USPS’ Ripple Affect Is Felt Beyond Actual Postage Cost

The postal increase has severely hurt profitability, that’s for sure. But you know another thing that has an even larger, longer term repercussion? Think of the thousands of jobs that are at risk throughout the direct industry. All the thousands of merchandise and catalog suppliers as well as many companies right size their businesses. In the end, decreased circulation hurts the USPS which struggles to achieve and maintain its own profitability. Maybe the USPS will understand these ramifications before it’s too late. Certainly it changes the nature of the catalog of the future. The industry will be forced to find non-USPS alternatives to prospecting and promotion. USPS just gave Internet another boost.

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Freight Costs, State of the Industry, Strategic, Financial and Operational Planning

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