I am a postal employee. I work in a distribution center, processing the trays and letters; I don't do parcels or flat-rate envelopes; that's a different bid job in the building.
I'd like to try and explain why the price keeps rising.
It used to be, letters were ALL hand-sorted. We have pigeonhole cases in which letters that aren't machineable are placed. This is a tedious and yet very easy job; so physically easy, in fact, it is considered the "light duty" assignment for injured workers.
I digress.
The machines we primarily use today (called the DBCS, short for Delivery BarCode Sorter) are very sophisticated pieces of equipment. These machines are capable of sorting 35,000-45,000 pieces of mail PER HOUR; that rate depends on the quality of the mail being sorted. Larger, thicker envelopes can and do get jammed up in these machines, and often mangled when they do. Similarly, thin, paper-like envelopes also are easily mauled, and in fact the thickness is a primary consideration when deciding whether or not a mailpiece can be machined.
We also have machines called AFCS's, which stands for Automated Facer/Canceler/Sorter. These are equipped with pattern recognition software; they quite literally read the address and (if readable) spray a barcode corresponding the the address information. This barcode is read by the DBCS machines.
When an envelope is unreadable, a two-bit image of the face of the envelope is taken and the image is sent via a dedicated T3 line to an offsite Remote Encoding Center, or REC site. There, data entry clerks type the addresses into the system in code; this generates information used back at the processing center; that information is used to create a barcode, which is then sprayed onto the envelope, and off it goes.
I've worked on both ends of this system, and it really is as efficient as anything I've ever seen. When the entire system is working properly, it is rapid; 2-3 day delivery is virtually guaranteed. While it is true that mail can become damaged or lost, this is very rare when taken in context with how much mail each distribution center processes on any given day.
Much of the equipment we use in our plant, despite its efficiency, is quite old. In fact, some of it is SO old that it uses actual IO boards in conjunction with barebones i386 computers!
Then there's the newly installed BDS, or Biological Detection System. This was installed in response to the anthrax scare; they test for biological hazards (no, don't ask; I don't know which hazards are specifically tested). If the BDS "goes off" ALL operations cease, the building is evacuated, all posessions are confiscated (including our cash) and we're sent home in smocks. The building gets shut down, decontaminated, and then after a few days we all go back to work.
The electric bill for our facility runs into the tens of thousands of dollars
per month.
I don't even want to guess how much it costs to run our facility every month in total, but I
can tell you this: if it were not for all these big, expensive systems, we simply would not have reliable mail delivery today. It is simply
impossible to process all this mail by hand.
One way USPS could increase its take would be to eliminate bulk mail subsidies. One way the USPS could reduce its costs and increase its reliability would be to strictly limit what type of paper, and what color paper, is to be used. Most people wouldn't
like it if that happened, but the simple truth is that the lack of a strict standard for mailpieces
all by itself costs the USPS a bundle. I don't know if that aspect has ever been studied, but it would certainly be an eye-opener if it were.
Here are four photos:
http://images.google.com/imgres?imgurl=&imgrefurl=
http://www.usps.com/news/2002/press/pr03_0115photo.htm&h=1984&w=3000&sz=2526&tbnid=Cpvs86zQsLYJ:&tbnh=99&tbnw=150&hl=en&start=13&prev=/images%3Fq%3DDBCS%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DGThe top image is a DBCS, the second is an OCR (Optical Character Reader, which is one end of the data conversion system), the third is a manual letter case, and the bottom is a photo of priority mail sacks.