|By Dianne Weaver|
The US Postal Service is facing a deepening money crisis, and will be raising the costs of the first-class stamp by two cents to 46 cents in January, in addition to other increases.
The “privatized” government mail service has an ever increasing decline in volume, mostly because of the Internet and other delivery services who have found their competitive commercial niche.
While US Postal does provide some outstanding services with daily delivery, and focuses on being a specialist in so-called junk mail, their business plan has some big questionable gaps.
Most post offices are still operating under the old banking hours formula, making personal access difficult for anyone who holds a day job.
Recently, I needed to call the Grantsville post office because of a medical crisis that happened to a family member of one of their employees.
Guess what? The post office does not have a number listed in the phone book, in fact only one Calhoun post office is listed.
After considerable frustration and searching, I got the number off the Internet.
Being involved in business ownership during years gone by, I recall one of the first actions was to get a phone book listing.
US Postal CEOs annually proclaim their latest marketing strategy to improve their bottom line, marketing which costs millions of dollars.
I offer my advice free.
Get a phone book listing.
The post office lost $3.8 billion last year, despite cutting 40,000 full-time positions and making other reductions.
They are facing a $7 billion loss this year and the same for fiscal year 2011, which begins in October.
The rate increase would bring in $2.5 billion, meaning there would still be a large loss for next year.
So what will happen when US Postal goes belly-up?