Twenty years ago, when professional sporting teams started selling naming rights to their stadiums and arenas, many purists called it a low point in the commercialization of sports. But today, the number of arenas and ballparks not named after a corporate sponsor is small. For revenue-seeking team owners, it is just too hard to pass up the money that comes with selling your stadiums’ name. Strategy, business development and marketing all play huge factors in naming-rights deals, with top prices for these deals reaching about half a billion dollars, according to Sports Business Journal. As a business-centered organization looking to boost revenues, does the U.S. Postal Service have opportunities to sell naming rights? The idea of selling the naming rights to an entire Post Office might not be palatable to Congress, as lawmakers like to name post offices after fallen soldiers or local heroes. But what about selling space in parts of the Post Office? For example: this retail counter brought to you by XYZ Co.? Sides of vehicles or automated postal centers in high-traffic areas of retail centers could also hold valuable advertising space. With its national reach, yet local presence, the Postal Service is visible in every community nearly every day. Companies and nonprofit organizations would likely find the opportunities to reach such a large audience appealing. Another option might be to appropriate advertising space to other government agencies. For example, a state health department or the Centers for Disease Control and Prevention could use space on postal vehicles or in retail lobbies to announce a public health campaign. The Department of Energy or local governments could use retail space to tout energy conservation practices to citizens. This approach would also tie in with a larger vision of using post offices to connect citizens with other government services. Would such offerings tarnish the Postal Service’s image and degrade what is still considered a public institution held in the public trust? Or should the Postal Service think creatively about new ways to use its large physical network? Would naming rights be an easy way to generate revenue in tough economic times? Or should the Postal Service focus on its core business?
on Nov 19th, 2012
in Ideas Worth Exploring
| 5 comments
on Jul 30th, 2012
in Finances: Cost & Revenue
| 2 comments
The U.S. Postal Service is one of the largest real estate owners in the United States with more than 8,600 facilities and 950 million square feet of land. (The Postal Service leases another 24,600 facilities.) It also has about 357 unused land parcels with no structures on them, which have a book value of $128 million. The lands’ assessed values are likely to be significantly higher. The Postal Service has contracted with real estate company C.B. Richard Ellis to sell its surplus real estate, which includes both buildings and land. You can find the properties on the following website, http://www.uspspropertiesforsale.com/. The sale of properties would generate cash flow for the financially strapped organization. It would also contribute to streamlining its physical footprint as the Postal Service aligns itself to be a leaner, faster, and more market-responsive organization. However, the sale of real estate assets would not produce recurring revenues. Should the Postal Service consider leasing unused land parcels to developers so they can be used in a creative way to generate alternative sources of revenue? Or is this the right time for the Postal Service to sell its unused land parcels as it shapes itself into a leaner infrastructure? Or does it make sense for the Postal Service to hold these properties now and try selling them once the current real estate market regains some stability?
on Jul 2nd, 2012
in Post Offices & Retail Network
| 11 comments
Could post offices be redesigned to improve their appearance and ease of use, perhaps modeled after the pleasant, comfortable designs of other retail outlets? The business world has seen a recent explosion of interest in design. Apple is a great example of a company that has reached an astounding market capitalization based largely on its focus and skill in design, both of its products and retail spaces. Starbucks has successfully positioned its retail locations as a “third place”— neither home nor work — where customers can savor a cup of coffee and enjoy a comfortable atmosphere for work or leisure. Retail bank lobbies use smart, neat designs that facilitate efficient customer transactions. Post offices, for the most part, do not seem to inspire the same feelings. Although some retail outlets are more attractive and functional, many post offices are nondescript and lack visible customer tools, such as a list of services and prices. Their absence can cause unnecessary delays and frustration. Post Office counters sometimes appear cluttered and disorganized, and generally unappealing. Post offices in classical older buildings are an exception, and they often serve as an attractive part of a town’s landscape. However, the interior design doesn’t always match the elegant external architecture. As Apple and Starbucks have demonstrated, design is not merely an aesthetic issue; it has consequences for the financial performance of a consumer-facing business. Should the U.S. Postal Service redesign post offices as part of its retail optimization plan and make them more appealing and user-friendly? Could such design improvements yield appreciable commercial or financial benefits? Or would design improvements be too cost prohibitive in the Postal Service’s current financial condition? Tell us — and show us — what you think. If you love the design of a particular Post Office, let us know where it is and post a picture if you can.