Can Some Please Give A Plausible Explanation Why The U.S. Postal Service

[gatorman_07732]

sponsors the U.S. bike team? Put another way, how does a government entity that is bankrupt have any business sponsoring anything on the taxpayer dime?

Yeah yeah I know that according to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral which we know they are not.
I wish not to squabble about splitting hairs, but rather how should they be able to spend all that money in sponsorship? Doesn't seem ridiculous?

[GatorAbe7]

Good question.

This is like the British Health Care system co-sponsoring the opening ceremony of the London Olympics.

My guess is that the USPS's PR department has to put out a product to justify their job and sponsoring a bike team is part of it.

[gator996]

sponsors the U.S. bike team? Put another way, how does a government entity that is bankrupt have any business sponsoring anything on the taxpayer dime?

Yeah yeah I know that according to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral which we know they are not.
I wish not to squabble about splitting hairs, but rather how should they be able to spend all that money in sponsorship? Doesn't seem ridiculous?


Why does the US Army sponsor a HS football game?

USPS is in direct competition with the private sector so in some ways it has to "advertise".

Their biking deal was $10 million a year for 10 years.


USPS is bankrupt....question is why?

http://www.azcentral.com/news/articles/20120809usps-near-bankrupt-reports-billion-loss.html

WASHINGTON - The nearly bankrupt U.S. Postal Service on Thursday reported losses of $57 million per day in the last quarter and warned it will miss another payment due to the U.S. Treasury, just one week after its first-ever default on a payment for future retiree health benefits.

From April to June, losses totaled $5.2 billion, up $2.1 billion from the same period last year.

The mail agency said it is being hurt significantly by mounting expenses for future retiree health benefits.


Those expenses, mandated by Congress in 2006, made up $3.1 billion of the post office's quarterly loss, while workers compensation tacked on another $1.1 billion in expenses. The agency's operating loss was $1 billion, mostly due to declines in first-class mail.

"We have simply reached the point that we must conserve cash," Thurgood Marshall Jr., chairman of the Postal Service's board of governors, said in explaining the payment defaults. He cautioned that the mail agency may have to delay other payments if necessary.

[MastaG8r]

Yeah that absolutely is a good question and I never really thought about it before. I don't mind giving them something for an advertising budget since they have to compete against private companies who of course are more efficient and reliable. But sponsoring a cycling team seems a bit extravagant.

[gator996]

I don't know how extravagant a biking sponsorship is versus another type of sponsorship but at the end of the day it cost $10 million a year...

Extravagant in your estimation, or not?


I can't remember any other USPS ad campaign but even as a non-biking person I was aware that they were sponsoring Armstrong when he was setting records...

So I guess from that standpoint the advertising did what it was supposed to do....

name recognition

[MastaG8r]

I don't know how extravagant a biking sponsorship is versus another type of sponsorship but at the end of the day it cost $10 million a year...

Extravagant in your estimation, or not?


I can't remember any other USPS ad campaign but even as a non-biking person I was aware that they were sponsoring Armstrong when he was setting records...

So I guess from that standpoint the advertising did what it was supposed to do....

name recognitionDid it make you any more likely to send stuff using USPS than you otherwise would've been?

The U.S. Postal Service does not suffer from lack of name recognition.

[gator996]

Its not a name recognition issue like a startup company might face...
..its more of staying in customer's minds...being the 1st company you think of....


Does Nike or McDonalds need to advertise?

Certainly not because of name recognition right?

[RealGatorFan]

Why does a company that has a monopoly have to advertise? You can't mail a letter without the USPS. The USPS is the only carrier that picks up without a call for no charge. Yet, isn't it ironic that the very team they sponsored all had to cheat in order to win; much like the USPS? Unlike UPS and FedEx the USPS can operate at a 5 Billion dollar loss year-after-year. All they require is an injection of funds much like Armstrong did with his PEDs.

[gatorman_07732]

Well I believe there are two facts that need to be taken into consideration
1) The are designed to be revenue neutral
2) They are bankrupt

[gator996]

Yes, we all know they're bankrupt...

...but why are they?

[MastaG8r]

Its not a name recognition issue like a startup company might face...
..its more of staying in customer's minds...being the 1st company you think of....


Does Nike or McDonalds need to advertise?

Certainly not because of name recognition right?Oh please. Does your knee-jerk defense of all things gubmint really have to go to this extreme? You think that sponsorship made anybody more likely to send stuff using USPS than they otherwise would've been? $10 million wasted annually on sponsoring a team of doped-up bicyclists -- they had to sell over 22 million stamps a year to fund that boondoggle. No wonder they keep raising the price of one.

[gator996]

http://www.azcentral.com/news/articles/20120809usps-near-bankrupt-reports-billion-loss.html

WASHINGTON - The nearly bankrupt U.S. Postal Service on Thursday reported losses of $57 million per day in the last quarter and warned it will miss another payment due to the U.S. Treasury, just one week after its first-ever default on a payment for future retiree health benefits.

From April to June, losses totaled $5.2 billion, up $2.1 billion from the same period last year.

The mail agency said it is being hurt significantly by mounting expenses for future retiree health benefits.

Those expenses, mandated by Congress in 2006, made up $3.1 billion of the post office's quarterly loss, while workers compensation tacked on another $1.1 billion in expenses. The agency's operating loss was $1 billion, mostly due to declines in first-class mail.

"We have simply reached the point that we must conserve cash," Thurgood Marshall Jr., chairman of the Postal Service's board of governors, said in explaining the payment defaults. He cautioned that the mail agency may have to delay other payments if necessary.

[MastaG8r]

why does a company that has a monopoly have to advertise? You can't mail a letter without the usps. The usps is the only carrier that picks up without a call for no charge. Yet, isn't it ironic that the very team they sponsored all had to cheat in order to win; much like the usps? Unlike ups and fedex the usps can operate at a 5 billion dollar loss year-after-year. All they require is an injection of funds much like armstrong did with his peds.Extremely High Quality Post™

[gatorman_07732]

Yes, we all know they're bankrupt...

...but why are they?

It doesn't matter why for the sake of this conversation

[gator996]

Oh please. Does your knee-jerk defense of all things gubmint really have to go to this extreme? You think that sponsorship made anybody more likely to send stuff using USPS than they otherwise would've been? $10 million wasted annually on sponsoring a team of doped-up bicyclists -- they had to sell over 22 million stamps a year to fund that boondoggle. No wonder they keep raising the price of one.


I'm not defending anything...

Someone asks a question of "Why?" and I simply added info to answer the question.

Quibbiling over $10 million in multibillion dollar budget is a game for fools IMHO.

But if it gives some here an outlet to voice their anger over wasteful government spending ...

...have at it.

[David Shepherd]

You would think that as the older generation pass on there will be less and less 1st class mail as ones coming up will rely more on text and emails (and whatever other communication changes there are in the coming years).

Maybe the USPS would then consider 1st class delivery 4-5 days a week and leave the parcels to the companies that can afford it.

[gator996]

It doesn't matter why for the sake of this conversation


There's a post concerning why the USPS is "wasting" money on advertising when they're bankrupt...

...and it doesn't matter why they're bankrupt?


They're bankrupt because they're held to a standard we don't hold anyone else to...

If every business had to pre-fund their pensions 75 years in advance there would be ALOT of bankrupt businesses in this country.

Hell, you can't even get corporate America to fund their obligations now...

75 years in advance?

:laugh:

[gatorman_07732]

Look, the are designed to be revenue neutral and they're not. That's the moral of that story isn't it?

[dangolegators]

Why does a company that has a monopoly have to advertise? You can't mail a letter without the USPS. The USPS is the only carrier that picks up without a call for no charge. Yet, isn't it ironic that the very team they sponsored all had to cheat in order to win; much like the USPS? Unlike UPS and FedEx the USPS can operate at a 5 Billion dollar loss year-after-year. All they require is an injection of funds much like Armstrong did with his PEDs.

For starters, USPS is most certainly not a monopoly. And alternatives like email have had a huge impact. And you think this (bolded above) gives the USPS some sort of business advantage over FedEx or UPS? The fact that they have to go to almost every residence in the country 6 days a week? If it were such a good business model, why aren't UPS/FedEx doing it too? The USPS has an obligation to deliver the mail to every person in the country, no matter how remote or unprofitable the location, for the same price. A stamp for sending a letter next door costs the same as sending a letter to some remote village in Alaska.

Comparing USPS to FedEx/UPS is a lot like comparing public schools to private schools. The 2 things have very different obligations.

[dangolegators]

Why aren't you (the OP) complaining about the US Army sponsoring a Nascar team?

I don't think the US govt should be in the business of sports sponsorships, but the Republican-controlled House disagrees with me.

[G8trGr8t]

Army has to recruit...minor difference from USPS that makes a major difference

[gatorman_07732]

Why aren't you (the OP) complaining about the US Army sponsoring a Nascar team?

I don't think the US govt should be in the business of sports sponsorships, but the Republican-controlled House disagrees with me.

This issue here is the postal service is bankrupt and the were funneling millions of dollars into the sponsorship. They were designed to be financially revenue neutral and are not so how can this be justified? If you want to start a thread on military sponsorship then have at it. Don't try to discredit my thought with a specious argument.

[dangolegators]

This issue here is the postal service is bankrupt and the were funneling millions of dollars into the sponsorship. They were designed to be financially revenue neutral and are not so how can this be justified? If you want to start a thread on military sponsorship then have at it. Don't try to discredit my thought with a specious argument.

So advertising is ok for one govt agency but not another? And businesses that are losing money aren't supposed to advertise?

[gatorman_07732]

So advertising is ok for one govt agency but not another? And businesses that are losing money aren't supposed to advertise?

I never said that, now can you get back to the argument presented please.

[dangolegators]

I never said that, now can you get back to the argument presented please.

I've already stated that I am not in favor of US government engaging in sports sponsorships. Are you?

[gatorman_07732]

I've already stated that I am not in favor of US government engaging in sports sponsorships. Are you?

Then why the argument? I'm just asking for a plausible explanation, but hey thanks for driving by.

[dangolegators]

Then why the argument? I'm just asking for a plausible explanation, but hey thanks for driving by.

Given that you are so critical of the USPS, I'm asking you how you feel about the US Army doing the same thing you are criticizing the USPS for doing. It is relevant to this thread.

[jsc28]

Given that you are so critical of the USPS, I'm asking you how you feel about the US Army doing the same thing you are criticizing the USPS for doing. It is relevant to this thread.

I am not a fan of either, but the Army does have to recruit new soldiers. The Post office sponsorship makes no sense.

[gatorman_07732]

Given that you are so critical of the USPS, I'm asking you how you feel about the US Army doing the same thing you are criticizing the USPS for doing. It is relevant to this thread.

I am critical of the situation that they are bankrupt when then are supposed to be revenue neutral.

[corpgator]

Any way you cut it, the Army is broke as well.

The USPS is broke because they are the only part of our entire government that has to pre-fund future liabilities.

[Emmitto]

http://mobile.slate.com/articles/news_and_politics/explainer/2013/01/lance_armstrong_doping_scandal_why_did_the_postal_ service_sponsor_him_in.html

[Swampmaster]

usps "sponsorships" --- just payoffs of taxpayer money to connected "friends" in government--no surprise.

[JerseyGator01]

Bikers = good

NASCAR = evil

[madgator]

is that $10 million money well spent?

honestly, who is the U.S. gives a rats butt about cycling? Maybe during the Tour and only if an American is going for his 3rd or more title in row.

and now that the sport is tainted....

BIG WASTE!

[bluelang]

Business 101, you can't stop advertising because your books look bad. In fact, it often pays to do the opposite.

If you have a reason to attract new customers or sell a new product, you have to advertise.

[bluelang]

Extremely High Quality Post™

None of the stuff he said was true. They don't have a monopoly on sending letters and UPS and Fedex both pick up for free.

They have a monopoly on servicing mailboxes. You can send a letter any way you like.

[96Gatorcise]

Army has to recruit...minor difference from USPS that makes a major difference

they do not have to..... all services could save billions in advertising and recruiting if the country just brings back the draft.

Turn 18, mandatory 3 years of service gets you a 1/2 GI bill to get your AA, re-up fro 2 more years and you get a full GI bill for a 4 year degree.

Only medical exceptions, meaning even if you are a brain or athletically gifted you do your time.

As for going to college it only pushes you back min. 3 years. 21 to 25 instead of 18 to 22

[G8trGr8t]

they do not have to..... all services could save billions in advertising and recruiting if the country just brings back the draft.

Turn 18, mandatory 3 years of service gets you a 1/2 GI bill to get your AA, re-up fro 2 more years and you get a full GI bill for a 4 year degree.

Only medical exceptions, meaning even if you are a brain or athletically gifted you do your time.

As for going to college it only pushes you back min. 3 years. 21 to 25 instead of 18 to 22

Turnover and training would be cost prohibitive...try again

[gator1986]

And they spent like 40$ million on lance and his team imagine what they spend now

[orangeblueorangeblue]

Look, the are designed to be revenue neutral and they're not. That's the moral of that story isn't it?

Sure, however consider the centuries wherein they *made* money that they couldn't outright keep.

The Post Office will sunset soon enough, this is just the beginning. And yeah, every company can use advertising.

[g8orbill]

the problem is they know they cannot deliver what is promised and they no longer care- recently I was having some work done in my yard and the postal lady came by and saw me standing there but because the mailbox was blocked by a big dump truck, she just went around to the next house-I quickly walked over and she told me my box was blocked so she didn't have to stop-she atleast then gave me my mail but this is typical of the mindset of postal workers- 2 weeks ago I mailed an envelope to my accountant in Orlando and it took 8 days to get there- 26 miles away- the postal system is broken and there is little ability to actually fix it

[corpgator]

the problem is they know they cannot deliver what is promised and they no longer care- recently I was having some work done in my yard and the postal lady came by and saw me standing there but because the mailbox was blocked by a big dump truck, she just went around to the next house-I quickly walked over and she told me my box was blocked so she didn't have to stop-she atleast then gave me my mail but this is typical of the mindset of postal workers- 2 weeks ago I mailed an envelope to my accountant in Orlando and it took 8 days to get there- 26 miles away- the postal system is broken and there is little ability to actually fix it

So you're trying to tell me if a box is blocked, the mail person should have to get out and walk it to the box? That's absurd. They're already servicing close to a thousand boxes a day and don't have the time to make detours.

I needed to overnight some papers for my wife's immigration the other day from Florida to Vermont and they got there in less than 20 hours for $18. When you're moving a billion pieces of mail a day, sometimes things will get lost, but the USPS is still one of our best government services.

[channingcrowderhungry]

So you're trying to tell me if a box is blocked, the mail person should have to get out and walk it to the box? That's absurd. They're already servicing close to a thousand boxes a day and don't have the time to make detours.

I needed to overnight some papers for my wife's immigration the other day from Florida to Vermont and they got there in less than 20 hours for $18. When you're moving a billion pieces of mail a day, sometimes things will get lost, but the USPS is still one of our best government services.

"Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds."

You're right, nothing in there about blocked mail boxes.

[g8orbill]

So you're trying to tell me if a box is blocked, the mail person should have to get out and walk it to the box? That's absurd. They're already servicing close to a thousand boxes a day and don't have the time to make detours.

I needed to overnight some papers for my wife's immigration the other day from Florida to Vermont and they got there in less than 20 hours for $18. When you're moving a billion pieces of mail a day, sometimes things will get lost, but the USPS is still one of our best government services.

I am telling you that yes they should get out-it is part of their effin job to deliver the mail-you must be a union guy