Jeff Jacobs - page 20

It shouldn’t be a surprise really I predicted this many months ago here.  The USPS is one of most pathetic and mis-managed entity.  A company that has always been the same and never evolves.  You would think overtime as a business they would adapt to changes in the economy and introduce innovated technologies and ideas to mail easier and smoother…, however, its the same system only more expensive now.  Each year, as rates continue to increase, customers find cheaper and more affordable options.  It’s almost not even worth it anymore – 50 cents to send a small letter is about 50% overpriced.

As customers sending mail declines the USPS continues with operations and fail to adjust their staff and vehicles to manage less mail.  The infrastructure of delivering mail has been established for many years now…. so how in the hell are you losing money USPS?  It’s all overpriced profit with billions of pieces of mail sent every year! Not to mention all the other revenue streams you have like mail boxes and expedite services.

Honestly, we as customers need to look at this and say when do we just say no and let them fail.  I just tired of hearing all the complaining when I can easily calculate all the profit they are making.  They are just taking advantage of the the people and the system by continually asking for a stamp raise every year.  Perhaps the best option is just to let is burn to the ground and let innovation and entrepreneurs create a new more profitable system.

FACT:  The USPS posted a 9 BILLION dollar lost last year.  The USPS is requesting a 5%+ postage rate increase.

With all the talk about making liquor sales private and them losing money, Washington State Liquor Control Board is now building more luxurious liquor stores.  45% larger than the normal liquor stores they also include in  televisions (broadcasting messages) and a very nice wine tasting bar.  The new liquor stores are very much luxurious.  The stores also feature twice as much liquor which is about 2000 options. 

Don’t believe us?  Got check it out today it is located at:
4100 S.W. Alaska Street

Here is the problem with the Washington State Liquor Control Board and the business they are in. First, they continue to lose money which makes sense because every business the Government tries to run – loses money. That is a given. Second problem with the Washington State Liquor Control Board is that they should only be in control of safety issues and regulations only. They shouldn’t be in the retail business. We need to liquidate the Government’s involvement in a lot of things and anything they do that loses money, over spends, and could be managed and ran better privately should be done as fast as possible. There is no reason to continue on this path. It’s a complete failure not to privatize the retail portion of liquor distribution.

The United States Postal Service posted a loss of 3.1 billion dollars for the months of April – June 2011.  Total losses for the year are now at 5.7 billion dollars.  Postmaster General, Patrick Donahoe, keeps saying that aggressive actions are being taken to reduce their costs due to less customer demand but obviously his “aggressive actions” are not enough.  I do know, however, that every year the postal rates continue to increase more and more.  Did you really think that you could continue raising your stamp rates and expect the public and technology to just stand by the sidelines doing nothing?   

The reality is technology destroyed the United States Post Office and it maybe to late to save it.  Banks have setup free payment options that make it extremely easy for everyone to get their bills paid ontime. Many digital PO Boxes are now available where your physical mail is delivered to them and with just a click of a mouse you can shread, read online, and/or forward your mail back if wanted.  The monthly cost is very small for the service. The Internet has setup their own payment options (like Paypal) which allow people to send money to an email address instead of the post office.

Our mailing and payment technology only continues to get better while the USPS continues to operate with an older mindset.  In short, like any business you must grow and adapt to public wants and newer creative technology.  Newer and better services are created because the current one in place lacks features or has become outdated (and increasingly expensive).  That is how our capitalistic World works folks.  They have failed due to their lack of technology upgrades (and services they could have provided to the public).  Since they had a monopoly pretty much in the postal niche they could have really capitalized on it – but they didn’t.

I’m sure their solution to this problem will be to raise postal stamps again.  They will also try to limit the days mail is delivered which will cause more damage for them.  What they should be doing is investing and building out better technology.  They need to create services like the ones above that let businesses (local or international) open PO Boxes in any state for a monthly fee.  It should allow customers/companies access to their mail online without having to go to the mail box.  Do they realize how much money they would make with a service like that?  Less gas, employees, trucks, and billing (it’s automated!).  How about a monthly service that pushes all your physical mail to your email address?  Millions of people (maybe hundreds of millions) would order that service for $12 bucks a month.  It would save people time, gas, miles, money, envelopes, etc plus it would be more secure.  Hell think if you made that service a global service where international companies could order one (capturing global currency revenue).  That is some serious hands free and automated revenue.  Many parents have a hard time packing up the kids just to go the post office or store and the monthly fee is easily worth it for them.

There is still opportunities available to make it work for the USPS.  However, technology will destroy them if major innovated changes are not made quickly.  Out the old and in with the new!