“Citizens who wish to make a general donation to the U.S. government may send contributions to a specific account called ‘Gifts to the United States.’ This account was established in 1843 to accept gifts, such as bequests, from individuals wishing to express their patriotism to the United States. Money deposited into this account is for general use by the federal government and can be available for budget needs. These contributions are considered an unconditional gift to the government. Financial gifts can be made by check or money order payable to the United States Treasury and mailed to the address below.”

Thanks to Mark Perry for the pointer.

“With this program, we’re able to provide consumers in every rural town or big city across America with … a convenient, free mail delivery system.” – John Agwunobi, Wal-Mart division president

In continuing my mental exercise on replacing the USPS I was stuck with solving the problem of delivery and drop-off for rural America.

Especially deep rural America – where the roads are still gravel.

A I commented on earlier – Wal-Mart’s based its success on serving rural America remarkably well.¹

With more than 4000 stores nationally, 3000 stores worldwide, and a highly efficient network of distribution centers – there are few organizations with the presence, passionate customer base, and logistics experience capable of competing with the USPS.

Even half a mile down a dirt road in rural Wisconsin – a Wal-Mart is still a quick 15 minute drive away. And has been for 15 years.

Let’s say Wal-Mart returned to the days of small town packaged good store.

As part of your weekly drive into town for clothes and groceries, you drop your outgoing mail – bills, personal correspondence, everything – off at the customer service desk.

For the personal correspondence – you provide an email address or phone number of the recipient and you go about your shopping.

Wal-Mart – in their characteristic price cutting manner – charges nothing for this service².

The outgoing mail is picked up by the existing incoming delivery trucks and their first stop is the nearest Wal-Mart distribution center. Where the mail is sorted for delivery to next closest Wal-Mart distribution center to the final destination². And so on, and so on, until it’s delivered to the Wal-Mart closest to the intended recipient.

Once at this last Wal-Mart – a email (or voicemail) is sent to the intended recipient notifying them that an item is ready for pick-up during regular business hours.

What else would that quote at the top of the post be about?

Oh, how Wal-Mart is transforming the prescription drugs market.

1. Yes, I’m aware my original question was about a competitive non-profit. I do think that’s an more interesting idea – but I landed on Wal-Mart. So let’s explore this for a moment.

Yesterday, NPR discussed the challenges of the US Postal Service after reporting a $3.8 billion revenue loss for the fiscal year ending September 30, 2009.

The revenue loss corresponded to a reported 13% decline in mail volume.

I’ve noticed a significant decrease on my end since Dec 2007 as well. For the 2008 and 2009 – the number of credit card offers and direct mail catalogs arriving daily was 0. This number is only now picking back up – maybe one per week. Nowhere near the multiple items per day we received in 2006 and 2007.

We’re even transporting Netflix DVDs less.

I have a hard-time imaging the USPS returning to profitability with first class stamps less than 50 cents a piece. Then again, none of the bulk mailings I mentioned above had first class stamps on them. So, either first class stamps are the USPS’s only profit – or they’re a loss leader.

My bet is the latter.

This puts the Postal Service in a tough spot. FedEx and UPS are taking the high end of their business. Email, Facebook, and 37Signals are taking the low end.

There are a few things we send via the USPS – things that aren’t easily digitized and not urgent enough to send via a private carrier:

1. ‘Thank you’ notes from the kids.
2. Holiday cards.

Leads me to some interesting questions:

Who else could handle that exchange?

What would a non-profit competitor to the USPS look like?
Even one that didn’t sell first class stamps or provide service to every address.

Or, restating the questions –

What would US Postal Service look like if it started today – with FedEx and the internet already well-established ?

Three ideas that immediately come to mind:

1. More sub-stations within other existing businesses.
2. Email/IM/voice mail notification of letter/package arrival.
3. Scheduled home pick-up.
4. Co-op business structure.

How would you change the USPS?

“Isn’t it sad that we have a job where we spend two 2 weeks avoiding the stuff we have to do fifty week a year?” – Seth Godin, Tribes

Almost 15 years ago now, a fellow student at the German design school I was attending, purchased a run-down flat. When he wasn’t focused his design degree – he was renovating the flat. With school Monday through Friday – his core renovation days were the weekend.

Well, Saturday.

The neighbors would complain if he used power tools on Sunday.

At the time, I was also surprised by the number of unfamiliar public holidays
German shopkeepers observed. Their frequency caught me unprepared more than a couple of times. While closed can be a cultural benefit – having the option to be open for business is a competitive advantage.

Here in the States, 12.4% of the workforce – 16.1 million people – belong to a union.

Over the past 24 years as union membership has dropped by a 1/3, real compensation has risen by 1/3.

“The problem with unions is not all that dissimilar to that posed by entrenched management: Once they win comfortable contracts, they often become impediments to the kind of innovation and flexibility essential to success in today’s economy.” – Wall Street Journal, Opinion, Sept 29, 2007

This Labor Day – as an entire family – we headed to the mall to purchase some new school shoes for the kids. On the way home we grabbed a soup and some sandwiches. The stores were open and the shopkeepers were as eager to help as any other Monday. If I understand U.S. labor laws correctly – everyone working today did so – by choice. Their employer provided them the opportunity and they took advantage of it.

Maybe their politics don’t mesh with organized labor. Maybe they were still protesting the outcome of the Pullman Strike. Maybe they find it ironic. I suspect for the vast majority of them – the additional dollars were more valuable than non-work-related plans.

Yes, I did some client work while the kids were napping, and will continue after I finish this post and clean up the dinner dishes.

The ability for a single individual to make the decision to work on Labor Day is why the U.S. is still the land of opportunity.