• 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 Jun 7th, 2010 in Post Offices & Retail Network | 13 comments
    A number of media news articles in the last year have examined reductions in Post Office retail hours around the country. They report that some Post Offices are cutting back or eliminating Saturday hours, opening late in the morning or closing earlier in the afternoon during the week. The Postal Service faces significant legal and political constraints when it tries to close Post Offices, but faces few constraints when it acts to cut back on the hours a facility is open. However, eliminating hours amounts to a partial scaling back of retail service. When contacted by media, local Postal Service spokespersons have said districts have no specific targets for reducing hours and potential savings have not been calculated. After notices are posted that a Post Office plans to cut hours, some districts refuse to provide the media with a list of facilities where hours have been reduced, citing competitive issues relative to UPS and FedEx.

    Senator Susan Collins (R-ME), has come out against this approach, noting that cutting hours is a sure way to make the Postal Service’s financial condition worse. She said the Postal Service should be doing more to attract business, rather than making it more difficult for people to mail packages and letters because of reduced hours. So, is cutting Post Office hours the best way for the Postal Service to address declines in mail volume and the limits it faces on closing Post Offices? Is this part of a national Postal Service strategy or taking place solely by Post Offices on their own directive? Does the Postal Service owe the American people a real accounting of the service cuts it is making? What do you think? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).

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