Much emphasis has been placed on reducing the Postal Service’s costs in response to its financial crisis. Yet financial viability could come in the form of a balanced approach that both reduces costs and increases revenue. How would a smart business respond to declines in its major products? Would it raise prices where possible in stagnant areas and invest the proceeds into existing or new growth areas? Would it selectively discount products to grow volume in price sensitive segments? Disruptive innovation, such as that underway in the communications sphere, requires change to ensure the Postal Service has what it needs to move beyond the critical crossroad it faces today.

The Office of Inspector General Risk Analysis Research Center’s new paper Postal Service Revenue: Structures, Facts, and Future Possibilities (Report Number RARC-WP-12-002) addresses the major components of the Postal Service’s revenue structure in Fiscal Year (FY) 2010, assesses existing opportunities permissible under the current framework, and discusses future options and policy considerations in a new era.
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Click here to read the Postal Service Revenue: Structures, Facts, and Future Possibilities white paper.

How would you approach the revenue issue to make sure the Postal Service continues to provide self-funded universal service to the American people?

This blog is hosted by the OIG’s Risk Analysis Research Center.

Comments (57)

  • anon

    They need to look at how some routes are being delivered. Why are carriers still walking house to house? Convert these routes to cluster boxes and stop the foot routes where possible. Also convert streets that have one box in front of each house to cluster boxes where possible. This would save time, labor, and gas. I live in a townhouse development and it isn't that hard to walk 2 driveways over to get my mail.

    Oct 11, 2011
  • anon

    Suggestion: Eliminate that requirement that the USPS contribute to the health pension plans of people who won't even work there for 65+ years.

    Oct 11, 2011
  • anon

    I think the whole postal union has to stop running the PO - streamline jobs & job functions - you probably don;t need near as many supervisors as there are now. The PO needs to be run as a real business - when REAL businesses come up on hard times, benefits, raises, promotions etc are frozen. Hiring stops and fat is cut. People don't get raises and promotions because they are "due" they get them because they are earned and because there is the money to do so. There needs to be an end to extravagant retirement & health benefits. Just because it's always been done doesn't mean it has to go on being done. Is the postal service REALLY going to go belly up because it can't be run like a real business?

    Oct 11, 2011
  • anon

    Get rid of the Bonuses.. Stop wasting the money on waxing floors that should not be waxed.. Cut management.. Consolidate.. Layoffs Stop hiring Idiots.. Most of all, stop promoting IDIOTS...

    Oct 10, 2011
  • anon

    Cutting costs is great and we have tightened up many screws. Let's stop kidding ourselves. We need heavy duty marketing and more revenue. Some rates need to rise. (We need to up sell our First Class 44 cent VALUE.) Let's add revenue by authorizing(and promoting) Delivery Confirmation on letters. We would lose some Certified Mail volume but continue this for Return Receipts. If we could up sell more letters with a 50 or 75 cent "letter D.C. special" this would add more revenue. Let's look at Insured Mail. I do not know our revenue but claims detract and are time consuming. (I think UPS generally includes a certain amount of insurance as part of their fee and I know they don't like to process claims either) Let's evaluate adding "FREE INSURANCE" to Priority Mail parcels, pay for it with a few cents of rate bump and sell it, up selling PP to Priority Mail at the same time. This might require some rate studies but we have 100's of bodies to handle that. Adding alcohol's to allowable shipping is OK but let's "lose" all the 19th century prohibitions like raffle tickets (FEDEX makes a killing) and firearms, dominated by UPS. These items require some safe guards but the other make big bucks and we could, too. Let's go out and sell what we do well!

    Oct 10, 2011
  • anon

    Systemically important institutions should be required to do all their electioneering via USPS mail, with full disclosure on the mailpiece. You guys could regulate. #postageNOTpayola

    Oct 10, 2011
  • anon

    Offer more services at the window to sell and that we could deliver. Talk to the rank and file the ones who do the job everyday we have ideas but are never heard.

    Oct 10, 2011

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