The U.S. Postal Service aims to better direct advertising mail from dentists, pizza parlors and real estate brokers to prospective customers to help stem anticipated annual losses of as much as $18.2 billion by 2015.
The Postal Service today said it will make permanent a year-old project that lets small businesses micro-target areas without having to address each piece of mail.
The effort will generate $1 billion in revenue by 2016, Paul Vogel, chief marketing officer of the Washington-based service, said at a press conference. This year, the service anticipates $750 million to $800 million in revenue, he said.
“It has to be affordable,” Vogel said. “It has to demonstrate a return on investment.”
The Postal Service reported $65.7 billion in revenue in the fiscal year that ended Sept. 30, a 2 percent decline from the previous period.
The service predicts an annual loss of $18.2 billion by 2015 and is shutting as many as 4,800 post offices, cutting as many as 220,000 jobs and seeking congressional approval to end Saturday mail delivery as part of its cost-cutting plans.
The new mailing service, called Every Door Direct, is being marketed to the 54 percent of small businesses that advertise and don’t use direct mail, Vogel said.
Customers pay 14.5 cents to mail a piece in the program and don’t have to get a permit to send bulk mail, Vogel said. The service allows as many as 5,000 pieces to be sent a day. That price compares with 45 cents for a First Class stamp.
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