Reply to Re: Does Netflix purposely screw U w/ delays?

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Posted by afn03488 on 07/19/06 08:02

Nonymous wrote:

> They ship first class, which at most is $0.78 round trip. But they very
> likely have negotiated a bulk rate with the USPS.

You don't "negotiate" with the USPS; they offer fixed discounts
for doing their work for them. Those discounts are set by the
Postal Rate Commission and any "negotiation" is done by ADVO
which accounts for about 10% of domestic mail.

> I've seen some postal and ex-postal employees estimate that the
> discount is probably around about %50, but there's never been any
> definitive answer with proof.

Fifty percent? What have you been smoking? Read the Domestic Mail
Manual. In exchange for annual fees of $8420, each Netflix wharehouse
can send outgoing FCM at $0.308 for prebarcoded mail sorted to the
3-digit level. [BTW, it is possible that the throttling claimed is
nothing more than NetFlix delaying some postings in an effort to claim
5-digit rates, but I doubt it. I wouldn't be surprized if part of the
imagined throttling delay stems from using a third party mailer in an
effort to minimize postage or accomodate more demanding USPS
preparation].Return postage will be $0.366 [both rate caluclations
assume a piece weighing less than an ounce]. Both rates are
expected to increase in September so anticipate a corresponding
price increase from NetFlix.

As a further aside, you may have noticed a new four-state barcode on
some of your mail [currently only flats, not letters; unlike the
POSTNET barcode with tall and short bars, the newer "Onecode" has
both asscenders and decenders in addition to the center tracking bar].
This will permit mailers to determine WHEN their mail was delivered
among other things. Don't know if NetFlix will pay for this service,
but you can be sure some billing services will.

[Back to original message]


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