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USPS seeks cuts, new deals to reach profitability


Marketers who use direct mail as part of their direct marketing solutions should be prepared for upcoming USPS closures that could create slower delivery times for businesses and higher mail volumes for the agency.

Recently, USPS reported that it lost $3.3 billion the quarter ended December 31. Currently, the only recourse to avoiding bankruptcy in October is if Congress greenlights facility closures and employee cuts.

Some companies' hesitance to use direct mail has compounded the problem, BusinessWeek reports. The amount of mail the agency expects to deliver in fiscal year 2012 is expected to fall 6 percent from the previous year, which experienced a 2 percent drop.

"We have a postal service that essentially is living from paycheck to paycheck, which is a very risky proposition for the American economy and the 8 million private sector workers whose jobs rely on the mail," Art Sackler, coordinator of the Coalition for a 21st Century Postal Service, said in an email quoted by BusinessWeek.

However, USPS has not thrown in the towel yet. In an effort to boost direct mail usage, the agency is planning to target high-volume mailers with special summer deals that allow businesses to send more for less.


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