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Study Says Postal Service Can Save $1.5B by Slowing Delivery

Photo: Alexander Marks

The U.S. Postal Service could save as much as $1.5 billion per year if it relaxed service standards for both First Class and Priority Mail by one day, according to a new study.

The Postal Service’s inspector general contracted Christensen Associates, an economic analysis firm, to do the study.

The Postal Service currently guarantees, on average, delivery of First Class Mail within one to three days and Priority Mail within two to three days.

Christensen found that mailers stated a preference for service that is consistent, reliable and cost-effective with reasonable speed. Letter writing and bill payments have shifted to electronic communications, therefore the public may be less sensitive to relaxing speed standards, the report said.

“Some of the Postal Service’s largest business mailers have stated that they value consistency over speed and they would tolerate slightly slower service to save costs,” the report said.

The Washington Post reports Postal Service officials are expected to announce new delivery plans after Labor Day.

Postmaster General Patrick Donahoe has previously said the Postal Service could move to three-day-a-week delivery within 15 years.

Click here to read the full study.

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