Most people have heard of the problems that the United States Postal Service is facing, and for Canadian companies that do business across the border, the problems are already having a big impact. For the past several years, USPS has suffered with meeting financial obligations. Deficits have led to dwindling staffs at the USPS. This results in less efficiency when it comes to delivering mail and packages. In recent months, rumors have surfaced of even more stark changes at local post offices.
In fact, these rumors have led many to believe that many offices around the country will soon close. How does this affect your business or company? Some businesses use quick delivery carriers like UPS for their deliveries. Others have committed to the USPS for their postal needs. This may be an economic factor or one of patriotism. If significant changes here result in rising postal costs, will your business be impacted? This all depends on how heavily you use the services of your local post office.
Recent stories have said that rising prices of mailing packages will rise 4.6%. These expected increases will include Priority, Express, and First-Class mailing services. These costs may negatively impact a variety of businesses. Often these are businesses that are nearby local post offices. Those that do a lot of mailing and shipping have to take rising costs into consideration. Some businesses will see significant profit deficits related to higher USPS costs.
One of the things that the USPS is considering to reduce costs is to decrease their operating hours. This may affect weekly service and mail delivery. The reduction of weekend hours has already been discussed. Evercore Partners has been brought in by the USPS. This company is being used to assist in saving $20 billion through a restructuring process. Business owners that need the USPS may have to do some restructuring of their own.
Small businesses aren’t the only ones that rely on the USPS. Home-based businesses are included in this category. These businesses have come to trust in the reliability of the postal system. With fewer hours and workers, it is almost assumed that the USPS will function in a less efficient manner.
Many small and medium-sized businesses will be impacted by the problems of the USPS. Those who have depended on this solely for their mailing needs, rising costs can be frightening. This may mean ending long relationships with the USPS. Making other arrangements for your mailing needs may be more expensive, but it may offer you more security.