The Postal Service thinks that by going to five day delivery, it will save $3.1 billion.
The Postal Regulatory Commission (PRC) thinks differently. In their March 24, 2011 advisory opinion, they estimated there would only be $1.7 billion in net annual savings.
USPS has challenged the findings in these specific areas:
* $760 million in savings from increased city carrier productivity and efficiency under a five-day schedule that the PRC didnt' account for.
*$260 million in highway transportation and mail processing economies associated with one less day of street delivery that the PRC underestimated.
* $386 million in annual revenue loss that the PRC assumed.
What do you think the savings will be if we go to five day delivery? What will the cost be?
The whole USPS report is here.