Larry Dovichi: A business plan for Postal Service

08/21/2014 3:00 PM

08/21/2014 11:28 PM

Reality is after showing a 2 percent revenue increase and still losing $2 billion, any business would shut down. Times have changed, and the U.S. Postal Service needs to adjust. They have forever lost the personal letter business and in five years (or less) most bill payments will be handled electronically. The first step they need to take is to significantly raise rates on all deliveries except first class. Their business plan is failing, yet they possess a marketer’s dream in that no one currently has the ability to reach every house in every neighborhood. Junk mailers need that delivery system to survive. The postal service sold advertisers their market penetration and many bought it. Now is the time to make those advertisers pay for the opportunity to reach targeted households.

Wake up, Postal Service (as well as Congress); your life-saving three-step business plan should be: 1) immediately increase third class rates, 2) stop hiring, and 3) decrease delivery to four times per week, Monday through Thursday. Your strength is household reach.

Larry Dovichi, Modesto

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