on Dec 7th, 2009 in Finances: Cost & Revenue | 19 comments
 
If the Postal Service is to recover from its current financial problems, it needs revenue. In addition to identifying additional sources of revenue, it must protect the revenue it is already due whether it comes in from the post office window, meters, online postage accounts, or from Permit accounts for business mailers. Ensuring that the Postal Service collects all of its revenue will help secure the agency’s position as a trusted service provider for years to come.

That’s where you come in. What do you think are the greatest revenue leakage risks the Postal Service faces, and what are the best ways to protect that revenue? Now is the time to share your thoughts and help the agency.

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

19 Comments


Perhaps allowing postal employees to handle all that is outsourced would be a fine step. Outsourcing was allowed when the Postal Service had more work than it could handle. Now the tides have turned, it is time to protect the employees of the Postal Service by allowing them to take on this work. There is an offer on the table for the Postal Service management to save money. The postal employees will provide the service cheaper that what is currently being paid. Why won't good business thinking managers accept this offer?

Thanks for your comment!

FSS does not always cancel stamped flats -- if carriers don't hand cancel these things, they can easily be reused with a new label placed over the old -- how many carriers do you think are taking the time to cancel stamped flats?

Find a way to eliminate Media Mail, or to strongly discourage it's use. It is a service that is too often abused, and we lose money on it anyway. Either that, or create a special mailer just for that service so that it is not abused. Maybe even a see through mailer. Even though it is the only class of mail that is not protected against inspection, I do not want to open a media mail package for fear of accusations of rifling.

this is another joke of a question.

Just today Dec 7, 2009 management told clerks to STOP renting PO boxes so that management can close the processing and distribution facility in san diego ca. this facility is a needed facility but the PAC area office does not see the need.

It should become SOP that all Media is inspected at acceptance point. Actually, should be SOP that Media brought to the counter is brought unsealed, then we seal it and stamo it inspected. All need to enforce guidelines. More than once I have had customers mad at me because I wouldn't let them Mail newspapers at media rate, but pm knew and allowed them. Need tyotop feeling sorry for people, if it doesn't qualify, they pay PP. Is this service really even relevant anymore?

Also, need to stop letting off PMRS and PMS who steal money orders by letting them resign. Even if they confess they should be prosecuted in public to show it won't be tolerated.

As a major mailer, there are two ways to look at this issue. The first is directed at mailers who are intentionally trying to defraud the USPS by claiming discounts or classifications of mail that are not warranted. In those cases, the USPS should use the Inspection Service to intervene and punish the guilty parties according to the letter of the law. There is no place in our industry for those people.

The second (and probably most likely to happen) is the everyday mailer (regardless of size) who is just trying to do the right thing and makes a mistake. In our case, because of major investments in support systems and production technologies, we expect mistakes to be the exception to the rule. There is no place in these situations for the heavy-handed approach of the Inspection Service. Unfortunately, the USPS takes the approach that everyone is treated equally when dealing with revenue problems.....they're all part of the problem and considered guilty. For the majority of mailers who fall into the category of loyal customers trying to do the right thing in a very complex, DMM regulated environment, this only creates risk in doing business with the USPS because of the severe penalties for honest mistakes, and then fear that the long arm of the law (Inspection Service) will show up at your door with a badge and a gun to impose justice.

If that's the way to keep customers and attract new business, we've been doing things wrong for my entire career. Stupid us....we work out problems with our customers through continuous and immediate feedback and develop business relationships that facilitate the TRUST needed to maintain those relationships.

Please see this video to find out what the real purpose of the USPS actually is.
http://www.youtube.com/watch?v=Jv1HyL6hfWY

the usps should issue stock

There is a philosophy - keep it simple silly (kiss).

We sell a simple service for 70 cents that gets more time devoted to it than any of the other services we offer. I am speaking of deliver confirmation.

In my small office we scan all delivery confirmation and insured articles arrived to the office, arrived to the carriers, and then the carriers scan them attempted or delivered. All articles with delivery confirmation are eventually scanned delivered.

For drop shipments we add an EVS arrived scan.

All this means is that each article with insurance or delivery confirmation is handled no less than three times - not including the time spent numbering the parcels for the box customers and notifying customers that the parcel await pick-up. Most of these for the 70 cent delivery confirmation service.

After all this scanning one does wonder how we actually have time to deliver the mail at all.

One suggestion would be that drop shipment articles be scanned by those companies into a FIRM SHEET type program which, when scanned by the post office, arrive all of the parcels in that shipment.

try to keep the revenue you already have...in the office i work at the postmaster retired and was replaced by a OIC. This person had never been in charge of an office, has not been trained to operate on POS or IRT, constantly charges customers incorrectly, we have run out of stamps, we presently have very little ready post because it is all "out of stock" for the last several months. The only reason we have flat rate boxes is because the ssa's get them from usps.com and bring them to the office because our OIC doesn't know how to order those either. We can't generate more revenue if we can't keep customers, even the small ones.

Happy New Tax year, affecting a new USPS Fiscal Year, with a new comment on revenue.
The Health Bill Overhaul** will begin with serious
implications to USPS mailings.

So, I just rx'd my HighMark BC/BS (mailed) newsletter,
"Looking Healthward". A reminder of my other posts
regarding "Lemonade", among other technologies giving change to mail volumes, and information exchange, ie.
your business model called your j-o-b....
The article depicts a "gray hair" reading his mail,
and the caption of the artilce explains how the subscriber will soon, not be getting these pictured letters in the mail, along with the newsletter, the policy paperwork, and the bills, and the EOB's, and I'm assuming all "utter" mail the Post Office currently handles foir the health care industry. (BTW) the gray hair is smiling!
They go on to explaing that this is "all part of (our) health care overhaul "go-green" (initiative to
reduce administration expense) blah-blah-blah.

Additionally, the article describes this subject mail as "clutter"!!!!

Just a note on e-delivery....... and Revenue.

** Health Care Subscriber Realignment Initative Program (HCS-RIP)

I simply had to add this comment on Revenue Protection
compliments of the U.S. Census Bureau. See the third
statement on the About the Census Form page....

10 questions. 10 minutes. Discover how we collect the data that matters.

Every question we ask is for a specific reason, to ensure response accuracy or to determine seats in Congress.

NOTE: YOU CANNOT FILL OUT THE FORM ONLINE.

Viola! Revenue!!!!!!!!!!!

5-10-10

To Whom This May Concern,

For the past twenty five years I have been employed by the U.S. Postal Service (USPS) as a letter carrier but since today is my day off and I’m “off the clock” I am, at this time, a postal customer.

Here are a few suggestions that, I know, will contribute to the USPS getting out of the “red”:

* Instead of laying off workforce employees, lay off managers and supervisors. I believe it was last year or the year before that United Parcel Service (UPS) layed off 1,800 supervisors and managers and showed a profit the following year. We do NOT need 3 to 4 managers/supervisors per postal installation as we do in some post offices. (Pebble Hills P.O., El Paso, Texas, for example, has 1 station manager and sometimes 3 supervisors. There have been times when there was only 1 member of management present and business was well taken care of ).

*STOP paying out bonuses to ANY and ALL members of management.

*Millions of dollars can and will be saved if grievances won by postal employees and monetary awards are made to said employees are paid to the employee(s) winning the grievance not by the USPS but by the supervisor(s) who violated the contract thus forcing a grievance. Think about it, if you violate the contract and , for example, a letter carrier is awarded $400.00, that $400.00 comes out of YOUR paycheck and NOT from the USPS. I’m sure that our contract will be followed to the letter and the USPS will save hundreds of thousands, if not millions, of dollars.

*Get rid of the Central Forwarding System (CFS). If Party “A” mails something to Party “B” and the item is returned to Party “A” for whatever reason (No such number; insufficient address; etc,), then let Party “A” find where Party “B” has gone (or what their complete address is, etc) and then let Party “A” pay new postage to resend their item to Party ”B”. DON’T forward and/or return mail at no additional fee!

*In the past when the price of a First Class letter was raised, the price of a post card was dropped. What kind of baloney is that? How about EVERYONE pay the same postage rate? I don’t care if it’s a “Non-Profit” organization, a church group, a disabled group, utility company - EVERYONE pay the SAME rate. Here are some examples of letters I personally have delivered and the RIDICULOUS amount of postage paid and keep in mind that when delivering these pieces of mail they were NOT delivered to every house on my route (that is, 100% coverage):
George W. Bush
Presidential Center
P.O. Box 560887
Dallas, TX 75356 .05 postage

Republican National Committee
310 First Street, S.E.
Washington, DC 20003 .10 postage
Newt Gingrich
Former Speaker
Renewing American Leadership
P.O. Box 1224
Merrifield, VA 22116-1224 .05 postage

John Boehner
Republican Leader
“State of the Union Survey”
320 First Street, S.E.
Washington, DC 20003 .05 postage

Please keep in mind also that many of these letters and large envelopes weighed over one ounce and required .17 additional postage. In the case of a letter weighing over one ounce where the postage should have been .61, the postage was .05 The USPS lost .56 on that one piece of mail. How many organizations NATIONWIDE mailed how many pieces of mail at a “discounted” rate?

*And while I’m on the subject of postage......In 2008 Rank and File members of the House and Senate earned an average of $169,300.00.....and they pay ZERO postage for their political mailings! If anyone can afford to pay for their postage it these members of the House and Senate. Go back a few paragraphs and have EVERYONE pay the SAME amount of postage.

Enough said? For now, yes. Thank you for this opportunity for this postal customer to express his ideas on how to save the USPS money.

In His service,
Arturo J. Ortiz Sr.
El Paso, TX
aortiz2@elp.rr.com

There is a reason why the postal services has been pulled down with a financial crisis. People are turning towards more efficient and cost effective alternatives. People will not wait for anyone, to render and improve their services. They are brutal and therefore will move on, leaving your organization injured without any business. This is the similar case in the postal services, the leak outs have been major and it might be difficult for the postal services to regain its balance. But it should be able to learn from its mistakes and not ignore it.

yes i agree instead of laying off work force postmaster should eleminate manament jobs. every postoffice does not need station MANAGER.All the supervisior repot to Area manager. And one more thing all light duty (who are in managment because of thier friends) should go or return to their bids.i know one supervisor who is in managment for the last 10 yrs(204B) never been gainfully employee, always on light duty, filing grevinces for overtime, never carried whole rout,never helped managment,never push or pull empty equipment but since he became 204B he just harrases carrier clerks. How can i work for him when i know he was the worsr employee.

Unfortunately, the people running the USPS merely echo what their bosses think, and really never attended a business school. If they want to increase revenue via first class mail for example, then a re-education process must occur within the school systems across the nation. In order to receive state, and federal aids, schools should get required to teach children to write letters. Postmasters should visit schools, and give the postal sales pitch to children. Newly graduating senior should be given a free book of stamps to write thank you cards. Yes, I said free. So many graduates don't even know how to address an envelope let alone write a letter. This bodes poorly for First Class Mail going forward.

The sales pitch given by the post masters should include the benefits, and services the USPS offers. Get these young adults into the fold. I hold little confidence in the senior leadership of the USPS to correct the decreasing volume of First Class Mail. And, quite frankly, unless they develop new concepts to generate growth in this area, it will continue to shrink.

Furthermore, walking from one house to the next house to deliver mail is akin to fighting a 21st century battle with a 17th century technique. Elimination of this would greatly reduce worker compensation claims, and genuinely improve working conditions for employees. Wages, hours, and conditions of employment remain the 3 negotiable issues in any collective bargaining settlement. Require all customers nationwide to place their mail boxes on the street.

Wow, it's really help and useful RSS Feed!

I enjoy different thoughts shared in here!!:-)

Add new comment