<<  <  >  >>

The total direct

have some time during which their mail is

and stationery with the new address. That

supposed to be forwarded. Thus, a former

will add another $307 of expenses per box

costs of the

box renter who has moved from Miami to

holder for another sum of between $460.5

regulations

Seattle would have to fly back to Miami to fill

million and $767.5 million. Thus, the total

could reach

out the new form and show proper identifi-

direct costs of the new regulations for pri-

cation.

vate box holders would be between $837.5

between $639.9

The new PMB rule promises to create seri-

million and $1.39 billion.

million and

ous disruptions of mail service. The new reg-

However, all private box holders are not

ulations, of course, do not address any liabil-

businesses. No doubt individuals who do not

$1.07 billion.

ity exposure of the Postal Service if returned

use their boxes for business will also incur

mail results in economic loss for the CMRA

costs for change-of-address notices and the

box holder. For example, a CMRA box holder

like. Yet, if the costs for the individuals who

might incur monetary loss if an automobile

do not use their boxes for business are

title or license renewal, mortgage escrow

excluded to make the calculations conserva-

statement, or IRS notice are returned to

tive (and it is assumed that about 70 percent

sender as undeliverable.

of box holders are entrepreneurs), the total

direct costs for such box holders will still be

between $586.3 million and $977.2 million.

The Direct Costs of

In addition, the total of those costs to indi-

Regulations

vidual box holders will be $558 each.

The CMRAs will also incur processing costs,

as well as the costs of lost business. Those

The new regulations on private mailboxes

expenses can be estimated at between $53.6

will place an extreme cost burden on the

million and $89.3 million. Thus, the total

individuals and enterprises that rent them

direct costs of the new regulations could reach

(Table 1). There are between 1.5 million and

between $639.9 million and $1.07 billion.

2.5 million private box holders. The costs of

There will likely be other direct costs that

mailing each change-of-address notice,

are hard to measure. For example, the costs to

including stamp, envelope, and postage, will

recipients of entering approximately 100 mil-

be about 48 cents. Those box holders will

lion changes of address in files and databases.

likely have to contact at least 40 individuals

That will waste hundreds of millions of dollars.

or entities (a very conservative estimate) that

Indirect costs will be incurred as well.

mail regularly to their boxes. That means the

Private delivery companies such as Federal

hard costs of notification will be between

Express and United Parcel Service save money

$56.5 million and $94.2 million.

by being able to deliver to a lot of box holders

In addition, labor costs of preparing and

at CMRA locations instead of having to go to

sending out notices and looking up address-

individual homes or physical business address-

es must be taken into account. At an average

es. If CMRAs lose significant numbers of box

of 17 minutes to prepare a change-of-

holders, the private carriers will encounter

address notice, times 40 notices, at a labor

higher costs that, eventually, would be passed

cost of $16.84 per hour (based on an annual

along to customers.

salary of $35,000), each box holder will incur

$190.80 in labor costs. That means the total

for all box holders for those expenses will be

Reining In the Postal

between $286.3 million and $477.1 million.

Second notices required for 10 percent of

Service

addressees bring those figures to between

$377 million and $628.4 million.

The U.S. Postal Service is exempt from

Furthermore, each small-business box

most of the checks imposed on other govern-

holder will need to order new business cards

ment agencies, which explains why it can

10