Postal Service's debt reducer: Drop Saturday
The U.S. Postal Service must make drastic changes to avert a projected loss of $238 billion over the next decade, including closing post office branches and raising prices, Postmaster General John Potter said Tuesday.
The Postal Service also released further details about its proposal to scale back to five-day delivery, saying it wants to eliminate Saturday deliveries. The move from six days to five could save the Postal Service $3.3 billion a year, Potter said.
You know. I think they have a germ of an idea there.
The Postal Service says it could save $3.3 billion a year by not delivering mail on Saturday. If they drop Monday delivery, then they could save another $3.3 billion a year. If they drop Friday delivery, then they could save another $3.3 billion a year. If they drop Tuesday delivery, then they could save another $3.3 billion a year. If they drop Thursday delivery, then they could save another $3.3 billion a year. If they drop Wednesday delivery, then they could save another $3.3 billion a year.
That would add up to $19.8 billion saved per year. Which would add up to $198 billion saved over the next decade. That would make a big dent in the expected loss of $238 billion over the next decade. That would leave about $40 billion loss over the next decade, which might be recovered by raising the postage rates, or closing locations, or adding additional fees, or increasing taxes or some other cost saving measure.
So essentially, they would be losing $40 billion while doing nothing whatsoever, since they are now closed 7 days a week.
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