january 2016 usps® rates increase - what you need to know · pdf file 01/01/2016...

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

    Speaker: Adam Lewenberg President 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 I’ll be happy to assist

    January 14, 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 14, 2016 3

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

    Speaker: Adam Lewenberg President of Postal Advocate Inc.

  • What We’ll Cover:

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

    January 14, 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 14, 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 14, 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 14, 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 14, 2016 9

  • Priority Mail®

    January 14, 2016 10

    Most popular USPS package service 13 ounce to 70LB items 1-3 day delivery 8 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's Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change 1 $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 Mail® Retail Commercial Base Commercial Plus

  • First-Class Mail® Parcels

    January 14, 2016 11

    Best Savings Opportunity Less 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 Ounces Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change 3 $2.54 $2.54 0% $1.54-2.04 $2.60 27-69% N/A N/A 6 $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/A 13 $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 Plus USPS First-Class Mail® Parcel and Package Rates

  • Priority Mail® Express

    January 14, 2016 12

    Up to 70LB items 1 day Guaranteed Delivery 8 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's Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change Prior to Jan 17,

    2016 January 17,

    2016 % Change 1 $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® Express Retail 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 not be converted t

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