Friday, April 22, 2011

Everything To Everyone

The Postal Service has painted itself into a corner by setting expectations too high.

For over a century they have delivered the mail to every home in America, six days a week, at extremely low cost.

But the drop in mail volume has resulted in deficits, so we, the taxpayers, have a choice to make.

- We can accept that daily mail delivery is something we believe adds value to the economy and our quality of life, and absorb the costs into the Federal Budget;

- We can insist that the USPS run itself like a business.

- A hybrid of the two.

Running the USPS like a business will mean some combination of the following:

- Mail delivery only a few days a week
- A surcharge, say $100/year, if you want home delivery. Picking up at a box would be free.
- Closing of thousands of post offices in Rural America
- The price of a stamp doubling or tripling
- An end of flat-rate postage. Every item will be priced by weight and distance.
- Extra fees if you want Saturday service of any kind.

I'm not advocating any of these ideas, and we will probably see some of the service cuts and surcharges rolled out, while deficits continue to be the norm. Deep down everyone likes the service USPS provides, but nobody really wants to pay for that level of service. But the USPS created this situation by being Everything to Everyone, and now none of their options are going to be popular.

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