A Conversation with Stephen Kearney, VP, Pricing and Classification:

“Market-Driven Pricing”: The Present and Future of Pricing for the Postal Service

We met with Steve Kearney, VP, Pricing & Classification (P&C), to get his take on where postal pricing is headed.

MC:  What’s on the horizon for postal pricing?

Kearney:  We will continue to try our best to reflect the value our customers receive from our services in their prices. As most folks know, we have a mission to provide universal quality service without making a profit.

We have a history of introducing worksharing opportunities that meet market needs. For example, the creation of destination entry prices in Parcel Select resulted in significant volume growth. And studies have shown that other worksharing-related pricing initiatives have bolstered the market and fueled growth in Standard Mail and First-Class Mail, as well. The common thread is customization — which is a key element of our current and future pricing. By tailoring our products and prices to the needs of the market, we can continue our success.

MC:  You are doing more pricing experiments than ever before.

Kearney:  Yes we are. To find out what people are willing to pay for, you have to test it in the market place, so we’re currently testing great ideas, like Parcel Return Service, Priority Mail Flat Rate Boxes, Repositionable Notes, and Premium Forwarding Service.

For a complete list and timetable of pricing experiments, see the chart on page 7.