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  Business

Going Postal
War Against Private Mailboxes

By Daniel Muniz

A Commercial Mail Receiving Agency (CMRA) acts just like a post office with the exception of the enormous governmental bureaucracy. Currently, there are over 10,000 CMRAs that rent out private mailboxes to about two million customers. They also act as conduits for private carriers like UPS and FedEx. Unlike the post office which cannot accept mail from the private mail carriers, a private mailbox can sign for and accept packages from just about anybody. The UPS Store (formerly Mailboxes Etc.) is the largest CMRA although there are thousands of small mom and pop operations.

In addition, the real advantage of the private mailbox industry is that it can perform services that the government does not do.

Some CMRAs offer extended hours, do gift-wrapping, accept faxes and phone calls, while others are also print shops and desktop publishers. And for anyone who wants to maximize his or her privacy instead of announcing it out to the entire world, such a box is ideal.

As for myself, I love my private mailbox and I have used the same one for a number of years. Although I have lived in the same city, before I got married I often moved around from apartment to apartment. The second apartment complex I moved to, it was a huge hassle to get all of my mail (mostly bills) forwarded to me. During that particular time frame, I rented out a private mailbox that was down the street from my apartment.

All the subsequent moves to other apartment complexes were a snap to do because I really didn’t have to change anything. Even when I got married, I seriously considered canceling it but I ultimately opted against doing so. Incidentally, my private mailbox came in handy during the construction of my second house especially when I sold the first one and moved in with the in-laws. I didn’t have to forward anything and I didn’t miss any of my mail.

I now lived quite a few miles away from the private mailbox but I do not mind checking my mail like once every several days or once a week. I enjoy the extra personal privacy that the box affords me. And I also know a number of people who run home-based or web-based businesses who like the appearance of having a business location without having to use their own residential address. These private mailboxes also gives them more privacy and personal security to run a business without having the public intruding on their personal lives.
 

Story Continues Below ê

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As a result, the appeal of a private mailbox over a post office box is natural. So, why does the post office continue to wage war against the private mailbox industry?

The answer is simple.

The post office, like other governmental agencies, doesn’t like competition. A huge unwieldy governmental entity mired in red tape cannot be as nimble and responsive as independent businesses can. Even with its enormous size and economies of scale, the post office still lacks the efficiency of its big time competitors like UPS and FedEx, which is also primarily why they don’t allow them to deliver to post office boxes.

And ever since having lost the competitive battle with the private carriers, the post office is on the verge of losing the next round with the private mailbox industry unless it can redefine the rules to make it difficult and cumbersome for the CMRAs to operate in. Under the guise of fighting mail fraud, the U.S. Postal Service tried to impose draconian restrictions such as requiring the CMRAs to do things that they themselves are forbidden to do under federal law. Along with public opposition, the post office backed off a bit but they still would like to some day usurp the industry.

Unfortunately, there are still plenty of people who sympathize with the post office only because they loathe free enterprise. The supporters of the post office detest any form of competition and private ownership and feel that the government should run all major industries regardless of the inefficiencies and ineffectiveness.

But that is the crux of the entire problem.

If private industry can do a better job than the government, then the governmental agencies ought to step out of the way and let the free market take its natural course.

There are a number of things that a governmental agency can do very well that benefits the entire society. But for everything else that the private sector can do better, the government only ends up creating more burdens for the taxpayer and the consumer. Besides, strong vibrant private industries are what help build a healthy robust economy.

FedEx and UPS have already demonstrated that they can deliver parcels more efficiently than the government. And if the same thing happens with the private mailbox industry, then so be it. It does little good to our economy for a governmental agency to regulate its competitors and restrict competition to protect its own turf.

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  National Summary - Copyright 2007

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