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Shaping a More Efficient FuturePricing Change Effective Monday, May 14 and

Sunday, July 15

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Shaping a More Efficient Future

New Prices Reflect changes in operations and the marketplace Offer more choices

– Deaveraged Presort Levels First and Standard (3-Digit vs. 5-Digit, AADC vs. Mixed)

– Deaveraged Zones in Priority (Zone 1&2 v. Zone 3) Include incentives

– Reduced overflow trays– More dropshipping– Smaller boxes– More pallets

Reduce undeliverable-as-addressed mail Shape matters

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Flexibility Test

Shaping a More Efficient Future

Standard Mail™

Length runs parallel to the surface Flats over 10 inches long that contain a rigid insert; length perpendicular to surface

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Shaping a More Efficient Future

Periodicals April 4, 2007 – Proposed Rule on usps.com April 25, 2007 – Comments Due May 14, 2007 – Final Federal Register Target Issues

– Definition of Machinability– Application of Container Charge– Apportioning Container and Bundle

Charges– Container and Bundle Minimums

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Shaping a More Efficient Future

Current Implementation May 14, 2007

– All Domestic (except Periodicals) – All International

July 15, 2007– Periodicals

TBD – Reconsidered Rates– Standard Mail flats– Nonmachinable surcharge for First-Class Mail

letters– Priority Mail Flat-Rate Box

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Shaping a More Efficient Future

Current Implementation Business Mail Entry Training

– Webcasts (Feb – May)– In-Person Train-the-Trainer (April 5-9)

Retail Training– Postal Bulletin– Postmasters Kit

Operations Training Customer Training

– Postal Customer Councils– Mail Service Providers/Business Partners

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Shaping a More Efficient Future

New Law Implementation More Predicatable Price Changes Work with Mailers

– Survey of Budget Cycle– Preferred Month

32 Customer Comments Reply Comments in May

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Shaping a More Efficient Future

Resources

USPS.com Pricing Classification Service Center (PCSC) Pricing change – usps.com/ratecase Postal Explorer – pe.usps.com MailPro – usps.com/mailpro DMM Advisory – dmmadvisory@usps.com