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Well, we pay them our time and attention, but the system wouldn't work if its biggest service operated at a loss:

http://www.nytimes.com/2012/09/20/business/seeking-revenue-p...



That article states that 48% of all mail, or 84B pieces, is junk mail and corresponds to $17B in revenue (works out to 20 cents a piece). Seems to indicate that most revenue comes from non-junk mail. Also, it states nothing about profitability. The USPS as a whole operates at a loss, why couldn't junk mailing be operating at a loss?


>The USPS as a whole operates at a loss, why couldn't junk mailing be operating at a loss?

Because there's no earthly reason to take a loss on advertising?

What you're not accounting for here is the cost to pick up individual envelopes from your house, and the cost of dropping a presorted bundle shipped to the BMC into the truck.


Much of how the USPS operates, including how much they charge and what services they offer to other businesses, is mandated by Congress. They don't have any choice.


And much of what congress mandates is purchased by the junk mailers.


The reason the USPS operates at a loss is a combination of core inefficiencies that have nothing to do with the product [e.g. They trust their largest mailers to pay them accurately then threaten them with fines, rather than calculating the amounts at the start. The requirement to deliver to unprofitable rural addresses].




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