An e-Bayer reacts to the rate increase
An article on the Entrepreneur Magazine web site explains how one e-Bay seller is dealing with the USPS rate increase. Unfortunately, she gets the rationale for the increase wrong. “the main [reason] the extra revenue is needed [is] to fulfill a federal law that requires the USPS to place $1.3 billion in an escrow account to cover civil service retirement benefits. ”
Actually, the escrow payment is the only reason for the increase. And the amount is $3.1 billion, not 1.3. And it isn’t to “cover civil service retirement benefits”- the only real reason for the escrow account at the moment is to provide a few extra bucks to offset the Bush budget defecit.
But there are a couple of interesting comments made by the author:
- “One very smart way for a seller to turn insurance from a high expense into a profit center is to consider using private package insurance. I’ve used the services of a company called U-Pic.com for several years and have saved considerably on my insurance. My customers get optional insurance and pay the standard USPS rates. I pay U-Pic their standard rate, which is a 60-percent savings to me over the USPS rates. I actually profit while insuring my packages!”
- “Another thing to consider when using Priority Mail is the availability of free boxes–delivered direct to your door by the post office. This doesn’t seem like much, but you can save up to 65 cents per box when you buy in bulk.”
- “My first knee-jerk reaction was thinking I would switch all my shipping over to UPS or FedEx Ground, but then found out that they’ve had rate increases as well.”
That last comment does make me wonder how much of an eBay expert the author is, if she doesn’t realize that UPS and FedEx raise their prices every year, but maybe it’s just that she’s always used the PO?
March 4th, 2006 13:27
Snivel, Whine-whatever!
Now lets see:
My Dish network increased $2 a month!
My VA Co-pay in creased by $3.
My house taxes increased $30 @ year.
My car insurance (liability only) when up $60.
Gas-don’t even what to go there ! But lets see-Chevron’s profits were $214 Billion Dollars in One Quarter!!!
And YOU Bitch about a 0.02 increase in the postage-after THREE YEARS ?
1.They have reduced a 11 billion dollar debt (whick our Goverment fathers think is a “Cash Cow” !!!
2,Have reduced there work force by 54,000 this last year alone!
Look up UPS & FedEx track records!
People -Don’t KNOW a good bargain when they see one!
(Procrastinators) You whine about standing inline -because you come ill prepared on what you want-or how to ship it!
(Pass your main processing plant or Post Office{open until midnight in most cases for YOUR convienance}-April 17th this year-you’ll see what I mean) !
You don’t Even have to leave you house for stamps, parcel pick-up, or delivery-unless unavailable- because regulations-don’t let the Post Office from dumping your mail (security of the mails) , and leave a left notice for P/U.
I have seen people follow the UPS truck in a residential area, picking up, what they just left on the porch (or somewhere?) on the property, were may be found today or in the future days?
Citizens will spend any amount of money for a latte’!
But damn-don’t let USPS cover there ever rising cost of fuel, parts, utilities, maintenance of their buildings and or upgrades of technology!
And the customer has the nerve to call it snail mail?
I haven’t missed a beat on parcels from Coast-to-Coast SECOND DAY-on my front door religiously!
March 14th, 2006 06:50
Well said Cliff!!
What other product or company raises its prices ONLY every 3 or 4 years?
The average person cannot drive ONE mile to the corner bank to pay a bill, figuring the cost of the car, gas, and all the extras. It costs well over 40 cents to drive a mile.
Yes, I am a USPS employee and we do a pretty good job for 39 cents.
April 12th, 2006 12:37
If you are so confident in that FedEx-provided 2 day service of priority mail, why doesnt the USPS guarantee it like UPS and Fedex do? Its so much easier to misrepresent your product and then not have to pay for failure to preform, isnt it?
May 29th, 2006 12:56
Let’s not go there BS, you dopes miss your “window” all the time and don’t pay a dime. I call that false advertising. I’m tired of putting in the lengthy explanation of how you screw your customers out of their rightfull refund, so just refer to one of the many posts where I HAVE detailed it.BTW, apply the last sentence of your post to yourself.
July 4th, 2006 05:02
If the customer pursues the claim properly it will be paid. There is no such process for priority sham.
August 31st, 2006 20:31
More BS from BS!
September 1st, 2006 19:56
Keep up the great work on your blog. Best wishes WaltDe