When Will The USPS Out-Source ... Stamps?

Q/ How many years before the USPS decides to outsource the *entire* stamp business unit - including design & printing & distribution & retailing - lock, stock & barrel?

I can't think of a compelling reason why the stamp program needs to be in the hands of the USPS.

A prime stamp contractor can buy designs from, you know, designers.

The printing has been done by private firms; in fact, many countries outsource printing. With total stamp sales at U$D 7b per year and, presumably, falling, the economic/financial risk of successful forgery (etc) is miniscule compared to, say, the price of a barrel of oil going up by one whole dollar.

The prime stamp contractor might outsource the distribution of stamps to branch post offices by, duh, UPS or FDX, who are already dropping-by from time-to-time.

And, of course, the prime could be wildly inventive about other new retail sales channels, like the Duty Free carts on inbound commercial airliners ;)

Why not just dump the whole thing, and cash the check?

Cheers,

/s/ ikeyPikey

I quite agree with your assessment. US stamp designs are pathetic. Private industry could do a far better job.

The post office would still have to retail them, of course, as well should the USPS website, in my opinion. They wouldn't have to be the ONLY retailers, but I can't imagine the post office not selling stamps. But if they're just outourcing the stamps but the USPS is still delivering the mail and setting the rates, I don't see where the Post Office comes out ahead. Yes, they'd save on development and distribution costs, but wouldn't they also have to let the contractor take a cut? In other words, the contractor sells $10 in postage, but only gives the USPS $9.50, or something along those lines? They could outsource development and production more than they already do, but I imagine for an organization of their size, those costs are not a very big a slice of the pie chart or a very large department of workers, relatively speaking.

A better solution would be to cut loose the USPS entirely and let them set their own rates and services. They should have a mandate to deliver to every address in the US at least 2-3 times a week, but beyond that, they should be free of congressional oversight. There are enough good business people in this country who could profitably run an operation of that size if they weren't totally hamstrung by a ton of regulations and special interests.

theartfulhinger - you are absolutely correct. The USA - which has this quite weird mental mindset about government and monopolies does not allow the USPS to operate with a view to a profit - a view that would require USPS to (gasp) compete with private industry at some points. So they maintain an agency that is totally dependent upon government subsidy while complaining - again and again - that they can't make a profit. Totally bizarre.

Well, they don't get a lot of actual subsidies, at least they're not supposed to. They're SUPPOSED to break even, but they basically have the worst of both worlds - they're supposed to operate independently and more or less like a business, but they can't set their own rates or determine all their own services. Congress basically tells them not to expect taxpayer assistance and then turns around and hamstrings them by making them get approval for any changes in rates and services. And then, of course there are all the other special interests that wail and moan every time they consolidate sorting centers or want to change delivery schedules. Under those circumstances, the USPS actually does pretty well, I think.