Postal Service Considers Closing 1,000 Branches

By Justin Gardner | Related entries in Economy, Money, Social Programs, Video

I wrote about the problems the Postal Service faced back in January, and today we get word that their financial woes are even more severe than previously thought.

From NBC…

Back to the January post, which was about cutting back on delivery days, I saw two advantages to that model…

First, the fewer the days the mail is delivered, the less gas the Post Office uses. Demand goes down, price goes down.

Second, I’d rather miss a Tuesday delivery than a Saturday one. That way the mail carriers have a normal work week and a premium is placed on getting mail to you on the weekends via Express Mail. This model would be much more competitive with FedEx, etc.

While closing branches would accomplish the first, it wouldn’t make the Postal Service more competitive with FedEx…which is exactly what they need to do.

More as it develops…


This entry was posted on Monday, August 3rd, 2009 and is filed under Economy, Money, Social Programs, Video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Postal Service Considers Closing 1,000 Branches”

  1. michael reynolds Says:

    Wait, they still have post offices? Where? Down by the livery stable?

  2. Trescml Says:

    I would prefer fewer days of service to closing post offices, but I suspect that some offices could be closed without a huge hit. I know that there are 4 post offices within 2 miles of my house. I agree that the Post office needs to be more competitive with UPS/FedEx but I think they are starting to do some of that with their flat rate boxes. However, they never will be totally competitive since some of their goals (delivery services to rural areas) are designed to lose money.

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