With mail volumes dropping, and losses mounting, it's starting to look like the days are numbered for the U.S. Postal Service. It probably doesn't help matters, either, that USPS just announced a big contract to pay one of its rivals -- FedEx (NYSE:FDX) -- to haul its mail.

Apparently, FedEx does a better job of this than USPS can do for itself. But that's not the Post Office's real problem. Its real problem is that FedEx knows how much its superior service is worth, and has the pricing power to charge for it, while USPS... doesn't. 

What can the Post Office do to help fix what ails it, and close the gap between revenues and losses? Fool.com contributor Rich Smith has a suggestion...

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends FedEx. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.