How Not to Halt a Sales Skid

Imagine this conversation:

Boss:  “Sales are in the toilet.  Does anybody have any suggestions to improve sales?”

Staff member:  “I know!  Let’s raise prices!”

Boss:  “Brilliant!  Why didn’t I think of that?  Let’s do it!”

You’re probably thinking “That’s ridiculous!  Nobody would raise prices in the face of declining sales.”  But that’s exactly what the US Postal Service did this week.  With email taking the place of traditional mail and with private competition taking over the package delivery business, they raised the price of a letter to 44 cents, an almost 5% increase while threatening to cut delivery service.

This former monopoly is in a race to oblivion and they only have themselves to blame.  It does make you wonder if the government taking over banks, the auto industry, and health care is really such a good idea.

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