Enhancing the Post Office’s Bottom Line

Enhancing bottom line

Post Offices around the world have expanded their service offerings to better serve the needs of their customers. Items such as pre-paid phone cards, wedding insurance, and bank accounts are just a few of the many ways postal organizations are finding new ways of generating revenue in an increasingly digital world. Another new service offering by a particular Post Office might help whisk customers away to distant lands.  

The United Kingdom’s Post Office has recently entered into a partnership with National Express to offer coach bus tickets to its customers. With more than 11,000 locations throughout the country, Post Office is hoping to increase both revenue and foot traffic in its offices with the addition of the new service.

Besides bus ticket services, the Post Office also offers other customer amenities such as credit card services, mortgage loans, insurance products, telephone and broadband services, and a foreign currency exchange. Diversification into these and other services has had a positive effect to Post Office’s revenue stream.

In fiscal year 2013, Post Office earned nearly $2 billion in revenue, up from $1.88 billion the previous year. While the organization realized a net income of $30.8 million in 2013, the gain is made possible by a government grant of more than $340 million to maintain the postal network. The Post Office also received a government grant of more than $158 million towards transformation programs.

In addition to venturing into other services, do you think USPS should receive a government grant to help offset its expenses?

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3 Comments

  1. Grannybunny

     /  December 9, 2013

    No, I do not think USPS should receive a government grant for funding. We already are micromanaged by Congress and — were they to hold “the power of the pursestrings” over the Postal Service — it would only be worse.

  2. Jonn

     /  December 9, 2013

    I agree. More interference from Congress would only ensure USPS goes down for the count. If we want USPS to be around for a long time, it has to avoid as many of their puppet strings as possible.

  3. No way should we accept any sort of subsidies from the government even though we are definitely subsidizing them!!

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