Postal Service Rescue Plan Includes More Junk Mail

Postal Service Rescue Plan Includes More Junk Mail

Postal Service Looks for “Too Big Too Fail” Government Largesse

In a post 2008 financial crisis world, it appears that the mantra for large organizations experiencing distress is to go to the United States Congress and ask for a bailout.

Certainly, there is no mail carrier that matches the sheer size and volume of the United States Postal Service (USPS) and they are counting on that working to their favor as they seek money to keep the organization running.

The Postal Service says it is losing as much as $25 million per day. Some outside experts believe the postal service cannot last beyond the fall season without some changes. The Postal Service continues to blame e-mail and legacy pension costs for their financial problems.

In all likelihood, it is the legacy pension costs which were never properly funded for decades which are now causing them to hemorrhage money.

It is those same pension costs which bankrupted General Motors and many of the major airline carriers.

It is uncertain how willing the incoming US Congress will be to bail them out given their own financial problems.

More Junk Mail

According to the Wall Street Journal, the agency is running promotions, easing rules and planning television and radio ads to encourage more businesses to send pitches by standard mail, the official term for bulk mailings used by marketers to prospect for customers.

“What we want to do is to make standard mail more interesting for customers so we can grow the total volume,” Postmaster General Patrick Donahoe said in an interview. “We don’t call it junk mail—it’s a lucrative avenue for anyone who wants to reach customers.”

The WSJ explains:

The agency is also encouraging small businesses to use direct mail. It generated 501 million pieces of new advertising mail and $75 million in revenue between March and late September by easing rules on bulk mailing. Businesses can bring as many as 5,000 pieces of advertising mail a day to the post office, to be delivered by a carrier to every home on a route, without an exact name or address on the envelope, for 14.2 cents apiece. In the past, the postal service required envelopes to be fully addressed, which meant merchants had to purchase mailing lists.

Postmaster Donahoe said while people may complain about the increased volume of “junk mail,” he believes they like their coupons and other advertising mail and may trust it more than email.

Are you looking forward to getting more junk mail form the postal service?