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USPS® Rate, Product and other Changes

Proposed for January 22, 2017

Presented by Dr. Janet Lockhart-Jones

Pitney Bowes, Inc.

Presenting….

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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 and subject matter expert to Pitney Bowes employees and its clients.

Janet’s professional career includes 21 years of employment with the United States Postal Service, fulfilling various roles in Information Technology, Accounting, Software Systems and Quality Improvement. After leaving the Postal Service, Janet became an entrepreneur and launched her own project management consulting and leadership training firm which she ran successfully for 12 years.

Janet holds the degrees of Doctor of Education in Organization and Leadership, a Master of Science in Human Resources Management, and a Bachelor of Science Degree in Business Administration. She is the Postal Education Chair of the Sacramento Postal Customer Council, a Certified Mailpiece Design Consultant and a USPS Certified Executive Mail Center Manager.

Dr. Lockhart-Jones is a San Francisco native who has traveled and worked all over the world. She currently resides with her family in Northern California.

Note – All changes discussed in this presentation are PROPOSED until official notification is given by the Postal Regulatory Commission that they are approved in whole, in part, or not at all!

Overview - What is changing

Proposed Rates – Mailing and Shipping Services

Tips and strategies to keep costs down

Questions?

Effective Date of ProposedChanges is:

JANUARY 2015 PBI Internal use only 7

Classes of Mail Affected – Market DominantFirst-Class Mail® Single-Piece Letters &

CardsPresort Letters & CardsFlatsParcelsOutbound Single-Piece

International

Periodicals

Special Services

Standard Mail®LettersFlatsParcelsHigh Density/Saturation LettersEvery Door Direct Mail RetailParcels

Package Services Bound Printed Matter (BPM) FlatsBPM ParcelsMedia, Library MailAlaska Bypass

Mailing Services – Market DominantJanuary 2017 changes target the below products:

JANUARY 2015 PBI Internal use only 88

First-Class Mail

Product CPI Percent Change

Single-piece Letters & Cards 2.0%

Single-piece Metered -1.1%

Flats 1.9%

Parcels 0.6%

Presort Letters & Cards -0.3%

First-Class Mail International*(includes letters, cards, and flats)

0.0%

~0.8% overall increase First-Class stamp price moves to 49 cents

* Does not include International Inbound

JANUARY 2015 PBI Internal use only 99

Key First-Class Mail Single-Piece (Retail) Prices

CurrentPrice

NewPrice

PercentChange

Stamp Price 1 Oz. $0.47 $0.49 4.3%

Single Piece Additional Ounce 0.21 0.21 0.0%

Meter Price 1 Oz. 0.465 0.46 -0.1%

Single-Piece Flats 1 Oz. 0.94 0.98 4.3%

Single-Piece Cards 0.34 0.34 0.0%

Retail Parcels 0-4 ozs. 2.62 2.67 1.9%

JANUARY 2015 PBI Internal use only 10

Save 3 cents on First-Class letters that have postage affixed using:Postage MeterPC PostagePermit ImprintPre-canceled stamps

Still:

No piece minimumsNo preparation requirementNo requirement to report those pieces on a postage

Stamped: $0.49 cents New: $0.46 cents

First-Class Letter Meter Rate

Meter Rate savings moves to three cents!!!

JANUARY 2015 PBI Internal use only 1111

Key First-Class Mail Single-Piece (Retail) Prices

JANUARY 2015 PBI Internal use only 1212

First-Class Mail International

Product CPI Percent Change

Letters 0.0%

Flats 0.0%

Cards 0.0%

No increase at this time

* Note: First-Class Mail International Global Forever Stamp remain $1.15

Commercial Mail

JANUARY 2015 PBI Internal use only 14

Market Dominant Classification Changes First-Class

Eliminate 3-Digit Automation Letters for First-Class Presort Prices have been the same since 2012 Combines the 3 Digit and AADC into the AADC sortation

3 & 3.5 Ounces free for First-Class Commercial Letters One price for all commercial letters up to 3.5 ounces Provides the ability to add content to bills and statements

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JANUARY 2015 PBI Internal use only 15

Add more content to bills and statements……without adding postage!!

Announce: New services Special pricing Upcoming promotions New products

JANUARY 2015 PBI Internal use only 16

First-Class Commercial pricing

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Notes: 1. AADC to 5-digit spread is now 3 cents2. 5-digit auto presort prices decrease 0.8%3. AADC and MAADC increase by 1%

JANUARY 2015 PBI Internal use only 17

Market Dominant Classification Change Standard Mail name to change to USPS

Marketing Mail• Named to influence marketers who are not in the

mail

• Identifies majority of the volume in the class

• 18 month transition – The indicia on the mail pieces should continue

to display current Standard Mail abbreviations until notified by the USPS

No changes should be made to markings/indicia before July 2017

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JANUARY 2015 PBI Internal use only 18

Market Dominant Classification Changes Marketing Mail

• Overall increase of ~0.9%

• Eliminate 3-Digit Automation Letters presort level for Standard Mail Presort Prices have been the same since 2012 Combines the 3 Digit and AADC into the AADC sortation

• Simplify Marketing Automation Letters by eliminating the per pound rate between 3.3 and 3.5 ounces Simplifies Marketing Mail Letters

• Increase Marketing Mail flats piece price weight break from 3.3 to 4.0 ozs. Allows mailers to add weight in order to add value to mail piece

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JANUARY 2015 PBI Internal use only 1919

USPS Marketing Mail

JANUARY 2015 PBI Internal use only 2020

USPS Marketing Mail

Note: Per piece pricing kicks in when > 4 ounces

JANUARY 2015 PBI Internal use only 21

Market Dominant Classification Changes Marketing Mail

FSS Marketing Mail reverts to previous structure

• Reverts to structure in place prior to January 2014

• Carrier Route Pieces pay Carrier Route prices etc.

• Prices not based on equipment used to sort –label list determine bundle and pallet makeup

• Allows Operations flexibility to add or remove ZIPS without impacting prices

Encourage more Carrier Route Bundles on 5-Digit Pallets in non-FSS zones Incentives to prepare more direct pallets of

CR volume Wider incentives to enter those pallets at

DDU

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JANUARY 2015 PBI Internal use only 22

Market Dominant Classification Changes Alternate Postage becomes Share Mail

Name change Simplified pricing and requirements

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JANUARY 2015 PBI Internal use only 23

Extra/Special Services

Market Dominant Highlights – Domestic Special ServicesCertified Mail

Price increase - from $3.30 to $3.35 Same price, electronic or retail W/ one of three options: $8.35 ($0.10 increase)

Certified Mail Restricted Delivery Certified Mail Adult Signature Required Certified Mail Adult Signature Required w/Restricted

Delivery

Certificate of MailingOptions Current January 2017

Basic $1.30 $1.35

Firm Book Mailing 0.36 0.39

Bulk: First 1,000 pcs 7.65 7.95

Each Add’l 1,000 pcs 0.94 0.99

Market Dominant Highlights – Domestic Special Services

USPS Tracking

Tracking for USPS Market Mail parcels moves to $0.37

USPS Tracking

First Class Mail (Parcels Only) Retail/Electronic 0.00

First Class Package Service Electronic 0.00

Priority Mail Retail/Electronic 0.00

Retail Ground Retail/Electronic 0.00

USPS Marketing Mail Electronic 0.37

Package Services Retail/Electronic 0.00

Parcel Select Electronic Electronic 0.00

Market Dominant Highlights – Domestic Special Services

Return Receipt

Price increase of 2.9% Retail = $2.75 Electronic = $1.45 RR service is only available at time of mailing

$2.75 $1.45

Market Dominant Highlights – Domestic Special Services

Collect on Delivery (COD)

Renamed to Collect on Delivery Hold for Pickup Pickup at a Post Office Only Payment made at a Retail Counter

Market Dominant Highlights – Domestic Special Services

Pick up on Demand

Increasing to $22.00

Package Intercept Fee

Increasing to $12.95

What did change - Shipping Services

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Shipping Services – Domestic

Domestic products Express Mail®

Priority Mail®

Parcel Select®

Parcel Return Service First-Class Package™ Service Retail Ground Competitive Extra Services

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Shipping Services (Intl)

International products Global Express Guaranteed® (GXG®) Express Mail International® Priority Mail International® First-Class Package International Service™ International Priority Airmail (IPA®) International Surface Air Lift® (ISAL®) Airmail M-Bags™ Competitive Extra Services

Shipping Services Priority Mail Express

Overall 3.4% increase

Existing Structure stays the same

Commercial Base and Commercial Plus Pricing is equal

Retail Flat Rate Envelopes, a significant portion of all Priority Mail Express Volume, is increasing to $23.75

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Shipping Services Priority Mail Express

Commercial Base pricing will increase 2.4% on average and set at a flat 11.2% off Retail pricing.

Commercial Plus Price matched to Commercial Base pricing in 2016 and will continue in 2017

Retail Flat Rate, Legal Flat Rate and Padded Flat Rate envelopes will all have differentiated pricing for 2017.

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Shipping Services Priority Mail Express

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Shipping Services Priority Mail

Overall 3.9% average increase

Existing Structure stays the same

Retail pricing increasing on average 3.3%

Commercial Plus Pricing will offer lower pricing to large-volume customers. Price increase will average 4.5% and will be set at 16.8% off retail.

Commercial Base pricing will increase 4.1% on average, but will reflect an average 13.6% discount off Retail prices

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Shipping Services Priority Mail - Retail

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Shipping Services Priority Mail – Commercial Base Pricing

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Shipping Services Priority Mail – Regional Rate Pricing

“ A Hidden Gem”

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Shipping Services

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Priority Mail Regional Rate Boxes

“ A Hidden Gem”

Shipping Services Priority Mail – Regional Rate Pricing

“ A Hidden Gem”

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Zone 8 Shipping, Los Angeles to New York

15 pounds

Retail –Zone rate

Retail Flat Rate, Med Box

Commercial Base –Zone rate

Commercial Base – FlatRate Med. Box

Regional Rate, Box A

$50.80 $13.60 $46.19 $12.40 $10.28

Shipping Services First Class Package

Service Overall 4.1% increase

Positioned as a lightweight shipping option used by businesses for fulfillment purposes.

Only Non-personal matter allowed; open to postal inspection

Intelligent Mail Package Barcode Required

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USPS® news sources you can rely onWant More? Need More?

http://blogs.pb.com/usps-news/

Thank youDr. Janet Lockhart-Jones

Pitney Bowes, Inc.Janet.lockhart@pb.com

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