understanding the 2015usps® price change & how to reduce its impact
TRANSCRIPT
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Your Presenters
Ann Daley Vice PresidentGovernment & Regulatory [email protected]
Alison Hall Director Client Services, Direct Mail Solutions [email protected]
New USPS Prices go into effect May 31M
ailin
g • First Class Retail Stamp stays
49¢
• Metered postage becomes 48.5¢
• 2015 Promotions approved
Shi
ppin
g • Domestic Priority Mail Express No Increase
• Domestic Priority Mail No increase
• Standard Post increases 11%
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Price Changes Made Easy By Pitney Bowes
Pitney Bowes clients will receive a rate “update now” email the week of May 18 If you are not signed up for
“update now” emails you will get a postcard between the 20th and 29th.
Email notification is the fastest way to get the latest news - sign up online if you have not done so already.
Questions? Online support options include: Sophie (virtual agent), email, PB Forum, and web chat
• Read all about the USPS changes and learn ways to save
www.pb.com/ratesandupdates
Classes of Mail Affected – Market DominantFirst-Class Mail® Single-Piece Letters &
CardsPresort Letters & CardsFlatsParcelsOutbound Single-Piece
International
Periodicals
Special Services
Standard Mail®LettersFlatsParcelsHigh Density/Saturation LettersEvery Door Direct Mail RetailParcels
Package Services Bound Printed Matter (BPM) FlatsBPM ParcelsMedia, Library MailAlaska Bypass
Mailing Services – Products and Services
First-Class Mail® – Letters
First-Class Stamp Price will remain the same
Overall average price - 1.966%
First-Class Mail Postcards to $0.35
First-Class Mail International letter (1 ounce) to $1.20
Save ½ cent on First-Class letters that have postage affixed using:Postage MeterPC PostagePermit ImprintPre-canceled stamps
Still:
No piece minimumsNo preparation requirementNo requirement to report those pieces on a postage statement
First-Class Mail® - Letters
Meter Price to $0.485
Key First-Class Mail® Single-Piece PricesFirst-Class Mail® – Automation Letters
First-Class Mail - Commercial Approved
Letters and Postcards
Automation Machinable Nonmachinable
Weight Not Over (ounces) 5-Digit 3-Digit AADC
Mixed AADC Presorted Presorted
1 0.391 0.416 0.416 0.439 0.471 0.689
2 0.391 0.416 0.416 0.439 0.471 0.689
3 0.651 0.676 0.676 0.699 0.731 0.949
3.5 0.781 0.806 0.806 0.829 0.861 1.079
Postcard 0.260 0.275 0.275 0.284 0.295 -
Addl. Ounce Rate 0.130 0.130
Nonmachinable Surcharge 0.218
Overall average increase: 2.417%
Second ouncestill free!
Key First-Class Mail® Single-Piece PricesFirst-Class Mail® – Flats
First-Class Mail - Commercial - Flats Approved
Automation Nonauto
Weight Not Over (ounces) 5-Digit 3-Digit ADC Mixed ADC Presorted
1 0.470 0.662 0.702 0.782 0.831
2 0.688 0.880 0.920 1.000 1.049
3 0.906 1.098 1.138 1.218 1.267
4 1.124 1.316 1.356 1.436 1.485
5 1.342 1.534 1.574 1.654 1.703
6 1.560 1.752 1.792 1.872 1.921
7 1.778 1.970 2.010 2.090 2.139
8 1.996 2.188 2.228 2.308 2.357
9 2.214 2.406 2.446 2.526 2.575
10 2.432 2.624 2.664 2.744 2.793
11 2.650 2.842 2.882 2.962 3.011
12 2.868 3.060 3.100 3.180 3.229
13 3.086 3.278 3.318 3.398 3.447
Additional Ounce Rate 0.218
Overall average increase: 2.438% Single-Piece Flats price remains $0.98
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Standard Mail® – Letters
Carrier Route and Automation3.3 oz or less
Entry Point SaturationHigh Density
PlusHigh
DensityCarrier Route
5-Digit Scheme
3-Digit Scheme AADC
Mixed AADC
None 0.202 0.212 0.215 0.300 0.266 0.283 0.283 0.304DNDC 0.169 0.179 0.182 0.267 0.230 0.247 0.247 0.268DSCF 0.157 0.168 0.171 0.256 0.221 0.238 0.238 -DDU - - - - - - - -More than 3.3 ounces
None 0.202 0.212 0.215 0.300 0.266 0.283 0.283 0.304DNDC 0.169 0.179 0.182 0.267 0.230 0.247 0.247 0.268DSCF 0.157 0.168 0.171 0.256 0.221 0.238 0.238 -DDU - - - - - - - -Per Pound 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Carrier Route Automation
New!Mail More for
the same price
Standard Mail® – FlatsNew Flats Sequencing System (FSS) Pricing
Per piece price for FSS eligible pieces in scheme bundles on/in any container at all entry points Per piece price for FSS eligible pieces in scheme bundles on/in FSS scheme and facility containers entered at DFSS
Special Services
USPS Tracking™
USPS Tracking service is automatically included with the purchase of items sent via First-Class Mail Parcels, Package Services, Priority Mail, Parcel Select, Standard Post, and First-Class Package Service
USPS Tracking for Standard Mail parcels increasing 59% to $0.36
Available at time of mailing only. Requires an IMpb or tracking barcode or present at USPS Post Office, branch, station, or self-service kiosk for mailing.
USPS TrackingFirst Class Mail (Parcels Only) Retail 0.00First-Class Mail (Parcels Only) Electronic 0.00First Class Package Service Electronic 0.00Priority Mail Retail 0.00Priority Mail Electronic 0.00Standard Post Retail 0.00Standard Post Electronic 0.00Standard Mail Electronic 0.36Package Services Retail 0.00Package Services Electronic 0.00Parcel Select Electronic Electronic 0.00
Special Services
Certified Mail
Price increase - from $3.30 to $3.45 Same price, electronic or retail Three new options (with added cost):
Certified Mail Restricted Delivery Certified Mail Adult Signature Required Certified Mail Adult Signature Required w/Restricted Delivery
Special Services
Return Receipt
Price increase of 3.8% Retail = $2.80 Electronic = $1.40 Return Receipt after Mailing option - eliminated RR service is only available at time of mailing
$2.80 $1.40
PDF via E-RR $1.40Return Receipt $2.80
Special Services
Insurance
Overall price change is a decrease of 2.0% Prices decreasing on items insured from $200.01 - $500.00 but
a delivery signature will not be obtained Items insured above $500 will get free delivery information and
signature Priority Mail Express™ Insurance of $100 included Priority Mail® Insurance of $50 or $100 included
Shipping Services
Priority Mail Express™ Priority Mail® First-Class Package Service™ Parcel Select® Standard Post™ Extra Services Return Services Mailer Services Recipient Services
International Shipping
Software-generated IM™pb label required
SendSuite® Xpress
SendSuite® Live
Shipping Services Highlights
5% average price increase
Standard Post = 11%avg. price increase
Domestic: No price changeInternational: 6.7% averageIncrease
Domestic: No price changeInternational: 5.5% averageIncrease
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What Can You Do To Reduce Your Costs • Redesign mail pieces to qualify as a
less costly processing category.
• Review larger mailings to see if they qualify for Commercial pricing
• Review Commercial First-Class Mail to see if it can be sent Standard Mail
• Review the size/shape and contents of Letter Size items to eliminate any non-machinable characteristics.
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“This page works with ‘single thought’ statements that need separation from the standard pages of the presentation or as a place for quotes.”
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Impact page with text 36pt and multiple .9 line spacing.
A long statement that needs separation from the standard content pages of the presentation can appear here.
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Top 5 Ways to Mitigate USPS Price Adjustments
• Fold 8.5 x 11 documents into 6 x 9 envelopes
• Ensure proper Mailpiece Design
• Are you utilizing Full-Service Intelligent Mail®?
• Does mail piece qualify for Standard or Non-Profit rates?
• Are you taking advantage of Lowest price options?
• Metered Mail has lower postage• Commercial Based Pricing Promotions
Convert a flat to a letter
Item 1-
Single page Certificate of Completion
Item 2-
# 10 envelope, 9 page document, ½ “ thick, 3.6 ounces
B-9
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Promotions Overview Earned Value Promotion May 1 – July 31, 2015Encourages mailers to use First-Class Mail as a primary reply mechanism for their customers.
$.02 cent postage savings for including Business Reply and Courtesy Reply mail cards in outgoing mail pieces
$.03 cent postage savings for mailers who participated in the promotion in 2014
Color Transpromo June 1 – November 30, 2015 Encourages mailers of bills and statements to invest and use color print technology, which can create a greater connection to and response from costumers.
2% upfront postage discount on first-Class automation letters sent as part of Full-Service Intelligent Mail barcode mailing
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Promotions Overview Emerging and Advanced Technology July 1 – November 30, 2015 Encourages mailers to integrate direct mail with mobile technology or advances in print. To qualify the mailpiece must incorporate advanced print technology, the use of standard Near Field Communication (NFC) or an advanced or enhanced augmented reality.
2% postage discount on qualifying First Class and Standard Mail presort automation letter, postcards and flats
Mail Drives Mobile Engagement July 1 - December 31, 2015Available to mailers who integrate mobile technologies into their direct mail piece
2% postage discount on Standard Mail presort automation letters and flats
Proprietary and Confidential Information of Pitney Bowes 31
Postage Optimization - PrimeSort™Cloud-based solution that provides file analysis and splitting, and creates mail preparation files. Helps direct mailers determine optimum mailing scenario for standard and non-profit mail.
No hardware or IT infrastructure investment
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NEW! Educational Information
Full-Service Intelligent Mail® White Paper
• Pros and cons of managing in-house vs outsourcing• How to get the most out of
implementation
Direct Mail Solutions Brochure
• Learn more about innovative solutions that can help Standard Class or Direct Mailers succeed in today’s competitive market
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www.pe.usps.com
USPS RATE CHARTS
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https://ribbs.usps.gov/index.cfm?page=intellmaillatestnews
USPS® Postal Explorer (All pricing files are now available.)
http://pe.usps.com/
Pitney Bowes USPS® News and Information Blog
http://blogs.pb.com/usps-news/
RIBBS – Intelligent Mail® Package Barcode
https://ribbs.usps.gov/index.cfm?page=intellmailpackage
Pitney Bowes Mail Solutions Blog http://blogs.pb.com/mail-solutions/
Pitney Bowes Postal Information Rates and News
http://www.pitneybowes.com/us/postal-information.html
Looking for more support? (Call 888-540-3813 or www.pb.com)
Leverage these resources to learn more
Proprietary and Confidential Information of Pitney Bowes