Letter writing has given way to the cheaper, more instant varieties of electronic conversation like e-mail, text, IM and social networks. Where USPS once had a strangle hold on commercial package shipping, now you will find more efficient alternatives for customers and businesses. Cutting 100,000-plus jobs was not enough to conserve the U.S. Postal service from an $8.5 billion shortfall, accounts MSNBC. That’s $4.7 billion more than the business had shed the prior year. Post resource – U.S Postal service lost $8.5 billion in 2009 by Personal Money Store.
Nobody uses the Postal Service when they can use the web
Previous estimates by the U.S. Postal Service for 2009 were $6 billion to $7 billion. A sharp mail decline has resulted from more people relying on electronic communication, and the recession has stanched the flow of business mail. This has led to less marketing. It went down a bit. In total, it translates to less money for the Postal Service. The USPS is hoping that a postage rate increase is in the future. It also hopes that dropping Saturday service could happen.
Saving costs more than other organizations
About 105,000 full-time jobs got cut because USPS CFO Joe Corbett wanted to conserve about $9 billion. "More than any other organization, anywhere" is what he said the company has done. He said "efficiency" will be what USPS works on. The organization can't continue unless favorable legislation, regulation and labor contracts are followed.
Labor contracts are at the moment being negotiated between the USPS and its unions. There hasn't been a settlement yet. In 2011, the negotiations will continue.
Giving and receiving less first-class mail
There have been less bill payments as well as personal letters and cards that the USPS takes care of anymore. The bill reason is because more people are interested in online paperless billing. For the last three years, from 2008 to 2010, there have been drops in first class mail of 4.8, 8.6, and 6.6 percent. First class mail is something 50 percent of USPS revenue comes from. There is obviously a problem.
So long as retailers and creditors grant consumers discounts for paperless billing – a practice that is unlikely to change – USPS could have an uphill battle. Only Congress, read: higher taxes, might be able to help the U.S. Postal Service considering even Netflix has decided to do much less of a movie exchange through mail and more through a streaming service.
Details from
MSNBC
msnbc.msn.com/id/40151593
long, painful death
youtube.com/watch?v=EGG96ma1UQc
No comments:
Post a Comment