April 2016 USPS® Rates Decrease - What You Need To Know · • Every Door Direct Mail Retail •...
Transcript of April 2016 USPS® Rates Decrease - What You Need To Know · • Every Door Direct Mail Retail •...
April 2016 USPS® Rates Decrease - What You Need To Know
Speaker: Adam Lewenberg President of Postal Advocate Inc.
Meeting Instructions • There is a GoToWebinar meeting link • All lines will be on mute until the end of the meeting.
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Meeting Instructions
Meeting Instructions
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• To get rid of the GoToWebinar control panel so you can see the presentation
Meeting Instructions
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• If you have any issues during the meeting contact Doris Tam at 888-977-6245 x 512 or email me at [email protected] and she will be happy to assist
Adam Lewenberg - Background and Experience
• President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of 58,000 pieces of mailing equipment for the largest
US companies. – Speak and teach nationally on mail savings and industry trends.
• Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine. • Worked for one of the largest mailing vendors for over 17 years
– Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of the nations top accounts.
• Not affiliated with any mailing vendor - Unbiased advice.
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April 2016 USPS® Rates Decrease - What You Need To Know
Speaker: Adam Lewenberg President of Postal Advocate Inc.
What We’ll Cover:
• Why are rates going down • What rates are going down • Savings Tips • What you need to do
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New rates take effect Sunday April 10, 2016
Why is this happening?
• In January 2014, the USPS approved a 4.3% exigent surcharge increase because of their dire financial situation
• Mainly due to the recession and declining First-Class mail volumes. • An order from the Postal Regulatory Commission (PRC) requires this
4.3 percent exigent surcharge to be reversed after the Postal Service has collected additional funds totaling $4.6 billion.
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What Rates are Impacted
Market Dominant – Impacted – First-Class Mail®
• Single Piece Letters and Cards. • Presort Letters and Cards • Flats • Parcels • Outbound single piece international.
– Periodicals – Special Services – Standard Mail®
• Letters • Flats • Parcels • High Density/Saturation Letters • Every Door Direct Mail Retail • Parcels
– Package Services • Bound Printed Matter Flats and
Parcels • Media/Library Mail
Competitive – Not Impacted – Priority Mail Express™ – Priority Mail® – First Class Package Service™ – Parcel Select® – Standard Post™ – Extra Services – Return Services – Mailer Services – Recipient Services
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First-Class Mail® Retail - Savings – 2.9-4.4%
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Weight Ounces
Prior to 4/10/16
New Rates
4/10/16%
IncreasePrior to 4/10/16
New Rates
4/10/16%
IncreasePrior to 4/10/16
New Rates
4/10/16%
Increase1 $0.49 $0.47 -4.1% $0.98 $0.94 -4.1% $2.54 $2.45 -3.5%2 $0.71 $0.68 -4.2% $1.20 $1.15 -4.2% $2.54 $2.45 -3.5%3 $0.93 $0.89 -4.3% $1.42 $1.36 -4.2% $2.54 $2.45 -3.5%6 N/A N/A $2.08 $1.99 -4.3% $3.14 $3.02 -3.8%
13 N/A N/A $3.62 $3.46 -4.4% $4.54 $4.35 -4.2%Post Card $0.35 $0.34 -2.9%
First-Class Mail® RetailLetters Flats Parcels
• First-Class Mail® stamp goes down by $.02 for letters • $.04 for flats and $.09 for Parcels. • Additional ounce rate goes down from $.22 to $.21. • Savings stay around 4% for every weight break.
Weight Ounces
Prior to 4/10/16
New Rates
4/10/16%
Increase
1 $0.485 $0.465 -4.1%
2 $0.705 $0.675 -4.3%
3 $0.925 $0.885 -4.3%
Letters
Metered Letters
Meter/PC Postage
Customers still save $.05
per letter!
First-Class Mail® Parcel/Package Rates
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Retail ParcelCommercial Package
ServiceWeight Ounces January 17, 2016 January 17, 2016 % Savings
1 $2.45 $2.60 -6%2 $2.45 $2.60 -6%3 $2.45 $2.60 -6%4 $2.64 $2.60 2%5 $2.83 $2.60 8%6 $3.02 $2.60 14%7 $3.21 $2.60 19%8 $3.40 $2.60 24%9 $3.59 $3.30 8%10 $3.78 $3.35 11%11 $3.97 $3.40 14%12 $4.16 $3.45 17%13 $4.35 $3.50 20%14 $5.75-7.85 (Priority) $3.55 38-55%15 $5.75-7.85 (Priority) $3.60 37-54%
15.999 $5.75-7.85 (Priority) $3.65 36-53%
First-Class Mail®
Postage Meter or USPS® Retail Counter
PC Postage
Commercial Savings – 3.8—6.8%
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Weight Ounces
Prior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates
4/10/16 % IncreasePrior to 4/10/16
New Rates
4/10/16 % Increase
Automation 5 Digit 1 $0.391 $0.376 -3.8% $0.470 $0.438 -6.8% $0.260 $0.250 -3.8%
Automation 3 Digit 1 $0.416 $0.399 -4.1% $0.662 $0.630 -4.8% $0.275 $0.263 -4.4%
Automation AADC 1 $0.416 $0.399 -4.1% $0.702 $0.670 -4.6% $0.275 $0.263 -4.4%
Automation Mixed AADC 1 $0.439 $0.419 -4.6% $0.782 $0.750 -4.1% $0.284 $0.272 -4.2%
Presorted (Non Automation) 1 $0.471 $0.452 -4.0% $0.831 $0.798 -4.0% $0.295 $0.283 -4.1%
Commercial First-Class Mail®Letters Flats* Post Cards
• Automation 5 digit flats see an extra savings to 6.8%. Savings Tip: Analyze if using the presort service still makes sense. • Medium volume mailers using a presort provider where you were metering at $.471 (vs. the metered
rate of $.485) you were saving $.014 per piece. With the new rate change, this difference is going down to $.013 per piece ($.465-.452). Some of these services make you date your mail for the next day or pay pickup fees.
• At one point the spread in rates was almost $.03, but now at $.013 you may want to validate that your volumes and savings justify using the service.
• Second ounce rides free! (USPS future discussions on third ounce rides free!)
Standard Mail® Savings – 2.4-6.1%
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Weight Ounces
Prior to 4/10/16
New Rates
4/10/16%
IncreasePrior to 4/10/16
New Rates
4/10/16%
Increase
Automation 5 Digit ≤3.3 $0.266 $0.255 -4.1% $0.392 $0.376 -4.1%
Automation 3 Digit ≤3.3 $0.283 $0.274 -3.2% $0.479 $0.467 -2.5%
Automation AADC/ADC ≤3.3 $0.283 $0.274 -3.2% $0.536 $0.522 -2.6%
Automation Mixed AADC/ADC-Origin ≤3.3 $0.304 $0.291 -4.3% $0.569 $0.539 -5.3%
Weight Ounces
Prior to 4/10/16
New Rates
4/10/16%
IncreasePrior to 4/10/16
New Rates
4/10/16%
Increase
Automation 5 Digit ≤3.3 $0.147 $0.140 -4.8% $0.249 $0.237 -4.8%
Automation 3 Digit ≤3.3 $0.164 $0.159 -3.0% $0.336 $0.328 -2.4%
Automation AADC/ADC ≤3.3 $0.164 $0.159 -3.0% $0.393 $0.383 -2.5%
Automation Mixed AADC/ADC-Origin ≤3.3 $0.185 $0.176 -4.9% $0.426 $0.400 -6.1%
Standard Mail®
Standard Mail® NonprofitLetters Flats
Letters Flats
Tip: Use this savings to send out higher volumes that can bring in more customers and sales. If you can now increase your mail volumes by 4% for the same postage costs, how would that impact your bottom line?
Tip 2: Consider using a consolidation service to share in the $.045 mail entry discounts.
International Rates
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GroupPrior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
Canada $1.20 $1.15 -4.2% $1.20 $1.15 -4.2% $1.20 $1.15 -4.2%
Mexico $1.20 $1.15 -4.2% $1.79 $1.72 -3.9% $1.20 $1.15 -4.2%
Group 3-5 $1.20 $1.15 -4.2% $2.21 $2.13 -3.6% $1.20 $1.15 -4.2%
Group 6-9 $1.20 $1.15 $2.06 $1.98 -3.9% $1.20 $1.15 -4.2%
First-Class Mail International®1 Ounce 2 Ounce Post Cards
CountryInternational Rate Codes
Argentina 8Australia 6
China 6Egypt 6
France 3India 6
Nigeria 4Norway 5Russia 4
South Africa 4
Library and Media Mail
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Weight LB'sPrior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
1 $2.59 $2.48 -4.2% $1.79 $1.70 -5.0% $2.33 $2.24 -3.9%
2 $3.07 $2.94 -4.2% $2.27 $2.16 -4.8% $2.81 $2.70 -3.9%
3 $3.55 $3.40 -4.2% $2.75 $2.62 -4.7% $3.29 $3.16 -4.0%
5 $4.51 $4.32 -4.2% $3.71 $3.54 -4.6% $4.25 $4.08 -4.0%
10 $6.91 $6.62 -4.2% $6.11 $5.84 -4.4% $6.65 $6.38 -4.1%
15 $9.31 $8.92 -4.2% 8.51 8.14 -4.3% 9.05 8.68 -4.1%
Weight LB'sPrior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates 4/10/16 % Increase
1 $2.72 $2.61 -4.0% $1.88 $1.79 -4.8% $2.45 $2.36 -3.7%
2 $3.22 $3.09 -4.0% $2.38 $2.27 -4.6% $2.95 $2.84 -3.7%
3 $3.72 $3.57 -4.0% $2.88 $2.75 -4.5% $3.45 $3.32 -3.8%
5 $4.72 $4.53 -4.0% $3.88 $3.71 -4.4% $4.45 $4.28 -3.8%
10 $7.22 $6.93 -4.0% $6.38 $6.11 -4.2% $6.95 $6.68 -3.9%
15 $9.72 $9.33 -4.0% 8.88 8.51 -4.2% 9.45 9.08 -3.9%
Library MailSingle Piece 5-Digit Presort Basic Presort
Media MailSingle Piece 5-Digit Presort Basic Presort
Media Mail® service has special eligibility requirements for permissible contents. Media Mail rates are limited to the items listed below: Books (at least 8 pages). Sound recordings and video recordings, such as CDs and DVDs. Playscripts and manuscripts for books, periodicals, and music. Printed music. Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media. Sixteen millimeter or narrower width films. Printed objective test materials and their accessories. Printed educational reference charts. Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students.
Library Mail® Similar contents to Media Mail. Each piece must show in the address or return address the name of a school, college, university, public library, museum, or herbarium or the name of a nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, or fraternal organization or association.
Special Services Savings – 0 - 4.1%
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Special Services Retail ElectronicPrior to 4/10/16
New Rates 4/10/16 % Increase
Prior to 4/10/16
New Rates
4/10/16 % Increase
Certificate of Mailing $1.35 $1.30 -3.7%
Registered™ without Insurance $12.20 $11.70 -4.1%
Certified Mail™ $3.45 $3.30 -4.3%
Return Receipt $2.80 $2.70 -3.6% $1.40 $1.35 -3.6%
USPS Tracking
First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0%
Standard Mail® parcels $0.36 $0.35 -2.8%
Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0%
Signature Confirmation $3.00 $2.90 -3.3% $2.45 $2.35 -4.1%
Sending Certified Mail with Return Receipt - The price will now be $6.47(Compared to $6.74) for a one ounce letter.
Savings Tips:
1. Check your 2-3 day rates with your private carriers to see if they are less money.
2. Consider switching to Electronic Return Receipt which saves $1.35 each.
What you need to do:
• If you have a mail machine, make sure you download the new rates before April 10, 2016 when the rates take into effect to take full advantage of the decrease.
• Here are links to the different meter vendors: Pitney Bowes: http://support.pb.com/ekip/index?page=rate_change Neopost: http://www.neopostusa.com/resources/rate-change-information FP: http://www.fp-usa.com/ratechange/ Stamps.com: http://www.stamps.com/usps/current-postage-rates/
• Go to the USPS Postal Explorer website for more information: pe.usps.gov
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Contact info: (20pt)
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Questions?
Contact: Adam Lewenberg - President 888-977-MAIL X 501 [email protected]
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