And then there was the USPS…

On March 2^nd, Postmaster John Potter of the USPS, announced a 10-year plan to return to profitability, including increased productivity, new products, and legislative reform…blah, blah, blah

The net result to consumers and businesses is higher rates and reduced service, including a five-day-per-week delivery service with the elimination of Saturday delivery.   The USPS is also considering additional price increases above the inflationary-based increases, secured within the last few years.

While a 2-cent difference in postage to consumers is annoying, it can be extremely difficult on business.    For example, let’s say Wells Fargo Bank has 500,000 customers and of that, 75% receive statements via USPS with 50% of those statements weighing 1 oz or less and the balance weighing more than 1 oz and less than 2 oz.  Because of the nature of the content, the USPS requires statement to be mailed  1^st class.

Let’s see how one simple mailing rolls out with respect to postage:

• 500,000             clients
• 375,000             receive statements via USPS
• 187,500             50% weigh less than 1 oz (187,500 x .382 = $71,625)
• 187,500             50% weigh less than 2 oz (187,500 x .507 = $95,063)

Postage = $166,688

…more reason to get customers online and to engage through social media.

by Janet Osterdock on March 3, 2010

in usps

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