The U.S. Postal Service believes delivering more junk mail to your home or business will generate more cash to help reverse a $5.2 billion loss.
The agency hopes to lure more businesses and direct mail marketers with rebates and discounts to get a larger share of their deliveries, Postal Service spokesman Tad Kelley told a CBS affiliate in Pittsburgh.
“We’re talking about a national program where a company can take a look at direct mail from a 30-state or more perspective and say, ‘Can I reach more customers?’” Kelly said. The New York Times was the first to report on the agency’s plans.
The Postal Service continues to see a decline in its volume of first-class mail deliveries as more individuals and businesses rely on electronic mail and messaging to communicate. The agency said it handled 38.5 billion pieces of mail in its April-to-June financial reporting period, a decrease of 1.4 billion pieces.
The agency saw a 9 percent increase in its shipping business in the same period as it continues to battle with UPS, FedEx and others for shipping dollars.
Despite the growth in shipping, the Postal Service reported a $5.2 billion loss, a big chunk of it due to having to prefund health benefits for postal retirees, the agency said.
The Postal Service said being able to reduce mail deliveries to five days from the current six and no longer having to prefund retiree health benefits would help it reduce the red ink.
Junk mail already accounts for 48 percent of total mail volume, and the Postal Service made about $17 billion delivering share of it last year.
Are you ready for more junk mail? And while we’re at it, has the Postal Service seen its best days?