The USPS Must Roll Back its Recent Postage Increases (mytotalretail.com)

The postal price increases in the near term have proven to be a failure. The USPS modeling predicted that revenue would increase and demand wouldn’t fall. However, the data tells a different story. In 2023, revenue of “marketing mail” decreased by $920 million and volume decreased by 7.7 billion pieces.

The USPS produced and relied on an economic model that proved to be wrong. Mail volume fell for “marketing mail” and the result was a loss in top-line revenue and a bottom-line loss of $1.6 billion. These losses prove that the postage increases were counterproductive and need to be rolled back.

The USPS is a classic fixed cost business where incremental volume is highly profitable because the increased volume has little incremental cost. The postage increases for marketing mail clearly resulted in the huge volume declines between 2022 and 2023. The losses from volume declines were not made up by the postage increases.
more at: https://www.mytotalretail.com/article/the-usps-must-roll-back-its-recent-postage-increases/

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