Tuesday, February 22, 2005
Postal Rates
Lower Postal Hikes Expected
The postal service looks like it will offer a lower price increase to periodical publishers--for now. We should be grateful--the kind of gratitude we feel when someone stops flogging us. (And note the cute 34 cent stamp to the left. Ah, the good old days!)
I completely understand that we have the bestest postal service in the world, and that it's relatively cheap, given its universal service and fairly good delivery record.
But at a time when the underpinnings of what we mean by 'print' are transforming--let's substitute 'written media' for 'print'--increasing our rates isn't going to work. Pure economics will force publishers to continue to seek alternative delivery methods, including electronic--which lowers the total volume of mailed issues, which lowers postal revenues, which then forces another rate increase.
I think the postal service needs to rethink this pattern. They're losing everywhere--to email, FedEx and UPS, and the Internet. They need to cut costs, try new delivery and pricing strategies (should it cost the same to mail a letter from Washington, D.C. to New York as it does from Washington to Nome, Alaska?), and recognize that the volume of direct mail and magazines/catalogs can be increased by lowering prices, not raising them. This volume would translate into higher revenues.
There is a way for the Postal Service to compete, but it's not by jacking up rates.
Comments
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The postal service looks like it will offer a lower price increase to periodical publishers--for now. We should be grateful--the kind of gratitude we feel when someone stops flogging us. (And note the cute 34 cent stamp to the left. Ah, the good old days!)I completely understand that we have the bestest postal service in the world, and that it's relatively cheap, given its universal service and fairly good delivery record.
But at a time when the underpinnings of what we mean by 'print' are transforming--let's substitute 'written media' for 'print'--increasing our rates isn't going to work. Pure economics will force publishers to continue to seek alternative delivery methods, including electronic--which lowers the total volume of mailed issues, which lowers postal revenues, which then forces another rate increase.
I think the postal service needs to rethink this pattern. They're losing everywhere--to email, FedEx and UPS, and the Internet. They need to cut costs, try new delivery and pricing strategies (should it cost the same to mail a letter from Washington, D.C. to New York as it does from Washington to Nome, Alaska?), and recognize that the volume of direct mail and magazines/catalogs can be increased by lowering prices, not raising them. This volume would translate into higher revenues.
There is a way for the Postal Service to compete, but it's not by jacking up rates.
