Presented by:Janet Lockhart-Jones, Ed.D., MDC Curriculum Manager, Postal EducationPitney Bowes Inc.

January 2014 USPS® Price and Regulatory Changes for Mailing and Shipping Services

December 17, 2013

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.

Janet’s 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).

Your presenter

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

AgendaWHAT’S INSIDE

Highlights, details, and cost saving strategies for:

First-Class Mail®

Special Services

Shipping/Competitive products

Pitney Bowes Resources

Classes of Mail Affected – Market Dominant

First-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 ServicesBound Printed Matter (BPM) FlatsBPM ParcelsMedia, Library MailAlaska Bypass

Proposed Market Dominant Price Adjustments1. 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

Proposed Shipping Services/Competitive Products Price Adjustment) (Filed, Awaiting Final PRC decision) Overall price increase is 2.4%

Background

1.69% CPI + 4.30% Exigent = 5.99% overall average increase

Save 1¢ on First-Class letters that have postage affixed using:

Postage MeterPC PostagePermit ImprintPre-canceled stamps

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

NEW: First-Class Meter Rate

The new price category will be based on incremental weights up to 3.5 oz.Metered pieces claiming the new “Meter Price” will have postage applied 

directly to the pieces, and will be deposited as “Retail mail”.

4746

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

First-Class Mail® Change Highlights

Special Services Change Highlights 1 Certificate of Mailing CPI Price CPI + Exigent PriceBasic $1.25 $1.30Firm Book Mailing 0.45 0.47Bulk: First 1,000 pcs 7.50 7.80Each Add’l 1,000 pcs 0.90 0.95

Certified Mail $3.15 $3.30

Return ReceiptRequested at time of mailing

Electronic $1.30 $1.35Green Card 2.60 2.70Merchandise 4.20 4.40

Requested after mailing 5.05 5.25

Special Services Change Highlights 2USPS Tracking CPI Price CPI + Exigent PriceFirst Class Mail (Parcels Only) Retail $1.00 $1.05First Class Mail (Parcels Only) Electronic 0.00First Class Package Service Electronic 0.00Priority Mail Retail 0.00Priority Mail Electronic 0.00Standard Post Retail 0.00Standard Mail Parcels Electronic 0.22 0.23Package Services Retail 1.00 1.05Package Services Electronic 0.22 0.23Parcel Select Electronic Electronic 0.00

Signature Confirmation CPI Price CPI + Exigent PriceElectronic $2.25 $2.35Retail 2.80 2.90

Key Details

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 Exigent

First-Class Mail® Retail

Pricechange

Key First-Class Mail® Single-Piece Prices

Current Price

CPI Price

CPI + Exigent Price

Stamp Price 0.46 0.47 0.49

Meter Price 0.46 0.46 0.48

Single-Piece Flats 0.92 0.94 0.98

Single-Piece Cards 0.33 0.33 0.34

Retail Parcels 2.07 2.23 2.32

Save 1¢ on First-Class letters that have postage affixed using:

Postage MeterPC PostagePermit ImprintPre-canceled stamps

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

NEW: First-Class Meter Rate

The new price category will be based on incremental weights up to 3.5 oz.Metered pieces claiming the new “Meter Price” will have postage applied 

directly to the pieces, and will be deposited as “Retail mail”.

4746

First 3 ounces in each FCM parcel category still a single price cell

$.17 additional ounce price after 3 ounces (CPI) -$0.18 Exigent

First-Class Mail® Retail Parcels

Oz. Current CPI Exigent1 2.07 2.23 2.322 2.07 2.23 2.323 2.07 2.23 2.324 2.24 2.40 2.505 2.41 2.57 2.686 2.58 2.74 2.867 2.75 2.91 3.048 2.92 3.08 3.229 3.09 3.25 3.40

10 3.26 3.42 3.5811 3.43 3.59 3.7612 3.60 3.76 3.9413 3.77 3.93 4.12

PARCELS

Mobile Technology PromotionsEncourages 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 Promotion

Technology Drives RelevanceLeverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns

Promotions Overview

Color Print in First-Class Mail Transactions Promotion Mail and Digital Personalization Promotion

Leverage Value of First-Class MailIntended 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 AcquisitionProvides an extra incentive for new customers to try direct mail EDDM Coupon Promotion

Promotions Overview

December 17, 2013Enterprise Learning & Development 18

Registration opensDecember 15th – March 31st

Promotion Period:February 1 – March 31st, 2014

2% upfront discount

Branded Color MobileTechnology Promotion

Promotions Details

Beginning in January 2014, theUSPS® 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

IMb® Full- Service Mandate

AgendaWHAT’S INSIDE

Highlights, details, and cost saving strategies for:

First-Class Mail®

Special Services

Shipping/Competitive products

Pitney Bowes Resources

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

Competitive Services Average increases

Product Average Increase

Priority Mail Express 3.0%

Priority Mail Net 0%

First Class Pkg Services 5.0%

Parcel Select 9.2%

Standard Post 5.2%

• 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 (IM®pb)

Shipping Services Change Highlights

Key Details

***All Changes are Proposed until Approved***

Shipping Services

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.

Priority Mail Express™

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

Priority Mail®

Required on ALL Commercial Parcels/Packages

$0.20 per piece surcharge for pieces failing to meet the January 26th

standards for IM®pb use and falling outside established thresholds.

Meter customers are EXEMPT from the surcharge; they have until January 2015 to adopt an IM®pb compliant solution. After this date, retail prices apply.

Label 400 (existing) or a retail tracking IM®pb complaint barcode will still be accepted from meter customers throughout 2014.

pbSmartPostage and SendSuite are IM®pb enabling solutions for meter mailers

Intelligent Mail Package Barcode (IM®pb)

CPI price proposal for Market Dominant Products

The new Meter Rate category will afford meter customers a one-cent discount off First-Class stamped letters.

Shipping Services/Competitive Products proposal filed with the PRC.

No PRC decision yet on the Exigent Price Proposal

Electronic Return Receipt (ERR) is 1/2 the cost of the retail RR green card. Other electronic confirmation services are lower than traditional or free!

Meter customers who ship must adopt an IM®pb compliant solution to continue to get the best pricing. pbSmartPostage™ , offered through December at no cost to new meter clients, is ideal for small business mailers. Talk to a Pitney Bowes representative today.

Summary

December 17, 2013

http://www.pb.com/

USPS® news sources you can rely on

December 17, 2013

http://www.pb.com/postal-information/

USPS® news sources you can rely on

December 17, 2013

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

USPS® news sources you can rely on

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