PUBLICITY KIT

Retail Vending Equipment Program — Remove, Replenish, and Recycle

The Postal Service™ will be removing retail vending machines from Post Offices™ and other retail locations around the country beginning October 2006. The decision to remove vending machines from our retail lobbies was based on several factors. Mechanical breakdowns of the aging machines are increasing, and manufacturers are no longer making repair parts. Vending stamp sales are declining, service costs are increasing, and some machines are generating less revenue than the cost of their overhead. The vending machines only accept cash while many customers prefer the convenience of payment by credit or debit card, and retrofitting the machines to accept credit cards is not feasible. And today, customers have alternative ways to purchase stamps, which were not available at the inception of the vending program.

There are 22,933 vending machines, between 7 and 20 years old, located in Post Offices and other retail locations around the country. It is becoming increasingly difficult to procure replacement parts for vending machines due to the age of the equipment. In order to ensure parts are available to maintain revenue-producing machines, we will be removing the lowest revenue producers and using those machines for spare parts. Beginning in October 2006 through 2010, approximately 5,900 vending machines will be removed from service each year.

The objective of the Retail Vending Equipment Program is to help customers make the transition to alternate access channels such as www.usps.com; commercial retail establishments, including grocery stores; automatic teller machines (A™s); and rural carriers in the communities they serve.

By removing the vending machines, the Postal Service will cut costs associated with supporting the equipment. Once the spare parts have been removed, the remaining pieces of the machines will be recycled with a metal recycler.

Talking Points

• Customer focus. Customers are buying fewer stamps from vending machines and choosing alternate channels. By taking vending machines out of service, the Postal Service can concentrate on the alternative methods that our customers prefer.

• Cost savings. The cost savings achieved, by removing the vending machines, contributes to the overall cost control initiatives that help keep postage rates affordable and supports universal service for our customers. The needs of customers who use cash to buy one or two stamps at a time will be met.

• The Postal Service has identified 1,344 Post Offices with a large population of customers who make small cash transactions.

• Many of these offices already have single-stamp vending machines and those that don't have them will be receiving them from other offices where they are no longer being utilized.

• Seven percent of residential customers claim that postal vending machines are their primary access to stamps.

• Customers will be encouraged to use alternate means to acquire stamps, including the following options:

• www.usps.com - ordering stamps online and using Click-N-Ship® service.

• 800-STAMP24.

• At more than 25,000 commercial retail establishments.

• At more than 15,000 banking and credit union A™s.

• At more than 2,500 Automated Postal Centers.

• Rural carriers.

• Personalized postage.

• It is fiscally irresponsible to continue maintenance on under-performing equipment.

• Some machines get one or two customers a month and garner only $25.

• The revenue from the vending machines located in nonpostal locations has decreased 35 percent from 2001 to 2005. This is evidence that many customers have already moved to more convenient alternate channels to purchase postage.

• The bill validators (the mechanism that accepts paper money) are out of date.

• The United States Department of the Treasury has changed the $5, $10 and $20 bills to address increased counterfeiting, and each time the bills are changed, the equipment created to accept the bills - the bill validators - must be upgraded as well.

• It would be too costly to upgrade the current vending machines and it would not be a wise investment due to the age of the equipment.

External Audiences and Communication Vehicles

• Customers

• Local notices to be posted on machines 30 days before removal.

• Interaction with retail employees (who will be briefed via stand-up talks and a Postal Bulletin notice).

• Consumer Affairs letter to respond to customer inquiries at http://eagnmnsg10d/VFO/Files/3R_FY2007/33%20Editable%20Response%20to%20Customer%20Complaint.doc.

• Local Media

• Letter to the Editor (included in this kit) for use as required in response to local coverage.

• Contact your local Public Affairs and Communications representative for any additional assistance you may need.

• Local Government Officials

• Government Relations is providing a letter for postmasters to customize for local officials at http://eagnmnsg10d/VFO/Files/3R_FY2007/34%20Editable%20Response%20to%20Local%20Officials.doc.

— Field Communications,
Public Affairs and Communications, 10-26-06

Retail Vending Equipment Program - Remove, Replenish, and Recycle Stand-Up Talk

To better serve all of our customers, the Postal Service™ will be gradually taking stamp vending machines out of service over the next 4 years, in order to focus more fully on the ways people prefer to buy stamps today.

With a wide range of quick, easy, and convenient ways to buy U.S. postage stamps - online 24/7; by phone; at pharmacies, grocery stores, and convenience stores; through Automated Postal Centers; and more - fewer people have been using stamp vending machines every year. Some machines have as few as two customers a month.

Some of the machines are 20 years old. Mechanical breakdowns are becoming more frequent. Replacement parts are scarce because they're no longer manufactured. In short, the vending machines often cost more to maintain than the value they provide to our customers.

A notice will be posted on machines, at least 30 days in advance of removal, listing nearby Post Offices™ and other locations where customers can buy stamps. There will also be a reminder of all the other ways postage can be purchased. These include the following:

• The Postal Store® at www.usps.com/shop, open 24/7.

• Click-N-Ship® at www.usps.com/clicknship, for print postage and mailing labels.

• By phone at 800-STAMP-24 (800-782-6724).

• By filling out a Stamps by Mail® order from, available from letter carriers and Post Offices.

• At more than 25,000 commercial retail establishments. For a list, go to www.usps.com; click Locate a Post Office, then select "Alternate Locations to Buy Stamps" from the Options pull-down menu.

• At more than 15,000 banking and credit union A™s.

• At more than 2,500 Automated Postal Centers nationwide.

• From your rural carrier, if you are on a rural delivery route.

By removing the vending machines, the Postal Service will decrease costs associated with supporting the equipment. The removed equipment will then replenish the spare parts needed for upkeep of the existing pieces still being utilized. Once the spare parts have been removed, the remaining pieces of the machines will be recycled with a metal recycler.

# # #

Sample Letter to Local Newspaper Editor

[Insert Date]

[Insert Name]
[Insert Title]
[Insert Name of Publication]
[Insert Address]
[Insert City, State, ZIP+4]

Dear [Insert Title and Name]:

To clarify an article about stamp vending machines published in [Newspaper Name] on [Date], the Postal Service™ is making changes to the machine locations based on customer preferences.

To better serve all of our customers, the Postal Service will be gradually taking stamp vending machines out of service over the next 4 years, in order to focus more fully on the ways people prefer to buy stamps today.

With a range of quick, easy and convenient ways to buy U.S. postage stamps - online 24/7; by phone; at pharmacies, grocery stores and convenience stores; through Automated Postal Centers; and more - fewer people have been using stamp vending machines every year. Some machines have as few as two customers a month.

Some of the machines are 20 years old. Mechanical breakdowns are becoming more frequent. Replacement parts are scarce because they're no longer manufactured. In short, the vending machines often cost more to maintain than the value they provide to our customers.

A notice will be posted on machines, at least 30 days in advance of removal, listing nearby Post Offices™ and other locations where customers can buy stamps. There will also be a reminder of all the other ways postage can be purchased. These include the following:

• The Postal Store® at www.usps.com/shop, open 24/7.

• Click-N-Ship® at www.usps.com/clicknship, for print postage and mailing labels.

• By phone at 800-STAMP-24 (800-782-6724).

• By filling out a Stamps by Mail® order from, available from letter carriers and Post Offices.

• At more than 25,000 commercial retail establishments. For a list, go to www.usps.com; click Locate a Post Office, then select "Alternate Locations to Buy Stamps" from the Options pull-down menu.

• At more than 15,000 banking and credit union A™s.

• At more than 2,500 Automated Postal Centers nationwide.

• From your rural carrier, if you are on a rural delivery route.

You also may call our toll-free number 800-ASK-USPS (800-275-8777) or the TTY number 877-TTY-2HLP (877-889-2457) for help with your postal questions.

Sincerely,

[Sign]

[Insert Postmaster's Name]
Postmaster
U.S. Postal Service
[Insert City, State, ZIP+4]