USPS: Junk mail could be new cash cow

[dogtowner]

The Dog says 'no thank you'

UNLESS you offer to cease delivery of this hard spam for a fee.
I don't think thats the plan though.
I suppose they are trying to make it better but they need to understand their business model is dead.

The U.S. Postal Service wants small businesses to send more direct mail, a.k.a. junk mail, to help the beleaguered agency expand its revenue stream by hundreds of millions of dollars.

In a campaign called "Every Door Direct Mail," the Postal Service is touting a year-old online tool to help small businesses micro-target direct mail. The Web tool allows firms to tap customers by neighborhood or zip code without names or addresses.

The cost to small businesses is 14.5 cents per mail piece. The Postal Service spent virtually nothing to create the online service, tapping existing staff and resources to pull it together, said Paul Vogel, president and chief marketing officer for the Postal Service, at a presentation Tuesday
"We believe it could be a billion-dollar product for the Postal Service by 2016," Vogel said.

The online direct mail program has been in existence since last April, generating $153 million in revenue through December. The Postal Service estimates the direct mail program will bring the struggling agency some $750 to $800 million in 2012.

 

[pocketfullofshells]

why are you anti business?

 

[dogtowner]

why are you anti business?

this is bad business that is costing taxpayers billions a year.

 

[pocketfullofshells]

this is bad business that is costing taxpayers billions a year.

how is it a bad business? if it was would they pay to use it?

 

[dogtowner]

how is it a bad business? if it was would they pay to use it?

USPS is bad business, the business model is dead. Tweaking a dead idea will not bring it back to life, the basic problems must be fixed. Then when they become profitable they can do what they please. The best thing that could happen is to just say 'no' to anymore taxpayer bailouts AND drop all arbitrary Congressional requirements so they can reshape the postal service into a workable system.

 

[PLC1]

this is bad business that is costing taxpayers billions a year.

If it is making money for the Post Office, how is it costing taxpayers anything?

If businesses are willing to send out junk mail, they must be getting some return on that investment even if you and I immediately throw the junk mail in the recycle bin. If the Post office is willing to promote junk mail, it must be making money on it. Why else would they do it?

 

[BigRob]

From a campaign perspective -- we send a ton of mail -- and even if you look at it long enough to throw it away -- studies show it does indeed register with you (after multiple hits) and can have an impact.

What you call "junk" -- others call gold haha.

 

[dogtowner]

If it is making money for the Post Office, how is it costing taxpayers anything?

If businesses are willing to send out junk mail, they must be getting some return on that investment even if you and I immediately throw the junk mail in the recycle bin. If the Post office is willing to promote junk mail, it must be making money on it. Why else would they do it?

Because the Congress has tied their hands against making any substantive change that would allow them to reshape the USPS into a profitable operation. Its useless to focus on a portion of the operation that might in itself makes money when the lion's share is hemorrhaging money ? That is basically rearranging deck chairs on the Titanic.

 

[Arbopa]

When I get junk mail it either goes right to the trash, or right to a pile to burn in the fire. It never get's looked at beyond the company name that sent it, and that is so I can remember to NEVER buy ANYTHING from companies that send out spam.

 

[dogtowner]

When I get junk mail it either goes right to the trash, or right to a pile to burn in the fire. It never get's looked at beyond the company name that sent it, and that is so I can remember to NEVER buy ANYTHING from companies that send out spam.

Its interesting that companies are content with the tiny rate of ROI from direct mail.

 

[PLC1]

Because the Congress has tied their hands against making any substantive change that would allow them to reshape the USPS into a profitable operation. Its useless to focus on a portion of the operation that might in itself makes money when the lion's share is hemorrhaging money ? That is basically rearranging deck chairs on the Titanic.

Could be.

What substantive changes have been proposed that the Congress has opposed?

 

[dogtowner]

Could be.

What substantive changes have been proposed that the Congress has opposed?

They can't propose because if Congress has to say OK it will never happen.

 

[PLC1]

They can't propose because if Congress has to say OK it will never happen.

So, how do we know Congress is tying their hands? It sounds as if they've come up with a money making idea with the junk mail.
Come to think of it, how could the post office make any changes to fit with the new paradigm in which people email each other instead of sending letters? Snail mail is becoming less and less relevant in today's world. We can get bills, pay bills, write letters, make inquiries, apply for jobs, you name it without ever using a stamp, envelope, or paper for t hat matter.

 

[dogtowner]

So, how do we know Congress is tying their hands? It sounds as if they've come up with a money making idea with the junk mail.
Come to think of it, how could the post office make any changes to fit with the new paradigm in which people email each other instead of sending letters? Snail mail is becoming less and less relevant in today's world. We can get bills, pay bills, write letters, make inquiries, apply for jobs, you name it without ever using a stamp, envelope, or paper for t hat matter.

set up their own bill pay service ? not everyone "likes" banks.
set up internet kiosks ? not everyone has computers.

you state the basic problem. anything pertaining to real mail is a loser.

Cut the home delivery to once or twice a week and see about being more of a competitive rival to UPS.

 

[PLC1]

set up their own bill pay service ? not everyone "likes" banks.
set up internet kiosks ? not everyone has computers.

you state the basic problem. anything pertaining to real mail is a loser.

Cut the home delivery to once or twice a week and see about being more of a competitive rival to UPS.

Sounds like you have some workable ideas. I wonder whether anyone in the Post office is that creative?

Still, the bottom line is that the PO needs to scale back.