Direct Mail News & Resources

Tuesday’s Mail – Should Your Tax Dollars Subsidize Direct Mail?

by Alan Blume at alanblume.wordpress.com

We certainly like our mailman who faithfully delivers our mail, or to be politically correct perhaps we should say mail person or postal worker. Yet on most days, we should simply say why is he coming at all? Though we do receive physical checks each week, these could be delivered twice a week, or we could simply ask clients to pay via PayPal or online transfer. On occasion we receive a letter from a friend, but 99% of the time friend and family communications is now provided through email or social networking. My children’s grandparents, as they near 80 years old, have now moved to email as their primary method of communication.

Last Tuesday, our diligent and timely mail person delivered 11 mail items to our house. All of them were solicitations of one type or another including (see photo): Asian Food, Pool Supplies, Electronics, Cosmetics, Replacement Windows, Credit Card Offer, Window & Gutter Cleaning, University Fund Raising, Household Items, Religious Fund Raising and a Technical School Brochure.  All of this went into the recycling bucket, with the exception of the 20% household item coupon my wife might use. Of course, this store already has our email and could have emailed us the coupon. The University fundraising mailer makes no sense to me, as they have my email and my phone number, and email and call frequently. Even the window replacement vendor has our email as we had conversed in the past.

Don’t get me wrong, I respect the right of these companies to market their products and services, I just don’t think we should subsidize it, or expend time, money and gas to deliver it. Candidly, I’d like to see less trees, energy, cost and waste that is associated with the creation and delivery of paper in general. Direct mail, now known as snail mail, is an anachronism, a phonograph type solution in an iPod age. The post office, which has been running losses of over $1.5 Billion per quarter, recently offered the following statements in their 10-Q quarterly report.

  • “The recent losses are primarily attributable to unprecedented declines in mail volumes that began in 2008.”
  • “The Postal Service projects debt outstanding at year-end to increase over the September 30, 2009 balance by the maximum allowable $3 billion, to $13.2 billion. The $15 billion debt ceiling will become insufficient in 2011.”

Though taxpayers don’t fund the loss directly, the USPS borrows from the treasury to pay for the deficits. The net result is dollars out of taxpayer pockets. Should Congress move quickly here, after all, $1.5 billion in losses per quarter to deliver direct mail does seem a tad unreasonable? Recently, it was proposed that six day a week mail service should end. This is a ridiculous interim step. Discussions should revolve around reducing deliveries to three days a week, and we should increase the fees to direct mail marketers to encourage companies to offer more electronic marketing. There are now many choices available that are more efficient and environmentally friendly than direct mail: eMail, Social Media Marketing, SEO, and Web Seminar Marketing to mention just a few. All of these alternatives are less oil consumptive and less labor intensive than the “596,000 workers and over 218,000 vehicles” the post office uses according to Wikipedia.  Wikipedia continues on to say, the USPS “is the second-largest civilian employer in the United States (after Wal-Mart) and the operator of the largest civilian vehicle fleet in the world.” That’s a lot of brick and mortar infrastructure to deliver my 11 pieces of direct marketing “junk mail”, and I doubt we want to run a $6 Billion annual deficit to accomplish this. Is there still a place for the United States Post Office? I think a scaled down version is still called for, there undoubtedly remains a need to deliver paper based documents which are still necessary and important. With the dramatic increase in virtual solutions, email, social networking and digital documents, perhaps three a day per week postal services is more reasonable and more cost effective. Will this scaled down version result in a dramatic reduction in deficits? One would certainly hope so, but at a minimum, it would result in a dramatic reduction in gas, oil and overhead. Regardless, my credo remains, go virtual, don’t go postal.

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