The US Postal Service announced on September 28 that effective October 1, “new service standards for first-class mail and periodicals” will be implemented.
Specifically, “One-piece, first-class mail traveling to a local area will continue to run for two days. Mail traveling longer distances will be the most affected, with a day or two of transit time added for some first class mail and periodicals. “
The service alert said the changes “will increase the reliability, consistency and efficiency of delivery.”
This slowdown in long-distance delivery follows a price hike on Aug. 29 for mailing a first-class letter, which went from 55 cents to 58 cents, an increase of 5.45%.
The bottom line: consumers pay more for less.
Outside of the shady economy, what will be the effect on businesses, especially from the point of view of sending payments through the US Postal Service?
If your business uses postal services in the United States and Canada, you know firsthand that the mail has slowed down – it takes longer for a letter to reach its destination.
This is not optimal, primarily due to cash flow – that is, the ability to turn accounts receivable into cash. If debts are collected more slowly, the more likely debts will be delayed.
What Can Businesses Do?
Tighten your pay practices – become more efficient and pay faster (knowing that your check will take a few extra days to arrive).
Consider using electronic payroll like ACH or other means.
With the cost of mail increasing and the delivery time slowing, it’s wise to think about how best to handle your accounts receivable, payable, and cash.