january 2016 usps rates increase webinar

Click here to load reader

Post on 13-Feb-2017

310 views

Category:

Devices & Hardware

0 download

Embed Size (px)

TRANSCRIPT

  • January 2016 USPS Rates Increase- What You Need To Know

    Speaker: Adam LewenbergPresident of Postal Advocate Inc.

  • Meeting Instructions There is a joinme webinar presentation link All lines are on mute until the end of the meeting when they will be opened

    up for questions. Type questions into the chat box as they come up and we will do our best to

    answer them. If you have issues hearing the webinar, make sure you have called into the

    meeting vs. relying on internet audio. Dial-in +1.781.666.2350 Access Code 813-677-689#

    If you are having issues seeing the webinar, try entering the meeting link again and joining through the browser (Vs. downloading software).

    We will be sending a copy of the presentation out after the meeting or you can find it on our website under FAQs/Resources

    If you have any issues during the meeting contact Doris Tam at 888-977-6245 x512 or email me at doris.tam@postaladvocate.com and Ill be happy to assist

    January 15, 2016 2

  • 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.

    January 15, 2016 3

  • January 2016 USPS Rates Increase- What You Need To Know

    Speaker: Adam LewenbergPresident of Postal Advocate Inc.

  • What Well Cover:

    The good news and the bad news How to budget for the increase Savings Tips

    January 15, 2016 5

    New rates take into effect Sunday January 17, 2016

  • The Good News

    The following mail classes are not increasing: (Market Dominant Mail Classes)

    First-Class Mail Letter and Flat Standard Mail International Letter and Flat rates Media Mail, Library Mail and Bound Printed Matter Special Services

    These are the main mail classes used by businesses

    There is a potential for a rate decrease later this year (Based on the Exigent 4.3% increase in 2014)

    January 15, 2016 6

    Common Mailings not impacted by increase: Invoices Statements Checks Marketing Day to Day

    correspondence

  • The Bad News - 9.5% Overall Increase

    The following mail classes are increasing: Competitive Mail Classes Priority Mail - 9.8% Priority Mail Express 15.6% First Class Package Service 12.8% Retail Ground (Formally Standard Post) 10% Parcel Select Ground (Formally Parcel Select) 3.1% First-Class Package International Service 21.6% Priority Mail International 10.2% Priority Mail Express International 11.6%

    January 15, 2016 7

  • Potential Reasons for the Package/Expedited Increases For lightweight packages going to consumers (vs. businesses) the USPS has

    significantly lower rates than the private carriers when factoring fees.

    In a recent filling to the Postal Regulatory Commission, UPS made a complaint that the USPS was undergoing anticompetitive policies and claimed: In turn, the larger market share enables the utility to better leverage economies of scale and scope, increasing its scale and further harming its now handicapped rivals,

    The private carriers typically increase rates at around 5% per year.

    This is their fastest growing segment and they need it to cover volume declines in other areas. (Example: Letters and Flats)

    They are the only service delivering to every door every day. Private carriers are using them at times to deliver the last mile.

    January 15, 2016 8

  • Priority Mail Rate Categories

    Retail At USPS Counter or through a postage meter.

    Commercial Base Through a PC Postage Solution (USPS.com will no longer qualify for these rates and will default to retail)

    Commercial Plus Through a contracted agreement with the USPS. Priority Mail - 50,000 packages

    per year across facilities Priority Mail Express 5,000

    packages per year across facilities.

    January 15, 2016 9

  • Priority Mail

    January 15, 2016 10

    Most popular USPS package service13 ounce to 70LB items 1-3 day delivery8 primary zones based on distance.

    Highlights 9.8% overall increase. Largest increase in 1-5LB where they have the lowest prices. Heavier items having small to no increase. Commercial Plus customers seeing the largest increases. Flat Rate Envelopes and Small Boxes having the largest increases. Sorry Guam Zone 9 increasing the most at 20-50% USPS Click and Ship now defaults to Retail (Vs. Commercial) rates.

    Weight LB'sPrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % Change1 $5.75-7.15 $6.45-7.85 10-15% $5.05-6.51 $5.75-7.16 10-14% $4.95-6.25 $5.60-6.95 8-13%5 $8.95-21.55 $9.85-23.15 5-10% $6.78-18.87 $7.39-19.81 0-9% $5.35-18.30 $7.17-19.22 3-38%

    10 $12.15-37.10 $12.65-38.60 4% $8.28-32.95 $8.69-34.60 0-7% $5.60-31.73 $8.43-33.56 4-51%25 $22.2-67.7 $22.55-70.4 0-4% $17.76-58.64 $17.76-61.57 0-5% $11.16-47.54 $17.23-86.74 18-59%50 $31.3-105.50 $32.55-109.7 4% $25.96-91.34 $25.96-95.91 0-5% $24.96-90.52 $25.18-93.03 1-20%

    Flat Rate Envelopes $5.75 $6.45 12% $5.05 $5.75 14% $4.95 $5.60 13%Small Flat Rate Box $5.95 $6.80 14% $5.25 $6.10 16% $5.20 $5.90 13%

    Medium Flat Rate Boxes $12.65 $13.45 6% $11.30 $11.95 6% $10.65 $11.60 9%Large Flat Rate Boxes $17.90 $18.75 5% $15.80 $16.35 3% $14.80 $15.85 7%

    USPS Priority MailRetail Commercial Base Commercial Plus

  • First-Class Mail Parcels

    January 15, 2016 11

    Best Savings OpportunityLess than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB)1-3 day delivery

    Highlights 12.8% overall increase. Retail rates remain unchanged. Commercial Base rates see increases up to 69% (Light weight items) Elimination of presort discounts. Commercial Plus rates eliminated. Slight reductions for 13 ounce items. New rates go to 15.99 ounces vs. 13 ounces in the past. This is a

    new savings opportunity because items would have defaulted to Priority Mail.

    Weight OuncesPrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % Change3 $2.54 $2.54 0% $1.54-2.04 $2.60 27-69% N/A N/A6 $3.14 $3.14 0% $1.85-2.35 $2.60 11-41% $3.37-4.05 N/A

    10 $3.94 $3.94 0% $2.57-3.07 $3.35 9-30% $3.37-4.05 N/A13 $4.54 $4.54 0% $3.11-3.63 $3.50 (-4-13%) $3.37-4.05 N/A

    15.999 N/A N/A 0% N/A $3.65 New $3.37-4.05 N/A

    Retail Commercial Base Commercial PlusUSPS First-Class Mail Parcel and Package Rates

  • Priority Mail Express

    January 15, 2016 12

    Up to 70LB items 1 day Guaranteed Delivery8 primary zones based on distance.

    Highlights 15.6% overall increase. Minimal Retail increase and only on light weight local zones. Huge increase on Commercial Base and Plus with the largest hit on closer

    zones. Flat rate envelopes see 14-39% increase. Elimination of Flat Rate Box

    Weight LB'sPrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % ChangePrior to Jan 17,

    2016January 17,

    2016 % Change1 $17.95-36.20 $22.95-36.6 0-28% $15.13-30 $20.66-32.94 10-37% $11.94-22.37 $20.66-28.08 39-73%5 $24-57.55 $24-57.55 0% $16.65-39.87 $21.6-51.80 20-43% $15.07-39.33 $21.6-51.8 21-45%

    10 $36.15-84.85 $36.15-84.85 0% $20.26-63.24 $32.54-76.37 21-61% $19.59-62.28 $32.54-76.37 33-66%25 $65.95-147.75 $565.95-147.75 0% $33.99-127.57 $59.36-132.98 4-75% $33.14-124.02 $59.37-132.98 7-89%50 $116.85-273.25 $116.85-273.25 0% $56.87-239.40 $105.17-245.93 3-94% $55.73-229.88 $105.17-245.93 7-102%

    Flat Rate Envelopes $19.99 $22.95 15% $18.11 $20.66 14% $14.85 $20.66 39%Flat Rate Box $44.95 n/a $44.95 n/a $44.95 n/a

    USPS Priority Mail ExpressRetail Commercial Base Commercial Plus

  • Savings Strategies 1. Move to Commercial Rates Huge discounts over retail rates. Free tracking on usps.com. Need to process through a PC Postage solution to get the discounts. Multiple vendor options to process packages Some are free or very low cost. Requires the operator to enter the address and submit to the USPS electronically

    and create a shipping label vs. meter tape. If you are doing large volumes (50,000 per year) reach out to the USPS about

    Commercial Plus discounts. 13-16 ounce can now be converted to First-Class Parcel for $3.63 or less!

    January 15, 2016 13

    Retail Commercial Base Commercial Plus

    Weight LB'sJanuary 17,

    2016 January 17, 2016 % Savings January 17, 2016% Savings (Over Commercial Base)

    1 $6.45-7.85 $5.75-7.16 9-11% $5.60-6.95 3%5 $9.85-23.15 $7.39-19.81 14-34% $7.17-19.22 3%

    10 $12.65-38.60 $8.69-34.60 10-41% $8.43-33.56 3%25 $22.55-70.4 $17.76-61.57 13-32% $17.23-86.74 3%50 $32.55-109.7 $25.96-95.91 13-20% $25.18-93.03 3%

    Flat Rate Envelopes $6.45 $5.75 11% $5.60 3%Small Flat Rate Box $6.80 $6.10 10% $5.90 3%

    Medium Flat Rate Boxes $13.45 $11.95 11% $11.60 3%Large Flat Rate Boxes $18.75 $16.35 13% $15.85 3%

    USPS Priority Mail

  • Savings Strategies2. Com