Is the Price Right?

The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).


Workforce Flexibility – Would it Work for the Postal Service?

One area identified in the Postal Service’s action for the future is to increase workforce flexibility. A larger, part-time work force would give postal management the flexibility to increase or decrease employees depending on mail volume. Although this change is not as drastic as closing postal facilities or switching to 5-day delivery, it raises questions about what a part-time postal workforce would look like. The Postal Service has fewer part-time employees than any other international postal operation. Currently only 13 percent of its workforce is part-time.


Stamp Vending Machines

For decades, the Postal Service offered vending machine service to supplement its retail operations. Vending machines meet the needs of customers who want to purchase stamps without waiting in line. While the lack of stamp vending machines has resulted in customer frustration and a surprising number of newspaper articles, the problems are particularly acute in economically depressed and more urban areas.


Give Customers What They Really Want

The economy has changed dramatically over the last 12 months. The Postal Service’s financial situation has changed, as well as its target markets and the fortunes and requirements of its customers. If the Postal Service gathers appropriate data to fully understand customers’ needs and desires, and offers relevant solutions, customers are more likely to choose the Postal Service as their primary supplier of mail products and services. The customer experience includes attributes such as access, convenience, products, services, price and relationship with the Postal Service.


Too Costly to Keep On Truckin?

The U.S. Postal Service’s current fleet of more than 219,000 vehicles includes approximately 146,000 delivery vehicles, most of which are long-life vehicles (LLVs). The first LLVs were produced in 1987, and they average about 10 miles per gallon. The vehicles are right-hand drive to accommodate drivers delivering numerous mailpieces to curbside mailboxes. These iconic right-hand drive delivery trucks are nearing the end of a 24-year life cycle and are costly to maintain. In a recent audit, we noted that it cost the Postal Service about $524 million to fix the LLVs in fiscal year 2009.


Reducing the Number of Prices

The Postal Service has more than 10,000 prices contained in a 1,800-page customer manual known as the Domestic Mail Manual (DMM). The DMM provides individual and commercial mailers with information about postal services and standards for both domestic and international mailings. The Price List, also known as Notice 123, contains domestic and international retail and commercial prices for all postal products and services.


Scaling Back Hours, Not Post Offices

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.


Looking at the Bigger Picture

In a time when everyone is examining the dollars and cents of the postal business, people have a tendency to overlook the bigger picture: the greater role of the Postal Service in modern society. With that in mind, the Postal Regulatory Commission requested the Urban Institute to study the Postal Service. The focus was not a traditional look at the business but a study of the benefits of the Postal Service and its infrastructure to the American population.


Can the Postal Service Further Consolidate the Area and District Administrative Office Structure?

In the past 18 years, the Postal Service has reorganized its field structure at least three times. In 1992, the Postal Service reorganized its field structure from five regions and 73 field divisions into 10 areas and 85 districts. From 2002-2006 the Postal Service changed its field structure to nine areas and 80 districts, and adjusted again in 2009 to eight areas and 74 districts.


What Do You Think of the Priority Mail Advertising Campaign?

“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.