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My wife is pissed at USPS(13 posts)

My wife is pissed at USPSwes
Aug 5, 2001 4:47 PM
Someone answer this for me.

I'm talking with my wife (non-cyclist) about Lance and stuff and she asks me why the USPS sponsors the team.

1) It's not like the USPS can really get much more market share.
2) They sponsor a team that focuses on European races.
3) They keep raising our stamp prices.

Anyone out there have a good rebuttal for me other than LA needs a sponsor?

Wes
I heard that they did it to increase their profile in Europe.bill
Aug 5, 2001 4:53 PM
No use in asking me for any more information, because I don't have any. It was something I read awhile ago. Apparently, they compete with other carriers in Europe on a different footing from here, and they wanted European market share. It seems odd to me, too.
re: My wife is pissed at USPSSkip
Aug 5, 2001 4:55 PM
It's a worldwide recognized name and they have the $ to afford it.
re: My wife is pissed at USPSRich Clark
Aug 5, 2001 5:24 PM
>1) It's not like the USPS can really get much more market share.

USPS competes with Fedex, UPS, and other package carriers on a head-to-head basis worldwide. This is where the money is, and in this arena USPS is not subsidized by the U.S. government. Commercial companies sponsor racing teams as a form of advertising.

>2) They sponsor a team that focuses on European races.

What team doesn't?

>3) They keep raising our stamp prices.

The United States has the cheapest, fastest, and most efficient postal system in the world. Ask anybody who's moved here from abroad.

Besides, their sponsorship of the cycling team has nothing directly to due with their operation of the domestic mails.

RichC
re: My wife is pissed at USPScycleguy
Aug 5, 2001 5:52 PM
As a Letter Carrier I need the money!! But RichC was correct. The Postal Service has to compete with everyone else for the majority of it's services. Here and overseas. Parcel post, overnight, Priority. The only market where we have, what one could call a monoply, is letter mail. And by law we are required to deliever to every address in the county. If only for one piece of, as many say, junk mail. I know many are not happy with The Postal Service. I even have fellow employees who ask why we sponsor a cycling Team. But no company can servive without advertising. And just a thought the next time we don't deliver to your expectations. Have you ever dialed the wrong number and still got the person you wanted to talk to? Everyday I deliver more then a dozen letters that are addressed incorrectly.
re: My wife is pissed at USPSwes
Aug 6, 2001 8:27 AM
Don't get me wrong cycleguy. She is not really pissed at USPS and the dilivery services. I think that everyone would agree that as far as a business is run, USPS does a pretty amazing job. Just that they are spending $10M or so on a racing team.
A lot of bang for the buck...Bruno S
Aug 5, 2001 5:32 PM
USPS is getting an incredible amount of advertising in the US and in Europe. Lance photo (with the USPS logo all over) is in the cover of SI, most US newspapers, in TV, etc. Those 30 millions that USPS invested in the team would not have bought a fraction of the publicity and exposure Lance is giving USPS. It a risky advertising scheme because if the team does not win or there is something like the Festina affair it can back fire but when it works its a company's dream.
re: My wife is pissed at USPSpeloton
Aug 5, 2001 5:35 PM
Tell your wife that the reason the US Postal service has decided to re-new sponsorship to the team is because their investment in the team is returned to them an estimated 10-15 times over in their surveys due to increased market exposure. The USPS is a business. If they weren't making money off the team, they would get out.
tell her to email the commissionDog
Aug 6, 2001 6:23 AM
http://www.prc.gov/ ; also

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=2000_government_manual&docid=186873tx_xxx-90

That's the website for the Postal Rate Commission. Tell her to write them. I'd be interested in hearing their response.

Here is the statement from the USPS itself:

"e. USPS Pro Cycling Team
The Postal Service has four primary objectives
for the sponsorship of its top-ranked cycling
team, led by Lance Armstrong, the two-time
winner of the Tour de France, the world's most
prestigious cycling competition:
 Generating revenue by making sales to
companies and individuals affiliated
with cycling;
 Enhancing the Postal Service brand through
activities that will positively impact customer
perceptions of the Postal Service in a competitive
business environment;
 Reaping the public relations value of sponsorship
through a variety of activities
focused on both customers and employees;
and,
 Leveraging retail sales on-site at domestic
cycling events, on the team's Internet site and
at Postmark America.
Sales has leveraged the business relationships
developed through the cycling sponsorship, closing
more than $18 million in new sales in the past
three years. Above and beyond the revenue generated
in the Sales function and through retail
promotions, the Postal Service benefits from the
tremendous pubic relations value of Lance
Armstrong's victories in the 1999 and 2000 Tours
de France.
The team's top-notch performance throughout
the year, also has a strong impact on employee
pride, connecting the notion of winning with the
Postal Service. This combination of forces — positive
publicity and employee sense of pride —
helps customers feel good about the Postal Service
as an organization. In a competitive environment,
this helps build business. The title sponsorship has
been retained for 2001."

http://new.usps.com/history/compst2000/00comp_state.pdf

Doug
If you're worried about stamp prices...Gadfly
Aug 6, 2001 8:01 AM
..you're either really poor or send out one helluva lot of mail. What's a stamp cost these days, anyway? 32 cents, 34 cents? Let's say they raise prices two cents. And you send, oh, maybe fifty pieces of mail every month. That's, a whole dollar. Amortized over a month. Who cares?
Its a sign of inflation...Bruno S
Aug 6, 2001 8:31 AM
You should care. Two cents is a 6% increase in price. Apply that to all other products and you have a big problem in the economy.
That's a stretchmr_spin
Aug 6, 2001 9:37 AM
First of all, 6% inflation is actually pretty low. The USA has had it pretty nice the last couple of years with about 4%.

Second, the USPS doesn't get to change its rates as they please. They have to get approval. So there will be a lag as they try to catch up with any inflation. That might mean that they ask for more than they actually need at the moment, to offset asking for more later.

Finally, since they can't seek comparitive advantage in labor (can't use Chinese prisoners or other third world sweatshops), their costs will always increase. This is not necessarily a sign of inflation. In fact, increased labor costs are a sign of a strong economy. It means that more people are employed, and it is harder to find workers.
re: My wife is pissed at USPSJim S.
Aug 6, 2001 8:31 AM
Last year the USPS spent $800 MILLION on advertising. I doubt they got more bang for the buck from anything else they did.