Wednesday, July 7, 2010

Why isn't the post office a business?

A United States Postal Service contractor-driv...Image via Wikipedia
I just don't understand government organizations that can't be run by businesses.  There are many departments or organizations within government that actually take in money to provide a service.  The DMV for example as well as the post office.  News is out now that the US Post Office is requesting a 23% increase in the price of stamps.  http://www.adafruit.com/blog/2010/07/07/standard-mail-prices-for-parcels-to-increase-23/

The problem here is that the post office is not improving it's services, should be making money off of us, and still continues to lose money and charge unreasonable rates to deliver mail.

I think it's about time there be a rival created for the USPS.  One of the large freight companies should start delivering mail door to door like a business would and see if it can't improve on how the USPS operates.  Here is a short list of some of the improvements I think could be made:
- Create an opt-in system for junk mail.
       -  Does the post office make extra money by delivering junk?  How much time would be saved if there was no junk mail?  What if companies had to pay the recipients in order to send mail to them?
       -  Provide ways for consumers to provide information so that junk mail could be targeted better.  This would increase the value to the advertisers as well as provide junk mail that may actually be interesting to the recipient.
- Establish accounts associated with sender's addresses.  Instead of stamping mail, just charge each account for the mail that is delivered from that address.
- Create different classes of mail delivery.  Have standard mail delivery every other day and have urgent or 1st class delivery every day for a higher charge.
- Instead of charging people for P.O.Boxes, make it cheaper for people to receive mail at a main postal office.  Saves on delivery time and expenses and may be more convenient for some people.
- Offer a fax to mail service.  Fax the post office, or bring it in, and we'll deliver a physical printout of your fax to the address specified.

I bet a serious competitor to the USPS could not only make money, but they could probably improve on service, reduce junk mail, and reduce prices for end consumers.
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1 comment:

  1. The USPS has a ton of problems. No arguments there. I don't know that a competitor would work very well. UPS and FedEx are already viable and profitable competitors but that doesn't change the underlying issues with the USPS. Junk mail makes up a significant portion of the mail we get from the USPS and yes they do make money off of it. In 2008 junk mail was over 50% of the total mail delivered. That's crazy. I think the UPS should shutter a number of their smaller offices, offer buy out programs to reduce staff, deliver mail every-other day (great idea Ben!), and begin to use behavioral targeting to better sell their targeted audiences which they are doing now anyways....this is why everyone receives the money mailers full of local business coupons. Those are direct geography buys for the advertiser. Instead the UPS could offer targeted junk mail to people's interests. I like sports, sure send me mailers with deals at sporting goods stores. At least I'd be more interested in the ads....and the cost-per-acquisition for the advertiser decreases which means that prices would go up for that type of mailing. It's better than this 'death-by-a-thousand-rate-hikes' we are seeing in recent years by the USPS. The end story for the USPS is that as we move to a fully digital (online) world, their relevance will continue to erode until they are as specialized as FedEx and UPS.

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