Postal Strike Imminent

g_bambino · June 15, 2011

So you're saying if there was no Canada Post in Brandon, there'd still be no UPS?

Possibly, since a private delivery company will only operate where there's profit to be made.

cybercoma · June 15, 2011

Actually I do. If you think there is a need that can only be filled by one provider, then you don't know what your talking about. It ain;t rocket science...and even then, NASA has competition...

Actually, you don't know what you're talking about. A system that requires massive capital investment and infrastructure to function, such as rural postal delivery is only profitable when operated as a monopoly. Hydro-electricity and landlines are the same idea. If there were no Canada post, who do you think is going to bother delivering mail to remote communities? UPS, FedEx, and DHL would charge such an astronomical rate to send things there that it would be crippling to people in those communities, if they got service at all. Your point is completely valid when it comes to cities or areas where there's a concentrated population. Unfortunately, a country this size requires service to remote areas too.

Shady · June 15, 2011

Possibly, since a private delivery company will only operate where there's profit to be made.

That's not true. A company will absolutely operate even if there's not a current profit to be made. Many companies, at least the good ones, think ahead.

Take Toyota. They currently produce the Prius at a net loss. But they produce it for market share, and future profit potential.

Shady · June 15, 2011

That doesn't mean that any of that would continue without the existence of the corporation, as this rote would not be nearly profitable.

As I've already stated, private companies already offer goods and services that they don't directly profit from. Toyota with its hybrid vehicles. Staples with laptops and desktop computers.

Smallc · June 15, 2011

Take Toyota. They currently produce the Prius at a net loss.

That's a stupid business model. Ford now produces every single car line at a profit. They didn't in the past.

Now as for Canada Post - I should clarify. It isn't the post office itself that's important, but the distribution system. If some kind of private system, regulated and mandated by government were to take over, I really wouldn't care. There needs to be some kind of system though that ensures that packages and letters (and there are still a great many of those) are delivered at least twice weekly (we currently get 3 times a week) to every community in Canada.

bush_cheney2004 · June 15, 2011

The post office here is run out of a house and is delivered to by a contract driver. That doesn't mean that any of that would continue without the existence of the corporation, as this rote would not be nearly profitable.

Then consolidate routes and reduce delivery days until it is profitable. Daily weekday mail delivery is not a necessity.

Smallc · June 15, 2011

As I've already stated, private companies already offer goods and services that they don't directly profit from. Toyota with its hybrid vehicles. Staples with laptops and desktop computers.

Those are different (and questionable) business models.

Smallc · June 15, 2011

Then consolidate routes and reduce delivery days until it is profitable. Daily weekday mail delivery is not a necessity.

We only get mail 3 times a week. Any less than twice and credit cards (not that you need to use the mail to pay those or see the statements) and other bills would start to be paid late.

Shady · June 15, 2011

That's a stupid business model.

LOL. Yeah, what a crappy and unsuccessful business Toyota is. And no, Ford doesn't make a profit on all the vehicles they make. At least no counting the government tax credits on them.

cybercoma · June 15, 2011

You're trolling, right? Retailers selling loss-leaders doesn't compare to the postal industry.

Smallc · June 15, 2011

And no, Ford doesn't make a profit on all the vehicles they make. At least no counting the government tax credits on them.

Yes they do actually. Ford's hybrid program is now profitable. Alan Mulally has said as much. Unless you have evidence to the contrary....

Edited June 15, 2011 by Smallc

bush_cheney2004 · June 15, 2011

We only get mail 3 times a week. Any less than twice and credit cards (not that you need to use the mail to pay those or see the statements) and other bills would start to be paid late.

Then it can be reduced even further...to weekly. Many years ago, military service members could go months without receiving their post and packages to no ill effect.

Shady · June 15, 2011

You're trolling, right? Retailers selling loss-leaders doesn't compare to the postal industry.

Why not? It's the same thing. Especially considering keeping open a small office in a small community, when the community is only going to grow, is a future money-maker.

bush_cheney2004 · June 15, 2011

Why not? It's the same thing. Especially considering keeping open a small office in a small community, when the community is only going to grow, is a future money-maker.

Sure is...next they will want to bring back the milk man!

cybercoma · June 15, 2011

Why not? It's the same thing. Especially considering keeping open a small office in a small community, when the community is only going to grow, is a future money-maker.

That's not what a loss-leader does.

You buy a printer at cost or below cost because the retailer and the companies make money on the ink... a lot of money.

You buy razor handles at or below cost because the retailer and the manufacturer make all their money on the disposable blades.

You buy electric power tools only marginally above cost because companies make their money on the accessories.

So, explain to me how that model works with a post office that provides a service.

RNG · June 15, 2011

We only get mail 3 times a week. Any less than twice and credit cards (not that you need to use the mail to pay those or see the statements) and other bills would start to be paid late.

I'd really start a rebellion if I were you. I have lived in Alberta and now live in BC and there isn't a single bill I get that doesn't give me more than 2 weeks notification from the time I receive it. Although I admit that other than Visa and my health care bill, I now get everything else via e-mail.

M.Dancer · June 15, 2011

Actually, you don't know what you're talking about. A system that requires massive capital investment and infrastructure to function, such as rural postal delivery is only profitable when operated as a monopoly.

So Fed Ex had no competition?

M.Dancer · June 15, 2011

The post office here is run out of a house and is delivered to by a contract driver. That doesn't mean that any of that would continue without the existence of the corporation, as this rote would not be nearly profitable.

And it doesn't mean that it wouldn't either...at a profit.

M.Dancer · June 15, 2011

Actually, you don't know what you're talking about. A system that requires massive capital investment and infrastructure to function, such as rural postal delivery is only profitable when operated as a monopoly. Hydro-electricity and landlines are the same idea. If there were no Canada post, who do you think is going to bother delivering mail to remote communities? UPS, FedEx, and DHL would charge such an astronomical rate to send things there that it would be crippling to people in those communities, if they got service at all. Your point is completely valid when it comes to cities or areas where there's a concentrated population. Unfortunately, a country this size requires service to remote areas too.

When was the last time you...mailed a letter that wasn't a greeting card or a bill?

cybercoma · June 15, 2011

So Fed Ex had no competition?

As Smallc already said, they don't deliver everywhere like Canada Post. In fact, I can't even get UPS to deliver to me in Fredericton. They pass it off to Canada Post for delivery here and it's the capitol of New Brunswick. Now whether that's due to some sort of "deal" or whatnot, I don't know. It's still the case that remote areas do not get service from these companies. They do the same thing and pass it off to Canada Post.

cybercoma · June 15, 2011

When was the last time you...mailed a letter that wasn't a greeting card or a bill?

Completely irrelevant. I still receive plenty of important correspondence through the mail.

M.Dancer · June 15, 2011

As Smallc already said, they don't deliver everywhere like Canada Post.

And he is incorrect, but nevertheless, FEDeX delivers millions of units a day, has had massive amounts of capital infusions by investors and operates in a competition rich enviroment.

M.Dancer · June 15, 2011

Completely irrelevant. I still receive plenty of important correspondence through the mail.

Then nothing you receive by mail cannot be replaced by email. Hence as a business model, the post office is in a terminal phase. The only area where it can survive is parcel delivery, and it is protected unfairly against rate based competition.

bush_cheney2004 · June 15, 2011

And he is incorrect, but nevertheless, FEDeX delivers millions of units a day, has had massive amounts of capital infusions by investors and operates in a competition rich enviroment.

Sure looks that way...Brandon is only 300km from Winnipeg!

Shady · June 15, 2011

As Smallc already said, they don't deliver everywhere like Canada Post.

Yes, because it doesn't make sense for them to offer a service in a small location that already has a Canada Post. The ridiculous premise that if there wasn't a Canada Post, there'd be no service makes no sense at all.