As the Postal Service examines its business model and contemplates changes meant to increase its efficiency, Congress’s role in postal operations has captured public attention. A prime example is the Postal Service’s recent efforts to trim its retail operations. As a cost cutting initiative, on July 2, 2009, the Postal Service filed with the Postal Regulatory Commission a list of Post Office stations and branches it was considering closing. After the filing, many entities questioned the Postal Service’s authority to close these facilities. An article published on the U.S.
March 18 marks the 40th anniversary of one of the most momentous events in postal history — the postal strike of 1970. The night before, postal workers in New York voted 1,555 to 1,055 to go out on strike in protest of a House committee vote to limit their wage increase that year to 5.4 percent on the heels of a 41 percent increase in Congress’s own pay. The wildcat strike and picketing were effective in shutting down postal operations in New York and quickly spread to about 30 other cities. Within days about 152,000 workers in 671 locations were on strike.
According to a representative on the Postal Regulatory Commission’s staff, a Postal Service-run lottery “could offer the potential for substantial profits for the Postal Service and utilize its current retail infrastructure with its 36,000 retail outlets.” Popular lottery formats in many states include drawings and instant lottery tickets. The claim is that running a national lottery could help the U.S. Postal Service close its multibillion-dollar budget gap. It could also build foot traffic to post offices, increasing retail sales of postal products.
How much does it cost to develop, print, ship, inventory, secure, sell, and cancel a stamp used to mail a letter? What about the stamps that are never sold? The Postal Service destroys billions of stamps each year because they are obsolete. In FY 2008, the Postal Service printed 37 billion stamps, which cost $78 million to print. In that same year, they destroyed old stamps, some of which were printed more than 10 years ago, that were valued at approximately $2.8 billion. Those stamps were printed, shipped, counted multiple times in various inventories, and finally shipped back for des
Last Monday was predicted to be the busiest day of the year for Post Offices™ across the country. Have you visited a Post Office recently? If so, we would like to hear your story.
Why were you there? What worked well? What didn’t work well?
Has your local Post Office adopted any best practices that should spread across the country? Are there any low-cost improvements that would improve the retail experience?
Like most retailers, the Postal Service uses mystery shoppers — customers unknown to the retail staff who fill out evaluations on their shopping experience — to determine how well retail units are performing. Not every postal retail unit is visited by mystery shoppers. Only units with a certain amount of revenue are included in the mystery shopper program.
The Postal Service has a long and proud history in public service. It has always been viewed as part of the federal government, yet has also been told to “act like a business” and to be self-sufficient. These distinctions can lead to interesting real-world implications, such as the degree to which retail associates should “upsell” or otherwise assist customers as they transact postal business. On one extreme, some claim that retail associates should do everything to find the lowest price for the customer.
The Woodfield Station located in Schaumburg, Illinois is an innovative, new retail environment that tests the limits of how the United States Postal Service interacts with customers and sells products and services. Dubbed the “Retail Learning Lab,” this completely redesigned post office serves as a testing ground for new products, new methods of serving customers, and new models for partnering with commercial businesses.