U.S. Postal Service - Example of How to Run a Business Into the Ground

The Postal Service's current plan is to slow down the delivery time of mail in order to save money.  I guess the idea is that with fewer processing centers and post offices, it will take longer to get mail from point A to point B. 

Wow, what a BAD idea!

In this day and age of improving processes and quicker communication systems, publicly stating you are going to be doing things (delivering mail) badly, is hardly a way to entice customers.

Yes, the amount of mail (letters and other flat pieces) being sent is down with the advent of e-mail, social media, texting and etc.  But while this type of mail may be waining, more and more people are using the internet for buying, which means a lot of delivering of packages is going on.  More now than ever.

But the U.S. Postal Service isn't necessarily benefiting from this.  It's amazing how many packages I received from UPS and Federal Express.  Now, when I mail packages, I know that typically, the U.S. Postal Service is usually cheapest, or about the same as UPS.  So why do other businesses bypass the Postal Service when they mail?  Obviously the overall process of dealing with UPS or Federal Express is better for them.

So the U.S. Postal Service is headed in the wrong direction.  Eliminating Saturday mail delivery... another plan in the works... along with slowing delivery times down... is only going to further send customers to other sources.  (I expect UPS and Federal Express to gain business from this action.)

My suggestion?  Improve efficiencies, deal with the labor unions, and make modest increases in postal rates.  (They can raise rates some and still be under the competition.  And a rate increase is in the future anyway, but it is only a penny on First Class mail.)

In the end, this is just another example of why governments should not be in business.  With more than a 100 year head start, the U.S. Postal Service is losing ground to the likes of UPS and Federal Express.  Why?  Because the private sector has to succeed or go out of business.  The government can keep a failing business going for years by infusing money or other benefits.  (Note the U.S. Postal Service hasn't received taxpayer money in many years, but also note they are nearly bankrupt and can't meet their pension commitments.)