Will consumers and businesses accept fewer postal services?

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Here's more perspective on the Postal Regulatory Commission's decision to block the US Postal Service from enacting emergency rate increases in 2011. The USPS had requested “exigent” price increases, claiming the recession has taken an unprecedented hammer to mail volumes. The Postal Service ran a net loss of $1.6 billion in August, according to PRC numbers.

The Atlantic's Daniel Indiviglio says a sustainable Postal Service is a matter of whether consumers will accept a reduction in services.

“So essentially, the question is whether Americans will accept a US Postal Service with fewer locations, probably slower delivery and higher prices. If so, then it can probably find a business model that works. If not, however, it's hard to see how the USPS can survive without an ongoing subsidy.”

Marketers hailed the PRC's decision to deny the rate increases on September 30.


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