Postal Service Revenue: What Should be Done?

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?


Digital Currency: An Opportunity for the Postal Service?

When you buy your groceries, how do you pay for them? What about when you go to the gas station or neighborhood restaurant? How do you buy items online? Cash may still be king, but in everyday life, it is being eclipsed by newer digital payment methods such as credit cards, debit cards, and electronic transfers. These payment methods are often more convenient than carrying around lots of cash, but they are not equally available to everyone. People who don't have bank accounts or credit cards cannot access the full-range of digital currency products.


Neighborhood Mail and the Future of the Postal Service

Advertising mail is a core product for the U.S. Postal Service. It is an important way for businesses to reach their customers, but many local small businesses and others underuse or avoid advertising mail. The rules, rates, and regulations can be complex and confusing. For saturation mailings, simplified addressing allows businesses to use a simple “Postal Customer” address instead of a full street address.


Does the Postal Service Need International Service Centers?

The Postal Service established International Service Centers (ISCs) in 1996 to become more competitive in the international mail market. ISCs distribute and dispatch both incoming and outgoing international mail. The ISC network has facilities located in five major cities: New York, Miami, Chicago, Los Angeles, and San Francisco. The Postal Service hoped that ISCs would improve service and provide the structure needed to support new products and increase revenue.


Meter Mail Refunds: “Is There A Better Way?”

Postage Meters are printing machines or systems for home or office that print postage directly onto mailpieces, or onto an approved label, for mailing. Customers can request refunds on meter mail for a variety of reasons. For example, customers can request refunds when meter mail postage is printed for the wrong denomination, mail is damaged before it is delivered to the Postal Service, or postage is printed but not mailed.


Revenue Protection


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.
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Mail to the Future?

In a world where speed is everything, a new product is becoming popular that takes it s-l-o-w. It’s called Future Mail. In China, several companies are offering to deliver mail as slowly as you want, — even weeks, months, or years into the future. No time machine necessary!


A Lower Volume Postal Service?

The U.S. Postal Service is used to delivering large amounts of mail. Last year, it delivered more than 177 billion pieces. More mail pieces are sent per person in the United States than almost anywhere else in the world. But mail volume has been declining. How will the Postal Service change if volumes continue to fall? Is the Postal Service even financially sustainable at lower volume levels?

The Office of Inspector General (OIG) asked the George Mason University School of Public Policy (GMU) to find out. The results of GMU’s work appear in a paper released today on our website.


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).