Saturday mail deliveries are on the budget-cut table...

[MichaelB]

Junk mail is their primary source of revenue. Less of that means more problems for the post office, and eventually, us.

Pension and retirement funding is not optional. Just because others do not fund their obligations is no reason for the post office not too.

The USPS is obligated to incur high cost low productivity operations in the name of the public good. Nothing wrong with that, and also nothing wrong with paying a living wage. But they need to be able to move into value add services. For example, money transfers.

 

[ziggy29]

The USPS is obligated to incur high cost low productivity operations in the name of the public good. Nothing wrong with that, and also nothing wrong with paying a living wage. But they need to be able to move into value add services. For example, money transfers.

I would love to see them reinvent themselves to become more relevant to the 21st century. I'm not sure how you expand into other "higher tech" segments without complaints from the private sector that they are being forced to compete with a (quasi-) government agency.

 

[Midpack]

I disagree a bit... sure, the business is dying over time, but it is not like it is not a service we do not need... just that we need it less...

You can mail a card or a letter with FedEx or UPS, but obviously it will cost way more than 44 cents. So you would still have the service. Fact is, USPS can't afford to do it for 44 cents from Nowhere to Timbuktu either. So it's going to cost more or USPS service will be dramatically reduced (a few days a week, PO boxes only). If delivery costs more, so be it, that will just expedite moving what can go online to move. And that which can't will cost more or find another way. We're trying to prolong the utility of the buggy whip, why?

Like many others here, we do everything we can online. So our mailbox has a little useful mail wrapped in a bunch of unwanted trash (junk mail).

I saw Sen. Claire McCaskill D-MO recommend (during the hearing with Postmaster General) they launch a marketing campaign to encourage people to write more letters. Yes, it's relatively small, but what a mindset given the deficit backdrop - let's throw money at the buggy whip! Absolutely clueless...

 

[palomalou]

It seems a bit warped that the Post Office has a big blitz of EXPENSIVE advertising to try to get people to use the post office at a time when they are apparently going belly-up. Wasted resources, perchance?

 

[prototype]

I cave without Saturday mail, Pobably could live with just getting mail 2 or 3 days a week. But it is gonna take alot more than Saturday closing and shutting down a thousand rural 1 postperson type post offices.

The USPS 2011 deficeit is expected to be about 8 Billion dollars and 11 Billion dollars for next year. I even here talk of a shutdown in early 2012. A bandaid will be applied soon (probably Sarurday delivery ended, some rural POs shutdown, early outs) but the overarching issue (the USPS needs business process rengineering applied) will be bow waved until 2013. Wow, I do think the USPS has a huge liability for retiree pension/medical thats not reallu accounted for properly in the USPS/Govt. current cooked book data we see.

 

[samclem]

I would love to see them reinvent themselves to become more relevant to the 21st century.

Ironically, I think the junk mail is going to be more important/valuable to businesses in the coming years and the USPS can make money from it if they price the product right. Advertisers still need to reach customers, and with the rapid "self-customization" of most media streams, it's hard to reach a broad local audience anymore. Newspapers are on the decline, TV is too fragmented and expensive, online ads are similarly channelized and ineffective for local businesses. Direct mail (and radio) are among the only remaining means for local businesses to "broadcast" a message among a local audience. We all still go to our mailboxes.

 

[Midpack]

Ironically, I think the junk mail is going to be more important/valuable to businesses in the coming years and the USPS can make money from it if they price the product right. Advertisers still need to reach customers, and with the rapid "self-customization" of most media streams, it's hard to reach a broad local audience anymore. Newspapers are on the decline, TV is too fragmented and expensive, online ads are similarly channelized and ineffective for local businesses. Direct mail (and radio) are among the only remaining means for local businesses to "broadcast" a message among a local audience. We all still go to our mailboxes.

Advertisers will find ways to reach us. If you increase junk mail postage costs, advertisers will reconsider other channels for their "product." Will probably more online if they increase postage too much. You have noticed that you get ads inserted in other mail, like monthly bills, and even ads from your credit card company in separate envelopes.

And you mention TV is "too fragmented and expensive" - have you noticed there are more and more embedded ads in TV shows (and movies)? You see actors drinking Pepsi, Coke or whatever where it would have been a generic soft drink before - that's advertising. You even see actors mentioning products by name now 'would you like a Coke?' It's so subtle that many people don't notice it.

You also notice that most shows use one make of car exclusively for all characters, Bones for example is all Toyotas. I even remember an episode where two characters were driving a Prius, and they spent about 10 seconds talking about the Lane Keep Assist option. They explained what it did and showed the dash display, all carefully scripted of course. I don't think they've given up on TV or movies, more embedded stuff there too.

I agree with you that newspaper are a lost cause.

Not sure I agree on online ads. I know online ad revenues overall are up. And I think sites like Facebook, Twitter, Google, Huff Post and many others make tons on ad revenues. As for local, the same thing will happen (is happening?). The little population 29,000 town I live in has a website, let's call it Anytownlife.com, that started a few years ago. The site isn't anything special, it list comprehensive events and local interest stories. There are local ads on it too. The guy has a handful of employees, his personal vehicle is covered with ads with Anytownlife.com on it to get the word out - and that's really worked to get everyone to look initially. And he's making a very good living at it judging by his house. I ate dinner with him at a wedding reception about a year ago, and I know it's his only source of income.

 

[samclem]

I don't think they've given up on TV or movies, more embedded stuff there too.

True, and largely the result of TIVO and other DVRs--it's just too easy for viewers to skip the regular commercials now. All of this product placement is a "return" of sorts--old-time radio buffs will recall the way Jack Benny and other radio shows would work in references to their sponsors throughout the show.

But TV doesn't work for the neighborhood restaurant, the local car repair shop, tanning salon, painters, etc. For them, direct mail is going to be more and more important as their other means of getting the word out to a tightly focused geographical area becomes more difficult due to the "boutiquization" of other media sources and the decline of newspapers. The USPS can and should use this to help offset some of their losses in First Class mail revenue. All of that is secondary to cutting their costs, which is gonna require changes in their labor rates and policies.

 

[ziggy29]

I saw Sen. Claire McCaskill D-MO recommend (during the hearing with Postmaster General) they launch a marketing campaign to encourage people to write more letters. Yes, it's relatively small, but what a mindset given the deficit backdrop - let's throw money at the buggy whip! Absolutely clueless...

Yeah, I thought the same thing more or less. Let's encourage people to keep using obsolete technology. Wonderful. Why not start a marketing campaign to get engineers to start using slide rules again?

 

[Midpack]

But TV doesn't work for the neighborhood restaurant, the local car repair shop, tanning salon, painters, etc. For them, direct mail is going to be more and more important as their other means of getting the word out to a tightly focused geographical area becomes more difficult due to the "boutiquization" of other media sources and the decline of newspapers. The USPS can and should use this to help offset some of their losses in First Class mail revenue. All of that is secondary to cutting their costs, which is gonna require changes in their labor rates and policies.

That's what my comments on local websites with online ads was about in my last paragraph. It is taking hold in many communities already...not sure about where you are, but definitely in the small town I live in.

Just to complicate the matter, social media may/is becoming the bigger challenge to conventional advertising, even conventional online ads. Could get really interesting, and some MegaCorps are playing in the social media space already - Ford for one. If you're not on Twitter or Facebook (I know many here resist), you'd be surprised what's going on there that replaces advertising altogether.

 

[sheehs1]

As a small business, we have used more "email" advertising in the last 3 years while still doing a direct mail to our "current" customers a couple of times a year. The cost of that direct mail continues to go up ...up ...up as a percentage of sales.

I'm sure we have all noticed more....email...from the companies we purchase from in our "in boxes". (and even some we don't purchase from). Companies are buying "email lists" just like they used to buy "address lists". It's inevitable.

Small companies like ours and ...perhaps even larger ones...if they have not already will look at "their sales return on the USPS mailed advertising versus...email. Don't know if they will totally eliminate the direct mail..but they may cut back on it.
Not sure anything can really replace....receiving a direct mailing ...as an "in your hands" reminder to order. But as the generations come along...it might....because the mindset is very different.

And yes...as Midpack said...most companies are on Facebook. Wish that company would go public....so I could buy some of it's stock. The potential to be everything for anything...is unbelievable.

I see a virtual post office in our future....(haven't worked out all the details yet.) We can already buy stamps "online". Packages present a problem.
UPS and FedEx can take care of all of those.

 

[Bestwifeever]

And you mention TV is "too fragmented and expensive" - have you noticed there are more and more embedded ads in TV shows (and movies)? You see actors drinking Pepsi, Coke or whatever where it would have been a generic soft drink before - that's advertising. You even see actors mentioning products by name now 'would you like a Coke?' It's so subtle that many people don't notice it.

I'll take embedded ads (they're not that subtle ) versus those "bugs" and crawling screens that run with the programs and obscure part of them.

I agree with you that newspaper are a lost cause.

My favorite recent comic re newspapers:

 

[ziggy29]

And you mention TV is "too fragmented and expensive" - have you noticed there are more and more embedded ads in TV shows (and movies)? You see actors drinking Pepsi, Coke or whatever where it would have been a generic soft drink before - that's advertising. You even see actors mentioning products by name now 'would you like a Coke?' It's so subtle that many people don't notice it.

These days the "product placement" plugs are becoming so blatant and in-your-face that it's hard NOT to notice.

On Jeopardy!, for example, it seems like every game has a category that somehow becomes about naming companies based on logos, jingles, stock tickers, or something else. DW and I yell out "PLUG!" whenever we see one, which is most days.

 

[Texas Proud]

It seems a bit warped that the Post Office has a big blitz of EXPENSIVE advertising to try to get people to use the post office at a time when they are apparently going belly-up. Wasted resources, perchance?

Almost all the ads I see (not many as I don't look) are trying to sell the up charged services like FedEx and UPS....

 

[GregLee]

But TV doesn't work for the neighborhood restaurant, the local car repair shop, tanning salon, painters, etc.

It could, though, potentially work for cable TV. Cable operators can insert local ads, and now that Time Warner Cable, at least, has neighborhood distribution of programs, they might be able to insert ads specific to neighborhoods, as well as larger markets.

 

[clifp]

True, and largely the result of TIVO and other DVRs--it's just too easy for viewers to skip the regular commercials now. All of this product placement is a "return" of sorts--old-time radio buffs will recall the way Jack Benny and other radio shows would work in references to their sponsors throughout the show.

But TV doesn't work for the neighborhood restaurant, the local car repair shop, tanning salon, painters, etc. For them, direct mail is going to be more and more important as their other means of getting the word out to a tightly focused geographical area becomes more difficult due to the "boutiquization" of other media sources and the decline of newspapers. The USPS can and should use this to help offset some of their losses in First Class mail revenue. All of that is secondary to cutting their costs, which is gonna require changes in their labor rates and policies.

I think direct mail marketing is going to die pretty quickly. I see even relatively small business taking advantage of online advertising. I am not sure how many people know this, but if you go to Google and enter a type of business (plumber Chinese restaurant, auto body repair) and your city in addition to the handy yelp reviews, on the right side you'll see sponsored ads from local business. What is even more remarkable is if you DON'T add the city, you'll generally see the same ads. This is because Google generally knows where you live/are and the let local business buy a key word like Plumber but only for a limited area zipcode. Since you can do this for $50/month and only get charged for the ads people click on I don't see how mailing a bunch of coupons to peoples houses (I throw away 95% of them, and I do use coupons) can compete long term.

 

[REWahoo]

I think direct mail marketing is going to die pretty quickly.

+1

Here is a real-world example: I talked with Nords after his two-day [-]boondoggle[/-] blogger conference at USAA and one of the things he learned was that all the TV advertising we're seeing by USAA is funded entirely from a reduction in their direct mail expenditures. Although I hadn't realized it, I do get far less junk mail from USAA now than I did in the past.

BTW, he has a boatload of info from the conference that I'm sure he will be sharing both here and on his blog.

 

[freebird5825]

This may sound silly, but what the heck...
The very few times I go into a post office, I am immediately confronted with the displays of "new postage stamps" honoring this person or that event. How many people, besides stamp collectors, really care what their day-to-day postage stamp looks like?
An immediate cost savings would be to standardize the general delivery stamps, and issue limited editions of the "art stamps" to collectors via special order online. The savings on the original artwork design, proofing, production and mass printing of these fancy schmancy color print stamps, destined to be placed in every single PO in the nation, might be considerable.

I also could survive without 6 day delivery to my residence. Businesses must have daily delivery, especially for time critical shipments. Using the same system and delivery methods and schedule for residential and commercial customers just doesn't make sense anymore. Apples and oranges.

 

[LOL!]

Local businesses place advertising directly on our front door knob without the use of the USPS. Essentially, a few local advertising placement agencies compile the ads into a few flyers. Then the flyers get delivered by folks that look like vagrants walking through the neighborhood. These people deliver to the doorknob for less than postal workers.

Another way for local businesses to advertise is on the back of grocery store receipts.

 

[W2R]

I think direct mail marketing is going to die pretty quickly.

Oh PLEASE let this happen! Also, please let the marketing via 2 foot long flourescent colored tags hung on doorknobs end. I worry that thugs will think I'm away if I don't remove them quickly.

 

[LOL!]

Oh PLEASE let this happen! Also, please let the marketing via 2 foot long flourescent colored tags hung on doorknobs end. I worry that thugs will think I'm away if I don't remove them quickly.

We leave ours on the knobs until they rot away. So far, no thug problem.

Bloomberg News had this about the competition for the USPS: The Electronic Nails in the Post Office

 

[Gatordoc50]

We leave ours on the knobs until they rot away. So far, no thug problem.

Bloomberg News had this about the competition for the USPS: The Electronic Nails in the Post Office

I wish I would have said that. lol

 

[ider13]

Frankly, the only thing that comes in the mail for me anymore is advertising and bills. I don't find myself looking forward to mail anymore and toss most of what I get, anyway. Its more nostalgic than useful for me anymore, and at work, we mostly use FedEx or UPS that can guarantee next day.

 

[grasshopper]

I would love once a week delivery. As it is I have a PO box in New Mexico 16 miles round trip. But all my official resident mail goes to a PO box in Arizona 36 miles round trip. Any time I have to give my street address I have to make a 36 mile round trip, except UPS and Fed-Ex. I hate the UPS to your PO, because I still have the 36 mile round trip.

 

[Nords]

Bothers me a bit....that the USPS would consider reducing services before they take strong measures to reduce their "other" overhead. But perhaps they ARE also looking at that.

I'm sure there's a possibility that all these dire warnings of impending doom are a brinkmanship attempt to get the govt to "rescue" the pension system. Because I'd hate to see the post office try to break their pension plan and create a bunch of disgruntled postal workers.

But they need to be able to move into value add services. For example, money transfers.

Gosh, I wonder if UPS, Western Union, and PayPal would lie awake at night wondering how to compete with that...