USPS® Rate Change

What the rate change means to you

Presented by Tom Ryan

Welcome and thank you for joining us.

USPS®

headlines

Rate updates by service

Ideas for savings & cost control

Helpful resources

Tom Ryan

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Welcome and thank you for joining us.

Tom Ryan

A long time ago …Today

34 years in the industry

Certified Postal Consultant

Industry roles in sales, marketing,

product development

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First- Class Mail®

Priority Mail®

Priority Mail Express®

Package Services

Domestic Extra Services

Standard Mail®

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USPS ® Rate Changes

Mailing Services: First-Class Mail®,

Standard Mail®, Media Mail™, Library

Mail, Bound Printed Matter, Extra

Services (i.e. Certified Mail™)

Package Services: Priority Mail®,

Priority Mail Express®, Parcel Select,

First-Class™ Package Service

Market Dominant

Competitive

Overall less than 1% increase

Overall 3.9% increase

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First-Class Mail®

Now 49¢

Was 47¢2¢

CurrentPrice

NewPrice

Change

Stamp Price 1 oz. $0.47 $0.49 + 4.3%

Meter Price 1 oz. 0.465 0.46 SAVE 3¢

Additional Ounces 0.21 0.21 0.0%

Single-Piece Post Cards 0.34 0.34 0.0%

Single-Piece Flats 1 oz. 0.94 0.98 4.3%

Flats = Rectangular, uniformly thick, not rigid.

Save 6.1%

with Metered

Mail

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Modern Postage Meters

Track package deliveries

Compare costs for services

Print shipping labels

6% Discount plus …

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First-Class Mail® with Online Postage

PC Postage® stamps

Permit Imprints

Pre-Cancelled stamps

Also save 3 cents per piece for 1 – 2 – 3 oz

– up to 3.5 ounces

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Domestic Special Services

• Certified Mail™ increase - from $3.30 to $3.35

Retail Green Card $2.75 – Up 5¢ Electronic $1.45 – Up 10¢

Weekly report

Consolidated data

Digital record

keeping

• Savings for E-RR now $1.30 per piece (47% vs 50%)

• Return Receipt is only available at time of mailing

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New First-Class™ Commercial Letter Rates

Weight Not Over (oz.) 5-Digit AADC Mixed AADC

1 $0.373 $0.403 $0.423

2 $0.373 $0.403 $0.423

3 $0.373 $0.403 $0.423

3.5 $0.373 $0.403 $0.423

2016 Rates

2017 Rates

• 500 piece minimum to qualify for First-Class Commercial Letter Rate• Of 500 pieces, 150 piece minimum to qualify for 5-Digit and AADC

B

B

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Standard Mail Becomes Marketing Mail

The new indicia and/or postage markings for Marketing Mail should not be

used for letter or flat mail until January 2018 at the earliest.

Continue to use

Presorted Standard

Or

PRSRT STD

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Key First-Class Mail® Single-Piece (Retail) Prices

*Closed against Postal inspection.

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• Overall 4.1% increase

• Previously one price ($2.60) for up to

8 ounces

• Rates now split - under 4 ounces and

5 to 8 ounces

• Positioned as a lightweight shipping

option used by businesses for

fulfillment purposes.

• Only Non-personal matter allowed;

open to postal inspection

• Intelligent Mail® Package Barcode

(IMpb) Required

Shipping Services

First-Class™ Package Service

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• Overall 3.9% average increase

• Existing Structure stays the same

• Retail pricing increasing on average 3.3%

• Commercial Base pricing will increase 4.1% on average,

but will reflect an average 13.6% discount off Retail prices

• Commercial Plus Pricing will offer lower pricing to large-

volume customers.

• Price increase will average 4.5%; set at 16.8% off

Retail rates.

Shipping Services

Priority Mail®

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• Commercial Base pricing will increase 2.4% on average

and set at a flat 11.2% off Retail pricing.

• Commercial Plus Price matched to Commercial Base

pricing in 2016 and will continue in 2017

• Retail Flat Rate, Legal Flat Rate and Padded Flat Rate

envelopes will all have differentiated pricing for 2017.

Shipping Services

Priority Mail Express®

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Pre-printed USPS tracking label

+

OR

Two approaches

Software Generated Label

USPS® Tracking Available Since 2015

Commercial Base (CBP) or

Commercial Plus (CPP) rates

CBP averages 13.6% off Retail Rates

Enhanced Tracking

Free Insurance: $50 CBP

and $100 CPP

Retail rates (no discount)

Insurance if it is scanned at Post

Office Retail Counter

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Retail versus Commercial Base Pricing

Priority Mail® Retail CBP Save $ Save %

Flat Rate Envelopes $ 6.65 $ 5.95 $ 0.70 10.5%

Legal Flat Rate Envelope $ 6.95 $ 6.25 $ 0.70 10.1%

Padded Flat Rate Envelope $ 7.20 $ 6.50 $ 0.70 9.7%

Small Flat Rate Box $ 7.15 $ 6.45 $ 0.70 9.8%

Medium Flat Rate Boxes $ 13.60 $ 12.40 $ 1.20 8.8%

Large Flat Rate Boxes $ 18.85 $ 17.05 $ 1.80 9.5%

Zones

Weight Not

Over (Lbs) L, 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9

1 $ 0.70 $ 0.64 $ 0.69 $ 0.67 $ 0.64 $ 0.83 $ 1.10 $ 0.61

5 $ 2.68 $ 2.94 $ 2.76 $ 3.20 $ 3.02 $ 2.72 $ 2.74 $ 1.53

10 $ 3.56 $ 4.87 $ 7.18 $ 7.14 $ 4.54 $ 2.84 $ 2.96 $ 1.93

Savings with Commercial Base PricingCommercial Label

This example is a

27% Discount over Retail

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Flat Rate Packaging

Regional Flat Rate Packaging

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Save with Alternative Classes and Packaging

Padded Flat Rate

Less than 1 lb

Now $7.20

Priority Mail® Flat Rate

Envelope less than 1 lb.

Now $6.65

Retail Priority Mail ®

13 oz.

Now $6.65 to $10.50

(Zone 9)

Convert to First-Class™

Parcel at Commercial

Rate for $3.88

Save 50% or More!

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• It pays to use the smallest packaging possible

• Dimensional rate - length x width x height

• Multi-depth or folding - easily adjusted to smaller sizes

18”x12”x12” 11-1/4"x8-3/4"x6"18”x18”x18”

Dimensional Rating

Multi-Depth Multi-Depth Standard

Multi-Depth - Adjustable in 6” increments

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No!

Yes!

Dimensional Rating

“Every inch of space matters”

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• Foam peanuts or empty space – can you easily make

the same box smaller?

• Net effect of peanuts and bubbles: Air = Volume

• This investment in a better box is guaranteed to reduce

your long-term shipping costs.

Dimensional Rating

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Multiply length x width x height of each package (in inches) divided by carrier factor.

UPS® > In 2017, packages that are greater than a cubic foot (1,728

inches) will use a 139 divisor to calculate dimensional weight

FedEx® > Factor change in 2017 from 166 to 139 for Express and

Ground US Domestic; the formula will now be L x W x H / 139

USPS® > Packages that are greater than a cubic foot (1,728 inches)

will use a 194 divisor to calculate dimensional weight.

Length x Width x Height (in.)----------------------------------------------------------------------------------------------------------------------------------

Carrier Factor

Carrier Dimensional Rating in 2017

Additionally, the USPS doesn’t DIM anything in zone 1-4.

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USPS® Advantage for Priority Mail® or FC Parcel

Consider costly surcharges that do not provide value

Service USPS® FedEx® UPS®

Residential Delivery Surcharge Zero +$3.85 +$3.80

Delivery Area Surcharge Residential Zero +$3.90 +$3.80

Delivery Area Surcharge Extended

ResidentialZero +$4.20 +$4.10

Fuel ZeroApprox. 4% of

shipping costs

Approx. 5% of

shipping costs

Address Correction Fees Zero $14.00 $13.40

*Dimensional Rating for Zones 1-4 No Yes Yes

Package Tracking Detail Yes Yes Yes

**Weight by Ounce Up to 16 oz. Yes No No

*USPS – No DIM surcharge up to a cubic foot, zones 1 to 4

** USPS First Class Parcel is a flat rate charged by ounce up 15.99

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USPS® Resources

Great Resources

https://ribbs.usps.gov/intelligentmail_schedule2017/releases/j

an2017/docs/Janurary2017PriceChangeFactSheet.pdf

• Visit PB.com or contact your

PB Account Rep directly

• www.pb.com/ratechange

Video & Rate Info

Support Information

Pitney Bowes Key Resources

1. Search USPS Postal Explorer (http://pe.usps.gov/)

2. Search USPS RIBBS (https://ribbs.usps.gov/)

3. Redesigned RIBBS website > PostalPro. www.postalpro.usps.com

4. USPS Price Change Fact Sheet

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Thank you for joining us

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