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DVD rentals costly to Postal Service
The Washington Times ^ | 11-29-07 | Jim McElhatton

Posted on 11/29/2007 12:02:29 PM PST by JZelle

Rentals of DVDs from companies such as Netflix cost the U.S. Postal Service tens of millions of dollars each year because its sorting machines can't process millions of return envelopes, government inspectors say.

The postal service incurs more than $20 million per year in labor costs to hand-sort DVDs. And costs are expected to total as much as $30 million per year by 2009.

"Because these mail pieces are not machinable, the Postal Service pays significant additional labor costs to manually process them," auditors wrote in a recent report issued by Tammy L. Whitcomb, the deputy assistant inspector general for revenue and systems.

The problem is return envelopes for some DVD rental mailings have a "floppy edge" that can jam sorting machines and cause "missorts," according to inspectors.

Postal inspectors want Postal Service management to revise a manual that classifies what is "machineable" versus mail that needs to be sorted manually. Mail that can't be sorted by machine is charged an extra 17 cents.

But Postal Service officials haven't agreed to any price changes as a result of the recommendations, citing the "magnitude of this decision."

In a recent letter to Miss Whitcomb, two Postal Service vice presidents — Susan M. Plonkey and Michael K. Plunkett— stated they were "greatly concerned with the possible negative impact on affected customers if a change in mailing standards results in a substantial price increase."

The Postal Service declined to discuss the report yesterday.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: blockbuster; movierental; netflix; postalservice; taketv
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Prepare for a fee hike.
1 posted on 11/29/2007 12:02:31 PM PST by JZelle
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To: JZelle

“Prepare for a fee hike.”

That’s fine...Netflix is worth it to me.


2 posted on 11/29/2007 12:03:51 PM PST by Slapshot68
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To: JZelle

Privatize


3 posted on 11/29/2007 12:04:03 PM PST by Scarchin (+)
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To: JZelle

Another example of why we should have privatized the Postal Service two or more decades ago.

Its a government program for union members, thats all.


4 posted on 11/29/2007 12:04:52 PM PST by Badeye (Free Willie!)
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To: JZelle
Sorting this out may take several years, and the bureaucratic back-and-forth may cost tens of millions of dollars. And by the time they iron out a final solution ...

DVD Rental companies will begin doing their business completely over the internet.

5 posted on 11/29/2007 12:04:54 PM PST by ClearCase_guy (The broken wall, the burning roof and tower. And Agamemnon dead.)
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To: Slapshot68

I don’t care for it. They don’t send the packaging which in many cases contains extras about the film (booklet, essays). Nor do they tell you which edition of the film they are sending (what the extras are on the disc itself).


6 posted on 11/29/2007 12:05:40 PM PST by Borges
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To: ClearCase_guy

“DVD Rental companies will begin doing their business completely over the internet.”

Well they’ll have to find a way for me to burn the movie myself because I’m not going to watch a movie at my computer as is the case now with Netflix’s internet rental service.


7 posted on 11/29/2007 12:06:22 PM PST by Slapshot68
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To: Scarchin
Privatize

That option is already available. Don't want to pay 17 cents more at the post office? Just take it to UPS or FedEx and let the private carrier handle it.

8 posted on 11/29/2007 12:06:34 PM PST by PAR35
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To: Borges

I like it mainly for all of the television shows that are coming out on DVD almost daily. Since today’s tv sucks, it’s nice to go back and watch Star Trek: TNG, Wings, Cheers etc.


9 posted on 11/29/2007 12:07:29 PM PST by Slapshot68
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To: JZelle

Sounds like someone needs to upgrade their equipment to satisfy the needs of their customers...

and...

I thought that the postal service was ALREADY privatized, but regulated...


10 posted on 11/29/2007 12:08:03 PM PST by MrB (You can't reason people out of a position that they didn't use reason to get into in the first place)
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To: JZelle

Ever heard of a private enterprise complaining about too much business?


11 posted on 11/29/2007 12:08:06 PM PST by Jack Wilson
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To: Badeye
I was once at the Post Office, and they charged me a bit than I expected for something. So I shrugged, and grinned, and said: "Can't fight the government. Here's your money."

The clerk went ballistic on me and read me the riot act, because the US Post Office is not part of the government. It is a private business, self-supporting, with no government funding at all!

And I'm thinking "One of us is a complete moron."

12 posted on 11/29/2007 12:08:11 PM PST by ClearCase_guy (The broken wall, the burning roof and tower. And Agamemnon dead.)
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To: JZelle

The post office is always crying for more money.


13 posted on 11/29/2007 12:08:31 PM PST by napscoordinator
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To: JZelle
...because its sorting machines can't process millions of return envelopes, government inspectors say.

Does this not sound exactly like a government agency? We can't adapt, boo hoo. Because we can't adapt to changes we need a lot more money/taxes from you. It's your fault we need more money. Sheesh.

14 posted on 11/29/2007 12:10:14 PM PST by Obadiah
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To: Badeye

I disagree,

The USPS as dysfunctional as it may be is one thing that the Govt should operate... I just dont like the idea of mail service ending because of an enron type scandal within some private company in charge of mail.


15 posted on 11/29/2007 12:10:20 PM PST by N3WBI3 (Ah, arrogance and stupidity all in the same package. How efficient of you. -- Londo Mollari)
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To: JZelle
I bet UPS or FedEx would solve this problem.
16 posted on 11/29/2007 12:11:22 PM PST by E. Pluribus Unum (Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: N3WBI3

Most of the mail I get anymore is junk. With my bank’s online bill pay, I only have one bill that comes to via snail mail, everything else is emailed to me.

So aside from maybe sending greeting or Christmas cards out, the USPS can fade away and I would care less.


17 posted on 11/29/2007 12:12:29 PM PST by Slapshot68
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To: JZelle

Every time you hear a government agency say “can’t”, plug in ‘National Health Care System’ for the agency’s name and imagine socialized medicine.


18 posted on 11/29/2007 12:12:32 PM PST by Spok
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To: ClearCase_guy

‘And I’m thinking “One of us is a complete moron.”’

They are touchy about anyone noting they suck at their job, thats for sure.


19 posted on 11/29/2007 12:12:52 PM PST by Badeye (Free Willie!)
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To: Slapshot68

or you could learn how to connect your PC to your TV like I do...


20 posted on 11/29/2007 12:12:54 PM PST by PissAndVinegar
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