US Postal Service is Bankrupt

Oh, the times they are a changing. Private sector businesses recognize the truth in these words and adapt to change. However, the Postal Service does not hear the call and does not make the changes needed to save its self.

For the last fiscal year, Postal Service reports that its revenue rose by .7% but operating expenses increased by 7.3% resulting in an 8.8 BILLION dollar loss. The taxpayers are again counted upon to foot the bill. Said Postmaster General Megan Brennan. “…. revenue growth in our package business will never be enough to offset imbalances in the Postal Service’s business model, which must be addressed through legislative and regulatory reforms in order to secure a sustainable future.” I would ask, just what legislative and regulatory reforms might she suggest?

As a loyal customer of the Postal Service I have a few ideas to offer.

1) A study conducted a few years ago concluded that major savings could result from the consolidation of post office locations. Some of the public objected by saying that their small local office was an important place for meeting friends. Yielding to those objections, the Postal Service backed away from the recommendations.

My home county of only 115,000 people has 14 locations. Ridiculous! Close most of them.

2) Numerous additional mail box services exist where you can obtain a PO Box, buy stamps and packaging material, and use the service you prefer: US Postal Service, UPS or FedEx. 

Support and expand on the use of those private sector locations.  They do a great job.

3) Amazon gets a deep discount that results in an average loss of $1.46 per each package delivered. Amazon has the unique advantage of Sunday delivery won by extreme lobbying.

Put Amazon (Billionaire Jeff Bezos) on the same playing field as other package shippers.

4) The post office sells a vast array of special stamps. A clerk counts out individual post cards. 

Sell a single style of stamp and only in packs or rolls. Sell post cards in bundles of ten.

5)  The postal service delivers to every address in America six days a week (exception holidays).  Years ago the use of first class mail began to be replaced by Internet delivered “mail.” We pay bills and handle private transactions on secured electronic services. No need for six day mail.

Deliver three days a week per route. Cut delivery vehicle expense, fuel and payroll by half.

https://www.marketwatch.com/story/us-post-office-losses-more-than-double-to-88-billion-for-the-year-while-revenue-rises-2019-11-14  for more information.

About authorbillramsey

During his forty-year professional career, Bill Ramsey wrote magazine articles and business newsletters. Now retired in the mountains of western North Carolina, he writes a blog and has published four books. Bill's 2015 collection of concise, real-life essays is titled "What Do YOU Think?" He has also written "Me Now - Who Next? (The Inspiring Story of a Traumatic Brain Injury Recovery)" and "Now That I Think About It. Bill's books and are available from Amazon.com and on all e-readers. See www.authorbillramsey.com. Follow Bill on Facebook at www.facebook.com/billramseyauthor/
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1 Response to US Postal Service is Bankrupt

  1. What else is new? A government agency running in the red. I, like you, am a supporter of the USPS. No other country can boast of service as good as ours provides overall. In all my 75 years, I think I have lost no more than three or four pieces of mail. Once, when my son was traveling overseas in Spain, he mailed me a postcard. The postcard arrived in my mailbox more than two weeks after my returned to the United States. Not acceptable. I think your proposals are excellent, especially the one calling for fewer locations. I have always wondered why it was necessary to have so many diffferent types of stamps (it costs a small fortune to make a stamp); reducing the selection would surely save money. Now, if only someone from the good old USPS is listening . . . 🙂

    Like

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