january 2009 usps price change -...
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January 2009 USPS Price Change
Endicia247 High Street Palo Alto, CA 94301800-576-3279 [email protected]
www.endicia.com
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Price Change Overview2009 price changes
Rate tiers
New flat rate box
The DetailsExpress Mail
Price change and rule changes
Priority MailPrice change and rule changesFlat rate box
Endicia Updates
Agenda
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Q. Last year the U.S. Postal Service changed its prices in May. Why is it happening in January this year?
A. To be consistent with industry practices, the U.S. Postal Service is doing a price change at this time for its Shipping Services ONLY. This will allow shippers to do a better comparison of the U.S. Postal Service to other available shipping carriers.
Timing
Mailing prices, including stamp prices and extra services, will still be changed in May.
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FedEx UPS U.S. Postal Service - Retail
Overnight 6.9% 6.9% 5.7%
2 - 3 Day 6.9% 6.9% 3.9%
Ground 5.9% 5.9% 5.9%
Keeping Prices Under Control
Information based on published rate increase information from FedEx, UPS, and the U.S. Postal Service websites.
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USPS Shipping Services:Express Mail
Priority Mail
Express Mail International
Priority Mail International
Price Change Overview
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Volume incentives:Commercial Plus pricing, a new deeply discounted tier, replaces the current Express Mail volume rebates
Shippers can qualify for Commercial Plus discounts on Priority Mail and/or Express Mail (domestic)
Shippers now get their discounts immediately, instead of waiting until the end of the quarter
Price Change Overview
Other Changes:Deeper discounts for Commercial Base pricing tier
New Small Flat Rate Priority Mail Box
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Pricing Definitions:
Retail PricingThe standard counter price for postage at the Post Office.
Commercial Base PricingThe discounted price available to online postage users, including Endicia customers.
Commercial Plus PricingDeeply discounted prices available to high volume shippers of domestic Priority Mail and Express Mail, including Endicia customers.
Price Change Overview
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Commercial Base saves 5% over retail!
Express Mail Changes
Express Mail Change (avg.)
Retail + 5.7%
Commercial Base + 3.7%
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9Express Mail Changes
Express Mail Commercial Plus Discounts14.5% discount over retail
Replaces volume rebates with up front discount
Qualification
6,000 domestic Express Mail pieces during the prior 4 quarters
Customer Commitment agreement with the USPS
Commercial Plus saves 14.5% over retail!
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Package Retail Commercial Base
Commercial Plus
1 lb., 8 zones $25.15 $23.89You save $1.26!
$21.50You save $3.65!
3 lbs., 4 zones $29.85 $28.36You save $1.49!
$25.52You save $4.33!
Flat Rate Envelope
$17.50 $16.63You save $0.87
$14.96You save $2.54!
Express Mail Illustration
Savings over U.S. Postal Service Retail Prices.
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11Express Mail Savings Over Time
Packages Shipped Per Business Day
Savings Per Month
Savings Per Year
1 $27.60 $331
5 $138 $1,656
10 $276 $3,312
25** $2010 $24,120
Express Mail 3 lbs., Online Commercial Pricing Savings*
*Savings over U.S. Postal Service Retail prices based on 5 business days/week, 4 weeks/month.**Illustrates Commercial Plus Pricing discount for high volume Express Mail shippers.
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12Express Mail International Changes
Commercial Base saves 8% over retail!*
Express Mail International Change (avg.)
Retail + 8.5%
The number of Country Price Groups will also expand from 9 to 10
Group 10 consists of Australia and New Zealand
* No Stealth Postage Needed
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Priority Mail Change (avg.)
Retail + 3.9%
Priority Mail Changes
Commercial Base saves average 4.7% over retail!
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14Priority Mail Changes
Priority Mail Commercial Plus DiscountsAverage 7% discount over retail
Qualification
100,000 domestic Priority Mail pieces during the prior calendar year
OR 600 Priority Mail Open and Distribute containers in the prior calendar year
Customer Commitment agreement with the USPS
Commercial Plus saves average 7% over retail!
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Package Retail Commercial Base
Commercial Plus
7 lbs., 4 zones $12.05 $11.14 $10.90
Flat Rate Envelope $4.95 $4.80 $4.75
Small Flat Rate Box $4.95 $4.80 $4.75
Flat Rate Box $10.35 $9.85 $9.67
Large Flat Rate Box $13.95 $13.50 $13.27
Large APO/FPO Box $11.95 $11.50 $11.30
Priority Mail Illustration
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16Priority Mail Savings Over Time
Packages Shipped Per Business Day
Savings Per Month
SaviPer
ngs Year
1 $19.80 $237
5 $99 $1,188
10 $198 $2,376
100 $1,980 $23,760
400** $9,680 $116,160
Priority Mail 2 lbs., Online Commercial Pricing Savings*
*Savings over U.S. Postal Service Retail prices based on 5 business days/week, 4 weeks/month. Savings includes $0.65 per package for free Delivery Confirmation for Priority Mail using an approved online PC Postage vendor.**Illustrates Commercial Plus Pricing discount for high volume Priority Mail shippers.
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17Priority Mail International Changes
Commercial Base saves 5% over retail!*
Priority Mail International Change (avg.)
Retail + 8.5%
The number of Country Price Groups will also expand from 9 to 10
Group 10 consists of Australia and New Zealand
* No Stealth Postage Needed
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18Priority Mail Changes
Priority Mail Small Flat Rate Box8 5/8” x 5 3/8” x 1 5/8” (about the size of video cassette)
Delivery Confirmation™ is free when using online postage
Can be used Domestically or Internationally
Prices the same as PM Flat Rate Envelope
Lowest-cost Flat Rate option
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Retail Commercial
Domestic $4.95 $4.80
Canada and Mexico* $10.95 $10.40
All other countries* $12.95 $12.30
Priority Mail Changes
Priority Mail Small Flat Rate Box Pricing
*4 lb. Priority Mail Small Flat Rate Box limit for international shipping
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20Summary Of Discounts
Endicia Saves Money Over Retail
Mail Class You SavePriority Mail Average of 4.7%
Priority Mail High Volume Average of 7%
Express Mail 5%
Express Mail High Volume 14.5%Priority Mail International 5%
Express Mail International 8%
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21Summary Of Discounts
Endicia Saves Money Over Retail
Extra Services You SaveParcel Insurance made available by Endicia
Up to 63% overUSPS insurance
Delivery Confirmation $0.65 (for Priority Mail)$0.57 (Other Classes)
per packageSignature Confirmation $0.40 per package
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22Endicia Makes It Easy
Endicia software will automatically update with the new prices. After the update, any pieces postmarked January 19, 2009 or later will use the new prices.
The U.S. Postal Service will continue to review prices twice a year. As part of any Endicia Service Plan, your software will automatically update with any changes, at no additional cost.
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23Contacting Us
Phone800-576-3279Support - Ext 130Sales - Ext 1407am-5pm Pacific Time
[email protected]@endicia.com
Webwww.endicia.comwww.usps.com/prices
Slide Number 1AgendaTimingKeeping Prices Under ControlPrice Change OverviewPrice Change OverviewPrice Change OverviewExpress Mail ChangesExpress Mail ChangesExpress Mail IllustrationExpress Mail Savings Over TimeExpress Mail International ChangesPriority Mail ChangesPriority Mail ChangesPriority Mail IllustrationPriority Mail Savings Over TimePriority Mail International ChangesPriority Mail ChangesPriority Mail ChangesSummary Of DiscountsSummary Of DiscountsEndicia Makes It EasyContacting Us