Wednesday, September 7, 2011

The Post Office Saga

That the Postal Service's challenges have been known for some time.  The current state of affairs was obviously inevitable several years ago, but management did not start the conversation with Congress early enough and then when they did last year, they got shot down on both a rate increase and a cut in operations.  So, both the Post Office management and Congress are to blame for this financial mess.

Now it does not take a rocket science business person to know that the Post Office should have started downsizing years ago.  If one Post Office can serve 20,000 homes, you don't need a Post Office in every small town when there are other small towns within 15 or 20 minutes of each other.

The Post Office has good market share.  They can compete, they need to downsize and then charge an appropriate price for their basic service.

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