Generally, most consumers know the rates for mailing a 1-ounce First-Class® letter. However, many don’t know the prices of other postal service offerings, such as certification, insurance, or return receipt. In some instances, some of these services must be bundled with the mailing type.
Posting the rates for the more commonly used services in a convenient spot in the Post Offices would let customers know approximately how much services cost, allowing them to make informed decisions. For example, displaying rates for the first several ounce increments of First-Class mail, as well as the most commonly used rates for Express Mail and Priority Mail along with the rates for certification, insurance, and return receipt, would help mailers calculate the total purchase price.Read More
A Contract Postal Unit (CPU) is a retail postal facility located inside a retail establishment, such as supermarkets, card and gift shops, pharmacies, and colleges. CPUs are operated by the retailer’s employees and offer the same basic services available at a regular Post Office. The Village Post Office (VPO) concept was introduced earlier this year and is similar to the CPU in that they are retail postal facilities operated by community businesses. However, they provide limited postal products and services. CPUs and VPOs lower U.S. Postal Service expenses, primarily because they use already existing retail stores. The Postal Service does not have to rent its own store and hire dedicated staff.Read More
The Postal Service has “coupled” its retail and delivery operations, both managerially and physically, since delivery services were first established almost 150 years ago. Historical patterns, or the needs for delivery service efficiencies, primarily determined the location of physical facilities, which typically house both delivery and retail operations. Demands for postal retail services are changing both geographically and demographically as consumers age and population centers shift.Read More
In today’s world we have the opportunity to do just about anything with just the click of a mouse and a few key strokes. Recent studies show online retail sales continuing to grow despite the economic slowdown and decline of overall retail sales. A previous blog, Could Radio Frequency Identification Make the U.S. Postal Service the Premier Delivery System, stated, “Last year Americans spent $155.2 billion shopping online. This year Americans are projected to spend more than $190 billion.” Purchases made online have to be shipped and this provides a great opportunity for the Postal Service to increase parcel delivery service.
The Postal Service delivers almost half the world’s mail and more than 171 billion pieces annually, of this amount, roughly 3 billion are packages (Source: 2010 Report on Form 10-K, United States Postal Service). In addition, the Postal Service is often the last mile option for delivering FedEx, UPS and DHL packages. In 2007, if given a choice, 46 percent of consumers would select the Postal Service to deliver their packages.(Source:Package Delivery Study conducted by comScore, March 2007.)
Think for a moment about your most recent visit to a store. How late was it open? Where was it located? Now think about the last time you visited a Post Office? Were there any differences between the two experiences?
While retail and the society at large have changed tremendously in the last 40 years, the size and distribution of the Postal Service retail network today is not that different from the network that existed in 1971. It has not changed to reflect the changes in where and how Americans live today.
Why is this? An OIG paper issued today, Barriers to Retail Network Optimization, highlights some of the obstacles to change:
• Statutory restrictions prevent closing Post Offices for economic reasons and impose requirements for notice, consultation, and appeal procedures.
• Regulatory procedures and interpretations create burdens on the Postal Service’s ability to make adjustments.
• Political obstacles to rightsizing result from the natural inclination of affected groups to protest the loss of local Post Offices.
• Institutional barriers within the Postal Service prevent action. These include a lack of sustained focus over time on retail optimization, problems with the availability and quality of data, past dependence on a highly decentralized bottom-up process, and the absence of a well-articulated strategic retail vision.
What changes would you like to see to the Postal Service’s retail network? What do you think are the biggest barriers to change? We want to hear from you.
This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).Read More