service’s current and future business expenses.

Conclusion:

The Postal Service has opportunities to use at least $5.5 billion of the $6.8 billion in FERS surplus funds to address its current and future financial condition. We found the Postal Service continues to overfund its retirement obligations and there is no present legislation to resolve surpluses. Further, it is vital that the Postal Service’s responsibilities be clearly delineated and separated from those of the rest of the federal government. The overcharges associated with CSRS obligations, coupled with the FERS surplus discussed in this report, have adversely affected the Postal Service’s financial position, hindered its ability to operate efficiently in a business-like matter, and hindered its transformation under the Postal Accountability and Enhancement Act (PAEA). Action is needed to prevent a repeat of historical trends in the overfunding of Postal Service retiree benefits.

http://www.postalreporternews.net/2010/08/...by-6-8-billion/

 
Okay, usually I'm willing to give the Post Office the benefit of the doubt, but I might have to rethink that. I just tried to mail a golf club that I sold on eBay. The triangular box weighed 30 ounces and measured 42.5 x 6 x 5.75. I calculated the cost at USPS.com and it came to $7.90. So I bought the stamp and dutifully took the box down to the Post Office to drop it off.

But wait! This lady at the Post Office tells me that she has to verify the measurements before she can accept it. :popcorn:

She liberally measures the box and comes up with numbers of 43, 7, and 7. Then she tells me that the price will be $26.30.

I say, "Wait, I checked the price online and it should only be $7.90."

Her: "I'm sorry sir, but we have to round up to the next inch and that means that your package is oversized."

Me: "But I entered the EXACT MEASUREMENTS at the Post Office website!"

Her: "I'm sorry sir but we have to round up."

Me: "But the website doesn't round up!!!"

Her: "I'm sorry sir but I am not qualified to do online calculations."

Me: "What does that even mean?!"

Her: :loco:

Me: :hot:

So I went home, ripped the package apart, removed some of the bubble wrap, and cut the box down so that it was EXACTLY 41.75" x 6 x 5. I rechecked the postage: sure enough, it was still $7.90.

Then, for reasons that I can't explain, I decided to double-check the numbers that the girl had counted: 43 x 7 x 7.

The price? $7.90. :lmao: :angry:

So, not only did I just waste a trip to the Post Office, but I unwrapped and re-packaged this thing FOR NO GOOD REASON! :hot: :hot:

And of course what makes it even worse is that I can't even complain about it because it's a government agency. It's not like I can get some free stamps out of this or something.
Here's a tip for you all - if you ever run into a problem with the person behind the counter like this here's what you do: smile and politely walk away, put the postage on the package and go out to the back of the building and drop it off. I almost never have to go up to the counter since I print my postage at home and drop it off at the loading dock.
 
I always get my mail. Fast.My mail always gets delivered. Fast.They are incredibly cheap. Its ridiculous really.This goes for both my business' and my home.
LOL seriously? I won't send a single thing that is time-crucial with the USPS. I have been burned way too many times.
If it's time crucial, no, but for most packages it's much better for businesses. For example, a 2 lb. Flat Rate USPS envelope is $4.75 and takes 2-3 days from LA to NY. The same package using UPS Ground taking 6 days costs $12.55. Being forced to use UPS would crush my business.
 
I always get my mail. Fast.

My mail always gets delivered. Fast.

They are incredibly cheap. Its ridiculous really.

This goes for both my business' and my home.
LOL seriously? I won't send a single thing that is time-crucial with the USPS. I have been burned way too many times.
If it's time crucial, no, but for most packages it's much better for businesses. For example, a 2 lb. Flat Rate USPS envelope is $4.75 and takes 2-3 days from LA to NY. The same package using UPS Ground taking 6 days costs $12.55. Being forced to use UPS would crush my business.
Why should I be forced to subsidize your business?
 
:lmao: The last 6 pieces of mail I have sent via the post office to the New Orleans area have not been delivered, some over a year old. Eleven of the last fourteen items sent via the post office have not been delivered.

Uggggghhhhhh.... :thumbup:

 
:rolleyes: The last 6 pieces of mail I have sent via the post office to the New Orleans area have not been delivered, some over a year old. Eleven of the last fourteen items sent via the post office have not been delivered. Uggggghhhhhh.... :rant:
I work at a large law firm. One day two weeks ago our office never got any mail. Not a single attorney. Office manager called up to ask what was going on and was told "ma'am sometimes people don't get mail every day." When the USPS rep was told we were a large firm and that there is no way we could possibly not have a single piece of mail for the day the rep tried to call the carrier but couldn't contact him/her. She said she'd call back later when the carrier was found but that never happened. No mail and never any explanation for not having any mail delivery during the middle of the week. Carrier decided to not deliver mail that day I guess.
 
:shrug: The last 6 pieces of mail I have sent via the post office to the New Orleans area have not been delivered, some over a year old. Eleven of the last fourteen items sent via the post office have not been delivered.

Uggggghhhhhh.... :rant:
I work at a large law firm. One day two weeks ago our office never got any mail. Not a single attorney. Office manager called up to ask what was going on and was told "ma'am sometimes people don't get mail every day." When the USPS rep was told we were a large firm and that there is no way we could possibly not have a single piece of mail for the day the rep tried to call the carrier but couldn't contact him/her. She said she'd call back later when the carrier was found but that never happened. No mail and never any explanation for not having any mail delivery during the middle of the week. Carrier decided to not deliver mail that day I guess.
And you are surprised by this -
 
I always get my mail. Fast.

My mail always gets delivered. Fast.

They are incredibly cheap. Its ridiculous really.

This goes for both my business' and my home.
LOL seriously? I won't send a single thing that is time-crucial with the USPS. I have been burned way too many times.
If it's time crucial, no, but for most packages it's much better for businesses. For example, a 2 lb. Flat Rate USPS envelope is $4.75 and takes 2-3 days from LA to NY. The same package using UPS Ground taking 6 days costs $12.55. Being forced to use UPS would crush my business.
Why should I be forced to subsidize your business?
:goodposting:
 
Pretty sure if we cut out inefficient rural service they'll be running a surplus in year plus one.

You live in BFE, you don't deserve gov't subsidized mail service. You want better service? Move to the city, slacker.

 
:blackdot: The last 6 pieces of mail I have sent via the post office to the New Orleans area have not been delivered, some over a year old. Eleven of the last fourteen items sent via the post office have not been delivered.

Uggggghhhhhh.... :pickle:
I work at a large law firm. One day two weeks ago our office never got any mail. Not a single attorney. Office manager called up to ask what was going on and was told "ma'am sometimes people don't get mail every day." When the USPS rep was told we were a large firm and that there is no way we could possibly not have a single piece of mail for the day the rep tried to call the carrier but couldn't contact him/her. She said she'd call back later when the carrier was found but that never happened. No mail and never any explanation for not having any mail delivery during the middle of the week. Carrier decided to not deliver mail that day I guess.
Just to be clear, I have mailed things to the New Orleans area that were never delivered.
 
Pretty sure if we cut out inefficient rural service they'll be running a surplus in year plus one.You live in BFE, you don't deserve gov't subsidized mail service. You want better service? Move to the city, slacker.
:blackdot: Right, the USA should just copy Mexico. Centralize everything!
 
I always get my mail. Fast.

My mail always gets delivered. Fast.

They are incredibly cheap. Its ridiculous really.

This goes for both my business' and my home.
LOL seriously? I won't send a single thing that is time-crucial with the USPS. I have been burned way too many times.
If it's time crucial, no, but for most packages it's much better for businesses. For example, a 2 lb. Flat Rate USPS envelope is $4.75 and takes 2-3 days from LA to NY. The same package using UPS Ground taking 6 days costs $12.55. Being forced to use UPS would crush my business.
Why should I be forced to subsidize your business?
Small businesses are the backbone of this country, young man. Why do you hate America?
 

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