U.S. Postal Service: Another Looming Crisis
But, as most observers contend, in the final analysis, it will take more than bare bones cost-cutting to right the USPS' ship. Its bid for an exigent rate increase last year only underscored the need for more than a bandage approach to its wounds. In order for printers and mailers to get maximum value from the Postal Service, in an age when costs continue to spiral and at a time when alternative marketing routes garner more and more mind (and dollar) share, the entities need to view themselves as partners working toward the same end.
"The USPS will not be able to cost-cut its way to recovery," Andersen contends. "While it cannot take the focus off aligning operation costs with current revenue, the Postal Service needs to place equal focus on developing new products and services to attract new mail users and make mail even more valuable for those already using mail for their marketing communications.
"We are encouraged by the enthusiasm (USPS chief marketing officer) Paul Vogel has shown for this task, but there is still a significant amount of work left to do in building the USPS value proposition," he points out. PI