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This is incorrect. There's no mechanism by which cheaper prices for UPU mail translates into higher prices for US customers. If they had pricing power they'd r
by ikeboy 7y ago
This is incorrect. There's no mechanism by which cheaper prices for UPU mail translates into higher prices for US customers.
If they had pricing power they'd raise prices regardless of fixed losses elsewhere.
- Consultant32452 7y agoThe USPS has to ask permission from regulators to raise prices, unlike their more private counterparts.
- ikeboy 7y agoAnd that is evaluated on a per market basis. The assertion that losing money on some services causes them to raise prices elsewhere is baseless. Even if there was a mechanism the numbers don't work - there's orders of magnitude more packages sent within the US than into the US from UPU.
- Consultant32452 7y agoI was commenting on your remark about USPS lacking pricing power. I wasn't really disagreeing with you, just pointing out some of the moat between them and pricing power.