Discussion - Member to Member Sales - Research Center
Discussion - Member to Member Sales - Research Center
10:26:23am
I've been watching them do one stupid thing after another, some minor missteps but others, doozies.
The over production of trite souvenirs compounded by limiting the availability of printed stamps is one. Virtually surrendering the parcel delivery system to Fex-Ex and others is another.
Building large underutilized postal facilities in rural areas and letting needed facilities become annoyingly crowded, another.
Today there are stores all over town offering copy services, FAX machine transmissions and of course reception, parcel packaging and wrapping and even Notary services, all of which could have, and should have, been folded into the mail delivery system.
Example of stupidity.
For years most of the post offices in this area had one of those number dispensers near the entrance and displays of products, including Hallmark Greeting Cards, around the room. A customer could enter and after taking the slip with the number could roam about the displays, choosing things that were wanted and possibly even making an impulse purchase.
In one very busy outlet there were benches where customers could sit down and wait their turn. Then some genius decided to remove the number dispensers and patrons are required to stand in line, which is often quite long at several places. If they even bother to notice the displays, they are far enough away from the cases that an impulsive walk over to a counter would cause a loss of place in line.
Then, once sales in displayed items dropped they were removed for lack of interest.
So we see the withering and possible demise of what was once a vibrant postal system, and that was before Congress loaded up the pension system with an unbelievable escrow payment for pensions or health care that originated in other departments.
So now we will cut Saturday mail delivery. What else is new.
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Charlie, i believe the biggest mistake was ceding package delivery to UPS and FedX. It would have required them reinvisioning how they did business, but most of the infrastructure was already in place and, as long as you're delivering stuff anyway, you might as well charge more than 46c to do it.
incidentally, they did try to have a web-based delivery system in which messages were coded as part of a proof of delivery system. It went nowhere, but they made an effort. I'm in no position to comment on how well it was conceived or executed, but it was tried.
And, yes, the blunders are far more numerous than one could imagine a single organization to make and still exist.
David
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Actually, I think that the real problem was the Congress' insistence that the Postal Service pre pay the federal retirement and medical care of its employees. No other business in the United States is required by law to fund the retirement of its current employees. And in many cases the Congress has allowed its cozy business partners to actually shift its agreed upon pension payments to the taxpayers. The leveraged buyouts of the 1980's were fueled by the ability of the corporate raider to seize the pension funds of the targeted company and shift the responsibility to the Federal Government Pension Guaranty corporation.
Mail service should be a function of government.
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I agree with Les, mail delivery should be a function of the government and not a quasi-government agency unable to compete directly with UPS and FedEx. PAC's for these large package delivery systems have thwarted any attempt by the USPS from competing with them in any way that would be disadvantageous to their business. I suspect there is more to the pension funding issue than what we know.
The next move will be to close all but a few post offices and to charge a fee for home delivery on any day.... watch 
UPS announced that the UPS Stores were voted the number one franchise opportunity for 2013 by some business magazine. These are a great place to go to pick up your mail
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Two things that bothered me is the Post Offices removed all vending machines making their lines longer. If you're trying to sell more stamps you don't take away a selling tool! They said the vending machines broke down too much. If true, then you buy machines that don't break down. Coca Cola probably knows a good vending machine company!
Number 2: How many times do you get messages, advertising, and prompts to GO Paperless, save a stamp, etc. The Post Office should advertise using persuasion that using stamps saves computer time, reduces chances of computer fraud and identity theft, no worry about passwords, etc. They don't point out the benefits of using stamps and the drawbacks of doing private accounting on line.
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That, plus the fact that probably 25% of the stamped mail doesn't even get cancelled and people have been reusing the stamps, probably since the Penny Black was introduced.
They do occaisionally inspect some of those Media Mail packages for contraband. I received one that the sender had sent me a bunch of books and a silver dollar that I had also won, that the POD had opened. When I contacted the seller she told me the POD informed her of the violation and just gave her a warning.
Mike
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A few points:
- Under federal law, the USPS has a monopoly on first class mail in the USA.
- Until about 5 years or so, federal law prohibited the USPS from being competitive with the UPS, FedExes, etc. in the package delivery service. That law was repealed, and you see USPS advertising and other things in place by the USPS to try to increase its market share on the package service.
- Regarding media mail, once warned, your name goes into the computer, and future packages mail be opened and inspected for continued violations. Improperly franked mail following the warning can be confiscated, and additional action taken against the mailer. Under the law, it is considered to be fraud to misrepresent the mail service class, and a felony. Small fry mailers probably won't have much happen to them for isolated incidents, but getting your packages opened may make customers uneasy seeing that, and the mail could be kicked back for improper postage, delaying delivery, also not making some customers happy. A fact that many don't realize is that if the package weighs less than 9 ounces (5 ounces for a package), it is cheaper to send it via first class than media mail. That covers alot of items.
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I work for the brown company in supply chain management and logistics and one of my customers is the USPS and I can tell you from firsthand experience most of the small packages that USPS tenders across their counters end up on a brown or orange and purple plane or truck.
As far as mail goes most of the high volume customer's presort mail is processed in a third party location before it ever sees the USPS to reduce customer costs with the USPS. When it comes to setting rates and service levels the USPS is sometimes their own worst enemy.
Unless the USPS can free itself from the last mile delivery or significantly increases their last mile delivery volume they will never be profitable.
There are some interesting white papers put together at Georgia Tech about the USPS I wish I could find links to them on the web. They painted a dim future for daily home delivery of the mail and postal rates.
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Michael, are you saying that mail is PROCESSED at third party locations? I thought internal processing was the a major expense
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There are lots of companies that provide pre-sort services. All mail is delivered to a USPS location for processing eventually. Per-sort customers enjoy a discount because the postal service doesn't have to do it.
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Pitney-Bowes runs third-party sorting of mail, and it has a big, sharp operation. I saw their facility in Dallas. It actually saves USPS money, because the mail is delivered to USPS all sorted and ready to go. Pitney-Bowes charges the mailers for the service, not the USPS.
When I was managing a mail center contract, the company (based in Dallas) that we used to print, stuff and mail our documents did the same for us. It was cheaper for us to use that company rather than PB.
In fact, if a company wants to enjoy lower postage rates, there are many requirements that it has to follow. The third-party mailing companies make sure that those are met, and let you know when changes are coming and helps you update everything so that your mail remains compliant. The less that USPS has to do to process your mail, the more savings it passes on to you.
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Required reading: How the US Postal Service is Being Gutted
Best I have read in a long time on the three common myths surrounding the demise of the USPS.
a) Myth 1: The USPS' losses show that it's not a viable business
b) Myth 2: Everyone knows that snail mail is dead, so USPS can't survive
c) Myth 3: Privatized mail delivery would be cheaper and more effective
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Silence in the face of adversity is the father of complicity and collusion, the first cousins of conspiracy..
06 Feb 2013
10:26:23am
It seems obvious to me, and possibly others, that our postal authorities missed the boat years ago by ignoring the potential of managing the internets.
I've been watching them do one stupid thing after another, some minor missteps but others, doozies.
The over production of trite souvenirs compounded by limiting the availability of printed stamps is one. Virtually surrendering the parcel delivery system to Fex-Ex and others is another.
Building large underutilized postal facilities in rural areas and letting needed facilities become annoyingly crowded, another.
Today there are stores all over town offering copy services, FAX machine transmissions and of course reception, parcel packaging and wrapping and even Notary services, all of which could have, and should have, been folded into the mail delivery system.
Example of stupidity.
For years most of the post offices in this area had one of those number dispensers near the entrance and displays of products, including Hallmark Greeting Cards, around the room. A customer could enter and after taking the slip with the number could roam about the displays, choosing things that were wanted and possibly even making an impulse purchase.
In one very busy outlet there were benches where customers could sit down and wait their turn. Then some genius decided to remove the number dispensers and patrons are required to stand in line, which is often quite long at several places. If they even bother to notice the displays, they are far enough away from the cases that an impulsive walk over to a counter would cause a loss of place in line.
Then, once sales in displayed items dropped they were removed for lack of interest.
So we see the withering and possible demise of what was once a vibrant postal system, and that was before Congress loaded up the pension system with an unbelievable escrow payment for pensions or health care that originated in other departments.
So now we will cut Saturday mail delivery. What else is new.
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this post
Auctions
re: USPS woes
Charlie, i believe the biggest mistake was ceding package delivery to UPS and FedX. It would have required them reinvisioning how they did business, but most of the infrastructure was already in place and, as long as you're delivering stuff anyway, you might as well charge more than 46c to do it.
incidentally, they did try to have a web-based delivery system in which messages were coded as part of a proof of delivery system. It went nowhere, but they made an effort. I'm in no position to comment on how well it was conceived or executed, but it was tried.
And, yes, the blunders are far more numerous than one could imagine a single organization to make and still exist.
David
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this post
re: USPS woes
Actually, I think that the real problem was the Congress' insistence that the Postal Service pre pay the federal retirement and medical care of its employees. No other business in the United States is required by law to fund the retirement of its current employees. And in many cases the Congress has allowed its cozy business partners to actually shift its agreed upon pension payments to the taxpayers. The leveraged buyouts of the 1980's were fueled by the ability of the corporate raider to seize the pension funds of the targeted company and shift the responsibility to the Federal Government Pension Guaranty corporation.
Mail service should be a function of government.
1 Member
likes this post.
Login to Like.
re: USPS woes
I agree with Les, mail delivery should be a function of the government and not a quasi-government agency unable to compete directly with UPS and FedEx. PAC's for these large package delivery systems have thwarted any attempt by the USPS from competing with them in any way that would be disadvantageous to their business. I suspect there is more to the pension funding issue than what we know.
The next move will be to close all but a few post offices and to charge a fee for home delivery on any day.... watch
UPS announced that the UPS Stores were voted the number one franchise opportunity for 2013 by some business magazine. These are a great place to go to pick up your mail
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10:34:32pm
re: USPS woes
Two things that bothered me is the Post Offices removed all vending machines making their lines longer. If you're trying to sell more stamps you don't take away a selling tool! They said the vending machines broke down too much. If true, then you buy machines that don't break down. Coca Cola probably knows a good vending machine company!
Number 2: How many times do you get messages, advertising, and prompts to GO Paperless, save a stamp, etc. The Post Office should advertise using persuasion that using stamps saves computer time, reduces chances of computer fraud and identity theft, no worry about passwords, etc. They don't point out the benefits of using stamps and the drawbacks of doing private accounting on line.
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likes this post.
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re: USPS woes
That, plus the fact that probably 25% of the stamped mail doesn't even get cancelled and people have been reusing the stamps, probably since the Penny Black was introduced.
They do occaisionally inspect some of those Media Mail packages for contraband. I received one that the sender had sent me a bunch of books and a silver dollar that I had also won, that the POD had opened. When I contacted the seller she told me the POD informed her of the violation and just gave her a warning.
Mike
Login to Like
this post
re: USPS woes
A few points:
- Under federal law, the USPS has a monopoly on first class mail in the USA.
- Until about 5 years or so, federal law prohibited the USPS from being competitive with the UPS, FedExes, etc. in the package delivery service. That law was repealed, and you see USPS advertising and other things in place by the USPS to try to increase its market share on the package service.
- Regarding media mail, once warned, your name goes into the computer, and future packages mail be opened and inspected for continued violations. Improperly franked mail following the warning can be confiscated, and additional action taken against the mailer. Under the law, it is considered to be fraud to misrepresent the mail service class, and a felony. Small fry mailers probably won't have much happen to them for isolated incidents, but getting your packages opened may make customers uneasy seeing that, and the mail could be kicked back for improper postage, delaying delivery, also not making some customers happy. A fact that many don't realize is that if the package weighs less than 9 ounces (5 ounces for a package), it is cheaper to send it via first class than media mail. That covers alot of items.
Login to Like
this post
re: USPS woes
I work for the brown company in supply chain management and logistics and one of my customers is the USPS and I can tell you from firsthand experience most of the small packages that USPS tenders across their counters end up on a brown or orange and purple plane or truck.
As far as mail goes most of the high volume customer's presort mail is processed in a third party location before it ever sees the USPS to reduce customer costs with the USPS. When it comes to setting rates and service levels the USPS is sometimes their own worst enemy.
Unless the USPS can free itself from the last mile delivery or significantly increases their last mile delivery volume they will never be profitable.
There are some interesting white papers put together at Georgia Tech about the USPS I wish I could find links to them on the web. They painted a dim future for daily home delivery of the mail and postal rates.
Login to Like
this post
Auctions
re: USPS woes
Michael, are you saying that mail is PROCESSED at third party locations? I thought internal processing was the a major expense
Login to Like
this post
re: USPS woes
There are lots of companies that provide pre-sort services. All mail is delivered to a USPS location for processing eventually. Per-sort customers enjoy a discount because the postal service doesn't have to do it.
Login to Like
this post
re: USPS woes
Pitney-Bowes runs third-party sorting of mail, and it has a big, sharp operation. I saw their facility in Dallas. It actually saves USPS money, because the mail is delivered to USPS all sorted and ready to go. Pitney-Bowes charges the mailers for the service, not the USPS.
When I was managing a mail center contract, the company (based in Dallas) that we used to print, stuff and mail our documents did the same for us. It was cheaper for us to use that company rather than PB.
In fact, if a company wants to enjoy lower postage rates, there are many requirements that it has to follow. The third-party mailing companies make sure that those are met, and let you know when changes are coming and helps you update everything so that your mail remains compliant. The less that USPS has to do to process your mail, the more savings it passes on to you.
Login to Like
this post
re: USPS woes
Required reading: How the US Postal Service is Being Gutted
Best I have read in a long time on the three common myths surrounding the demise of the USPS.
a) Myth 1: The USPS' losses show that it's not a viable business
b) Myth 2: Everyone knows that snail mail is dead, so USPS can't survive
c) Myth 3: Privatized mail delivery would be cheaper and more effective
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