USPS door delivery is a corporate strength- why stop door delivery?

Door delivery for the US Postal Service (USPS) is a corporate strength and  USPS is actually considering stopping door-delivery mail and move to a cluster delivery starting with 35 million addresses. The savings are projected to be $ 4 billion which is more than the $3.5 billion they could have saved with stopping Saturday deliveries that appeared in an earlier post. It seems that the Saturday stop service is on hold, thankfully.

USPS  can do a better job of telling the world how great it really is. The majority of its $65 billion revenue came from commercial post including the much maligned “Junk Mail” as mentioned in the pictorial. USPS door delivery is at the core of a $1 Trillion Direct Mail industry and 8 million jobs.Here are some more surprising facts right from the USPS website :

  • The US Post delivers to 152 million homes,businesses and PO Box numbers in the US.
  • It carries 40% of the world’s total mail. And its not because the 350 million Americans write more letters, but because the Direct Mail industry is very highly developed as illustrated.
  • With 65B$ revenue in 2012 the USPS would rank 42nd in the Fortune list if it were a private company, in the Global Fortune 500 it is ranked 135.

There is no other institution in America that physically reaches so many homes and businesses.  Ask any US marketer trying to enter global markets and they’ll tell you how hard it is to get a deep distribution going. Winding down an excellent ground distribution team does not make sense.

Although this blog is a champion of digitization, we do believe that there will always be a place for printed and mailed material. In any case, anything bought online will need to be delivered cheaply. Direct (Junk) mail will always reach  people who you cannot reach through any other media.Door delivery is a key strength of the US Post and not merely a cost center. About StratoServe.

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