2. Tailor Shipping Services to Market Requirements

The Postal Service goal to increase revenue from shipping services requires that it enhance operations and pricing to meet evolving customer demand. High-volume mailers expect pricing to reflect the number of packages they ship and the postage they pay, as well as the services provided. The Postal Service now has the ability to customize its shipping service pricing to reflect different customer requirements.

Provide Responsive Product Offerings

The Postal Service will design new shipping services, building on its brand and unique competencies, such as its first and last mile ubiquity. It will combine the strength of existing services with the increased flexibility to modify them to better satisfy needs. The Postal Service is committed to providing full track and trace on all domestic and international shipping services, by having a barcode on every package.

Targeted Pricing to Promote Growth

To promote the growth of mail volume, revenue, and profit, the Postal Service will transform future postal pricing by considering characteristics important to customers. With the implementation of new prices on May 14, 2007, the Postal Service introduced more shape-based prices reflecting shape-related costs. This pricing methodology will continue as one of many pricing strategies. Over time, the Postal Service will explore different pricing structures for different customer needs. The revised product structure will align costs, pricing, and incentives with customer use, positioning the Postal Service to increase revenue by expanding market share.

Customers also expect options for payment and payment terms, and they see these options as an important element of value. The Postal Service will explore invoicing and credit alternatives for customers where revenue growth outweighs the cost of providing and managing credit payment options. By giving large mailers more convenient and innovative ways to pay postage, the Postal Service expects to attract additional mail volumes.

Develop New Resources and Competencies

New sales skills and resources will be developed to equip the sales force to offer customer-responsive pricing. New tools will be created to help the sales force craft pricing proposals that respond to customer expectations and still cover product costs while making a contribution to overhead. By developing new pricing skills, sales tools, and resources, the Postal Service will take advantage of the new opportunities in pricing flexibility mentioned previously.