2014 usps proposed rate increase - fact sheet

18
2014 USPS PROPOSED RATE INCREASE FACT SHEET

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Are you ready for a 2014 USPS Rate Increase of up to 5.97%? Check out the Standard Register Fact Sheet for detailed info and see good news. Get started today.

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Page 1: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 2: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACTS

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 3: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Two increases were proposed1. Consumer Price Index (CPIU) based 2. Exigency based

Key Takeaways• CPIU increase was approved November

2013, to go live in 2014. • Exigency based is pending approval.

Deadline 12/25/2013.• Postal Regulatory Commission (PRC) has

been affected by the government shutdown, and may end up only approving the consumer price index increase request.

• Combined increases = 5.97%.

CPIU• Approved 11/2013• In effect 2014

FACTS

EXIGENCY1. Pending PRC

approval. 2. Deadline 12/25/2013

Page 4: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE CONSUMER PRICE INDEX (CPIU)

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 5: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

An annual inflation-based increase that per each year. Overall Increase is 1.6% across all classes of mail and mail services and fees. Both Domestic and International rates will be affected.

CONSUMER PRICE INDEX

Page 6: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE EXIGENCY BASED + CPIU COMBINED

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 7: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

This one-time additional increase is due to losses suffered by the USPS during the recession, and from consumer movement to online billing and payment. The Exigency increase asks for an additional 4.3% across all classes of mail and mail services and fees, on top of CPIU. Both Domestic and International rates will be affected.

EXIGENCY BASED + CPIU

Page 8: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Exigency = 4.3% | CPIU = 1.6%

EXIGENCY BASED + CPIU

COMBINED INCREASE

5.97%

Page 9: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

EXIGENCY BASED + CPIUThis is a one time “emergency” request to cover USPS losses of $6.65 billion in 2012 alone.

It is expected to raise $1.78 billion that can potentially carry the USPS until Congress makes fundamental changes to the postal business by enacting proposed cost-saving and efficiency measures.

WHY?.

• Raise funds to cover expenses

• Operational inefficiencies

• Customer moving to online bill pay

Page 10: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

WHAT TO DO NOW?

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 11: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Take a look at what you’re mailing today.

Consider:• changing the size and shape of mail piece• adding tracking to reduce follow-up

costs on returned payments• rethinking how you use mail to

communicate with your customers

WHAT TO DO NOW?

Page 12: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

In 2014, the USPS will offer several promotional discounts.• Qualifying mail gets a 2% discount off

postage• Includes a 5 month promotion for 1st

Class statement and invoice mail that uses dynamic full color marketing messaging.

By combining your marketing efforts with statements and invoices into one mail piece, customers can save on postage AND production costs.

WHAT TO DO NOW?HOW?Take advantage of the 5-month 2% discount.

Combine marketing and operational mailings.

Call Standard Register for full color variable high speed technology.

Save and still meet deadlines.

Page 13: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Intelligent Mail Barcode tracking on reply mail helps reduces time between your customer mails in payment and payment received.

This means fewer collection calls, more cost savings.

We even offer USPS approved double postcard rebate checks for lawsuits and refund programs. Our customers have saved thousands in postage and production costs.

WHAT TO DO NOW?BOTTOM LINE• Use Barcodes• Reduce time between

mailing and payment receipt

• Save money with double postcard rebate checks

Page 14: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

… THE GOOD NEWS

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Page 15: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

The 2nd Ounce Free promotion isn’t going away!

The Rate Increases will cover proposed 2014 USPS Promotions, that are aimed at helping customers discover the effectiveness of using 1st Class mail for marketing, and to give customers an incentive to try new cross channel methods to improve customer response rates and tracking—like adding QR codes and Radio Frequency tags to mail.

GOOD NEWSBENEFITS• 2nd ounce free is still

in effect• See success of 1st

class mail for marketing

• Be rewarded for trying multiple channels

• Improve response rates and tracking

Page 16: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Customers mailing using pre-cancelled or permit postage on single piece mail will enjoy a penny per piece discount under the new rate structure.

WHY?It’s cheaper for the USPS to verify postage payment on permit postage.

GOOD NEWS

Page 17: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Residual mail within a presorted mailing will have the 2nd ounce ride free under the new rate structure.

GOOD NEWSEvery mailing has a few pieces that fall out of the presort scheme, so this means some added costs savings there.

Page 18: 2014 USPS Proposed Rate Increase -  Fact Sheet

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

Standard Register takes critical communications seriously.

Our experienced postal experts, mail piece designers, and solution architects are ready to help improve the way you communicate with your customers.

GOOD NEWSLet’s Go• 800-442-5254• StandardRegister.com• Twitter: @

SR_BizSolutions• Email >