USPS in trouble

It's not new to hear the USPS lost more money in the first part of 2010. As more transactional documents become electronic transfers the USPS mail piece volume drops. Checks, statements and invoices are a few of the transactional documents making up about 1/2 of the postal media currently. The USPS expects a signficant drop The USPS saw a net loss of $592 million for January, according to data released by the PRC earlier this month. The USPS mailed 13.9 billion pieces during January. The USPS has taken a number of steps to rectify its financial situation, unveiling a 10-year plan to stabilize its finances in early March. The plan includes the transition to a five-day-per-week delivery schedule, as well as an exigent price increase that exceeds its inflation-based price cap in 2011.

John Potter, postmaster general and CEO of the USPS, predicted that mail volume could fall by as much as 27 billion pieces in the next decade to an all-time low of 150 billion pieces in 2020. Potter also warned that if the agency did not rectify its financial shortcomings, it would see a cumulative shortfall of $238 billion in the next 10 years.

How will this affect direct mail rates? What will the USPS do to create new revenue streams while cutting cost? Direct mail marketers will be watching.