Friday, September 23, 2011

Our Thoughts on U.S. Postal Service Changes

Our Thoughts on U.S. Postal Service Changes

At Strategic Marketing, we are devoted to automotive direct mail marketing. We partner with our dealerships to provide a strong multi-module mail program. We know our mailing campaigns are successful and we have years of statistics to prove it.

We know that direct mail is a viable part of dealership’s advertising budgets. It produces immediate results and can give any dealer an added boost during a calendar month. It truly is one of the best ways to get the consumers attention and produce immediate ROI for the dealer. Direct mail can be the difference between a good month and a great month.

So when we heard of the possibility of the US Postal Service cutting Saturday deliveries and closing some distribution centers, we become concerned. Below are our thoughts on the situation.

The postal service should view themselves as a business. They need to understand where they are not profitable and make adjustments to those areas which are creating the heaviest burden. Cutting daily delivery services, which produce revenue, will not increase profit.

If the postal service cuts their basic service of in-home delivery on Saturday, they are allowing revenue to be pulled away. They also lose their reputation as a reliable source to deliver communications and information. Billing companies, advertising agencies and others will start to look to other avenues to deliver their information. This in turn means even less mail and continued decreases in revenue.

Instead of cutting Saturday service, the internal processes, labor agreements, and pensions should all be reviewed. The postal service needs to operate like a business in the free market. As with the car manufacturers, the market changed and changes were needed to get back to profitability. The manufacturers had to review labor agreements, pensions, and produce products that appealed to the American people. They changed how they did business. Our argument is more about being accountable for one’s own expenses and actions. As of recent, the post office has shut down non-performing or un-needed branches. That was a necessary move, but they should avoid cutting services which produce their basic revenue.

Those are just our opinions, what are yours? Do you think that that postal service changes will affect you and how you communicate through mail.

We know one thing for sure, we are confident that any changes that they make will not affect our mailing campaigns. We will continue to produce quality direct mail campaigns and be a strategic partner with our dealers to produce successful direct mail pieces.

To find out more about how we can help you, contact us.

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