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The USPS® will announce price changes effective in January, 2014, which will undoubtedly affect postage and other fees associated with mail shipments. This webinar discusses the impact of the price change to letters and flats. Additionally, information will be shared to help you understand how to minimize the impact of these changes to your organization and review strategies to save money and increase efficiency.
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Presented by:Janet Lockhart-Jones, Ed.D., MDC Curriculum Manager, Postal EducationPitney Bowes Inc.
January 2014 USPS® Price and Regulatory Changes for Mailing and Shipping Services
December 17, 2013
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
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
AgendaWHAT’S INSIDE
Highlights, details, and cost saving strategies for:
First-Class Mail®
Special Services
Shipping/Competitive products
Pitney Bowes Resources
Classes of Mail Affected – Market Dominant
First-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 ServicesBound Printed Matter (BPM) FlatsBPM ParcelsMedia, Library MailAlaska Bypass
Proposed Market Dominant Price Adjustments1. Consumer Price Index-Urban (CPI-U) Price Proposal (PRC APPROVED w/Full-Service IMb™ Exception) Average price increase of 1.69%
2. Exigent or Above-the-Cap Price Proposal (Under PRC review) Renewed exigency request – Due to depressed economic
conditions Average price increase of 4.30% Caveat: Board of Governors reserves the right to pull the
exigent price increase if Congress acts on postal reform legislation
Proposed Shipping Services/Competitive Products Price Adjustment) (Filed, Awaiting Final PRC decision) Overall price increase is 2.4%
Background
1.69% CPI + 4.30% Exigent = 5.99% overall average increase
Save 1¢ on First-Class letters that have postage affixed using:
Postage MeterPC PostagePermit ImprintPre-canceled stamps
No piece minimumsNo preparation requirementNo 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”.
4746
Retail First-Class Single-Piece one-ounce letter increase− CPI from .46 to .47 cents− Exigency from .46 to .49 cents (if approved)
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
Special Services Change Highlights 1 Certificate of Mailing CPI Price CPI + Exigent PriceBasic $1.25 $1.30Firm Book Mailing 0.45 0.47Bulk: First 1,000 pcs 7.50 7.80Each Add’l 1,000 pcs 0.90 0.95
Certified Mail $3.15 $3.30
Return ReceiptRequested at time of mailing
Electronic $1.30 $1.35Green Card 2.60 2.70Merchandise 4.20 4.40
Requested after mailing 5.05 5.25
Special Services Change Highlights 2USPS Tracking CPI Price CPI + Exigent PriceFirst Class Mail (Parcels Only) Retail $1.00 $1.05First 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 Mail Parcels Electronic 0.22 0.23Package Services Retail 1.00 1.05Package Services Electronic 0.22 0.23Parcel Select Electronic Electronic 0.00
Signature Confirmation CPI Price CPI + Exigent PriceElectronic $2.25 $2.35Retail 2.80 2.90
Key Details
Letters (1 oz.) $0.46 to $0.47 CPI $0.47 to $0.49 Exigent
Letters additional ounces $0.20 CPI $0.21 Exigent
First –Class Mail® International Global Forever Stamp (1 oz.) –$1.10 to $1.15
First Class Postcards $0.33 CPI $0.34 Exigent
First-Class Mail® Retail
Pricechange
Key First-Class Mail® Single-Piece Prices
Current Price
CPI Price
CPI + Exigent Price
Stamp Price 0.46 0.47 0.49
Meter Price 0.46 0.46 0.48
Single-Piece Flats 0.92 0.94 0.98
Single-Piece Cards 0.33 0.33 0.34
Retail Parcels 2.07 2.23 2.32
Save 1¢ on First-Class letters that have postage affixed using:
Postage MeterPC PostagePermit ImprintPre-canceled stamps
No piece minimumsNo preparation requirementNo 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”.
4746
First 3 ounces in each FCM parcel category still a single price cell
$.17 additional ounce price after 3 ounces (CPI) -$0.18 Exigent
First-Class Mail® Retail Parcels
Oz. Current CPI Exigent1 2.07 2.23 2.322 2.07 2.23 2.323 2.07 2.23 2.324 2.24 2.40 2.505 2.41 2.57 2.686 2.58 2.74 2.867 2.75 2.91 3.048 2.92 3.08 3.229 3.09 3.25 3.40
10 3.26 3.42 3.5811 3.43 3.59 3.7612 3.60 3.76 3.9413 3.77 3.93 4.12
PARCELS
Mobile Technology PromotionsEncourages 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 RelevanceLeverage 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
Leverage Value of First-Class MailIntended 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 AcquisitionProvides an extra incentive for new customers to try direct mail EDDM Coupon Promotion
Promotions Overview
December 17, 2013Enterprise Learning & Development 18
Registration opensDecember 15th – March 31st
Promotion Period:February 1 – March 31st, 2014
2% upfront discount
Branded Color MobileTechnology Promotion
Promotions Details
Beginning in January 2014, theUSPS® 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
AgendaWHAT’S INSIDE
Highlights, details, and cost saving strategies for:
First-Class Mail®
Special Services
Shipping/Competitive products
Pitney Bowes Resources
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
Competitive Services Average increases
Product Average Increase
Priority Mail Express 3.0%
Priority Mail Net 0%
First Class Pkg Services 5.0%
Parcel Select 9.2%
Standard Post 5.2%
• 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• A fee of $0.20 assessed on commercial parcels without an
Intelligent Mail Package Barcode (IM®pb)
Shipping Services Change Highlights
Key Details
***All Changes are Proposed until Approved***
Shipping Services
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.
Commercial Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6%
Eliminate 12:00 Noon delivery for items to Addressee
Optional 10:30 am delivery for a fee of $5.00.
Priority Mail Express™
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 Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6%
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®
Required on ALL Commercial Parcels/Packages
$0.20 per piece surcharge for pieces failing to meet the January 26th
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 a retail tracking IM®pb complaint barcode will still be accepted from meter customers throughout 2014.
pbSmartPostage and SendSuite are IM®pb enabling solutions for meter mailers
Intelligent Mail Package Barcode (IM®pb)
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 with the PRC.
No PRC decision yet on the Exigent Price Proposal
Electronic Return Receipt (ERR) is 1/2 the cost of the retail RR green card. Other electronic confirmation services are lower than traditional or free!
Meter customers who ship must adopt an IM®pb compliant solution to continue to get the best pricing. pbSmartPostage™ , offered through December at no cost to new meter clients, is ideal for small business mailers. Talk to a Pitney Bowes representative today.
Summary
December 17, 2013
http://www.pb.com/
USPS® news sources you can rely on
December 17, 2013
http://www.pb.com/postal-information/
USPS® news sources you can rely on
December 17, 2013
http://blogs.pb.com/usps-news/
USPS® news sources you can rely on
THANK YOU.THANK YOU.We appreciate your business