on Dec 13th, 2010 in Finances: Cost & Revenue | 36 comments
The Postal Service does not receive tax dollars to sustain its operations, but relies on accurate postage payments for support. While the vast majority of the Postal Service’s customers pay the full cost of mailing, revenue loss, otherwise known as revenue leakage, can occur when individual or business customers don’t pay the appropriate postage for their mailings. Postage may be paid in a number of ways. Customers can buy stamps at a customer service window and apply them to letters and packages as they need them, which can sometimes lead to underpayment of postage. Business customers can pay through meter or permit accounts. Business Mail Entry Units make sure that the correct postage has been affixed or claimed when discounts are claimed. Online sellers can use PC Postage and Click-N-Ship® postage with free carrier pick-up, eliminating the hassle of taking their goods to the Post Office to be weighed and shipped. Of course, this could lead to mistakes in mailings sent out under the wrong, and cheaper, mailing class for which the goods do not apply, such as mailing a set of skis as media mail. Because of its dire financial situation, it’s now more important than ever for the Postal Service to protect the revenue it is due whether it comes in from the post office window, meters, online postage accounts, or from permit accounts. Now is the time to share your thoughts and help the agency get back in the black. What are the best ways to protect Postal Service revenue? Enter your comments below. The Office of Audit Sales and Service team is hosting this topic.