Understanding USPS® Service Changes & How They Impact Your Business

April 12, 2023 1Understanding USPS Service Changes & How They Impact Your Business

Understanding USPS Service Changes & How They Impact Your Business

A Practical Guide from Pitney Bowes


Your presenter

Dana Wagner, Manager of Customer Education, began his Pitney Bowes career in Seattle in 1982 and held increasingly responsible sales and management positions in the US marketing organization. For the past 7 years he has been a part of the Corporate Learning and Development organization. Dana is currently responsible for the award winning Mail Management Seminar series and other client centered carrier and product education programs.


Questions

On the minds of every business that relies on mail as part of its operations:

What are the U.S. Postal Service changes? What does it mean for me? How do I plan for the changes?


•Pricing Changes

•Program Changes

•Service Level Changes

USPS Changes


USPS Pricing Changes


Postal ChangesPricing increases on products

January 22, 2012: USPS increased rates for both competitive and market-dominant products

Market-dominant products: First-Class Mail®, Periodicals, Standard Mail®, Single-piece Parcel Post®, Media Mail®, Bound Printed Matter, Library Mail, First-Class Mail® International most Extra Services

Competitive products Priority Mail® Express Mail® First-Class Package Service™ Parcel Select®, Lightweight Parcel Select® International services

Global Express Guaranteed® Express Mail International® Priority Mail International® International Priority Airmail™ International Surface Air Lift® Airmail M-bags


Postal Changes- Price changes for Mailing Services

Effective as of January 22, 2012

Highlights: Change:

First-Class Mail® Letters (1 oz.) +1 ¢ (44¢ to 45¢) Letters additional ounces unchanged (20¢) Postcards +3 ¢ Letters to Canada or Mexico (1 oz.) +5 ¢ Letters to other int’l destinations (1 oz.) +7 ¢


Price change for all Shipping Services- + 4.6%

Priority Mail- avg + 3.1%: Updated domestic pricing for Priority Mail® New Regional Rate Box C

Express Mail- avg + 3.4%: Lower Express Mail retail prices for ½ lb. and 1 lb. packages to local

and close destinations Lower Express Commercial Base prices: 5% on average New Flat Rate Box

Postal Changes Price changes for Shipping Services


Good news!

Most commonly used for business invoicing & direct mail

Opportunities to advertise new services and products to their customers as part of bill and statement mailings.

Postal Changes2nd ounce “free” presorted & automation First-Class Mail® letters


Postal ChangesFirst-Class Parcels

Retail First-Class Mail®Same Price for the first 3 ounces!

New Class: Commercial First-Class Package Service™ Higher volume lightweight package shippers

Commercial Base:• 13 ounce max weight• Non-personal content only- OPEN to USPS™ inspection!• Postage paid using PC Postage, an IBI meter, or a permit imprint• At least 500 Presorted parcels per mailing

Commercial Plus:• Up to 15.999 ounces- ‘sweet spot’ over 13 ounces• Personal and non-personal items- Closed to USPS inspection!• Postage paid though permit imprint advance deposit account• At least 500 Presorted parcels per mailing or single-piece mailings need at least 200 pieces or 50 lbs

per mailing. • Requires a customer commitment agreement with USPS® to mail more than 5,000 Commercial First-

Class Package Service machinable parcels in a calendar year.


USPS Program Changes


January 28, 2013 Intelligent Mail® barcode (IMb™) required for automation letters and

flats, Permit Reply Mail and Qualified Business Reply Mail (QBRM) price eligibility

Each mail piece must have an IMb™

January, 2014- proposed Full Service Intelligent Mail

® compliance

Unique IMb™ for mailpieces and handling units

Electronic submission of postal documentation

Electronic scheduling of drop shipments

Postal Changes IMb™ required for automation discounts


USPS Summer Sale Program Period: July 1 through August 31, 2012 Discount Amount: 2% of eligible postage. IMb Requirements: Mailings of automation letters or

flats must have Intelligent Mail® barcodes. Eligible Mail:

Standard Mail® letters and flats Nonprofit Standard Mail letters and flats First-Class Mail® presort and automation letters, cards and flats

Additional Eligibility: The mobile barcode or similar print technology must take a consumer to

a mobile optimized site that either enables mobile commerce or is personalized for the recipient.

usps.com/mobilebarcodepromotion


Picture Permit Imprint Indicia

The permit imprint standards allows mailers to include a color image of a business-related design, such as corporate logos or trademarks, as part of the indicia on a Full-Service Intelligent Mail Barcode mailing.

USPS is now requesting:

1 cent per piece add-on for First Class Mail 2 cents per piece add-on for Standard Mail.

Mailers interested in utilizing the picture permit imprint indicia should go to:

https://www.usps.com/business/picture-permit.htm

https://www.usps.com/business/picture-permit.htm


USPS Service Level Changes


Postal ChangesNo Saturday Delivery

Five-day-a-week delivery (proposed)

No delivery or picked up on Saturdays to homes or businesses

No collection from blue boxes


Postal ChangesPost Office closures and service reductions

Postal Service backed off closure of post offices nationwide

May 9 USPS announced that it will allow rural post offices to remain open, but with reduced hours. Trim operations at 13,000 post offices to between two and six hours per day


The United States Postal Service announced May 17 that it would begin consolidating 48 mail processing centers beginning in July 2012

Additional 92 processing centers to be consolidated in February 2013

89 more consolidated in early 2014.

Area Mail Processing (AMP) on USPS.gov site

http://about.usps.com/news/service-alerts/facility-closures.htm

Facilities targeted for closure Where mail processed at these facilities

will be routed.

Postal ChangesCentral Facility Closures




Postal ChangesTimelines & Logistics

Largest impact = mail may take longer for mail to be delivered

Everyday users of First-Class Mail® Critical delivery deadlines

Cash-flow (sending out invoices) + 2 – 4 days? impact on A/P impact on A/R scheduling of staffing

Logistics of plant and facility closures Drive mail to another local entry area Increased fuel costs, staffing costs, vehicle usage, timing


Postal Changes

Best Practices in 2012 and Beyond


Best Practices

•Choosing the best class of service

•Choosing the right Extra Service

•Redesigning mail-pieces

•Leveraging automation pricing

•Improving address quality


Postal ChangesBest Practices

Select the Right Class of Mail

Help reduce postage expenditures: Non-personal mail pieces -> consider Standard Mail®

Postage lower than First-Class Mail® Nonprofit prices ~ 40% less than regular Standard Mail® Destination Entry Discounts Postage “same” for like-shape pieces < 3.3 oz.

For heavier non-personal parcels, consider Package Services Postage lower than Priority Mail® Media Mail®, Library Mail, Bound Printed Matter and Parcel

Post®



Leverage Extra Services

Choose based on service objectives Proof of Mailing? Proof of Delivery?

• Signature?• Restrict Delivery?

Protection in transit?

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Choose based on service objectives Proof of Mailing? Proof of Delivery

• Signature?• Restrict Delivery?

Protection in transit? Lower costs for e-services

Delivery Confirmation and Signature Confirmation Service

• Often used with First Class mail parcels and priority mail

• Mailer doesn’t need to go to the post office – saving time, processing, and money

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Choose based on service objectives Proof of Mailing Proof of Delivery

• Signature• Restrict Delivery?

Protection in transit? Lower costs for e-services

Utilize Electronically Filed Certified Mail and Electronic Return Receipt

• Signature files are electronic • Easier to manage • Significant process improvement• ERR less than half the cost of

‘Green Card’ RR



Redesign - Envelopes to Cards

Targets First-Class Mail® price increase Redesigning envelope contents into card format

Benefits:

No “openability” issue Cards can be “coupons” Lower material costs First-Class Mail® post card price is generally lower than

Standard Mail letter price Ability to leverage QR code - to lead recipients to website!


Postal Changes Best Practices

Redesign – Flats to Letter-size

May reduce postage up to 40%!

Tips to redesign: Duplex pages Use lighter weight paper Narrow page margins Smaller fonts Half or tri-fold contents


Postal Changes Best Practices

Redesign – Flats to Letter-size (continued)

Quantity Potential Savings

1,000 1 oz. flats converted to letters up to $326*

1,000 2 oz. flats converted to letters up to $496 **

1,000 3 oz. flats converted to letters up to $416 ***

* Mixed ADC price for 1-oz automation-price flats vs. Mixed AADC price of 1-oz automation-price letters** Mixed ADC price for 2-oz automation-price flats vs. Mixed AADC price of 2-oz automation-price letters

- the substantial savings “2nd ounce free” for commercial First-Class Mail® letters*** Mixed ADC price for 3-oz automation-price flats to the Mixed AADC price of 3-oz automation-price letters



Redesign – Parcels to FlatsMay save up to 30% on postage costs!

Tips: flats must be rectangular uniform in thickness flexible commercial flats must also meet deflection criteria.

Flexibility must meet U.S. Postal Service standards

Example:

Documents sent out in “ring binder.”Rigid structure disqualifies it as being a flat.

Replace binding or outer covering to a soft, flexible cover* to save . Get envelopes that are the right fit for content - helps meet uniform

thickness requirements.



Automate for Cost-Efficient Processing

Prepare as much automation-compatible mail as possible Apply delivery point routing barcodes

– Use Intelligent Mail barcode Prepare and sort according to U.S. Postal Service regulations

Benefits: Reduce postage expenditures Cut processing steps and time Maximizing prospects of timely delivery


Use “2nd Ounce Free” forTrans-promotional marketing

Presorted & Automation First-Class Mail® letters

Most commonly used for business invoicing

Opportunities to advertise new services and products to customers as part of bill and statement mailings

Consider ‘piggy backing’ with business partners!



Track for Visibility

Knowledge = Efficiency

Track using Intelligent Mail barcode (IMb) Visibility sending out or receiving

Benefits Plan for timely delivery Understand regional differences Meet timing objectives Anticipate response needs Map out cash flow Schedule staff Better customer service (anticipating payments)




Responding to timelines & logistics changes

Talk to Comptroller, CFO, CEO Discuss impact on Days of Sales Outstanding and cash to

cash cycle Understand TOTAL costs to adjust logistics/timing Ensure all outbound addresses are as accurate as possible Leverage courtesy reply mail envelopes (correctly addressed

and bar-coded)



Solutions: Physical portion of the address:

CASS ™ certified software Standardizes physical portion of the address Assigns a delivery point routing barcode

Front-end Processing Using the correct address is

critical

Two parts to address qualityPhysical portion of

address Individual, business or

family component



Front-end Processing Individual, business or family component

U.S. Postal Service approved Move Update solutions:

Ancillary Endorsements Address Change

Service (ACS) FASTforward® and U-

Move systems NCOALink® product


Postal ChangesResources

Create “shortcuts” in your browser for these sites!

USPS - Postal Explorer®

http://pe.usps.gov/default.asp

Federal Register Postal Explorer®

RIBBS –Customer Support Center https://ribbs.usps.gov/

Pitney Bowes- Postal Information

http://www.pb.com/postal-information/

Pitney Bowes - Customer Connections Postal Advisor on ‘My account’



https://ribbs.usps.gov/

https://ribbs.usps.gov/



http://www.pb.com/postal_advisor/



Anticipate changes in your processes

Leverage technology

Seek efficiency and cost effectiveness

Engage Pitney Bowes, in creative solutions and problem solving


Mail Openers

Service Agreements On Printing Devices

Address Printing Automation

Fold and Insert Intelligent Inserting

Mailing Solutions

Carrier Management Shipping Automation

Custom & Standard Envelopes

CASS Software with List Management

Document Management & Reformatting

Software

Inbound Package Logging & Delivery

Consolidate all Permits & Earn

Interest

Visitor Self Check-in

Document Binding Solutions

Shredders

What Does Pitney Bowes Do?

USPS Postal Kiosk

High Speed Color Printer

Low Cost $0.02 per print

Eliminate manualGreen Cards and

save $1.20 postageper piece!!!

USPSFedExUPS

6% - 12% Postal Discounts


Questions?Please Contact us at

1-800-322-8000

Thank you!


Every connection is a new opportunity™

The Corporate logo, SendSuite, and Pitney Bowes are trademarks owned by Pitney Bowes Inc.

Postal Service, USPS, First-Class Mail, First-Class, First-Class Package Service, Express Mail, Priority Mail, Parcel Select, Delivery

Confirmation, Global Express Guaranteed, Express Mail International, Priority Mail International, International Priority Airmail, and

International Surface Air Lift are trademarks owned by the United States Postal Service.

Self Improvement

Understanding USPS® Service Changes & How They Impact Your Business