Wednesday 15 June 2016

How postal administrations make money

As a postman myself, I have had to answer a lot of questions around economically justifying the existence of the post office. Many people acknowledge that the traditional mail business has grown so insignificant it won’t sustain even the smallest postal operator out there.

My answer is simple, diversifying into other quick cash service offerings such as financial services and government services is the solution. I also make mention of the fact that even if many things are now delivered electronically and globally, there still has to be the point where the electronics change into the physical. Think of an online purchase of a item that can be packaged into a postal parcel, no matter how hard inventors try to delivery everything electronically, at least in our generation, it cannot be possible. The post office being one of the cheapest options of sending small items around, it has the leverage to cash in on parcel and other related items delivery.

Even though some people won’t believe me on this one, but I will go on and say it. The postal business has not lost all mail business to competition. There are still bulk posting customers who normally send statements and promotions to their customers through the postal services. Many postal operators still harvest a good portion of their profits from the traditional mail and parcel business.
I always wonder why SMEs don’t take the opportunity to partner with the post office. I will tell you a secrete, ‘the post office is desperate for partners that will give them some business’. To them, failure to secure partners spell no salary increase, retrenchments, and a very unstable industrial environment.

Go ahead and try the post office near you.

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