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By law, the USPS has to charge competitive products at least enough to cover 5.5% of “institutional/fixed costs,” a slightly fuzzy definition that tries to account for a level of marginal-cost allocation for competitive products. UBS points out that this figure sounds low when compared to the size of the package business (in revenue terms) but it’s not when you consider that a large part of what’s required to deliver a package is needed for the monopoly mail service anyway.
Competitive products are more than meeting this 5.5% requirement, according to UBS. In 2017, the minimum revenue requirement from competitive products was $1.6 billion, while the actual contribution was $6.8 billion, leaving an excess contribution of $5.2 billion.
And Amazon represents around 25% of this revenue, making them very likely the biggest customer for competitive products.
If they ran USPS like a real business maybe they could make a profit? Wouldn't that be crazy if they actually made money, but as people said they are basically not a for profit company and they have a very bloated system just like our education system is bloated past any point of actually being financially efficient.
originally posted by: charlyv
And this is what is going to happen: President Trump will help reform the USPS to BE a profitable company by making it run like a business. That is my prediction.
President Trump will help reform the USPS to BE a profitable company by making it run like a business.
We get paid a flat rate per parcel no matter how big or small. Like I said earlier we're going to the addresses regardless if we have amazon or not.
How will he do that? The same way he was going to have cable new channels' FCC licenses revoked?
Point being, he will remove the USPS from the US government and help to make it a pubic entity.
He's a developer who had millions of dollars in backing. That doesn't take much "savy", but a lack of ethical constraints doesn't hurt.
There is no denying President Trumps business savy.
That's why he hires people like Michael Cohen. He can't be bothered. And, like I said, ethical concerns are not his so that makes things easier still.
If you are a complete moron, you won't be able to navigate through the legal requirements, the audits, drum up the interest for cash calls from investors, manage the capital stack on multimillion dollar projects, etc.
His second 4 years will be a lot more powerful than the first 4, not having to worry about a re-election and after he takes care of those that desperately tried to get rid of him.
Up until about 3 months ago, I would have agreed with you.
Hey, I am going to be just a pure realist about the whole situation. Trump will be re-elected.