understanding the 2015usps® price change & how to reduce its impact

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2015 USPS® Price Change May 14, 2015 Understand the Impact and How to Mitigate

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2015 USPS® Price Change

May 14, 2015

Understand the Impact and How to Mitigate

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Your Presenters

Ann Daley Vice PresidentGovernment & Regulatory [email protected]

Alison Hall Director Client Services, Direct Mail Solutions [email protected]

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Agenda

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2

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4

Highlights

Mailing Changes

Shipping Changes

Mitigation Strategies

Q & A5

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

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Mailing Services

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

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First-Class Mail®

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®

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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

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Special Services®

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

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Shipping Services

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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How Do I Reduce My Costs?

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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.

Pitney Bowes | PPT presentation template | Set Date with Header & Footer 25

“This page works with ‘single thought’ statements that need separation from the standard pages of the presentation or as a place for quotes.”

Pitney Bowes | PPT presentation template | Set Date with Header & Footer 26

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

Pitney Bowes | PPT presentation template | Set Date with Header & Footer 33

www.pe.usps.com

USPS RATE CHARTS

Pitney Bowes | PPT presentation template | Set Date with Header & Footer 34

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

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Thank you