• on Jun 18th, 2012 in Post Offices & Retail Network | 10 comments
    Americans are passionate about their post offices as they made clear when the Postal Service unveiled its original plan to close 3,700 post offices, most of them in rural areas. Last month, the Postal Service announced a new plan to keep post offices opened but reduce the operating hours at 13,000 locations. These low-activity post offices would be open only 2 to 6 hours a day, which the Postal Service says would save it $500 million a year. The Postal Service also plans to upgrade about 4,500 current part-time Post Offices to 8 hours of daily window service. Post offices are viewed by many as a gathering place for citizens and central to a community’s social and cultural identity. Some argue the Post Office is not just a profit-based retail establishment; it is part of the Postal Service’s larger public service mission. Perhaps the Postal Service should consider expanding the services it offers at post offices before it closes them. But others say the Postal Service needs to reduce its operating costs by right-sizing its retail network to match the new reality of a changing communications market. Nearly 80 percent of the 32,000 Post Offices operate at a loss. About 12,000 post offices average daily revenues of less than $68 per day, and one third of those Post Offices have average daily revenues of less than $25 per day. Closing low-activity post offices would help the cash-strapped Postal Service save money. What do you think about the Postal Service’s Post Office Structure Plan, or POStPlan? Does it make sense to reduce the hours at low-activity post offices or should the Postal Service close them altogether? Or is there a better retail plan that considers a more targeted approach, such as offering new services in Post Offices and/or extending the hours at some post offices while closing others?
  • on Apr 23rd, 2012 in Post Offices & Retail Network, Pricing & Rates | 9 comments
    Generally, most consumers know the rates for mailing a 1-ounce First-Class® letter. However, many don’t know the prices of other postal service offerings, such as certification, insurance, or return receipt. In some instances, some of these services must be bundled with the mailing type. Posting the rates for the more commonly used services in a convenient spot in the Post Offices would let customers know approximately how much services cost, allowing them to make informed decisions. For example, displaying rates for the first several ounce increments of First-Class mail, as well as the most commonly used rates for Express Mail and Priority Mail along with the rates for certification, insurance, and return receipt, would help mailers calculate the total purchase price. Easy access to this information would allow mailers to effortlessly make price comparisons with other providers and clearly reveal the true value the Postal Service provides to consumers. What do you think? How can the Postal Service present prices in the most effective way?

    This blog is hosted by the Financial Reporting directorate.

  • on Oct 24th, 2011 in Post Offices & Retail Network | 28 comments
    A Contract Postal Unit (CPU) is a retail postal facility located inside a retail establishment, such as supermarkets, card and gift shops, pharmacies, and colleges. CPUs are operated by the retailer's employees and offer the same basic services available at a regular Post Office. The Village Post Office (VPO) concept was introduced earlier this year and is similar to the CPU in that they are retail postal facilities operated by community businesses. However, they provide limited postal products and services. CPUs and VPOs lower U.S. Postal Service expenses, primarily because they use already existing retail stores. The Postal Service does not have to rent its own store and hire dedicated staff. In fiscal year (FY) 2010, CPUs accounted for 8 percent of the Postal Service’s total retail network. In comparison, Canada has private dealer – operated outlets, which are similar to CPUs and account for more than 39 percent of Canada Posts® retail outlets; Australia has Licensed Post Offices and Community Postal Agencies, which are also similar to CPUs and account for 81 percent of Australia Posts® retail network. Expanding the use of CPUs and VPOs could assist the Postal Service in reducing its physical footprint, lowering expenses, providing more outlets for products and services, and potentially increasing access hours. What do you think? Would a system of CPU and VPOs better serve the current market? Do you have any concerns with the concept? Please share your thoughts and ideas. This topic is hosted by the OIG’s Financial Control Directorate.

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