2014 usps rate change webinar for small business - december 11, 2013
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DESCRIPTIONThe USPS® will announce price changes effective in January, 2014, which will undoubtedly affect postage and other fees associated with mail shipments. This webinar discusses the impact of the price change to letters and flats. Additionally, information will be shared to help you understand how to minimize the impact of these changes to your organization and review strategies to save money and increase efficiency.
- 1.January 2014 USPS Price and Regulatory Changes for Mailing and Shipping ServicesPresented by: Janet Lockhart-Jones, Ed.D., MDC Curriculum Manager, Postal Education Pitney Bowes Inc.
2. Your presenter Dr. Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal education trainer, Subject Matter Expert (SME) and consultant to Pitney Bowes and its clients. Janets professional career includes 15+ years with the United States Postal Service and 10 years as an independent leadership development and learning consultant servicing the hi-tech industry. Janet holds the degrees of Doctor of Education, Master of Science in Human Resources Management and Bachelor of Science in Business. She is the Postal Education Chair of the Sacramento Postal Customer Council (PCC), a member of MSMA, and is a Certified Mailpiece Design Consultant (MDC).December 17, 2013 3. Session Objectives Understand 2014 USPS price and regulatory changes impacting the mailing industry Walk-away from the session with greater clarity on how the 2014 proposed changes will affect your mailing operations Understand the changes and opportunities that are available to reduce postage expenditures 4. Agenda WHATS INSIDE Highlights, details, and cost saving strategies for: First-Class Mail Special Services Shipping/Competitive products Pitney Bowes Resources 5. Classes of Mail Affected Market Dominant First-Class Mail Single-Piece Letters & Cards Presort Letters & Cards Flats Parcels Outbound Single-Piece International Periodicals Special ServicesStandard Mail Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass 6. Background Proposed Market Dominant Price Adjustments 1. Consumer Price Index-Urban (CPI-U) Price Proposal (PRC APPROVED w/Full-Service IMb Exception) Average price increase of 1.69% 2. Exigent or Above-the-Cap Price Proposal (Under PRC review) Renewed exigency request Due to depressed economic conditions Average price increase of 4.30% Caveat: Board of Governors reserves the right to pull the exigent price increase if Congress acts on postal reform legislation 1.69% CPI + 4.30% Exigent = 5.99% overall average increaseProposed Shipping Services/Competitive Products Price Adjustment) (Filed, Awaiting Final PRC decision) Overall price increase is 2.4% 7. NEW: First-Class Meter Rate Save 1 on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps47 46No piece minimums No preparation requirement No requirement to report those pieces on a postage statement Thenewpricecategorywillbebasedonincrementalweightsupto3.5oz. MeteredpiecesclaimingthenewMeterPricewillhavepostageapplied directlytothepieces,andwillbedepositedasRetailmail. 8. First-Class Mail Change Highlights Retail First-Class Single-Piece one-ounce letter increase CPI from .46 to .47 cents Exigency from .46 to .49 cents (if approved) The USPS continues to price AADC and 3-Digit Letters and Cards at the same level Second-ounce free continues for all Presort First Class Mail letters (Non-automation and Automation) Full-Service Intelligent Mail barcode $.003 incentive maintained Full-Service Intelligent Mail mandate not approved; delayed until after 2014 9. Special Services Change Highlights 1 Certificate of Mailing Basic Firm Book Mailing Bulk: First 1,000 pcs Each Addl 1,000 pcsCPI Price $1.25 0.45 7.50 0.90CPI + Exigent Price $1.30 0.47 7.80 0.95Certified Mail$3.15$3.30Return Receipt Requested at time of mailing Electronic Green Card Merchandise Requested after mailing$1.30 2.60 4.20 5.05$1.35 2.70 4.40 5.25 10. Special Services Change Highlights 2 USPS Tracking First Class Mail (Parcels Only) First Class Mail (Parcels Only) First Class Package Service Priority Mail Priority Mail Standard Post Standard Mail Parcels Package Services Package Services Parcel Select ElectronicRetail Electronic Electronic Retail Electronic Retail Electronic Retail Electronic ElectronicSignature Confirmation Electronic RetailCPI Price $1.000.22 1.00 0.22CPI Price $2.25 2.80CPI + Exigent Price $1.05 0.00 0.00 0.00 0.00 0.00 0.23 1.05 0.23 0.00CPI + Exigent Price $2.35 2.90 11. Key Details 12. First-Class Mail Retail Letters (1 oz.) $0.46 to $0.47 CPI $0.47 to $0.49 Exigent Letters additional ounces $0.20 CPI $0.21 Exigent First Class Mail International Global Forever Stamp (1 oz.) $1.10 to $1.15 First Class Postcards $0.33 CPI $0.34 ExigentPrice change 13. Key First-Class Mail Single-Piece Prices Current PriceCPI PriceCPI + Exigent PriceStamp Price0.460.470.49Meter Price0.460.460.48Single-Piece Flats0.920.940.98Single-Piece Cards0.330.330.34Retail Parcels2.072.232.32 14. NEW: First-Class Meter Rate Save 1 on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps47 46No piece minimums No preparation requirement No requirement to report those pieces on a postage statement Thenewpricecategorywillbebasedonincrementalweightsupto3.5oz. MeteredpiecesclaimingthenewMeterPricewillhavepostageapplied directlytothepieces,andwillbedepositedasRetailmail. 15. First-Class Mail Retail Parcels First 3 ounces in each FCM parcel category still a single price cell $.17 additional ounce price after 3 ounces (CPI) $0.18 ExigentPARCELS Oz. 1 2 3 4 5 6 7 8 9 10 11 12 13Current 2.07 2.07 2.07 2.24 2.41 2.58 2.75 2.92 3.09 3.26 3.43 3.60 3.77CPI 2.23 2.23 2.23 2.40 2.57 2.74 2.91 3.08 3.25 3.42 3.59 3.76 3.93Exigent 2.32 2.32 2.32 2.50 2.68 2.86 3.04 3.22 3.40 3.58 3.76 3.94 4.12 16. Promotions Overview Mobile Technology Promotions Encourages mailers to integrate direct mail with mobile technology using best practices in mobile marketing Branded Color Mobile Technology Emerging Technology Featuring NFC Promotion Mail Drives Mobile Commerce PromotionTechnology Drives Relevance Leverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns Color Print in First-Class Mail Transactions Promotion Mail and Digital Personalization Promotion 17. Promotions Overview Leverage Value of First-Class Mail Intended to slow the volume decline in First-Class Mail by ensuring reply mail, transactional mail and First-Class advertising remain a relevant part of the First-Class Mail marketing mix Premium Advertising Promotion Earned Value Promotion New Customer Acquisition Provides an extra incentive for new customers to try direct mail EDDM Coupon Promotion 18. Branded Color Mobile Technology Promotion Registration opens December 15th March 31st Promotion Period: February 1 March 31st, 2014 2% upfront discountEnterprise Learning & DevelopmentDecember 17, 201318 19. Promotions Details 20. IMb Full- Service Mandate Beginning in January 2014, the USPS is requiring mailers receiving automation discounts to be Full-Service IMb compliant. Full Service Intelligent Mail was proposed to REQUIRED for: Postcards (First-Class Mail only) Letters, and flats when mailed using: First-Class Mail Standard Mail Periodicals Flats mailed at Bound Printed Matter prices 21. Agenda WHATS INSIDE Highlights, details, and cost saving strategies for: First-Class Mail Special Services Shipping/Competitive products Pitney Bowes Resources 22. Shipping Services - Classes of Mail Affected Priority Mail Express Priority Mail First-Class Package Service Parcel Select Standard Post Extra Services Return Services Mailer Services Recipient Services 23. Competitive Services Average increases ProductPriority Mail Express Priority MailAverage Increase 3.0% Net 0%First Class Pkg Services5.0%Parcel Select9.2%Standard Post5.2% 24. Shipping Services Change Highlights Priority Mail - Average net ZERO price increase in Retail and CBP New Priority Mail Express 10:30 a.m. delivery time option for an additional $5.00 New Flat Rate Commercial Base and Commercial Plus prices for Priority Mail Express International and Priority Mail International A fee of $0.20 assessed on commercial parcels without an Intelligent Mail Package Barcode (IMpb) 25. Key DetailsShipping Services***All Changes are Proposed until Approved*** 26. Priority Mail Express Overall average price increase of 3% Pricing by Zone, Retail, Commercial Base and Commercial Plus continues Retail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope is increasing from $19.95 to $19.99. Flat Rate Box price is increasing from $39.95 to $44.95. Commercial Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6% Eliminate 12:00 Noon delivery for items to Addressee Optional 10:30 am delivery for a fee of $5.00. 27. Priority Mail Overall average net zero (0%) price increase. Many Priority Mail Flat Rates are NOT changing. Exception: Large Flat Rate Box is increasing from $16.85 to $17.45. Commercial Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6% Commercial Plus and Commercial Plus Cubic volume thresholds being lowered to 50,000 pcs Free USPS Tracking and $50 insurance continues with Retail or IMpb compliant barcode. Up to $100 of insurance for Commercial Plus 28. Intelligent Mail Package Barcode (IMpb) Required on ALL Commercial Parcels/Packages $0.20 per piece surcharge for pieces failing to meet the January 26th standards for IMpb use and falling outside established thresholds. Meter customers are EXEMPT from the surcharge; they have until January 2015 to adopt an IMpb compliant solution. After this date, retail prices apply.Label 400 (existing) or a retail tracking IMpb complaint barcode will still be accepted from meter customers throughout 2014. pbSmartPostage and SendSuite are IMpb enabling solutions for meter