So I was thinking the other day, how does the postal service lose money?
-They charge $0.46 per stamp for a small envelop. They pay nothing for the envelop and a minimal amount for the actual stamp. They can fit tons of them on a truck and drive it across the country for the hourly rate of a trucker.
- They sell money orders in which they charge money for people's own money. They have to print this on a piece of paper that is of minimal costs
-They weigh heavier packages and charge you appropriately. Similar to above, many of these can fit on 1 truck/plane all for the price of one trucker/flight crew.
So I am sitting here trying to figure out how you lose $15 billion with that business model. Maybe you don't make a huge profit, but a $15 billion loss?
I then decide to look at their financial statements for 2012.
2012 Revenue of $65 billion.
2011 Revenue of $65 billion.
2010 Revenue of $67 billion.
Not too shabby. That is a lot of dough. Now let's see how much it cost them to make that revenue:
2012 Transportation $6 billion, Other Expenses $9 billion
2011 Transportation $6 Billion, Other Expenses $9 Billion
2010 Transportation $6 Billion, Other Expenses $9 Billion
Ok that leaves $50 Billion. No way can they piss that all away. No way.
Oh wait, Compensation and Benefits:
2012 $47 Billion
2011 $48 Billion
2010 $49 Billion
That is 73% of revenue going to salaries of employees. So I checked the BLS for the salary of a postal worker.
Median annual wages for Postal Service occupations in May 2010 were the following:
$53,100 for Postal Service clerks
$53,860 for Postal Service mail carriers
$53,080 for Postal Service mail sorters, processors, and processing machine operators
But you know, it is a strenuous job. Not much skill is involved but it is a lot of walking/carrying. So as long as it is similar to other jobs like it, no biggy as they are being paid at a fair market rate.
More than twice the salary of similar positions. For Comparison:
-Secondary School Teachers ($53k)
-Cardiac Technologists ($49k)
-Police Officers ($55k)
-Hand Laborers and Material Movers ($23k)
-Construction laborers ($28k)
What the hell are they paying for?