HPS POSTAGE ESTIMATING TOOL Version 4.0 | Operating Guide

Hess Print Solutions is proud to offer our clients a one-stop tool to help guide you in determining what your USPS postage costs will be. Please remember – this tool is an ESTIMATOR only and is not intended to be a quote system. It utilizes the latest USPS price lists in conjunction with probability and history, based on the specifications you enter. Hess Print Solutions and its affiliates are not liable for the use of content of this spreadsheet. Main Entry Page – When opening the tool, you will notice that it is color coded and broken down into various sections. The light blue fields are Optional, the yellow are required fields (with the most relevant being in darker yellow).

Data Entry: this is where you tell the system what type of mailing you would like to estimate.

Postage Estimate: This is the “results” section. See tab #2 Postage estimate for the details.

Notes: This section shows USPS % used, and tells you if you made an error

Multi-Quote: Allows you to place quotes into a separate spreadsheet to easily compare data. (See page 13)

Notice the 4 tab options. See remaining document to fully understand how to utilize.

BMC is the same as NDC

Optional: Above are the optional blue fields. Each item will show up on the estimates. Feel free to use them to place descriptive verbiage that you want to highlight. (Date will automatically fill in for you). Data Entry Options and their affects on your postal estimate: The 6 items utilized to determine the quote are outlined in this section:

Quantity: Enter the amount you are mailing - from 1 to 100mm+. Normally, the higher the quantity, the more pieces qualifying for a lower USPS postage rate category (CRRT, 5D, 3D, etc) and therefore the lower your overall per pc postage. Choose USPS Category: This drop down menu allows you to choose one of 4 USPS classification (based on size and shape) categories – Flat/Magazine, Letter/SlimJim, Postcard, or Pkg/parcel/Carton. This is a major determining factor that places your piece into a USPS rate category. To understand the size limitations – see chart in the tab labeled “Pcwt Calculator” or the hard copy version of this chart on page 9 of this document.

Choose USPS Service: This drop down menu allows you to choose: Standard Mail, First Class, Bound Printed Matter, Periodical, or Non-Profit rates. If you are unsure about which rate category you qualify for – please see your HPS account manager. (Note: Periodical rate estimates not available with this version) List Saturation: This drop down menu allows you to indicate where the “bulk” of your targeted list will be delivered.

- National This indicates a nationwide mailing. Or, if you are unsure, just leave this Option as national.

- Regional This indicates that you are targeting an area (such as east coast, Midwest, south, etc.). Choosing this option means you expect mid-range quantities to qualify for BMC/SCF discounts.

- Local Indicating that your target is all in the same general area (normally the same State). This will result in even more opportunity for destination discounts.

List Configuration: Most lists will choose the main option (Standard List), however if you have purchased a Saturation CRRT list (sometimes referred to as Every Door Direct Mail) that option is available. Finally, there is also an option for Business to Business targeted lists. This will slightly increase postage expectations, as there are not as many businesses group together as there are residential addresses. Pc Weight (Lbs): If you already know the weight of the piece you are mailing, enter it here. Be sure to enter in Pounds (if you have the weight in Ounces – just divide by 16 and you have the conversion needed for Lbs).

Note: There is an entire tab dedicated to helping you determine the weight of your piece. Keep in mind, however, that while it does the calculation, it does NOT automatically fill in the pc wt on the main page. However it will show you (for reference) what is currently in the Pcwt Calculator.

Note2: If you enter a piece weight that is different than you calculated on the “Pcwt Calculator” tab (which is perfectly fine), the system will “let you know”.

Note3: The system converts to ounces here – this is just a reference.

SHOWING ESTIMATED POSTAGE Main Entry Page

As you choose each of your options in the Data Entry screen, the system shows you it’s guess on the approximant postage funds needed to cover the mailing. Postage Estimate: (Main Entry Page): This is a summary of optimal postage and (if applicable) freight should the mailing be plant dropped (no Co-Mail shown here). The dollars highlighted in blue will be the ones the system see’s as the best postage rates (if drop ship postage + Freight is a higher per piece charge – then it will revert to the Origin Postage as the optimal.

If system shows “ref only” that means that this postage is not the optimal choice, but shows it to your for reference

Drop ship freight Est. is just that – an estimate. Obviously if you are in LA and the mail is shipping to San Fran the system cannot know that any more than if you were shipping to NY (way more freight). So it uses an avg. freight cost. For quotes – see your HPS account manager.

Local freight – is a standard charge (currently $50) to transport your mail to the local post office(s).

More detail postage outlines are done on tab2 – “Postage Estimate”.

SHOWING ESTIMATED POSTAGE “Postage Estimate” Page

This is the heart of the estimating tool. Click on the “Postage Estimate” tab and it shows you the 3 options, Origin (dropping local with no freight for destination discounts), Destination Entry (freighting a qualifying % of the mail to take advantage of postal discounts), and Co-Mail (if the piece qualifies). If your mailing does not qualify for Co-Mail, the system will zero out the dollar amounts and tell you why it does not qualify. Same with destination entry, if you do not have enough mail or weight to transport, it will determine that this is not a viable option and zero out the sections.

Notice the % of mail that they system is estimating may qualify for drop ship shows here.

Notice that all of your optional entries show in this area so you can double check what you selected without going back to the main tab.

The system shows the most cost effective option by indicating “Best Option”

All production fees are baseline – you may have different pricing – see your HPS account manager.

Choose “Yes” For co-mail label if your mailing is polybag or needs to overlay pre-printed address areas.

Note: On the Main Entry Page there is this option below:

If you choose “Yes” it will remove all production related charges and leave only the postage amounts + any charges needed to get those rates - freight and maybe co-mail fees (if applicable). To put these back – just click the dropdown and choose “No” and the costs will be replaced. Below is the exact same view of tab2 as we saw on the previous page – the only difference is that the “Show Postage Only” option “Yes” has been chosen.

Since Co-Mail Label fees are could be needed to qualify for co-mail, these production fees will be shown if you choose “Yes”.

SHOWING THE ESTIMATED POSTAGE “FIRM” Tab

The “FIRM” tab is used to calculate the postage for qualifying mailings that takes a Flat mailer and separates the individual copies that are destined for a single address and combines all copies that go to the same address. This creates TWO separate mailings – one for the single pieces to single addresses, and one for the multiple copies that are combined into a “package”, addressed on top, and sent as Bound Printed Matter Parcels. (Note: While rare, if your bundles (which must be at least 4pcs) are less than ¾” they actual qualify for Flat parcel rates – this system does not recognize that, and in those cases you should not rely on this option).

This side calculates the single pcs at flat rates This side calculates the

multiple pcs at BPM parcel rates

Here you estimate the amount of your mail that targets a single piece to a single address

Here you estimate the AVERAGE number of pcs per bundle (multiple pcs to a single address). Note: Must be at least 4pcs, for production reasons.

This shows you how the pieces are being estimated in each category

Your must use the total of both to determine the cost of your mailing.

This is the number of bundles (not pieces)

Note: The “Show Postage Only” option (see pg. 6) – DOES work on this tab as well.

Estimating Piece Weight The final tab displays a common industry tool to help your determine the weight of a single piece. By entering the trim sizes, basis weight of the stock, number of pages (in even numbers) and coding for type of stock – this tool will present a fairly accurate estimate for piece weight. Notice there are 4 separate sections. The first section (upper left) should be used for your cover stock (normally coded at 864). The other sections are for the body and insert sections (normally coded at 950).

The trim sizes entered into this section are what the system utilizes to determine if your piece is a letter or flat

The trim sizes entered into this section automatically carry over to the other sections – but those can be overridden manually.

Notice that a small % is added to account for ink and binding

Remember – this piece weight does NOT override the main entry page section.

Estimating Piece Weight Chart of USPS Specifications

To help you understand the USPS categories – a chart of common sizes and their individual characteristics is shown on this tab. Keep these in mind when selecting USPS Category on the Main Entry page. You are still responsible for ensuring that the piece meets additional USPS automation specs that the system is not calculating– such as thickness and flexibility.

Additional Tools to Modify the Estimate

Manual Entry of Rate Qualifications This tool allows you to OVERRIDE the system averages with your own. Notice that the system displays the current % per category that it is utilizing to determine your estimate. This override function is utilized mainly for more advanced estimates. Example – you have run the list previously and know the percentages that your lists normally fall under. There are two sets of percentages – the rate category (CRRT, 5D, etc) and the destination entry % (DDU, SCF, etc.).

The system will always display the percentages it is utilizing. In this case manual entry is “No” so it is using the system calculations.

The “Other” category in rate not editable – it fills in the remaining % based on the other 4 category % you enter

The “Origin” category in destination entry acts the same as “Other”

The indicator here reminds you which rates are active.

As soon as Manual entry “Yes” is chosen – the categories are filled with the variables under the manual table

Notice that the grey sections of the “Manual” entry table calculate based on the ones above. In this case 3D was entered incorrectly at 100% - forcing “Other” to calculate to a negative (-65%). That will prompt the disclaimer in red “Not Accurate: …”. Do not use the calculated postage if this error is present. Re-enter you categories correctly and the warning will disappear. Additionally – the system is smart enough to recognize if rates and or drops are not available based on the USPS category you have chosen, or the USPS Service. In this case we replace Standard with First Class. The USPS does not allow destination rates for First class mail – therefore you will notice that even though we have entered % in the destination chart – the system dropped it all into “Origin”

Here is a second example – we change the USPS Category to Letters, and it recognizes that Letters do not qualify for DDU rates – therefore they system drops the DDU % down to the next preferred category of SCF rates (combining the two % into the qualifying category). Final example: Keep in mind that BPM Parcels are broken into two rate categories CRRT and presort. So if you choose these options, do not be surprised to get this result. (all, other than CRRT grouped as other).

Tools to Showcase the Estimate Multi-Quote Summary creation

Warning – Only use this option if you thoroughly understand how to use it. You must follow specific order, and do no manipulation of the tabs (such as delete a produced tab) or you will lose this function. This feature allows you to create a summary spreadsheet that compares multiple options. The tool literally creates another tab that shows side-by-side comparisons (in a spreadsheet format). It also adds an additional tab for each option that displays the detail behind each line item. Here is a walk through example. Note: You must go in order (1 thru 4). For our example, we will decide that the client wants the same project to mail, same number of pieces, but wants to see how adding pages (and therefore increasing the pcwt) will affect their postage. We will use a self cover – 48pp, 56pp, and 64pp for this example: Click on “1. Click here for Multi-Quote” and you get this pop-up. Determine exactly how many different quotes you want to compare and enter it here (you cannot change this later without restarting the entire process).

We enter 3 and hit OK.

This will instantly result in another tab being formed, called “Summary”

This creates the template for your Summary quote (see below).

For our example, we already have all the correct specs entered for the first estimate (48pp) so we hit: One of the first things you may notice is the appearance of a “counter” at the top of your main tab. This will help you keep track of how many estimates you have added.

Next, notice that the system has added a tab for the first estimate. This is the “detail” tab:

This is just a replica of the detailed “Postage Estimate” Tab.

If you take a look at your Summary Tab you will notice that this first estimate has already been added: Please note: this will NOT happen for the subsequently added estimates. You will not be able to see these show up in your summary until the entire process is complete. Again – only the first one shows up to start, after that you will NOT see the others until the process is done. Let’s continue our example. We have added the first estimate showing a 48pp (.3348lbs), we now want to show postage for a 56pp. We go to our Pcwt Calculator tab and change the page count – the result is a pcwt of .3906 lbs. We make this change on the Main Entry page: And, again, hit The additional tab is created:

And the counter reflects: Remember: This estimate, and subsequent adds, will NOT be viewable yet on the Summary Tab. Finishing our example. We have added the first two estimates showing a 48pp (.3348lbs) and 56pp (.3906 lbs), we now want to show postage for a 64pp. We go to our Pcwt Calculator tab and change the page count – the result is a pcwt of .4464 lbs. We make this change on the Main Entry page, hit “add to spreadsheet”, a tab for “Estimate #3” is created, and the counter reflects “Number of Estimates Completed: 3”…. Note: If you try to add additional estimates (more than you original told the system), you will not be allowed too, and will get this error message: The final step is to create the stand alone spreadsheet summary. To do this, click on:

You will immediately get prompted to save this file: You will receive verification that the file has been saved.

For training purposes – we will enter the name “Testing MultiQuote Summary” – and hit <Save> Notice that the file contains not only the summary,

but the detail tabs for each of the estimates.

The result of the main summary will look like this: (note: the detail tabs are attached to this file as well) Upon returning to the Postage Estimator, you will notice that the counter and all the tabs from the estimate are still there. To remove them, hit the key labeled: This key can be used at anytime during the process, should you make an error. Allowing you to start over. Final note: Please be careful not to modify or delete any of these tabs in the postal estimator, as you take the chance of a fatal error. Once you have saved the summary and detail tabs under their own name – feel free to manipulate in any way you wish.

Keep in mind that this is now an editable Excel file. You can add, delete, and format any way you wish.

System Warnings Finally – Keep an eye on the notes section. There is a key area that will let you know if you have made an error, or if the system had to make an adjustment on your part. While it is not capable of catching everything, the majority of the time this area should be clear of any warnings or your postal estimate is considered invalid: Most of the warnings are self-explanatory. However, if you have any questions – please see your HPS sales rep or account manager.

Examples: (these are just a few of the possible notifications)

1C Min is 500 - Single pc rate used Estimator is using non-Presort rates (minimum not met) To fix: increase the qty to 500 or more

Pcwt exceeds Postcard min – Postcard rates cannot be over 1oz – use letter rates or letter rates used up to 3.5oz decrease weight to compensate Postcard rates only avail with 1C mail Self Explanatory. Switch to Standard to see true USPS

postcard rates or switch to letter/slimjim for Standard Letter

Nonprofit only avail with Standard Mail – Self Explanatory. Choose again, please Must Call HPS Postal Group for The complexity of Periodical rates make it impossible to

estimate Periodical Quotes Postage without a list – Sorry, but the estimator cannot be

used for these mailings Please make sure to read all disclaimers. This tool should be used to help judge approximant USPS postage amounts (based on Jan 2012 rates) needed for your type of mailing. As always, if you have any questions – please be sure to see your Hess Print Solutions representative.