how the usps rate increases will affect publishers
DESCRIPTION
On September 25th the United States Postal Service announced proposed price changes that will go into effect in January 2014. Mail owners, who cannot participate by late January 2014, could lose their automation discounts and experience additional postage costs as high as 10% of their 2013 postage bill. This presentation breaks down the rate increases and what this means for publishers.TRANSCRIPT
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WELCOME Wednesday Webinar Series | November 2013
How the 2014 USPS Rate Increases Will Affect Publishers
Contact Marianne Calilhanna P. +1. 267.640.9158/ [email protected]
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AGENDA
• Introductions
• Background on USPS rate increases
• Impact for publishers
• Questions from you
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TECHNOLOGY
XML transformations
XML to InDesign
XML editors
QA scripting
Mobile and eContent
Metadata
DELIVERY
USPS distribution
Online
eBook
CONTENT
Production management
Copyediting
Composition
Expedited production models
Publish ahead of print
Quality control checks
ABOUT US We are a leading print and content solutions provider for the publishing industry
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OUR SPEAKERS
Frank Lynn
Vice President of Postal Affairs and Distribution
Kristina Freeman
Director of Business Development
Marianne Calilhanna
Director of Marketing
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PRICE INCREASE OVERVIEW Postage prices will be above the inflation-based price cap to generate $2 billion in revenue in 2014
Total average increase of 6% on market dominant products • CPI (1.6%) + Exigent (4.3%) Lower price for metered postage • First-class mail single piece stamp $0.49 • First-class mail single piece meter $0.48 Introduction of FSS pricing • FSS bundle and container preparation required in FSS zones • Prices encourage entry at FSS facility Continues full-service IMB incentives • First-class mail: $ 0.003 each or $ 3.00 per m • Standard mail and periodicals: $ 0.001 or $ 1.00 per m
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PROPOSED PERIODICAL PRICING
Current Price
CPI Price CPI + Exigent Price Percent Change
Barcoded machinable flats Carrier route basic (piece rates)
0.193 0.197 0.205 6.2%
Barcoded machinable flats 5-digit (piece rates)
0.291 0.295 0.308 5.8%
CPI Price Exigent Price Total Percent Change Outside county 1.5% 4.3% 5.9% Inside county 1.6% 4.3% 6.0%
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VALUE OF IMB PROGRAM
• Maintain automation discounts – represents as much as 8% to 10% of postage costs
• Qualify for participation in future mail programs • Ensure deliveries are made in a timely manner • Synchronize multi-channel marketing • No charge for address change notices
Intelligent mail barcodes offer opportunities to improve the value of your mail channel
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WHAT DOES THIS MEAN FOR YOU
Printers: So,ware updates & procedural changes
Publishers: Educa9on, postal registra9on (IMB benefits)
USPS: Cash-‐flow/revenue; beHer visibility into mail flows
This impacts all of us: magazines, journals, catalogs, and printers
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STRATEGIES YOU CAN USE
1. Evaluate co-mailing or drop shipping opportunities
2. Explore additional options to generate more revenue using enclosures
3. Address mail hygiene 4. Offset increases with
additional revenue
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EXAMPLES
Advertising Content
Single Copy Weight
2013 Origin Postage
Proposed 2014 Origin Postage
2014 Postage Without Full-
Service IMB Disc
2014 Postage Co-mailed With Full Serivice IMB
(fees vary)
Journal A 12,079 copies 22% 0.945 $6560.73 $6953.06 $7157.07 $4519.49
NP Journal 28,619 copies 0% 0.4085 $8494.83 $9002.82 $9380.04 $5851.83
Magazine 11,504 copies 28% 0.614 $4900.89 $5193.96 $5571.18 $3376.08
Magazine 39,440 copies 10% 0.5035 $13,116.94 $13,901.33 $14,278.55 $9035.87
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Address matching De-‐dupe
Remove bad
addresses Pre-‐sort Co-‐mail/
drop ship Intelligent
mail Mail
strategies Distribu9on
CENVEO VALUE CHAIN Giving you the best ROI for every postal dollar you spend
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QUESTIONS?
5457 Twin Knolls Road, Suite 200, Columbia, MD
+1.267.640.9158
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