Postmaster General and CEO of USPS
In the past year, Donahoe has pledged to support to the magazine industryâ€”an individual that definitely has influence on the business.
In 2012, the rising cost of doing business as a magazine publisher is apparent, and the idea of having periodical rate increases is downright scary. In comes industry influencer Postmaster General Patrick Donahoe, who is easing our worries, just a bit.
During a keynote speech at the MPAâ€™s first postal summit in February, Donahoe reassured the industry leaders in the room of the Postal Serviceâ€™s continued commitment to magazine media, while also remaining steadfast on the realities surrounding the challenges the USPS is combating.
â€śYour trust and your business means a lot to us,â€ť he said. â€śWeâ€™re in a pretty tough situation right now, and what weâ€™re facing is continued drop off in first-class mail, and that is the underlying issue and it has been the problem now for the better part of 10 years. We know that this is not just a postal problem, but an industry problem.â€ť
Donahoe told the audience he values the business of the magazine industry because itâ€™s one of the reasons individuals go to the mailbox. The postmaster added that he will not â€ścry wolfâ€ť and say the USPS wonâ€™t deliver mail, rather saying the group would figure things out, one way or another, to ensure delivery. Additionally, maintaining good financial standing with the magazine publishing industry is clearly a priority for Donahoe.
â€śYou donâ€™t hear me walking around saying we need an exigent price changeâ€”that will push you, bill presenters and standard mailers out of the mail,â€ť he said. While Donahoe did pledge support for keeping prices low, he did later say, â€śUntil legislation is passed, what I wonâ€™t do is take anything off the table.â€ť
VITAL STATS: The postmaster has a $20 billion plan for the USPSâ€”it includes resolving worker healthcare costs and reallocating some of those resources for operating costs; eliminate pre-funding retiree benefits; eliminating Saturday delivery of service; consolidating the USPS network and reducing the number of career USPS employees. Donahoe says that cutting delivery from 6 to 5 days a week would save the USPS about $3 billion annually. Doing these things, he adds, will help keep away exigent price changes.
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