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USPS® Rate, Product and other Changes
Proposed for January 22, 2017
Presented by Dr. Janet Lockhart-Jones
Pitney Bowes, Inc.
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Presenting….
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Dr. Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal education and subject matter expert to Pitney Bowes employees and its clients.
Janet’s professional career includes 21 years of employment with the United States Postal Service, fulfilling various roles in Information Technology, Accounting, Software Systems and Quality Improvement. After leaving the Postal Service, Janet became an entrepreneur and launched her own project management consulting and leadership training firm which she ran successfully for 12 years.
Janet holds the degrees of Doctor of Education in Organization and Leadership, a Master of Science in Human Resources Management, and a Bachelor of Science Degree in Business Administration. She is the Postal Education Chair of the Sacramento Postal Customer Council, a Certified Mailpiece Design Consultant and a USPS Certified Executive Mail Center Manager.
Dr. Lockhart-Jones is a San Francisco native who has traveled and worked all over the world. She currently resides with her family in Northern California.
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Note – All changes discussed in this presentation are PROPOSED until official notification is given by the Postal Regulatory Commission that they are approved in whole, in part, or not at all!
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Overview - What is changing
Proposed Rates – Mailing and Shipping Services
Tips and strategies to keep costs down
Questions?
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Effective Date of ProposedChanges is:
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JANUARY 2015 PBI Internal use only 7
Classes of Mail Affected – Market DominantFirst-Class Mail® Single-Piece Letters &
CardsPresort Letters & CardsFlatsParcelsOutbound Single-Piece
International
Periodicals
Special Services
Standard Mail®LettersFlatsParcelsHigh Density/Saturation LettersEvery Door Direct Mail RetailParcels
Package Services Bound Printed Matter (BPM) FlatsBPM ParcelsMedia, Library MailAlaska Bypass
Mailing Services – Market DominantJanuary 2017 changes target the below products:
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JANUARY 2015 PBI Internal use only 88
First-Class Mail
Product CPI Percent Change
Single-piece Letters & Cards 2.0%
Single-piece Metered -1.1%
Flats 1.9%
Parcels 0.6%
Presort Letters & Cards -0.3%
First-Class Mail International*(includes letters, cards, and flats)
0.0%
~0.8% overall increase First-Class stamp price moves to 49 cents
* Does not include International Inbound
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JANUARY 2015 PBI Internal use only 99
Key First-Class Mail Single-Piece (Retail) Prices
CurrentPrice
NewPrice
PercentChange
Stamp Price 1 Oz. $0.47 $0.49 4.3%
Single Piece Additional Ounce 0.21 0.21 0.0%
Meter Price 1 Oz. 0.465 0.46 -0.1%
Single-Piece Flats 1 Oz. 0.94 0.98 4.3%
Single-Piece Cards 0.34 0.34 0.0%
Retail Parcels 0-4 ozs. 2.62 2.67 1.9%
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JANUARY 2015 PBI Internal use only 10
Save 3 cents on First-Class letters that have postage affixed using:Postage MeterPC PostagePermit ImprintPre-canceled stamps
Still:
No piece minimumsNo preparation requirementNo requirement to report those pieces on a postage
Stamped: $0.49 cents New: $0.46 cents
First-Class Letter Meter Rate
Meter Rate savings moves to three cents!!!
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JANUARY 2015 PBI Internal use only 1111
Key First-Class Mail Single-Piece (Retail) Prices
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JANUARY 2015 PBI Internal use only 1212
First-Class Mail International
Product CPI Percent Change
Letters 0.0%
Flats 0.0%
Cards 0.0%
No increase at this time
* Note: First-Class Mail International Global Forever Stamp remain $1.15
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Commercial Mail
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JANUARY 2015 PBI Internal use only 14
Market Dominant Classification Changes First-Class
Eliminate 3-Digit Automation Letters for First-Class Presort Prices have been the same since 2012 Combines the 3 Digit and AADC into the AADC sortation
3 & 3.5 Ounces free for First-Class Commercial Letters One price for all commercial letters up to 3.5 ounces Provides the ability to add content to bills and statements
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JANUARY 2015 PBI Internal use only 15
Add more content to bills and statements……without adding postage!!
Announce: New services Special pricing Upcoming promotions New products
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JANUARY 2015 PBI Internal use only 16
First-Class Commercial pricing
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Notes: 1. AADC to 5-digit spread is now 3 cents2. 5-digit auto presort prices decrease 0.8%3. AADC and MAADC increase by 1%
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JANUARY 2015 PBI Internal use only 17
Market Dominant Classification Change Standard Mail name to change to USPS
Marketing Mail• Named to influence marketers who are not in the
• Identifies majority of the volume in the class
• 18 month transition – The indicia on the mail pieces should continue
to display current Standard Mail abbreviations until notified by the USPS
No changes should be made to markings/indicia before July 2017
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JANUARY 2015 PBI Internal use only 18
Market Dominant Classification Changes Marketing Mail
• Overall increase of ~0.9%
• Eliminate 3-Digit Automation Letters presort level for Standard Mail Presort Prices have been the same since 2012 Combines the 3 Digit and AADC into the AADC sortation
• Simplify Marketing Automation Letters by eliminating the per pound rate between 3.3 and 3.5 ounces Simplifies Marketing Mail Letters
• Increase Marketing Mail flats piece price weight break from 3.3 to 4.0 ozs. Allows mailers to add weight in order to add value to mail piece
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JANUARY 2015 PBI Internal use only 1919
USPS Marketing Mail
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JANUARY 2015 PBI Internal use only 2020
USPS Marketing Mail
Note: Per piece pricing kicks in when > 4 ounces
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JANUARY 2015 PBI Internal use only 21
Market Dominant Classification Changes Marketing Mail
FSS Marketing Mail reverts to previous structure
• Reverts to structure in place prior to January 2014
• Carrier Route Pieces pay Carrier Route prices etc.
• Prices not based on equipment used to sort –label list determine bundle and pallet makeup
• Allows Operations flexibility to add or remove ZIPS without impacting prices
Encourage more Carrier Route Bundles on 5-Digit Pallets in non-FSS zones Incentives to prepare more direct pallets of
CR volume Wider incentives to enter those pallets at
DDU
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JANUARY 2015 PBI Internal use only 22
Market Dominant Classification Changes Alternate Postage becomes Share Mail
Name change Simplified pricing and requirements
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JANUARY 2015 PBI Internal use only 23
Extra/Special Services
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Market Dominant Highlights – Domestic Special ServicesCertified Mail
Price increase - from $3.30 to $3.35 Same price, electronic or retail W/ one of three options: $8.35 ($0.10 increase)
Certified Mail Restricted Delivery Certified Mail Adult Signature Required Certified Mail Adult Signature Required w/Restricted
Delivery
Certificate of MailingOptions Current January 2017
Basic $1.30 $1.35
Firm Book Mailing 0.36 0.39
Bulk: First 1,000 pcs 7.65 7.95
Each Add’l 1,000 pcs 0.94 0.99
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Market Dominant Highlights – Domestic Special Services
USPS Tracking
Tracking for USPS Market Mail parcels moves to $0.37
USPS Tracking
First Class Mail (Parcels Only) Retail/Electronic 0.00
First Class Package Service Electronic 0.00
Priority Mail Retail/Electronic 0.00
Retail Ground Retail/Electronic 0.00
USPS Marketing Mail Electronic 0.37
Package Services Retail/Electronic 0.00
Parcel Select Electronic Electronic 0.00
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Market Dominant Highlights – Domestic Special Services
Return Receipt
Price increase of 2.9% Retail = $2.75 Electronic = $1.45 RR service is only available at time of mailing
$2.75 $1.45
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Market Dominant Highlights – Domestic Special Services
Collect on Delivery (COD)
Renamed to Collect on Delivery Hold for Pickup Pickup at a Post Office Only Payment made at a Retail Counter
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Market Dominant Highlights – Domestic Special Services
Pick up on Demand
Increasing to $22.00
Package Intercept Fee
Increasing to $12.95
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What did change - Shipping Services
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Shipping Services – Domestic
Domestic products Express Mail®
Priority Mail®
Parcel Select®
Parcel Return Service First-Class Package™ Service Retail Ground Competitive Extra Services
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Shipping Services (Intl)
International products Global Express Guaranteed® (GXG®) Express Mail International® Priority Mail International® First-Class Package International Service™ International Priority Airmail (IPA®) International Surface Air Lift® (ISAL®) Airmail M-Bags™ Competitive Extra Services
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Shipping Services Priority Mail Express
Overall 3.4% increase
Existing Structure stays the same
Commercial Base and Commercial Plus Pricing is equal
Retail Flat Rate Envelopes, a significant portion of all Priority Mail Express Volume, is increasing to $23.75
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Shipping Services Priority Mail Express
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.
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Shipping Services Priority Mail Express
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Shipping Services Priority Mail
Overall 3.9% average increase
Existing Structure stays the same
Retail pricing increasing on average 3.3%
Commercial Plus Pricing will offer lower pricing to large-volume customers. Price increase will average 4.5% and will be set at 16.8% off retail.
Commercial Base pricing will increase 4.1% on average, but will reflect an average 13.6% discount off Retail prices
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Shipping Services Priority Mail - Retail
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Shipping Services Priority Mail – Commercial Base Pricing
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Shipping Services Priority Mail – Regional Rate Pricing
“ A Hidden Gem”
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Shipping Services
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Priority Mail Regional Rate Boxes
“ A Hidden Gem”
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Shipping Services Priority Mail – Regional Rate Pricing
“ A Hidden Gem”
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Zone 8 Shipping, Los Angeles to New York
15 pounds
Retail –Zone rate
Retail Flat Rate, Med Box
Commercial Base –Zone rate
Commercial Base – FlatRate Med. Box
Regional Rate, Box A
$50.80 $13.60 $46.19 $12.40 $10.28
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Shipping Services First Class Package
Service Overall 4.1% increase
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 Required
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USPS® news sources you can rely onWant More? Need More?
http://blogs.pb.com/usps-news/