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January 2020 USPS® Rate Change - What You Need To Know

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Page 1: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

January 2020 USPS® Rate Change

- What You Need To Know

Page 2: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Background and Experience

Speaker: Adam Lewenberg

• President of Postal Advocate Inc.

– The only mail audit and recovery firm in the US and Canada

– Manage a portfolio of 158,000 pieces of mailing equipment for the largest

US companies.

– Speak and teach nationally on mail savings and industry trends.

• Former Industry Co Chair- Boston Postal Customer Council and Mail Systems

Management Association. 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.

December 18, 2019 2

Page 3: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

What We’ll Cover:

• What rates are changing

• How this impacts you

• What you need to do

• Savings tips

December 18, 2019 3

New rates take into effect Sunday

January 26, 2020

We will focus on the most common rate structures. For more detail on other mail classes and

services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index

Page 4: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

First-Class Mail® Single Piece

• 0% Increase on letters

• Flats rates are increasing due to additional ounce rate going from $.15 to

$.20. Drastic increase as items get heavier.

December 18, 2019 4

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

1 $0.55 $0.55 0.0% $1.00 $1.00 0.0%

2 $0.70 $0.70 0.0% $1.15 $1.20 4.3%

3 $0.85 $0.85 0.0% $1.30 $1.40 7.7%

6 N/A N/A $1.75 $2.00 14.3%

13 N/A N/A $2.80 $3.40 21.4%

Post Card $0.35 $0.35 0.0%

Letters Flats

First-Class Mail® Retail

Page 5: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

First-Class Mail® Single Piece - Metered Letters

• Using a postage meter or a PC postage solution will

have a no price increases for letters!

• Metered mail (including PC Postage) will still save $.05

per piece over stamps purchased from the Post Office!

December 18, 2019 5

Savings over First-Class

Mail® Retail @ $.55 each

Postage meters and PC Postage start at about $15 per month and

can make your mail easier to manage.

Annual Postage # of Pieces @ $.50 each Savings @ $.05 Each

$1,000 2,000 $100.00

$10,000 20,000 $1,000.00

$100,000 200,000 $10,000.00

$1,000,000 2,000,000 $100,000.00

First-Class® Mail Metered Savings

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

1 $0.500 $0.500 0.0%

2 $0.650 $0.650 0.0%

3 $0.800 $0.800 0.0%

Letters

Metered Letters

Page 6: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

First-Class Mail® Commercial

• 2% Average increase for letters.

• Flats have the largest increase with the

additional ounce levels moving from $.15-.20.

• Post Cards increased by 1%.

December 18, 2019 6

Full Service IMB customers still qualify for the additional $.003 savings.

Commercial First-Class Mail®

Weight

Prior to

01/26/20

New Rates

01/26/20 % Increase

1 $0.727 $0.716 -2%

3 $1.027 $1.116 9%

5 $1.327 $1.516 14%

7 $1.627 $1.916 18%

9 $1.927 $2.316 20%

11 $2.227 $2.716 22%

13 $2.527 $3.116 23%

Automation Flats - Mixed ADC

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Automation 5 Digit 1 $0.383 $0.389 1.6% $0.486 $0.430 -11.5% $0.257 $0.260 1.2%

Automation 3 Digit $0.605 $0.577 -4.6%

Automation AADC 1 $0.412 $0.419 1.7% $0.644 $0.620 -3.7% $0.268 $0.270 0.7%

Automation Mixed AADC 1 $0.428 $0.439 2.6% $0.727 $0.716 -1.5% $0.274 $0.276 0.7%

Presorted (Non Automation) 1 $0.459 $0.460 0.2% $0.799 $0.810 1.4% $0.280 $0.285 1.8%

Commercial First-Class Mail®Letters Flats* Post Cards

Page 7: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Marketing Mail® (Formerly called Standard Mail)

• 0 - 3% Increase for letters

• Flats are seeing the highest increases at 2 – 7%.

• Destination Entry Discounts are decreasing for Letters and staying flat to increasing

for Flats.

December 18, 2019 7

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Automation 5 Digit ≤3.5 $0.256 $0.259 1.2% $0.405 $0.418 3.2%

Automation 3 Digit ≤4 $0.523 $0.543 3.8%

Automation AADC/ADC ≤3.5 $0.281 $0.284 1.1% $0.597 $0.608 1.8%

Automation Mixed AADC/ADC-Origin ≤3.5 $0.291 $0.299 2.7% $0.632 $0.666 5.4%

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.231 $0.240 3.9%

Automation 3 Digit ≤4 $0.349 $0.365 4.6%

Automation AADC/ADC ≤3.5 $0.163 $0.163 0.0% $0.423 $0.430 1.7%

Automation Mixed AADC/ADC-Origin ≤3.5 $0.173 $0.178 2.9% $0.458 $0.488 6.6%

Marketing Mail®Letters Flats

Marketing Mail® NonprofitLetters Flats

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Automation 5 Digit >4 $0.178 $0.184 3.4% $0.907 $0.935 3.1%

Automation 3 Digit >4 $0.296 $0.309 4.4% $0.907 $0.935 3.1%

Automation AADC/ADC >4 $0.370 $0.374 1.1% $0.907 $0.935 3.1%

Automation Mixed AADC/ADC-Origin >4 $0.405 $0.432 6.7% $0.907 $0.935 3.1%

Weight

Ounces

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Automation 5 Digit >4 $0.037 $0.042 13.5% $0.775 $0.793 2.3%

Automation 3 Digit >4 $0.155 $0.167 7.7% $0.775 $0.793 2.3%

Automation AADC/ADC >4 $0.229 $0.232 1.3% $0.775 $0.793 2.3%

Automation Mixed AADC/ADC-Origin >4 $0.264 $0.290 9.8% $0.775 $0.793 2.3%

Marketing Mail® Commercial Flats > 4 OzPer Piece Per Pound

Marketing Mail® Nonprofit Flats > 4 OzPer Piece Per Pound

Prior to

01/26/20

New Rates

01/26/20 % Change

Prior to

01/26/20

New Rates

01/26/20 % Change

Prior to

01/26/20

New Rates

01/26/20 % Change

DNDC $0.022 $0.020 -9.1% $0.043 $0.043 0.0% $0.171 $0.172 0.6%

DSCF $0.028 $0.026 -7.1% $0.053 $0.054 1.9% $0.213 $0.216 1.4%

Letters Flats <4 Ounces Flats >4 Ounces

Destination Entry Discounts for Marketing Mail

Page 8: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

First-Class Mail® Savings Options

• Use Meters or PC Postage to save $.05 on letters

• Consider presort services if you run over 500 pieces per day or have one

time mailings over 1000 pieces.

• Automating your mailings in house can have drastic postage savings.

• Presort and automation levels go up to 3.5 ounces for the same rate.

• Flats and post cards can have the same automation rates as letters.

• Consider moving generic content mail from First Class to Marketing Mail

December 18, 2019 8

Mail Piece Examples

First-Class Mail®

Retail Single Piece

First-Class Mail®

Metered Single

Piece

Typical Presort

Service - First-

Class Mail®

First-Class

Mail® -

Automation

Marketing Mail® -

Automation

Marketing Mail®

Non Profit-

Automation

1 Ounce #10 Envelope $0.55 $0.50 $.419-.46 $.389-.439 $.259-.299 $.138-.178

3 Ounce Newsletter (6X9) $0.85 $0.80 $.419-.46 $.389-.439 $.259-.299 $.138-.178

8 Ounce Flat (9X12) $2.40 $2.40 $2.12-2.21 $1.83-2.12 $.651-.90 $.44-.69

Post Card $0.35 $0.35 $0.280 $.26-.285 n/a n/a

Single Piece Rates Automation Mail with Barcodes

Page 9: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Converting Light Weight Flats to Letters

• Light Weight Flats

– Look for average flat prices of $1.60 or less. Over 50% Savings

by folding.

– 6X9 Envelopes only require that you fold in half.

December 18, 2019 9

Flat Envelope

Sheets

First Class Mail®

Flat - Large

Envelope

First Class Mail®

Letter - 6X9

Envelope

(Metered)

Typical Presort

Service - First-

Class Mail®

Letter

First-Class

Mail® -

Automation

Letter Savings

1-2 $1.00 $0.50 $.419-.46 $.389-.439 50-61%

3-4 $1.20 $0.50 $.419-.46 $.389-.439 58-67%

6-10 $1.40 $0.65 $.419-.46 $.389-.439 54-72%

Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces

Letter Envelope - Example 6X9 or #10

Page 10: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

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 – Rates

are the same as Base

December 18, 2019 10

Page 11: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Priority Mail®

December 18, 2019 11

Most popular USPS package service13 ounce to 70LB items 1-3 day delivery

throughout the US

9 primary zones based on distance.Highlights• Heaviest items are increasing the most.

• Retail rates are going up at the highest amounts

pushing customers to use the new technology.

Weight LB's

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New Rates

01/26/20 % Increase

1 $7.35-12.20 $7.50-14.05 2-15% (4% Avg) $6.95-9.91 $7.02-11.40 1-15% (3% Avg)

5 $9.80-34.80 $10.20-40.00 4-15% (6% Avg) $7.81-28.84 $8.04-33.17 3-15% (4% Avg)

10 $13.10-59.90 $13.60-68.90 4-15% (6% Avg) $9.38-50.38 $9.76-57.94 4-15% (5% Avg)

25 $23.35-113.95 $25-131.05 7-15% (10% Avg) $18.04-91.15 $19.30-104.82 7-15% (8% Avg)

50 $33.70-180.50 $36.05-207.60 7-15% (10% Avg) $27.54-145.86 $29.16-165.97 7-15% (8% Avg)

Flat Rate Envelope $7.35 $7.75 5.4% $6.95 $7.15 2.9%

Legal Flat Rate Envelope $7.65 $8.05 5.2% $7.25 $7.45 2.8%

Padded Flat Rate Envelope $8.00 $8.40 5.0% $7.55 $7.75 2.6%

Small Flat Rate Box $7.90 $8.30 5.1% $7.50 $7.65 2.0%

Medium Flat Rate Boxes $14.35 $15.05 4.9% $12.80 $13.20 3.1%

Large Flat Rate Boxes $19.95 $21.10 5.8% $17.60 $18.30 4.0%

Retail Commercial Base

USPS Priority Mail®

Average % Increase Retail

Commercial

Base

Flat Rate 5% 3%

1-5LB 6% 4%

5-10LB 6% 5%

10-25LB 9% 8%

Over 25LB 10% 8%

Page 12: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Priority Mail® Express

December 18, 2019 12

Up to 70LB items 1 day Guaranteed Delivery

9 primary zones based on distance.

Highlights

• Retail rates growing at faster rates

• Flat rate items had the lowest increases

Weight LB's

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New Rates

01/26/20 % Increase

1 $24.7-48 $25.60-56.10 4-17% (6% Avg) $21.98-42.76 $22.74-49 3-15% (5% Avg)

5 $25.8-77.05 $27.05-91 5-18% (7% Avg) $22.98-67.22 $23.91-77.47 4-15% (6% Avg)

10 $38.9-113.65 $40.75-134.20 5-18% (7% Avg) $34.52-98.82 $35.99-114.20 4-15% (6% Avg)

25 $69.70-190.30 $73.85-227.60 6-20% (9% Avg) $62.05-169.58 $64.69-195.84 4-15% (6% Avg)

50 $123.35-351.90$130.85-420.90 6-20% (9% Avg) $109.94-313.63 $114.61-362.20 4-15% (6% Avg)

Flat Rate Envelope $24.70 $25.50 3.2% $21.98 $22.68 3.2%

Legal Flat Rate Envelope $24.90 $25.70 3.2% $22.09 $22.80 3.2%

Padded Flat Rate Envelope $25.40 $26.20 3.1% $22.46 $23.18 3.2%

USPS Priority Mail® ExpressRetail Commercial Base

Average % Increase Retail

Commercial

Base

Flat Rate 3% 0%

1-5LB 6% 3%

5-10LB 3% 1%

10-25LB 3% 4%

Over 25LB 3% 4%

Page 13: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Savings Tips - 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. (Click-N-Ship from the USPS does

not allow for Commercial Rates – Only Retail)

• Multiple vendor options to process packages

• Requires the operator to enter the address and submit to the USPS electronically and create a shipping

label vs. meter tape.

December 18, 2019 13

Average % Increase Commercial Savings over Retail

Flat Rate 9%

1-5LB 17%

6-10LB 22%

11-25LB 23%

Over 25LB 20%

Average % Increase Commercial Savings over Retail

Flat Rate 14%

1-5LB 15%

6-10LB 15%

11-25LB 13%

Over 25LB 12%

USPS Priority Mail®

USPS Priority Mail® Express

Page 14: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

First-Class Mail®

Package Service

December 18, 2019 14

Best Savings OpportunityLess than 1 LB parcels where USPS holds a

Monopoly (Private carriers start at 1LB)

1-3 day delivery

Highlights• 6% Average increase in Retail and 2% for Commercial

• Changed from a flat rate to a zone based rate table in 2019.

• Save by converting from Retail to Commercial with improved tracking!

Weight

Ounces

First-Class

Mail® -

Parcels Retail

First-Class

Mail® -

Parcels Retail

First-Class

Mail® -

Package

Services

Commercial

First-Class

Mail® -

Package

Services

Commercial

Commercial

Savings over

Retail $

Commercial

Savings over

Retail %

Prior to

01/26/20

New Rates

01/26/20 % Change

Prior to

01/26/20

New Rates

01/26/20 % Change

Up to 4 $3.66 $3.90 7% $2.70 $2.78 3% $1.12 29%

5 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%

6 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%

7 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%

8 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%

9 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%

10 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%

11 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%

12 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%

13 $5.71 $6.05 6% $5.02 $5.12 2% $0.93 15%

14 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%

15 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%

15.999 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%

Priority Mail >13 Ounces Commercial rate goes up to 15.99 ounces

Convert from Retail to Commercial - Zone 4 Example

Page 15: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Commercial Savings Examples

December 18, 2019 15

PC Postage starts at

around $15 per month!

Low

Class

Commercial

Savings

Estimated

Current

Spend

Estimated

New Spend Difference

First Class Parcels 28% $250.00 $180.00 -$70.00

Priority Mail (Less than 10LB) 16% $500.00 $420.00 -$80.00

Priority Mail Express (Less than 10LB) 15% $250.00 $212.50 -$37.50

Total $1,000.00 $812.50 -$187.50

Medium

Class

Commercial

Savings

Estimated

Current

Spend

Estimated

New Spend Difference

First Class Parcels 28% $2,500.00 $1,800.00 -$700.00

Priority Mail (Less than 10LB) 16% $5,000.00 $4,200.00 -$800.00

Priority Mail Express (Less than 10LB) 15% $2,500.00 $2,125.00 -$375.00

Total $10,000.00 $8,125.00 -$1,875.00

High

Class

Commercial

Savings

Estimated

Current

Spend

Estimated

New Spend Difference

First Class Parcels 28% $25,000.00 $18,000.00 -$7,000.00

Priority Mail (Less than 10LB) 16% $50,000.00 $42,000.00 -$8,000.00

Priority Mail Express (Less than 10LB) 15% $25,000.00 $21,250.00 -$3,750.00

Total $100,000.00 $81,250.00 -$18,750.00

Page 16: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Additional Rate Change Items

December 18, 2019 16

Group

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20

%

Increase

Prior to

01/26/20

New Rates

01/26/20

%

Increase

Canada $1.15 $1.20 4.3% $1.15 $1.20 4.3% $1.15 $1.20 4.3%

Mexico (Group 2) $1.15 $1.20 4.3% $1.72 $1.81 5.2% $1.15 $1.20 4.3%

Group 3-5 $1.15 $1.20 4.3% $2.13 $2.24 5.2% $1.15 $1.20 4.3%

Group 6-9 $1.15 $1.20 4.3% $1.98 $2.08 5.1% $1.15 $1.20 4.3%

First-Class Mail International®1 Ounce 2 Ounce Post Cards

Weight LB's

Prior to

01/26/20

New

Rates

01/26/20 % Increase

1 $2.61 $2.66 1.9%

2 $3.10 $3.16 1.9%

5 $4.57 $4.66 2.0%

10 $7.02 $7.19 2.4%

Library MailSingle Piece

Weight LB's

Prior to

01/26/20

New

Rates

01/26/20 % Increase

1 $2.75 $2.80 1.8%

2 $3.27 $3.33 1.8%

5 $4.83 $4.92 1.9%

10 $7.43 $7.60 2.3%

Single Piece

Media Mail

Page 17: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Special Services

December 18, 2019 17

Special Services Retail Electronic

Prior to

01/26/20

New Rates

01/26/20 % Increase

Prior to

01/26/20

New

Rates

01/26/20 % Increase

Certificate of Mailing $1.45 $1.50 3.4%

Registered™ without Insurance $12.40 $12.60 1.6%

Certified Mail™ $3.50 $3.55 1.4%

Return Receipt $2.80 $2.85 1.8% $1.60 $1.70 6.2%

Insurance $100 $2.80

Insurance $500 $6.95 $0.00 0.0% $0.00 $0.00 0%

Marketing Mail® parcels Tracking $0.40 $0.20 -50.0%

Signature Confirmation $3.05 $3.15 3.3% $2.60 $2.65 1.9%

Annual Permit Fees $235.00 $240.00 2.1%

Business Reply Mail

Permit Fee $235.00 $240.00 2.1%

Account Maintenance Fee $710.00 $725.00 2.1%

Quarterly Fee $2,405.00 $2,460.00 2.3%

Basic $0.83 $0.85 2.4%

High Volume $0.091 $0.093 2.2%

QBRM Basic $0.070 $0.072 2.9%

QBRM High Volume $0.014 $0.015 7.1%

Page 18: January 2020 USPS® Rate Change - What You Need …...2020/01/12  · • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect

Savings Strategies – Business Reply Mail

• Have an inventory of all your

Business Reply accounts.

• Link in the USPS ACS system.

• Validate that all accounts are being

used.

• Make sure accounts are set up at

the right levels.

• Monitor usage in monthly/quarterly

reviews.

• Significant savings by having

accounts in the right program as

you can see in the table.

December 18, 2019 18

Business Reply Mail Basics Basic

High

Volume

QBRM

Basic

QBRM

High

Volume

Annual Permit Fee $240 $240 $0 $0

Annual Account Maintenance Fee $0 $725 $725 $725

Quarterly Fee $0 $0 $0 $2,460

Total Annual Fees $240 $965 $725 $10,565

Fee per piece $0.850 $0.093 $0.072 $0.015

Postage for 1 ounce mail $0.550 $0.550 $0.534 $0.534

Total cost - Fee and Postage $1.400 $0.643 $0.606 $0.549

Annual Cost by pieces

100 $380 $1,029 $786 $10,620

250 $590 $1,126 $877 $10,702

500 $940 $1,287 $1,028 $10,840

611 $1,095 $1,358 $1,095 $10,900

750 $1,290 $1,447 $1,180 $10,977

1000 $1,640 $1,608 $1,331 $11,114

2500 $3,740 $2,573 $2,240 $11,938

5000 $7,240 $4,180 $3,755 $13,310

10000 $14,240 $7,395 $6,785 $16,055

25000 $35,240 $17,040 $15,875 $24,290

50000 $70,240 $33,115 $31,025 $38,015

100000 $140,240 $65,265 $61,325 $65,465

250000 $350,240 $161,715 $152,225 $147,815

500000 $700,240 $322,465 $303,725 $285,065

1000000 $1,400,240 $643,965 $606,725 $559,565

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Certified Mail with Electronic Return Receipt

(ERR)

• Save $1.15 by switching to an electronic version.

December 18, 2019 19

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Savings Tips

Compare Rates with the Private Carriers - For

every package

Benefits to USPS

• Don’t charge extra fees for:

– Fuel surcharge

– Residential, DAS Surcharges

– Saturday Delivery

– Address Correction Fees

• Best rates for lightweight items to

residences (Less than 5 LB’s)

• First Class Parcel rates for items less

than 16 ounces. ($2.74-5.70 per item!)

• Free boxes

Benefits UPS & FedEx*

• Negotiate rates based on volumes.

• Guaranteed delivery with refunds.

• Ground service with 1-5 day guarantee

(Many areas are 1-3 days).

• Dedicated account managers.

• Typically have the best rates items

over 5LB’s or lighter weights going to

businesses.

*Assumes that you have a corporate agreement.

December 18, 2019 20

Multi-Carrier options:

1. Manually compare between systems.

2. Cloud based multi carrier systems – simple to complex.

3. PC/Server based multi carrier systems.

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How To Budget For This Increase

December 18, 2019 21

Emai:

[email protected]

for a copy of this excel

budgeting tool.

Class Weight % Of Class % Change

Estimated

Current

Spend

Estimated

New Spend Difference

First Class Metered Letters 1 85% 0%

2 10% 0%

3 5% 0%

Total 0.00% $0.00 $0.00

First Class Flats 14% $0.00 $0.00

First Class Parcles - Retail 3% $0.00 $0.00

First Class Parcles - Commercial 2% $0.00 $0.00

First Class Automation Letters 100% 2% $0.00 $0.00

First Class Automation Flats 14% $0.00 $0.00

Certified with Return Reciept 2% $0.00 $0.00

Priority Mail Retail 6% $0.00 $0.00

Priority Mail Commercial 4% $0.00 $0.00

Marketing Mail

Letters 2% $0.00 $0.00

Flats 3% $0.00 $0.00

Other Misc Mail 3% $0.00 $0.00

Total $0.00 $0.00 $0.00

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What you need to do:

If you have a mail machine, make sure you

download the new rates before January 26,

2020 when the rates take into effect

Here are links to the different meter vendors:

• FP:

http://www.fp-usa.com/ratechange/

• Neopost/Hasler:

http://www.neopostusa.com/resources/rate-change-

information

• Pitney Bowes:

http://www.pitneybowes.com/us/postal-information/rate-

change-info.html

• Stamps.com:

https://stamps.custhelp.com/app/answers/detail/a_id/1685/

~/january-2017-usps-rate-changes

Go to the USPS Postal Explorer website for more information:

http://pe.usps.gov/PriceChange/Index

December 18, 2019 22

Download the Postal

Advocate Rate

Comparison Guide –

www.postaladvocate.com

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Savings Summary

• Use a postage meter or PC Postage to save $.05 per letter.

• Convert Letters and Flats to Automation Classes – up to 60% Savings!

– Up to 3.5 ounces for the price of 1 ounce!

– Fold flats for additional savings

– Faster delivery

– Automated address validation

• Convert Priority Mail® from Retail to Commercial to Plus

– 16% average savings for Priority Mail®

– 15% average savings for Priority Mail® Express

• Convert First-Class Mail® Parcels from Retail to Commercial – 28%

Savings

• Make sure your Business Reply Mail Accounts are being managed.

• User Electronic Return Receipt with Certified Mail - $1.15 Savings.

• Compare pricing across carriers for the best rate on each package.

December 18, 2019 23

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Helping multi-locationorganizations streamline

their mailing costs

Over 135,000 pieces ofequipment, managed

by Postal Advocate

Recovered over$14,000,000

in lost postage, vendorovercharges and fees

ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY

OVER $57,000,000 IN CLIENT SAVINGS

$1.5M

58%

Average Client

Savings

Average Equipment

Savings

HOW WE DO IT• 200+ years of industry experience

• Comprehensive web-based tool

providing visibility of all mail

and equipment spend

• Time Savings - Assistance

in fleet management

visit www.postaladvocate.com or call (888)977-MAIL(6245)

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Sign Limited AgencyAgreement/Kick-Off Call.

Provide copies of vendor invoices, AP export,

location list, equipment inventory list.

Present savings opportunities and get client approval.

Postal Advocate provides ongoing support,

manages renewals, billingand vendor compliance.

Provide enterprise visibility of all spend, costs and

documented savings through enterpriseAdvocate.

Provide client log-in.

1 2

3

4 5 6

HOW ITWORKS

Work with current vendor to build population report, contract terms/start/end dates,

postage volumes, costs.

Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage.

Identify savings opportunities.

Submit vendor credit requests, lost postage forms and

eliminate avoidable fees.

Negotiate pricing. Create catalog.

Work with locations -asset validation, rightsize, termination…

Full implementation of savings.

visit www.postaladvocate.com or call (888)977-MAIL(6245)

Conduct Analysis

NO COST – AUDIT PHASE CONTRACTED CLIENT

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Contact info: (20pt)

36

December 18, 2019 27

Questions?

Contact: Adam Lewenberg - President

888-977-MAIL X 501

[email protected]

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December 18, 2019 28