usps rate change = savings! - endicia · pg 3 introduction now you have a choice for heavier...

Each year—at least once per year—the U.S. Postal Service® (USPS®) changes rates and

policies across various mail classes and services. On September 7, 2014 the USPS will

announce a rate change focused on Priority Mail, with a few additional service updates.

The good news is that this rate change includes a price decrease for those using Priority

Mail! Endicia customers will see significant savings in many Priority Mail weight classes

and zones, particularly for heavier items. Keep reading for more information on the rate

changes and how they can affect your business’ bottom line.

USPS Rate Change = Savings!Understanding the September 2014 U.S. Postal Service Rate Changes

PG 2

ContentsIntroduction .................................................................................................................................................................................................3

Key 2014 Rate Changes for Priority Mail ....................................................................................................................................................4

Key Service Changes ..................................................................................................................................................................................7

Domestic Changes: .............................................................................................................................................................................7

Package Pickup and Pickup on Demand® ...................................................................................................................................7

International Changes ..........................................................................................................................................................................7

Priority Mail Express International® (PMEI) Enhancements .........................................................................................................8

Parcel Manifest Minimum Requirement Modification ..................................................................................................................8

Prohibitions, Restrictions and Observations for International Mailing Update ...........................................................................8

Priority Mail Express International® (PMEI) and Priority Mail International® (PMI) Weight and Size Update ..............................8

Background .................................................................................................................................................................................................9

USPS Pricing Tiers ..............................................................................................................................................................................9

Retail Price ....................................................................................................................................................................................9

Commercial Base Price (CBP) ......................................................................................................................................................9

Commercial Plus Price (CPP) .......................................................................................................................................................9

Priority Mail Explained .........................................................................................................................................................................9

Endicia and USPS: The Right Choice for Your Package Shipments .......................................................................................................10

Why Endicia?.............................................................................................................................................................................................10

PG 3

Introduction

Now you have a choice for heavier packages!The USPS rate change of September 7, 2014 is the perfect

opportunity to re-evaluate your shipping mix and consider the

USPS for your heavier packages. With rate decreases across

many weights and zones, shippers can save an average of 42%*

over private carrier rates and up to 35%* over previous Priority

Mail rates.

Priority Mail allows you to reach your customers quickly,

typically in 2-3 days and at a great value. It is a tremendous

opportunity to save money and contribute to your bottom

line especially as the holiday shipping season approaches.

Businesses will benefit at the up to 5 lbs weight class and save

even more at 5 lbs+.

Average Savings Per Package

The following charts show how much you could save by

using USPS Priority Mail with Endicia vs the private carriers.

$2.90 FedEx/UPS Ground residential surcharge and 7% fuel

surcharge included in calculations.

Commercial Base Pricing (CBP) & Commercial Plus Pricing (CPP) versus FedEx/UPS Ground, Zones 1-5

Zones 1-5 CBP CPP

Category Avg. $ Change Avg. Savings Avg. $ Change Avg. Savings

0-5 lbs -4.41 -39% -5.67 -50%

5-10 lbs -3.12 -25% -5.42 -42%

10-15 lbs -2.41 -17% -4.92 -36%

15-20 lbs -1.94 -13% -3.77 -25%

Example Savings

Dependant on number of packages sent, weight, and zones -

USPS versus FedEx / UPS Ground. $2.90 FedEx/UPS residential

surcharge and 7% fuel surcharge included in calculations.

CBP Packages 5-10 lbs, Zones 1-5—Average savings = $3.12

per package. 25% average savings over private carriers

Packages up to 5-10 lbs, Zones 1-5 Savings based on 2 month period

# Packages per day

20 50 150 300

Total savings $3,806 $9,516 $28,548 $57,096

CPP Packages 5-10 lbs, Zones 1-5—Average savings = $5.42

per package. 42% average savings over private carriers

Packages 5-10 lbs, Zones 1-5 Savings based on 2 month period

# Packages per day

20 50 150 300

Total savings $6,612 $16,531 $49,593 $99,186

*Based on Commercial Plus rates, zones 1-5

PG 4

Key 2014 Rate Changes for Priority MailThe major change is in lower pricing for those using Priority

Mail with Commercial Base Pricing (CBP) and Commercial

Plus Pricing (CPP) rates. Retail rates will increase for packages

weighing 5lbs and less across zones 1-8 and will increase

across zones 6-8 for packages up to 18 lbs, but rates will

decrease across zones 1-5 for packages weighing over 5 lbs.

Following is a comparison of average retail, CBP, and CPP rates

across zones 1-8 and then across zones 1-5 where the rate

decreases are focused.

PG 5

Average overall change for regular Priority Mail shipments, Zones 1-8:

Retail:

For packages weighing 5 lbs. or less, Retail rates (Zones 1-8)

are increasing by an average of 2.6% or +$0.26 per piece.

Category Avg $ Change Avg % Change

Zones 1-8 avg decrease across all weights

-$0.37/pkg -1.0%

0-3 lbs +$0.23/pkg +2.8%

3-5 lbs +$0.30/pkg +2.5%

5-10 lbs -$0.09/pkg -0.3%

10-15 lbs -$1.45/pkg -4.9%

15-20 lbs -$2.01/pkg -5.5%

20-25 lbs -$1.01/pkg -2.4%

25-30 lbs $0.00/pkg 0.0%

30-35 lbs $0.00/pkg 0.0%

35-40 lbs $0.00/pkg 0.0%


Flat Rate Envelope +$0.15/pkg +2.7%

Legal Flat Rate Envelope +$0.15/pkg +2.6%

Padded Flat Rate Envelope +$0.15/pkg +2.5%

Small Flat Rate Box +$0.15/pkg +2.6%

Medium Flat Rate Box +$0.30/pkg +2.4%

Large Flat Rate Box +$0.45/pkg +2.6%

APO/FPO Large Flat Rate Box +$0.45/pkg +2.9%

Regional Rate options

The Regional Rate Box type C rate will have a sizeable

decrease, while box type A and B rates will remain unchanged

Box TypeZones 1-8

Avg $ Change

Zones 1-8 Avg %

Change

Box A $0.0/pkg 0.0%

Box B $0.0/pkg 0.0%

Box C -$5.82/pkg -18.7%

Commercial Base:

For packages weighing 5 lbs. or less, Commercial Base rates

(Zones 1-8) are decreasing an average of -0.3% or -$0.03 per piece.



-$1.24/pkg -4.5%

0-3 lbs $0.00/pkg 0.0%

3-5 lbs -$0.09/pkg -0.7%

5-10 lbs -$1.42/pkg -7.8%

10-15 lbs -$4.13/pkg -16.1%

15-20 lbs -$6.03/pkg -18.6%

20-25 lbs -$3.98/pkg -11.1%

25-30 lbs -$0.07/pkg -0.2%

30-35 lbs $0.00/pkg 0.0%

35-40 lbs $0.00/pkg 0.0%

Commercial Plus:

For packages weighing 5 lbs. or less, Commercial Plus rates (Zones

1-8) are decreasing an average of -3.6% or -$0.39 per piece.


Zones 1-8 avg decrease across weights

-$1.62/pkg -6.4%

0-3 lbs -$0.06/pkg -0.6%

3-5 lbs -$0.49/pkg -4.9%

5-10 lbs -$2.42/pkg -14.2%

10-15 lbs -$4.02/pkg -17.7%

15-20 lbs -$4.12/pkg -15.6%

20-25 lbs -$3.71/pkg -12.8%

25-30 lbs -$3.20/pkg -9.9%

30-35 lbs -$2.85/pkg -7.9%

35-40 lbs -$1.22/pkg -3.0%

PG 6

There is a substantial savings for packages shipping across Zones 1-5, especially at the heavier weights. CBP and CPP reflect cost

saving primarily from 5-25 lbs.

Average overall change for regular Priority Mail shipments, Zones 1-5:

Retail:

For packages weighing 5 lbs. or less, Retail rates (Zones 1-5)

are increasing by an average of 2.4% or +$0.20 per piece.



-$0.74/pkg -2.9%

0-3 lbs +$0.20/pkg +2.8%

3-5 lbs +$0.19/pkg +2.4%

5-10 lbs -$0.09/pkg -4.0%

10-15 lbs -$3.29/pkg -15.0%

15-20 lbs -$4.06/pkg -14.9%

20-25 lbs -$1.77/pkg -5.8%

25-30 lbs $0.00/pkg 0.0%

30-35 lbs $0.00/pkg 0.0%

35-40 lbs $0.00/pkg 0.0%

Commercial Base:

For packages weighing 5 lbs. or less, Commercial Base rates




-$2.07/pkg -9.8%

0-3 lbs $0.00/pkg 0.0%

3-5 lbs -$0.15/pkg -1.7%

5-10 lbs -$2.48/pkg -19.1%

10-15 lbs -$7.22/pkg -38.5%

15-20 lbs -$10.55/pkg -44.6%

20-25 lbs -$6.96/pkg -27.0%

25-30 lbs -$0.06/pkg -0.5%

30-35 lbs $0.00/pkg 0.0%

35-40 lbs $0.00/pkg 0.0%

Commercial Plus:

For packages weighing 5 lbs. or less, Commercial Plus rates




-$2.80/pkg -15.1%

0-3 lbs -$0.13/pkg -1.9%

3-5 lbs -$0.85/pkg -11.3%

5-10 lbs -$4.23/pkg -34.7%

10-15 lbs -$7.03/pkg -43.2%

15-20 lbs -$7.21/pkg -38.0%

20-25 lbs -$6.49/pkg -31.0%

25-30 lbs -$5.60/pkg -24.1%

30-35 lbs -$4.98/pkg -19.4%

35-40 lbs -$2.14/pkg -7.6%

Regional Rate options

The Regional Rate Box type C rate will have a sizeable

decrease, while box type A and B rates will remain unchanged

Box TypeZones 1-5

Avg $ Change

Zones 1-5 Avg %

Change

Box A $0.0/pkg 0.0%

Box B $0.0/pkg 0.0%

Box C -$10.18/pkg -44.4%

PG 7

Key Service Changes

Domestic Changes:Package Pickup and Pickup on Demand® will be extended to

the following additional products and customers:

• First Class Package Service®

• First-Class Package Return Service®

• Parcel Select®

The PS Form 5630 scan form will be updated to reflect these

new products

International Changes:

Priority Mail Express International® (PMEI) EnhancementsPMEI with Guarantee Service will now be available to the

following additional countries:

• Germany

• Thailand

• New Zealand

• Sweden

• Switzerland

• Israel

• Canada (added on March 27th, 2014)

• Lebanon (Price Group 8)

PG 8

Parcel Manifest Minimum Requirement Modification

• Shipments made via Priority Mail Express International®,

Global Express Guaranteed®, Priority Mail International®,

and First Class Package International Service® will now

be included along with domestic parcels in calculating

the permit imprint minimum requirement of 50 pounds or

50 pieces.

Prohibitions, Restrictions and Observations for International Mailing Update

• Australia will be prohibiting most food, plant, and animal

products.

• Moldova will be prohibiting items containing software or

technical devices specifically developed, manufactured,

programmed, or adapted to intercept information.

• Moldova is also adding a new observation stating that

valuable articles should be sent as insured mail.

• Ukraine is revising its observation regarding goods sent

by Priority Mail Express International™ service making

these items subject to duties and taxes at a value of EUR

150.

• Uruguay is adding prohibitions on eyeglasses and

medical products (including medicines, supplements,

creams, perfumes and nail polish).

• These are a summary only. When effective, updates will

be posted on Postal Explorer at http://pe.usps.gov.

Priority Mail Express International® (PMEI) and Priority Mail International® (PMI) Weight and Size Update

• PMEI destined to Australia will now allow a maximum

of 66 pounds and 36” of length with a max length plus

girth of 97”.

• PMI destined to Australia will now allow for the

increased dimension of 42” of length with a max

length plus girth of 97”.

• Full Country Listings will be available on Postal

Explorer prior to September 7.

PG 9

Background

USPS Pricing TiersThe USPS offers discounted pricing options to certain types

of customers for specific types of mail classes. They are also

able to negotiate prices for domestic and international shippers.

These negotiated rates are not “published” rates and therefore

not covered in our Price Change information. Published pricing

tiers include the following:

• Retail Price: Retail pricing refers to the standard

counter price for postage at the Post Office™ or other

physical retail locations.

• Commercial Base Price (CBP): Commercial Base

pricing refers to the discounted postage price for certain

mail classes available to electronic postage users. The

vast majority of Endicia customers automatically enjoy

this price for applicable Competitive mail classes.

• Commercial Plus Price (CPP): Commercial Plus

pricing refers to deeply discounted postage prices for

certain mail classes available to qualified high-volume

shippers. Endicia customers that qualify for these

discounts automatically receive them through their

software or application.

Priority Mail Explained

• What do shippers use this service for?

Priority Mail is an excellent and economical option for

businesses shipping packages to residential addresses

that want quick delivery with free tracking, while

remaining cost-conscious. It offers many options,

including regular zone-based pricing, flat rate envelopes

and boxes, regional rate packaging, cubic pricing and

Critical Mail envelopes. The Postal Service also offers a

variety free packaging for Priority Mail shipments, which

can save businesses even more money. In addition,

Priority Mail includes free tracking and $50 of free USPS

insurance coverage.

Priority Mail includes three price tiers: Retail,

Commercial Base, and Commercial Plus

• What is the delivery standard for Priority Mail?

The delivery standard for Priority Mail is 2-3 days (not

guaranteed). This is comparable to FedEx Ground or UPS

Ground. The other comparable service is FedEx or UPS

2-3 day service.

PG 10

Endicia and USPS: The Right Choice for Your Package ShipmentsNo Hidden Fees—Private carriers regularly tack on

surcharges for residential, Saturday and rural deliveries,

address validation and so much more. It’s all included at no

extra cost with the USPS. The cost you see in the Endicia

software is the price you pay.

APO/FPO, PO Box Delivery—USPS is the only carrier that

can deliver to military and diplomatic addresses, as well

as PO Boxes. Endicia software makes sending packages

to APO/FPO addresses easy with integrated shipping and

customs forms.

Delivery 365 days/year—USPS is the only carrier that

delivers every day of the year to residential addresses,

mailboxes, mail slots and PO Boxes. The Endicia software

is also available at any time so you can easily print shipping

labels for your packages whenever it is convenient for you.

Speedy Delivery—Get packages from San Francisco to

New York in 2 days with Priority Mail vs 5-6 days via private

carriers (and at lower prices for certain weights).

Tracking—With the introduction of the Intelligent Mail

Barcode (IMpb) the USPS typically has over 10 scan events

per package. Endicia supports IMpb and offers online

tracking, making it easy to keep an eye on packages.

Flat Rate Options (domestic and international)—Priority

Mail flat rate boxes from USPS offer a quick, easy and

convenient way to ship packages, at the most affordable

price. Endicia software can help you choose the package

option that is best for your business.

Negotiated Pricing—USPS and Endicia offer the most

competitive pricing for your packages. Don’t be fooled by

private carrier rates that don’t reflect the true price once

hidden charges are included.

Why Endicia?• The leader in electronic postage with over $11 Billion in

postage printed.

• Close partnership with the USPS to help tailor the best

solution for your business

• Intuitive easy-to-use tools to print labels and track your

packages.

• Pay-on-Use returns. Endicia is the only electronic

Postage provider to offer this money saving service. With

Endicia’s Pay-on-Use Returns you only pay for postage

on the return shipping label if and when it is scanned in

the mail stream.

• Auto-Refund Service (ARS). ARS automates the process

of requesting refunds for unused postage by identifying

potentially unused shipping labels and submitting a

refund request to the U.S. Postal Service.

For more information on how you can save go to

www.endicia.com/USPS-rate-change-sept-2014 for more details

or contact an Endicia Sales Rep today ([email protected] or

800-576-3279, x140) to learn more about how you can save on

shipping costs during this holiday season.

usps rate change = savings! - endicia · pg 3 introduction now you have a choice for heavier...

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