• on May 17th, 2010 in Products & Services | 23 comments
    “If it fits, it ships.” If this sounds familiar, you probably heard it from the Postal Service’s Priority Mail® Flat Rate advertising campaign broadcasted on TV or radio. The Flat Rate option offers a simpler way to ship — whatever fits in the flat rate box or envelope (up to 70 pounds) ships for one rate to anywhere in the United States. There is virtually no weighing or calculating. The packages reach their destinations in 1 to 3 days. Normally, Priority Mail prices are based on weight and destination. To increase overall package revenue and market share, the Postal Service launched a highly-integrated, national marketing campaign in May 2009. The campaign is still running as of May 2010. To promote the benefits of Priority Mail Flat Rate Boxes, the campaign uses TV, direct mail, print and digital advertising, retail point of purchase, and more. Postal Service management shared the campaign messaging with employees through a May 2009 direct mailing. These are two of the recent Priority Mail Flat Rate TV commercials: •Clowns AdvertisementMail Man Advertisement

    Has Priority Mail added value to your shipping needs? What kind of value? Prior to using Priority Mail Flat Rate, were you using a major delivery service such as UPS or FedEx? Specifically, what caused you to switch? If you have not used Priority Mail service, what would you consider the most important reason for not using the service? This topic is hosted by the OIG’s Office of Audit Field Financial - West team.

  • on May 18th, 2009 in Products & Services | 29 comments
    Do you know why some magazines include postcards in the middle? Or have you mailed a letter back to a company in their envelope without having to put a stamp on it? Did you ever wonder how this service works?

    The Postal Service offers a service called Business Reply Mail (BRM). By opening an account with the local Post Office, a business may supply their customers with return envelopes or labels. This allows customers to send a reply via First-Class Mail or Priority Mail. The business pays the postage and a per piece fee only for the pieces returned. To ensure the postage is collected, clerks at the delivery Post Office calculate the amount due and withdraw the money from a customer account. In some cases, carriers collect the postage when they deliver the pieces to the business. Generally, BRM pieces are identified through automation process; however, the Postal Service relies on clerks and carriers to identify and hold out any BRM pieces that have not been isolated through automation.

    Recent changes in the public’s mailing habits alongside increased use of the internet to communicate with customers have led to reductions in BRM volume. This coupled with a smaller workforce with greater responsibilities may increase the risk to the Postal Service of not collecting all revenue from BRM.

    Do you think a change in the way the Postal Service charges for these pieces would increase the mailing volume while also helping the Postal Service reduce work hours? Is a flat rate based on quarterly volume estimates a more attractive option? Share your thoughts on BRM.

    This blog topic is hosted by the OIG's Field Financial East directorate.

  • on May 11th, 2009 in Products & Services | 9 comments
    While 2008 was not a good year for mail volume in general, one source of optimism for the future is the continued growth in mail tied to spending on political campaigns. This is spending during political campaigns on direct mail to promote candidates or issues and to raise funds. Fundraising requests can also generate single-piece First-Class Mail responses. Although in the recent election there was much discussion of President Obama’s creative use of the Internet to communicate with supporters and raise funds electronically, for election campaigns below the national level direct mail is still the most effective tool for reaching localized areas. In an article in DMNews, William Berry, president of William Berry Campaigns, was quoted as saying, “Right now there’s just no effective way to really localize new media direct marketing. Remember, 98 percent of candidates are running for offices such as city council or state assembly and 85 percent of their ad budgets are still direct mail — it would be malpractice to recommend anything else.”

    The revenue potential of expanding voting by mail has received attention, but campaign direct mail may offer even greater opportunities for the Postal Service. Spending on campaigns has gone up every election year, even in years when there was not a national election. Campaign spending on election mail amounted to $648 million in 2004 and $707 million in 2006, before rising to just over $1 billion in 2008. While there have been efforts to market election mail (voting by mail), the revenue potential is not as significant as local campaign mail. For example, if the entire country were to adopt voting by mail, and even if as many as five mailpieces (registration, confirmation, voter guide, the ballot, and return of the ballot) went to or from each of 180 million registered voters, the number of mailpieces would not surpass a billion. The associated revenue would only be several hundred million dollars. Additionally, there is a risk that Congress could mandate that the Postal Service carry election ballots at a discounted rate or for free. The Postal Service has made a special effort to target official election mail, but a focus on campaign direct mail could have a higher revenue potential.

    How should the Postal Service reach out to campaign mailers and political advertisers to generate more revenue?

    This topic is hosted by the OIG's Sales & Service directorate.

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