Monday, October 03, 2011

How The US Postal Service Can Reinvent Themselves

Name one US Government run business that generates a profit?  That might take a while.
 The US Postal Service is a prime example why the government should not be in charge of any type of  business. It represents ANOTHER government funded/run business that cant generate a profit. If the Us Govt was a "real" business, it would have filed Ch 7 a long time ago.

Here are the scary stats:

 It has 574,000 employees, making it the nation’s second-largest civilian employer, after Wal-Mart. The service runs 215,625 vehicles, the world’s largest civilian fleet. Those vehicles traverse 1.25 billion miles annually and consume 399 million gallons of fuel. Its carriers serve 151 million homes, businesses and post office boxes.(source NY Times)

Here's how it could reinvent itself:

For 6 days a week, it comes in contact with just about every person in the US. Every person in the US has given the US Postal Service "permission" to place mail and 3rd party advertising in their mailbox. Outside of your email provider and Facebook, what other company "touches you" every day?

There is no spam folder in your mailbox. You look at every piece of mail you receive. Over 150 million "email addresses" that will look at an ad. Surely there's a way to take advantage of that.

There are over 200,000 vehicles that could be used for other purposes on the daily route. Why couldn't Google pay the US Govt to put their Google Earth cameras on top of each car?

Here's another idea. Why couldnt a service provider attach an antenna to each truck for some kind of WiFi service offering. Use the govt vehicles to test new broadband services, or webcam ideas?

There are numerous post office locations that could provide other services than just stamps, packaging etc. Why doesn't the government take advantage of this real estate? What other services would you use in combination with your mailing business?

Yes the Internet has reduced the amount of mail volume. However, the US Postal Service still comes in contact with a majority of the US population every day in some form (mail box, trucks, post office).

There is a huge opportunity here if the US Government would be a little creative. It has to stop thinking like a government agency and start thinking more like a business. If it was run like a business and was worried about generating a profit, I am sure the powers to be would find additional ways to generate a profit..and I dont mean by just raising stamp prices.

The US Govt is sitting on some very valuable assets, but it takes creativity to monetize them.

What would you do?

The tool that turned $10,000 into $2,800,000 in 2 years.

1 comment:

vicky said...

The post office does generate revenue (a good one), but because congress passed a mandate that requires them to pre-fund retiree health benefits for 75 YEARS in just 10 years all of their revenue is going to that expense. They are turning a profit, the mandate requiring them to pre-fund health benefits needs to be loosened or spanned out over a longer period of time than just 10 years.