april 2016 usps rate change presentation

April 2016 USPS® Rates Decrease- What You Need To Know

Speaker: Adam LewenbergPresident of Postal Advocate Inc.

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Meeting Instructions


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• To get rid of the GoToWebinar control panel so you can see the presentation


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• This presentation is being recorded and will be made available upon request. You will also be able find it on our website under FAQs/Resources

• If you have any issues during the meeting contact Doris Tam at 888-977-6245 x 512 or email me at [email protected] and I’ll be happy to assist

Adam Lewenberg - Background and Experience

• President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada– Manage a portfolio of 58,000 pieces of mailing equipment for the largest

US companies.– Speak and teach nationally on mail savings and industry trends.

• Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. CMDSS and MDC Certifications.

• Featured Writer for Mailing Systems Technology Magazine.• Worked for one of the largest mailing vendors for over 17 years

– Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings.

– Was one of the top 5 account managers nationally working with some of the nations top accounts.

• Not affiliated with any mailing vendor - Unbiased advice.

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April 2016 USPS® Rates Decrease- What You Need To Know

Speaker: Adam LewenbergPresident of Postal Advocate Inc.

What We’ll Cover:

• Why are rates going down• What rates are going down• Savings Tips• What you need to do

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New rates take effect Sunday April 10, 2016

Why is this happening?

• In January 2014, the USPS approved a 4.3% exigent surcharge increase because of their dire financial situation

• Mainly due to the recession and declining First-Class mail volumes. • An order from the Postal Regulatory Commission (PRC) requires this

4.3 percent exigent surcharge to be reversed after the Postal Service has collected additional funds totaling $4.6 billion.

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What Rates are Impacted

• Market Dominant – Impacted– First-Class Mail®

• Single Piece Letters and Cards.• Presort Letters and Cards• Flats• Parcels• Outbound single piece international.

– Periodicals– Special Services– Standard Mail®

• Letters• Flats• Parcels• High Density/Saturation Letters• Every Door Direct Mail Retail• Parcels

– Package Services• Bound Printed Matter Flats and

Parcels• Media/Library Mail

• Competitive – Not Impacted– Priority Mail Express™– Priority Mail®– First Class Package Service™– Parcel Select®– Standard Post™– Extra Services– Return Services– Mailer Services– Recipient Services

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First-Class Mail®

Retail - Savings – 2.9-4.4%

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Weight Ounces

Prior to 4/10/16

New Rates

4/10/16%

IncreasePrior to 4/10/16

New Rates

4/10/16%


New Rates

4/10/16%

Increase1 $0.49 $0.47 -4.1% $0.98 $0.94 -4.1% $2.54 $2.45 -3.5%2 $0.71 $0.68 -4.2% $1.20 $1.15 -4.2% $2.54 $2.45 -3.5%3 $0.93 $0.89 -4.3% $1.42 $1.36 -4.2% $2.54 $2.45 -3.5%6 N/A N/A $2.08 $1.99 -4.3% $3.14 $3.02 -3.8%

13 N/A N/A $3.62 $3.46 -4.4% $4.54 $4.35 -4.2%Post Card $0.35 $0.34 -2.9%

First-Class Mail® RetailLetters Flats Parcels

• First-Class Mail® stamp goes down by $.02 for letters • $.04 for flats and $.09 for Parcels. • Additional ounce rate goes down from $.22 to $.21. • Savings stay around 4% for every weight break.

Weight Ounces

Prior to 4/10/16

New Rates

4/10/16%

Increase

1 $0.485 $0.465 -4.1%

2 $0.705 $0.675 -4.3%

3 $0.925 $0.885 -4.3%

Letters

Metered Letters

Meter/PC Postage

Customers still save $.05

per letter!

First-Class Mail® Parcel/Package Rates

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Retail ParcelCommercial Package

ServiceWeight Ounces January 17, 2016 January 17, 2016 % Savings

1 $2.45 $2.60 -6%2 $2.45 $2.60 -6%3 $2.45 $2.60 -6%4 $2.64 $2.60 2%5 $2.83 $2.60 8%6 $3.02 $2.60 14%7 $3.21 $2.60 19%8 $3.40 $2.60 24%9 $3.59 $3.30 8%10 $3.78 $3.35 11%11 $3.97 $3.40 14%12 $4.16 $3.45 17%13 $4.35 $3.50 20%14 $5.75-7.85 (Priority) $3.55 38-55%15 $5.75-7.85 (Priority) $3.60 37-54%

15.999 $5.75-7.85 (Priority) $3.65 36-53%

First-Class Mail®

Postage Meter or USPS® Retail Counter

PC Postage

CommercialSavings – 3.8—6.8%

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Weight Ounces

Prior to 4/10/16

New Rates 4/10/16 % Increase

Prior to 4/10/16

New Rates

4/10/16 % IncreasePrior to 4/10/16

New Rates

4/10/16 % Increase

Automation 5 Digit 1 $0.391 $0.376 -3.8% $0.470 $0.438 -6.8% $0.260 $0.250 -3.8%

Automation 3 Digit 1 $0.416 $0.399 -4.1% $0.662 $0.630 -4.8% $0.275 $0.263 -4.4%

Automation AADC 1 $0.416 $0.399 -4.1% $0.702 $0.670 -4.6% $0.275 $0.263 -4.4%

Automation Mixed AADC 1 $0.439 $0.419 -4.6% $0.782 $0.750 -4.1% $0.284 $0.272 -4.2%

Presorted (Non Automation) 1 $0.471 $0.452 -4.0% $0.831 $0.798 -4.0% $0.295 $0.283 -4.1%

Commercial First-Class Mail®Letters Flats* Post Cards

• Automation 5 digit flats see an extra savings to 6.8%.

Savings Tip: Analyze if using the presort service still makes sense.

• Medium volume mailers using a presort provider where you were metering at $.471 (vs. the metered rate of $.485) you were saving $.014 per piece. With the new rate change, this difference is going down to $.013 per piece ($.465-.452). Some of these services make you date your mail for the next day or pay pickup fees.

• At one point the spread in rates was almost $.03, but now at $.013 you may want to validate that your volumes and savings justify using the service.

• Second ounce rides free! (USPS future discussions on third ounce rides free!)

Standard Mail®Savings – 2.4-6.1%

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Weight Ounces

Prior to 4/10/16

New Rates

4/10/16%


New Rates

4/10/16%

Increase

Automation 5 Digit ≤3.3 $0.266 $0.255 -4.1% $0.392 $0.376 -4.1%


Automation AADC/ADC ≤3.3 $0.283 $0.274 -3.2% $0.536 $0.522 -2.6%

Automation Mixed AADC/ADC-Origin ≤3.3 $0.304 $0.291 -4.3% $0.569 $0.539 -5.3%

Weight Ounces

Prior to 4/10/16

New Rates

4/10/16%


New Rates

4/10/16%

Increase



Automation AADC/ADC ≤3.3 $0.164 $0.159 -3.0% $0.393 $0.383 -2.5%

Automation Mixed AADC/ADC-Origin ≤3.3 $0.185 $0.176 -4.9% $0.426 $0.400 -6.1%

Standard Mail®

Standard Mail® NonprofitLetters Flats

Letters Flats

Tip: Use this savings to send out higher volumes that can bring in more customers and sales. If you can now increase your mail volumes by 4% for the same postage costs, how would that impact your bottom line?

Tip 2: Consider using a consolidation service to share in the $.045 mail entry discounts.

International Rates

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GroupPrior to 4/10/16


Prior to 4/10/16


Prior to 4/10/16


Canada $1.20 $1.15 -4.2% $1.20 $1.15 -4.2% $1.20 $1.15 -4.2%

Mexico $1.20 $1.15 -4.2% $1.79 $1.72 -3.9% $1.20 $1.15 -4.2%

Group 3-5 $1.20 $1.15 -4.2% $2.21 $2.13 -3.6% $1.20 $1.15 -4.2%

Group 6-9 $1.20 $1.15 $2.06 $1.98 -3.9% $1.20 $1.15 -4.2%

First-Class Mail International®1 Ounce 2 Ounce Post Cards

CountryInternational Rate Codes

Argentina 8Australia 6

China 6Egypt 6

France 3India 6

Nigeria 4Norway 5Russia 4

South Africa 4

Library and Media Mail

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Weight LB'sPrior to 4/10/16


Prior to 4/10/16


Prior to 4/10/16


1 $2.59 $2.48 -4.2% $1.79 $1.70 -5.0% $2.33 $2.24 -3.9%

2 $3.07 $2.94 -4.2% $2.27 $2.16 -4.8% $2.81 $2.70 -3.9%

3 $3.55 $3.40 -4.2% $2.75 $2.62 -4.7% $3.29 $3.16 -4.0%

5 $4.51 $4.32 -4.2% $3.71 $3.54 -4.6% $4.25 $4.08 -4.0%

10 $6.91 $6.62 -4.2% $6.11 $5.84 -4.4% $6.65 $6.38 -4.1%

15 $9.31 $8.92 -4.2% 8.51 8.14 -4.3% 9.05 8.68 -4.1%

Weight LB'sPrior to 4/10/16


Prior to 4/10/16


Prior to 4/10/16


1 $2.72 $2.61 -4.0% $1.88 $1.79 -4.8% $2.45 $2.36 -3.7%

2 $3.22 $3.09 -4.0% $2.38 $2.27 -4.6% $2.95 $2.84 -3.7%

3 $3.72 $3.57 -4.0% $2.88 $2.75 -4.5% $3.45 $3.32 -3.8%

5 $4.72 $4.53 -4.0% $3.88 $3.71 -4.4% $4.45 $4.28 -3.8%

10 $7.22 $6.93 -4.0% $6.38 $6.11 -4.2% $6.95 $6.68 -3.9%

15 $9.72 $9.33 -4.0% 8.88 8.51 -4.2% 9.45 9.08 -3.9%

Library MailSingle Piece 5-Digit Presort Basic Presort

Media MailSingle Piece 5-Digit Presort Basic Presort

Media Mail® service has special eligibility requirements for permissible contents. Media Mail rates are limited to the items listed below:Books (at least 8 pages).Sound recordings and video recordings, such as CDs and DVDs.Playscripts and manuscripts for books, periodicals, and music.Printed music.Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media.Sixteen millimeter or narrower width films.Printed objective test materials and their accessories.Printed educational reference charts.Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students.

Library Mail® Similar contents to Media Mail. Each piece must show in the address or return address the name of a school, college, university, public library, museum, or herbarium or the name of a nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, or fraternal organization or association.

Special ServicesSavings – 0 - 4.1%

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Special Services Retail ElectronicPrior to 4/10/16


Prior to 4/10/16

New Rates

4/10/16 % Increase

Certificate of Mailing $1.35 $1.30 -3.7%

Registered™ without Insurance $12.20 $11.70 -4.1%

Certified Mail™ $3.45 $3.30 -4.3%

Return Receipt $2.80 $2.70 -3.6% $1.40 $1.35 -3.6%

USPS Tracking

First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0%

Standard Mail® parcels $0.36 $0.35 -2.8%

Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0%

Signature Confirmation $3.00 $2.90 -3.3% $2.45 $2.35 -4.1%

Sending Certified Mail with Return Receipt - The price will now be $6.47(Compared to $6.74) for a one ounce letter.

Savings Tips:

1. Check your 2-3 day rates with your private carriers to see if they are less money.

2. Consider switching to Electronic Return Receipt which saves $1.35 each.

What you need to do:

• If you have a mail machine, make sure you download the new rates before April 10, 2016 when the rates take into effect to take full advantage of the decrease.

• Here are links to the different meter vendors:• Pitney Bowes:

http://support.pb.com/ekip/index?page=rate_change • Neopost: http://www.neopostusa.com/resources/rate-

change-information• FP: http://www.fp-usa.com/ratechange/ • Stamps.com: http://www.stamps.com/usps/current-postage-

rates/

• Go to the USPS Postal Explorer website for more information: pe.usps.gov

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Helping multi-locationorganizations streamline

their mailing costs

58,000 pieces ofequipment, managed

by Postal Advocate

Recovered over$2,200,000

in lost postage, vendorovercharges and fees

ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY

OVER $21,000,000 IN CLIENT SAVINGS

$559K57%

Average ClientSavings

Average EquipmentSavings

HOW WE DO IT• 200+ years of industry experience• Comprehensive web-based tool

providing visibility of all mail and equipment spend

• Time Savings - Assistance in fleet management

visit www.postaladvocate.com or call (888)977-MAIL(6245)

Sign Limited AgencyAgreement/Kick-Off Call.

Provide copies of vendor invoices, AP export,

location list, equipment inventory list.

Present savings opportunities and get client approval.

Postal Advocate provides ongoing support,

manages renewals, billingand vendor compliance.

Provide enterprise visibility of all spend, costs and

documented savings through enterpriseAdvocate.

Provide client log-in.

1 2

3

4 5 6

HOW ITWORKS

Work with current vendor to build population report, contract terms/start/end dates,

postage volumes, costs.

Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage.

Identify savings opportunities.

Submit vendor credit requests, lost postage forms and

eliminate avoidable fees.

Negotiate pricing. Create catalog.

Work with locations-asset validation, rightsize, termination…

Full implementation of savings.

visit www.postaladvocate.com or call (888)977-MAIL(6245)

Conduct Analysis

NO COST – AUDIT PHASE CONTRACTED CLIENT

Contact info: (20pt)

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Questions?

Contact: Adam Lewenberg - President888-977-MAIL X [email protected]

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april 2016 usps rate change presentation

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