Advertising Revenue

Advertising Revenue

Countless companies around the globe increase awareness of the products and services by purchasing advertising space on billboards, buildings, and vehicles. Advertising revenue gained by those selling that space contributes meaningfully to the bottom line, often with minimal associated costs. If a recent proposal by Congress is enacted, sellers of ad space could include a popular government entity.

Congress is considering many new and previously considered proposals to adjust the financial direction of the Postal Service. One of those possibilities includes the potential to use space on postal vehicles and inside postal buildings to advertise the products and services of other companies. The proposition is just one of many to increase revenue at the 238 year-old organization as it continues to fine-tune its business.

If the ad space proposal by Congress is ultimately approved, it could be one of many potential revenue opportunities in the final bill to expand services offered by the Postal Service.

Do you think the Postal Service should consider selling ad space on its property to generate an additional source of revenue?

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Unconventional Postal Revenue Alternatives

Unconventional postal revenue

Looking for opportunities to increase revenue is the primary focus of most business operations across the globe. Many look within their own borders for solutions to boost revenue, but at least one Postal Service is seeking a more external source.

Correios, Brazil’s Postal Service, is opening its first office in the United States. Located in Miami, FL, the new office will help the company provide logistics and fulfillment services to new and existing customers in the United States. It will also aid Brazilians travelling in America with their shipping needs.

Internationalization isn’t the only alternative strategy employed by Correios. Thanks to new postal reforms passed in 2011, Correios now has the ability to purchase other companies. That gives the organization the flexibility to diversify its operations, and draw new revenue from sources other than mail service. The organization is also exploring the opportunity of establishing its own banking service.

While many Post Services across the globe are struggling with dwindling mail volumes, Correios is determined to remain a viable operation by taking advantage of other business opportunities.

Do you think USPS should gain the ability to buy other businesses?

Global Package Business Lures Expansion Opportunity

Global package business

For businesses that seek to grow and flourish, there’s no better way to accomplish the task than to reach new customers. That’s the concept behind a recent move by a package shipping business to build a new facility in a foreign country.

To better serve its customers in Canada and reach a wider audience, FedEx has constructed a new 27,000 square-foot facility in Saskatoon to provide shipping services to local businesses. The move is part of a continuing expansion effort into Canadian territories to lure new customers away from the competition. FedEx has also trained its Canadian Express staff with a specific focus on small to medium sized businesses to capitalize on the lucrative export market.

Besides adding to its infrastructure in other countries, FedEx is also acquiring foreign businesses to expand its operations. In 2011, the company acquired Servicios Nacionales Mupa, a Mexican domestic express package business, for $128 million. In that same year, it also purchased AFL Pvt, Ltd, an Indian logistics, distribution and express company, for $96 million. FedEx also recently acquired other shipping companies in Poland, France, and Brazil.

With international priority and domestic package revenue exceeding $9.56 billion in 2012, FedEx is likely to continue its efforts toward increasing globalization.

Do you think USPS should expand its package operations into other countries to take advantage of the robust trend in global shipping?

Developing the Potential of Today’s Youth

Developing potential

Today’s tight labor market creates a challenge for youth entering the job market. To assist in the development of tomorrow’s future leaders, one postal organization is continuing to expand its apprenticeship opportunities today.

Germany’s Deutsche Post DHL is currently accepting applications for apprenticeship positions in a wide variety of functional fields. More than 2,100 positions are available in areas such as engineering, real estate, logistics, and many more across DHLs network. Selected applicants can remain at their home location by working at a DHL facility near them.

DHL has increased the number of apprenticeships since 2008, offering an additional 600 more positions since that time. The effort is designed to develop one of DHLs most important resources of the future and give them a competitive advantage over rivals.

Do you think USPS should offer a variety of apprenticeship opportunities for the youth of today?

Should the Post Office Sell Fishing Licenses?

One of the amendments in S1789, the Postal Relief Act, is to allow Post Offices to offer services like “Social Security card renewals and fishing licenses.”

According to the American Sportfisher Association, there are approximately 30 million fishermen.

Assuming all of those are licensed, what kind of revenue could the Postal Service see from selling state fishing licenses?

In most states, the sale of licenses is regulated, much like the control of liquor licenses. Often retailers compete to be recognized as agents, simply to get the fishermen into their store so that they can stock up on gear and equipment.

Post Offices as agents may be viewed as an intrusion into this lucrative market and is likely to be rebuffed by many states.

Additionally, there may be limited financial incentive to selling licenses, as the fees collected are used by state game and wildlife. For example, in Pennsylvania, the issuing agent fee is $1.00.

Assuming similar compensation, and assuming that every fisherman buys their license at a Post Office, we can look forward to less than $30 million from this amendment.

Do you think it’s something we should do? Comment here.

  • Hello, I'm Benny the Blogger: I'm the world's most famous postal employee. My hobbies are snappy quotes, kite flying and publishing. I was born Jan. 17, 1706, but don't call me old.

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