Friday, November 14, 2008
Any similarities here?
The USPS announced today a loss of over 2.8 billion dollars. Among the reasons mentioned was loss of mail volume. Is it any surprise that when the USPS levied not one, but two hefty increases on first class and bulk mailers over the past 18 months
and imposed new regulations for mailers to comply with, that mailers would cut back and/or look for alternative means of delivery... or stop mailing entirely? Hello?
When you increase costs to businesses, they cut back. Layoffs, reduced production or pass along price increases to consumers ensue. Worst case, shuttering entirely.
Raising expenses on businesses will not increase profits anywhere. The USPS must examine its business model and begin to revamp all with an eye towards reclaiming the loss of volume from DM. Renegotiate all their programs with an eye towards bringing mailers back with more cost effective mailing processes and lower postal rates.
Lower your expenses, lower your rates, increase your volume, increase your profits.
Labels: postage
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