The United States Postal Service remains the most popular choice for package delivery among affluent investors.
Eighty-three percent of all investors still use the United States Postal Service to ship packages, despite reports of the USPS’ financial problems.
In a recent Spectrem study, affluent investors were asked to name all the companies they use to ship packages, and the USPS was selected by 83 percent of investors. United Parcel Service (UPS) was selected by 67 percent, and Federal Express was chosen by 43 percent. Less than 3 percent selected DHL, which has curtailed much of its business in the United States. Just fewer than 5 percent of investors said they don’t ship packages.
The USPS is more popular among the less-wealthy investors, with 90 percent of investors with a net worth between $100,000 to $500,000 choosing the federal service. Only 77 percent of investors with a net worth of over $5 million use the Post Office, and among the wealthiest investors, UPS is a slightly more popular choice (77.8 percent UPS to 76.7 percent USPS).
The wealthiest investors are also more likely to use Federal Express, with 59 percent choosing that shipping service.
Twelve percent of investors with a net worth between $100,000 to $500,000 say they do not ship packages.
Although a majority of investors use the United States Postal Service for their package deliveries, those that don’t have specific reasons for avoiding the USPS.
Forty percent said using the USPS is just too time-consuming. That’s especially true for the ultra-wealthy (67 percent among those with a net worth of $5 million and higher), and the young (59 percent among investors under the age of 40.).
Twenty-five percent say the post office is not efficient enough in its delivery practices, and 16 percent said they had bad experiences with the USPS. Sixteen percent also said the prices are too high at the post office, although in most cases the post office prices are less than packaging prices at UPS or FedEx.
The USPS, which lost $11 billion in 2012, is expected to lose $6 billion in 2013. It is an independent agency which receives no federal subsidies or backing, but its services are authorized by the U.S. Constitution and must get Congressional approval for any major business decisions. It is the second-largest employer in the United States, behind Wal-Mart.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.