Tuesday, August 21, 2012

Genius: Postal Service, Which Lost $5.2 Billion Last Quarter, Stuck With 682 Million Unsold, Mispriced Simpsons Stamps

The United States Postal Service reported a $5.2 billion last quarter and just defaulted on a $5 billion loan payment earlier this month. In addition, the USPS said it will "miss a second $5.6 billion payment due next month as cash runs low."

In fact, in the last year alone, it has lost $11.6 billion... so far.

And it's not just the heavy unionization, unbelievable pensions and health care benefits, the plethora of offices, or the failure to embrace digital technologies.

It's also the superb management!

The U.S. Postal Service wasted $1.2 million in printing costs by selling less than a one-third of the 1 billion commemorative stamps of The Simpsons, Bloomberg news reports... The 44-cent "Simpsons" stamps, which sold in 2009 and 2010, came in five designs, featuring Homer, wife Marge, and children Bart, Lisa and baby Maggie.

...One problem, the IG notes, is that the stamps are tied to their 44-cent price, and became unwieldy for customers when the price of mailing a first-class letter went up by a penny. The IG also criticizes the process for deciding how many stamps to print, saying it is too unscientific and dependent upon the experience of one individual, which can lead to "costly miscalculations."

I don't know how you feel, but in my book this management team has bailout written all over them.

And let's look on the bright side: at least they didn't order 1 trillion Simpsons stamps!

Hat tip: BadBlue.com News.


Matthew W said...

HEY !!!
Don't blame this mess on Homer !!!

Matthew W said...

Just out of curiosity, how much of the postal service loss is due to bloated pensions and benefits??

Can't wait until my health care is managed as well as this.

Chris said...