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USPS Crisis: Strategies for Survival in the Digital Era

Explore the challenges facing the U.S. Postal Service and potential solutions amid declining volume, rising costs, and legislative proposals. Discover the impact on newspaper marketing and how to adapt to a changing postal landscape.

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USPS Crisis: Strategies for Survival in the Digital Era

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  1. U.S. Postal Service in CrisisBeginning of the End? Newspaper Target Marketing Coalition New Orleans March 7, 2012

  2. USPS Challenges • Volume – Declining Steadily • Price – Rising but Capped • Universal Service Obligation • Labor Costs • Pre-Fund Retiree Health Benefits • Debt Ceiling – Maxed Out / $15 Billion

  3. Volume by Mail Type

  4. Revenue by Mail Type

  5. USPS Incurring Unsustainable Losses

  6. USPS Strategic Plan $20 Billion Savings by 2015 • Legislative Initiatives Eliminate Pre-Funding of Retiree Health Benefits Eliminate Saturday Delivery Refund Overpayments to Federal Retirement System • Operational Initiatives Retail: Closing Down Post Offices Network: Close and Realign Sortation and Transportation Facilities Service Standards: Change Overnight Delivery of FCM/Periodicals Reducing Workforce by 155,000 Employees Manage Own Healthcare Outside the Federal Government

  7. What Does Congress Think?

  8. Legislative Proposals U.S. House of Representatives (H.R. 2309) • Turn USPS over to a Control Board • Commission for Post Office Closings • Eliminate Saturday Delivery • Increase Rates (CPI & 5%) for “Underwater” Products (e.g. Periodicals) U.S. Senate (S. 1789) • Provide USPS with RHB / Pension Relief • Eliminate Saturday Delivery (after 2 years and a GAO study) • Non-Postal Products (E-Commerce?) • NSAs can Lose Money to Retain or Grow Volume

  9. What Does Future Look Like for Newspapers ? • Periodicals • Higher Rates/Poor Service • Standard Mail • Continued Pressure on Rates • New Promotions (Sat/H.D. Incentives/Mobile Barcodes) • USPS Strays into Private Sector Competition (EDDM)

  10. Opportunitiesfor Newspapers • Distribution Revenue • Delivery of Magazines • 5-day Delivery (Newspapers Own the Weekends) • Convince Congress to Open Up the Mailbox? 2. Convince USPS of a TMC Retention Strategy • Data on TMCs in Alternative Delivery • Creative Proposals or Price Adjustments Over Time

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