1 I NTERNATIONAL & E XTRA S ERVICES R2006-1 Rate Case Training Course #40201-29
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1 I I NTERNATIONAL & NTERNATIONAL & E E XTRA XTRA S S ERVICES ERVICES R2006-1 R2006-1 Rate Case Training Rate Case Training Course #40201-29 Course #40201-29
1 I NTERNATIONAL & E XTRA S ERVICES R2006-1 Rate Case Training Course #40201-29
1 I NTERNATIONAL & E XTRA S ERVICES R2006-1 Rate Case
Training Course #40201-29
Slide 2
2 Agenda International Services that will be eliminated Why are
rates changing? International Highlights Domestic Extra
Services
Slide 3
3 International Product Changes Eliminated the following
services which have low market demand and/or 24 to 42 day
(delivery) service: - Economy Parcel Post - Economy Letter-post -
Publishers Periodicals - Books and Sheet Music - Economy M-bags -
Aerogrammes
Slide 4
4 Publishers Periodicals Books & Sheet Music Significant
Changes Publishers Periodicals discontinued Books and Sheet Music
discontinued
Slide 5
5 Why Change Prices First price restructuring since 2001 Costs
going up Changes in postal operations and the market Pricing will
track the Consumer Price Index (CPI) over time
Slide 6
6 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS product prices below the competition Summary of New
products and services Additional Services Mail Classification
Decisions Extra Services
Slide 7
7 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 8
8 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 9
9 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 10
10 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 11
11 International Product and Price Initiatives Examples of
Comparable Products of Competition USPSFedEX EMI 1-pound to Japan
$22.55 Economy 1- pound to Japan $48.00 GXG 20-pounds to Australia
$174.00 Priority 20-pounds to Australia $220.75
Slide 12
12 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 13
13 Global Express Guaranteed Express Mail International
Priority Mail International First Class Mail International GXG
document GXG non-document Global Express Mail Airmail Parcel Post
Economy Parcel Post Global Priority Mail Airmail Letter Post
Economy Letter Post International Highlights Services TodayServices
Tomorrow
Slide 14
14 Current ProductR2006-1 Product Offering Economy Parcel
PostPriority Mail International Economy Letter Post First Class
Mail International or Priority Mail International Economy
Registered ServiceAir Registered Service AerogrammeAir Letter Post
Economy PublishersInternational Surface Air Lift Economy Books and
Sheet MusicInternational Surface Air Lift Recorded DeliveryAir
Registered Service Retail Products to Be Affected
Slide 15
15 International Priority Airmail (IPA) International Surface
Airlift (ISAL) ISAL M-Bag Service Global Shipping Solutions (GSS)
FY 2007 Change: Price Increase Only No Change to Product Offering
Commercial Products
Slide 16
16 Global Express Guaranteed (GXG) The Postal Service is
simplifying the pricing structure of Global Express Guaranteed by
combining the existing document and non-document price structure
into one.
Slide 17
17 Express Mail International Regrouped country rate groups
Offer two flat-rate envelope prices More specific service
standards
Slide 18
18 Priority Mail International New service combines three old
services One flat-rate envelope Two flat-rate boxes Parcel
post
Slide 19
19 Priority Mail International More time specific service
standards Regrouped country rate groups Tracking information and
extra services
Slide 20
20 First-Class Mail International New service combines, airmail
letters, economy letters and aerogrammes For letters, postcards and
other items up to 4 pounds Priced lower than GXG, Express Mail
International and Priority Mail International
Slide 21
21 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 22
22 International Highlights M-bags, direct sacks of printed
matter to one addressee International Priority Airmail (IPA), bulk
air letter service for First-Class Mail International International
Surface Air Lift International Surface Air Lift M-bags M-Bag
Slide 23
23 Free Matter for the Blind Key Points Must be marked Free
Matter for the Blind Postage rate for an eligible item is: - free
when sent at First-Class Mail International - applicable rate based
on weight for other services Registered Mail and Insurance only
Extra Service allowed
Slide 24
24 Postage Statement New PS Form 3700 One form for all
International Mailings Complete one part per mailing each part
except Part S requires a separate PS Form 3700 be completed
Slide 25
25 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 26
26 Rulings Standards are in the International Mail Manual
Critical role of Manager Business Mail Entry Revenue
Deficiencies
Slide 27
27 Appeals When a customer disagrees with a mail classification
decision made at the local level, they can appeal that decision to
the Pricing & Classification Service Center (PCSC). They
address the appeal to the district Manager Business Mail Entry who
gathers additional information, if necessary, and forwards all
documents to the PCSC.
Slide 28
28 Requests for Exception Background Request Format
Authorization
Slide 29
29 International Highlights Clear-cut easy to use products Four
new international products Available online tools Recognizable
packaging USPS products prices below the competition Summary of new
products and services Additional services Mail classification
decisions Extra Services
Slide 30
30 Recorded Delivery which is the International equivalent to
Certified Mail Registered Mail is the alternative service Barcodes
on insured pieces No signature indemnity of $200 or less Updated
indemnity claim standards New prices for many services Overview of
International Extra Services
Slide 31
31 Extra Services
Slide 32
32 Extra Services Strategy What we want to accomplish
Effectiveness & Efficiency Keep costs low
Slide 33
33 Domestic Extra Services Significant Changes New low-cost
OneCode Address Change Service for letters Changes to Confirm
Service Redesigned Insurance Changes to Extra Services such as
Return Receipt fee Continue to realign Post Office Box fees
Slide 34
34 Extra Services Examples OneCode ACS Fees CurrentNew
Automated First-Class Mail (letters only) First two notices, each
N/A 0000 Additional notices, each N/A 5555 Automated Standard Mail
(letters only) First two notices, each N/A 2222 Additional notices,
each N/A 15
36 Mailer Services - Standard Mail (UAA) Return Service
Requested Undeliverable As Addressed (UAA) mail is disposed of as
waste UNLESS it bears a correct Ancillary Service Endorsement (ASE)
Standard Mail mailpieces bearing the ASE Return Service Requested
will be charged the weighted fee for UAA mailpieces.
Slide 37
37 Mailer Services - Standard Mail (UAA) Return Service
Requested TThe weighted fee is 2.472 times the applicable
First-Class Mail or Priority Mail rate of postage. CCards will be
returned for $.65 each RReturn of a 1 ounce mailpiece is $1.02
((2.472 x.41 = 1.013...which is rounded up to $1.02)
Slide 38
38 Mailer Services - Standard Mail (UAA) Address Service
Requested Mailpieces endorsed Address Service Requested that are
UAA and there is no COA on file will be returned to the sender and
the weighted fee will be charged. A section of the weighted fee
table is on slide 48. The entire table is located at
http://56.64.130.18/marketing2/ under Webcast
Presentationshttp://56.64.130.18/marketing2/
Slide 39
39 Mailer Services - Standard Mail (UAA) Address Service
Requested Mailpieces endorsed Address Service Requested that are
UAA and there is a COA on file will be forwarded and the mailer
will be sent a manual 3579 and charged $.50. If the mailer is a
OneCode ACS participant, the rates are outlined on slide 34 Rates
for ACS are on slide 35
Slide 40
40 Confirm Service Confirm Current Subscription Level Fee and
Term Additional Scans Silver Up to 15M Scans $2,000 3 Months $500 2
million Gold Up to 50M Scans $4,500 12 Months $750 6 million
Platinum Unlimited Scans $10,000 12 Months N/A Confirm New
Subscription Level Fee and Term Additional Scans Silver Up to 15M
Scans $2,000 3 Months $500 2 million Gold Up to 50M Scans $6,000 12
Months $750 6 million Platinum Unlimited Scans $19,500 12 Months
N/A Additional Subscriber IDs Current New Quarter $500 $750 Annual
$2,000
Slide 41
41 Domestic Insurance AAll items barcoded NNew insurance
prices: $0.01 to $50 will increase to $1.65(From $1.35) $50.01 to
$100 will decrease to $2.05(From $2.30) $100.01 to $200 will
decrease to $2.45(From $3.35) $200.01 to $300 will increase to
$4.60(From $4.40) Cost per additional $100 of insurance will
decrease to $0.90 (From $1.05)
Slide 42
42 Domestic Insurance Online Claims Customers who purchase
domestic insurance online through Click-N- Ship or eBay will be
able to file their claims online at www.usps.com/insurance.
www.usps.com
Slide 43
43 Extra Services -- Examples Item CurrentNew Certified Mail
$2.40 $2.65 Express Mail Insurance ($100 to $200) $1.05 75 Return
Receipt (paper copy) $1.85 $2.15 Return Receipt (electronic) $1.35
85 Permit imprint and annual mailing fees $160 $175 Annual
accounting fee $500 $550
Slide 44
44 Extra Services Fees Service Current FeeNew Fee Express Mail
Insurance $100.01 to $200 $1.05 $0.75 Registered Mail $0.0 Declared
Value $7.90 $9.50 Registered Mail $0.01 to $100 $8.45 $10.15 PO Box
lock replacement$11.60 $14.00 Domestic Money Order $0.01 to $500.00
$0.95 $1.05 Return Receipt Electronic $1.35 $0.85
Slide 45
45 Extra Services on PostalOne! Fixed rates will be
updated
Slide 46
46 PO Box Service Post Office Box fees are realigned to better
reflect the costs the Postal Service incurs for each individual
location. Caller Service fees are also realigned into the same fee
groups as PO Boxes. Instead of one set price for caller service,
prices will range from $370 to $630 for each 6-month period.
Slide 47
47 PO Box/Caller Service Fees Fee GroupPO Box FeeCaller Service
1$42 to $390$630 2$35 to $326$550 3$28 to $250$485 4$20 to $196$475
5$18 to $148$465 6$13 to $110$415 7$10 to $ 86$370 E$ 0 to $ 0No
Caller SVC PO Box fees listed are for Box Sizes 1 and 5 Fee group E
locations are determined by USPS
Slide 48
48 Weighted Fee Table Single-Piece Weight Not Over (ounces)
Weighted Fee per Piece LETTERS Weighted Fee per Piece FLATS
Weighted Fee per Piece -- PARCELS Card Rate$ 0.65 1 ounce$ 1.02$
1.98$ 2.80 2 ounces$ 1.44$ 2.40$ 3.22 3 ounces$ 1.86$ 2.82$ 3.64 4
ounces$ 2.28$ 3.24$ 4.06 The complete table is located at
http://56.64.130.18/marketing2; click on Webcast Presentations.
http://56.64.130.18/marketing2
52 Questions & Answers Q. What flat-rate options will be
available for International Mailing? A. Flat-rate Express Mail
International Envelope Flat-rate Priority Mail International
Envelope (4 pound limit) Flat-rate Priority Mail International Box
(2 sizes) (20 pound limit or country listing weight limit,
whichever is less)
Slide 53
53 Questions & Answers Q. Without Publishers Periodicals
rates, what options will these mailers have? A. Publishers
Periodicals, Books and Sheet Music, and International Surface Air
Lift were combined into the new ISAL service a bulk mailing service
for First-Class Mail International items. ISAL does require a 50-
pound minimum per mailing. Single-piece mailing options would be
First-Class Mail International and Priority Mail
International.
Slide 54
54 Questions & Answers Q. Other than rates, will there be
any other changes to IPA and ISAL? A. No Q.Will there still be a
nonmachinable surcharge for letters? A. Yes, the nonmachinable
surcharge for First-Class Mail International letters weighing 1
ounce or less is increased to $0.17.
Slide 55
55 Questions & Answers Q.Will there be a new Postage
Statement? A. Yes, there will be only one International Postage
Statement, PS Form 3700. It will consist of nine pages and be
broken down as below: Part A - First-Class Mail International
including M-Bag Part B - International Surface Airlift (ISAL)
including ISAL M- Bag Part C - International Priority Airmail (IPA)
including IPA M-Bag Part D - Priority Mail International Part S -
Extra Services Part E - Global Shipping Solutions - International
Commercial Packages Part F - Global Direct - Canada Admail Part G -
Global Direct - Canada Publications Mail Part H - Global Bulk
Economy Mail
Slide 56
56 Questions & Answers 1.OneCode ACS is for customers using
the _________ Barcode? A.UCC/EAN 128 B.Intelligent Mail Barcode
C.POSTNET Barcode D.All of the Above
Slide 57
57 Questions & Answers 1.OneCode ACS is for customers using
the _________ Barcode? A.UCC/EAN 128 Barcode B.Intelligent Mail
Barcode C.POSTNET Barcode D.All of the Above
Slide 58
58 Questions & Answers 2.For Mailer Services, Standard Mail
Return Service Requested, the weighted fee is __________ times the
applicable First-Class or Priority Mail Rate of the Postage?
A.2.742 B.4.247 C.2.427 D.2.472
Slide 59
59 Questions & Answers 2.For Mailer Services, Standard Mail
Return Service Requested, the weighted fee is __________ times the
applicable First-Class or Priority Mail Rate of the Postage?
A.2.742 B.4.247 C.2.427 D.2.472
Slide 60
60 Questions & Answers 3.Permit Imprint application fees
and all annual mailing fees will increase form $160 to
____________? A.$170.00 B.$175.00 C.$180.00 D.$185.00 E.The Rates
Will Decrease
Slide 61
61 Questions & Answers 3.Permit Imprint application fees
and all annual mailing fees will increase form $160 to
____________? A.$170.00 B.$175.00 C.$180.00 D.$185.00 E.The Rates
Will Decrease
Slide 62
62 Questions & Answers 4.Part of our Strategy as a business
is to maximize our _______________ and _______________.
Slide 63
63 Questions & Answers 4. Part of our Strategy as a
business is to maximize our efficiency and effectiveness.
Slide 64
64 Questions & Answers 5.First-Class mailers who
participate in Address Change Service (ACS), which is an
manual/paper address correction notice will see a considerable
decrease in the new fees. A.True B.False
Slide 65
65 Questions & Answers 5.First-Class mailers who
participate in Address Change Service (ACS), which is an
manual/paper address correction notice will see a considerable
decrease in the new fees. A.True B.False -