Created on Thursday, 26 January 2012 17:11
Last November, the United States Postal Service (USPS) reported an annual loss amounting to $5.1 billion. The agency pointed to declining mail volumes and mounting benefit costs as the main culprits for the massive loss. Said CFO Joe Corbett, “The continuing and inevitable electronic migration of first-class Mail, which provides approximately 49 percent of our revenue, underscores the need to streamline our infrastructure and make changes to our business model.” This was seconded by Patrick Donahoe, Postmaster General and CEO, who said that in order for the USPS to return to profitability it must reduce its annual costs by $20 billion by the end of 2015.
The future of the USPS
One solution that the USPS is currently looking at is the elimination of one-day delivery of first-class mail. This, together with the plan to close half of the mail processing centers in the country could save the agency an estimated $3 billion in costs. Of course, not everyone is a fan of the Postal Service’s avoiding-bankruptcy-strategy, which as Senator Susan Collins puts it “could harm many businesses and their customers.” Collins also believes that such ideas “could well accelerate the Postal Service’s death spiral.”
Now if your business relies on excellent mailing service Los Angeles or direct mail services Los Angeles, you need to understand how the USPS’ financial troubles are going to affect your operations. Industry experts, for one, are saying that if the Postal Service moves forward with plans to end next-day delivery of letters, postcards, and other first-class mail, it could create some headaches for mailers, particularly publishers of newspapers and magazines. Still, some are very optimistic that the USPS can implement their proposed changes in a way that would allow most companies to proceed like it is business as usual. At the moment, everyone is awaiting how it would all turn out for the Postal Service since service standards are not expected change before April 2012.
Should you stick to your mailing service Los Angeles provider?
It would all depend on your current business mailing strategy. If you are after excellent direct mail services Los Angeles, please feel free to explore our site or give us a call at 323.462.6245. We can help you devise a direct mail plan that fits right into your overall marketing scheme and your set budget. For more information, you may also send us an e-mail by filling out our online Contact Us form.