• 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 Apr 12th, 2010 in Post Offices & Retail Network | 40 comments
    The Postal Service is required by law to “provide, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Consequently, the Postal Service has the largest retail presence in America with more than 32,000 leased or owned facilities located across the country. Today, alternate access channels are widely available. Customers can purchase stamps and access services at the Postal Service’s website www.usps.com, self-serve kiosks, grocery stores, retail outlets, and privately-operated shipper locations. Meanwhile, in the past decade, business and household mailers have increasingly turned to electronic media to transmit correspondence that was formerly sent through the postal system. In addition, a weakened economy has resulted in declining mail volume and revenue. The combination of the availability of alternative access and declining revenue requires the Postal Service to re-evaluate its retail network to eliminate growing excess capacity, reduce costs, and improve efficiency. In May 2009, the Postal Service began a national initiative, known as retail optimization, to consolidate its retail stations and branches in urban and suburban areas. Unlike some other retailers, the Postal Service can’t close their stores without generating public reaction. Closing just a small percentage of postal facilities can affect thousands of people and communities and is often questioned by those communities involved. As a result, there is a need for the Postal Service to work with stakeholders to balance their interests and optimize resources. This topic is hosted by the OIG’s Network Optimization Team.
  • on Apr 5th, 2010 in Ideas Worth Exploring | 42 comments
    According to a New York Times article, nearly 10 percent of Americans do not have bank accounts. These and other underbanked people may be taken advantage of by lenders, check cashing facilities, and pawnbrokers through excessive interest rates and fees. Fortunately, in this country, there are many options for consumers to choose, including prepaid debit cards. What if the Postal Service explored partnering with prepaid debit card providers to sell prepaid debit cards at post offices, just as they are now sold at other retail outlets? While the Postal Service explored similar products in the past, the current economic climate calls for a reexamination of the product. The Postal Service’s current experience conducting financial transactions in the form of money orders and Dinero Seguro would aid in the introduction of prepaid debit card services. Offering the cards could create a new revenue stream for the Postal Service and earn interest on the cards’ float, the money residing in cardholder accounts. That money may be invested prior to its use by account holders. The Postal Service might also benefit from increased sales of other products due to an increase in store traffic. The Postal Service has two core market advantages that would aid it in successfully offering prepaid debit cards. First, with the second-largest retail network in the country, the Postal Service could sell prepaid debit cards in areas with limited private sector retailers. Second, customers may be more likely to come to a Post Office to purchase prepaid debit card transactions because of their trust in the Postal Service brand. Legal and regulatory constraints, however, currently prohibit the Postal Service from offering prepaid debit cards. Under the Postal Accountability and Enhancement Act of 2006, the Postal Service cannot offer new nonpostal products. Private sector interests may also work to prevent the Postal Service from competing against them by offering this product. Finally consider that given the robust variety of financial institutions already in this country, the Postal Service should evaluate whether offering prepaid banking card services would provide valuable options to customers while making a profit for itself. What do you think? Why did you answer yes or no to the poll question? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).

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