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The USPS® has proposed price, service and regulatory changes, effective as of January 26th, 2014. These changes will affect postage and other fees associated with mail shipments, as well as introduce an exciting new “discounted rate category” called First-Class Metered Rate. This category will save mailers one-cent on each First-Class® letter with postage affixed by meter. We’ll also discuss the overall impact of price and regulatory changes for letters, flats, and some competitive products like Priority Mail Express™. You’ll learn about products that are not increasing in price and strategies that will help minimize the impact of change to your bottom line. Presented: December 10, 2013
Citation preview
January 14, 2014
January 2014 USPS® Price and
Regulatory Changes for Mailing and
Shipping Services
January 14, 2014
Dr. Janet Lockhart-Jones joined Pitney Bowes in
September 2012 to fulfill the cross-enterprise
role of Curriculum Manager, Postal Education.
In this capacity, Janet serves as a postal
education trainer, Subject Matter Expert (SME)
and consultant to Pitney Bowes and its clients.
Janet’s professional career includes 15+ years
with the United States Postal Service and 10
years as an independent leadership
development and learning consultant servicing
the hi-tech industry.
Janet holds the degrees of Doctor of Education,
Master of Science in Human Resources
Management and Bachelor of Science in
Business. She is the Postal Education Chair of
the Sacramento Postal Customer Council
(PCC), a member of MSMA, and is a Certified
Mailpiece Design Consultant (MDC).
Your presenter
January 14, 2014
Session Objectives
Understand 2014 USPS® price
and regulatory changes impacting
the mailing industry
Walk-away from the session with
greater clarity on how the 2014
proposed changes will affect your
mailing operations
Understand the changes and
opportunities that are available to
reduce postage expenditures
January 14, 2014
Agenda
WHAT’S INSIDE Highlights, details, and
cost saving strategies for:
First-Class Mail®
Special Services
Shipping/Competitive
products
Pitney Bowes Resources
January 14, 2014
Classes of Mail Affected – Market Dominant
First-Class Mail®
Single-Piece Letters & Cards
Presort Letters & Cards
Flats
Parcels
Outbound Single-Piece
International
Periodicals
Special Services
Standard Mail® Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels
Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass
January 14, 2014
Proposed Market Dominant Price Adjustments 1. Consumer Price Index-Urban (CPI-U) Price Proposal (Approved
w/Full-Service IMb™ Exception)
Average price increase of 1.69%
2. Exigent or Above-the-Cap Price Proposal (Approved)
Average price increase of 4.30%
Proposed Shipping Services/Competitive Products
Price Adjustment) (Approved)
Overall price increase is 2.4%
Background
1.69% CPI + 4.30% Exigent = 5.99% overall average increase
January 14, 2014
Save 1¢ on First-Class letters that have postage affixed
using:
Postage Meter
PC Postage
Permit Imprint
Pre-canceled stamps
No piece minimums
No preparation requirement
No requirement to report those pieces on a postage statement
NEW: First-Class Meter Rate
The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new “Meter Price” will have postage applied
directly to the pieces, and will be deposited as “Retail mail”.
49 48
January 14, 2014
Retail First-Class Single-Piece one-ounce letter
increase
− From $0.46 to $0.49 cents
− Metered FC letters $0.48
Changes to residual First-Class Mail letters price
structure
The USPS® continues to price AADC and 3-Digit
Letters and Cards at the same level
Second-ounce free continues for all Presort First
Class Mail letters (Non-automation and
Automation)
Full-Service Intelligent Mail® barcode $.003
incentive maintained
Full-Service Intelligent Mail mandate – not
approved; delayed until after 2014
First-Class Mail® Change Highlights
January 14, 2014
Special Services Change Highlights 1
Certificate of Mailing January 26, 2014
Basic $1.30
Firm Book Mailing 0.47
Bulk: First 1,000 pcs 7.80
Each Add’l 1,000 pcs 0.95
Certified Mail $3.30
Return Receipt
Requested at time of mailing
Electronic $1.35
Green Card 2.70
Merchandise 4.40
Requested after mailing 5.25
January 14, 2014
Special Services Change Highlights 2
USPS Tracking January 26th, 2014
First Class Mail (Parcels Only) Retail $1.05
First Class Mail (Parcels Only) Electronic 0.00
First Class Package Service Electronic 0.00
Priority Mail Retail 0.00
Priority Mail Electronic 0.00
Standard Post Retail 0.00
Standard Mail Parcels Electronic 0.23
Package Services Retail 1.05
Package Services Electronic 0.23
Parcel Select Electronic Electronic 0.00
Signature Confirmation January 26, 2014
Electronic $2.35
Retail 2.90
January 14, 2014
Key Details
January 14, 2014
Letters (1 oz.) $0.46 to $0.49
$0.48 New Metered Rate
Letters additional
ounces $0.21
First –Class Mail®
International Global
Forever Stamp (1 oz.) –
$1.10 to $1.15
First Class Postcards $0.33 to $0.34
First-Class Mail® Retail
Price
change
January 14, 2014
Key First-Class Mail® Single-Piece Prices
Current
Price
January 26, 2014
Stamp Price 0.46 0.49
Metered Price 0.46 0.48
Single-Piece Flats 0.92 0.98
Single-Piece Cards 0.33 0.34
Retail Parcels 2.07 2.32
*all prices one ounce
January 14, 2014
January 14, 2014
First 3 ounces in each FCM
parcel category still a
single price cell
$.18 additional ounce
price after 3 ounces
First-Class Mail® Retail Parcels
Oz. Current 26-Jan
1 2.07 2.32
2 2.07 2.32
3 2.07 2.32
4 2.24 2.50
5 2.41 2.68
6 2.58 2.86
7 2.75 3.04
8 2.92 3.22
9 3.09 3.40
10 3.26 3.58
11 3.43 3.76
12 3.60 3.94
13 3.77 4.12
January 14, 2014
Mailers may continue using
current preparation standards Residual 1oz and 2oz pieces
presented in the same tray receive the
blended price on those pieces
NEW: Mailers have the option of
separating out 1oz and 2oz pieces
and paying the lower metered rate
Commercial Residual Single-Piece Letters:
Two Options
Weight Not
Over (ounces)
26-Jan
1 $0.48
2 $0.69
Blended $0.50
January 14, 2014
Beginning in January 2014, the USPS® is requiring mailers
receiving automation discounts to
be Full-Service IMb™ compliant.
Full Service Intelligent Mail® was
proposed to REQUIRED for:
Postcards (First-Class Mail®
only)
Letters, and flats when mailed
using:
First-Class Mail®
Standard Mail®
Periodicals®
Flats mailed at Bound Printed
Matter® prices
IMb® Full- Service Mandate
January 14, 2014
It's not going away
Leverage the $$$ already spent
Save $$$ - reduce your mailing costs
Use the barcode intelligence to make
information-based business decisions
Enhanced Visibility
Free Address Change Service
Take advantage of cost-saving
promotions – all require Full-Service
IMb™ participation
“Why should I still move forward with Full-
Service IMb™?”
January 14, 2014
Mobile Technology Promotions Encourages mailers to integrate direct mail
with mobile technology using best practices
in mobile marketing
Branded Color Mobile Technology
Emerging Technology Featuring NFC
Promotion
Mail Drives Mobile Commerce Promotion
Technology Drives Relevance Leverage the value of innovative direct mail
techniques that are less widely used, but have
been shown to increase effectiveness of mail
campaigns
Promotions Overview
Color Print in First-Class Mail® Transactions Promotion
Mail and Digital Personalization Promotion
January 14, 2014
Leverage Value of First-Class Mail® Intended to slow the volume decline in
First-Class Mail by ensuring reply mail,
transactional mail and First-Class
advertising remain a relevant part of the
First-Class Mail marketing mix
Premium Advertising Promotion
Earned Value Promotion
New Customer Acquisition Provides an extra incentive for new
customers to try direct mail
EDDM Coupon Promotion
Promotions Overview
January 14, 2014
Registration opens
December 15th – March 31st
Promotion Period:
February 1 – March 31st, 2014
2% upfront discount
Branded Color Mobile
Technology
Promotion
January 14, 2014
Agenda
WHAT’S INSIDE Highlights, details, and
cost saving strategies for:
First-Class Mail®
Special Services
Shipping/Competitive
products
Pitney Bowes Resources
January 14, 2014
Shipping Services - Classes of Mail Affected
Priority Mail Express™ Priority Mail® First-Class Package Service™ Parcel Select® Standard Post™ Extra Services Return Services Mailer Services Recipient Services
January 14, 2014
Competitive Services Average increases
Product Average
Increase
Priority Mail Express™ 3.0%
Priority Mail® Net 0%
First Class Package Service™ 5.0%
Parcel Select® 9.2%
Standard Post™ 5.2%
January 14, 2014
• Priority Mail® - Average net ZERO price increase in Retail and CBP
• New Priority Mail Express™ 10:30 a.m. delivery time option for an
additional $5.00
• New Flat Rate Commercial Base and Commercial Plus prices for
Priority Mail Express International and Priority Mail International
• Intelligent Mail® package barcode required on all commercial
parcels
• A fee of $0.20 assessed on commercial parcels without an
Intelligent Mail Package Barcode (IM®pb) when the targeted
thresholds have been exceeded.
• Meter customers are exempt from the 20-cent surcharge
• Meter customers must adopt an IMpb compliant solution by January
2015 or lose Commercial Base Pricing (CBP)
• New labels forthcoming for meter customers.
Shipping Services Change Highlights
January 14, 2014
Key Details
Shipping Services
January 14, 2014
Overall average price increase of 3%
Pricing by Zone, Retail, Commercial Base and Commercial Plus continues
Retail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate
Envelope is increasing from $19.95 to $19.99.
Flat Rate Box price is increasing from $39.95 to $44.95.
Eliminate 12:00 Noon delivery for items Post Office to Addressee or to PO
Box
Optional 10:30 am delivery for a fee of $5.00 ( but not available between all
origin-destination ZIP codes)
Priority Mail Express “Hold for Pickup” available by 10:30 for no additional
charge
Priority Mail Express™
January 14, 2014
Overall average net zero (0%) price increase.
Many Priority Mail Flat Rates are NOT changing.
Exception: Large Flat Rate Box is increasing from
$16.85 to $17.45.
Commercial Plus and Commercial Plus Cubic volume
thresholds being lowered to 50,000 pcs
Free USPS Tracking and $50 insurance continues with
Retail or IMpb compliant barcode. Up to $100 of
insurance for Commercial Plus
Priority Mail®
January 14, 2014
Required on ALL Commercial Parcels/Packages
$0.20 per piece surcharge for pieces failing to meet the January 26 th
standards for IM®pb use and falling outside established thresholds.
Meter customers are EXEMPT from the surcharge; they have until January
2015 to adopt an IM®pb compliant solution. After this date, retail prices
apply.
Label 400 (existing) or IM®pb complaint
barcode, or new USPS supplied labels will be accepted
from meter customers throughout 2014 and are required for
Commercial Base Pricing (CBP).
A new label is forthcoming for meter customers to use with Priority
Mail®
pbSmartPostage™ and SendSuite Live™ are IM®pb enabling
solutions
Intelligent Mail Package Barcode (IM®pb)
January 14, 2014
Exclusions
Parcels paid at retail price and inducted through a retail transaction
Periodicals parcels
Standard Mail® Marketing parcels sent as product samples that bear a simplified
address or those using a detached address label (DAL)
Priority Mail® letters and flats using stamps for postage payment and mailpieces
using Priority Mail Forever Prepaid Flat Rate packaging.
Priority Mail letters and flats prepared in a high-speed environment may, upon
authorization, use an Intelligent Mail barcode (IMb™) in lieu of an IMpb provided
each of these pieces bear a unique IMb that cannot be reused for 45 days, and
are supported by Mail.dat or Mail.XML.
Intelligent Mail Package Barcode (IM®pb)
January 14, 2014
Intelligent Mail Package Barcode (IM®pb)
Surcharge example:
January 14, 2014
CPI price proposal for Market Dominant Products
The new Meter Rate category will afford meter customers a one-cent
discount off First-Class stamped letters.
Shipping Services/Competitive Products proposal filed.
Exigent Price Proposal
Full-Service Intelligent Mail mandate for letters and flats was not approved
Intelligent Mail® package barcode required for all commercial parcels
Cost saving alternatives are plentiful
Summary
January 14, 2014
http://www.pb.com/
USPS® news sources you can rely on
January 14, 2014
http://www.pb.com/postal-information/
USPS® news sources you can rely on
January 14, 2014
http://blogs.pb.com/usps-news/
USPS® news sources you can rely on
January 14, 2014
THANK YOU. THANK YOU.
We appreciate your business
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