Thursday, September 25, 2008
9 billion fewer pieces of mail
Postmaster General John Potter seems surprised at the fact that the Post Office will see this type of short fall. What did he expect? Raise postal rates on first class and 3rd class bulk and you expect a business increase? Let's go through this; more and more individuals are paying bills online. More and more people are using electronic methods to communicate as opposed to posting letters. But I believe this is a small portion of the 9 billion shortfall. The biggest cut comes from the Post Office's best customer, direct mail. We all know what happened there.
What if the post office created various levels of delivery services. Each level would have different costs to consumers and businesses but they would be more in tune with the specific business or consumer need. Example, most businesses don't need Saturday delivery. So that's a five day delivery commercial fee. Many consumers may not need Saturday delivery either. That would be a five day consumer rate. It could go as low as three day delivery.
If they reduce their costs they could reduce their rates thus increasing business.
Certainly this needs work, but it's a thought.
Labels: postage
posted by martin stein at 3:38 AM
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