new prices new flexibility new opportunities may 12, 2008
DESCRIPTION
New Prices New Flexibility New Opportunities May 12, 2008. Postal Act of 2006 Mailing Services Shipping Services Resources. Agenda. New Prices – May 12, 2008. Two categories: Mailing Services with a cap Shipping Services with a floor Flexibility Predictability Choices - PowerPoint PPT PresentationTRANSCRIPT
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New PricesNew Flexibility
New OpportunitiesMay 12, 2008
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Agenda Postal Act of 2006 Mailing Services Shipping Services Resources
New Prices – May 12, 2008
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Postal Act of 2006 Two categories:
► Mailing Services with a cap► Shipping Services with a floor
Flexibility Predictability Choices Speed-to-market
New Prices – May 12, 2008
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Mailing Services First-Class Mail (includes First-Class Mail International)
Standard Mail Special Services Periodicals Package Services
New Prices – Mailing Services – May 12, 2008
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Mailing Services Consumer Price Index (CPI) cap 2.9% average increase by class Annual, predictable price changes 45-day notice required 90-day commitment
New Prices – Mailing Services – May 12, 2008
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First-Class Mail $38 billion revenue Average +2.89%
New Prices – Mailing Services – May 12, 2008
Product % Change
Single-Piece Letters & Cards 2.50Presort Letters & Cards 3.55Flats 1.93Parcels 2.18International 3.09
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First-Class Mail – Single-Piece Letter: 42¢ (+1¢) Forever Stamp
► Plenty of stamps on hand No more nondenominated
transition stamps
New Prices – Mailing Services – May 12, 2008
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First-Class Mail – Single-Piece Additional ounce: 17¢ (unchanged) Nonmachinable surcharge: 20¢ (+3¢)
► New 62¢ stamp for 1-ounce square envelopes such as greeting cards
Postcard: 27¢ (+1¢)
New Prices – Mailing Services – May 12, 2008
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Promote efficient preparation Maintain strong 2.2¢ incentive for 5-digit Presort letters additional ounce
same price as for auto: 12.5¢ (- 4.5¢)
First-Class Mail – Automation & Presort Letters
New Prices – Mailing Services – May 12, 2008
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Align with domestic► Shape-based pricing
First-Class Mail International
New Prices – Mailing Services – May 12, 2008
1 ounce to Canada/Mexico 2007 New Change
Letter 69¢ 72¢ +3¢ Flat 69¢ 98¢ +29¢ Package 69¢ $1.18 +49¢
Nonmachinable letter surcharge: 20¢ Align country grouping with other international products
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Standard Mail $21 billion revenue Average +2.84%
New Prices – Mailing Services – May 12, 2008
Product % Change
Letters 3.31Flats 0.86Parcels and NFMs 9.66High Density / Saturation Letters 1.66High Density / Saturation Flats and Parcels 2.09Carrier Route Basic Letters, Flats, and Parcels 2.99
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Standard Mail Flats (catalogs) Price increase well below average
Examples (5-digit/DBMC) 2007 New Change
3-oz Catalog 30.2¢ 30.6¢ +0.4¢ 4-oz Catalog 35.8¢ 35.9¢ +0.1¢ 5-oz Catalog 39.4¢ 39.4¢ 0.0¢ 8-oz Catalog 47.6¢ 47.5¢ -0.1¢
New Prices – Mailing Services – May 12, 2008
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Lower pound prices for saturation and high-density flats
Examples (Saturation at DDU) 2007 New Change
3-oz Catalog 13.6¢ 14.0¢ +0.4¢ 4-oz Catalog 15.2¢ 15.5¢ +0.3¢ 5-oz Catalog 17.6¢ 17.7¢ +0.1¢ 8-oz Catalog 24.6¢ 24.4¢ -0.2¢
New Prices – Mailing Services – May 12, 2008
Standard Mail Flats
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Periodicals $2.2 billion revenue Average +2.72%
New Prices – Mailing Services – May 12, 2008
Product % Change
Outside-County 2.71In-County 2.63
Allow recent changes to settle in and work on efficiency
New, limited-circulation pricing
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Package Services $1.8 billion revenue Average +2.88%
New Prices – Mailing Services – May 12, 2008
Product % Change
Parcel Post 3.30BPM Flats 0.47BPM Parcels 2.10Media Mail and Library Mail 4.54
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Special Services $2.7 billion revenue Average +2.85%
New Prices – Mailing Services – May 12, 2008
Product % Change
Post Office Boxes 2.89Certified Mail 1.89All others 3.29 Certified Mail: $2.70 (+5¢) Return Receipt: $2.20 (+5¢) Annual Mailing Fees: $180 (+$5) Delivery Confirmation: no change
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Shipping Services Greater pricing freedom and flexibility No price cap Each product and contract must cover cost Must cover 5.5% of Postal Service overhead 30-day notice required 60-day commitment
New Prices – Shipping Services – May 12, 2008
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Shipping Services Priority Mail International Express Mail Parcel Select Parcel Return Service
New Prices – Shipping Services – May 12, 2008
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New Price Structures and IncentivesPrice Lists Retail prices Commercial base prices Commercial volume prices
Negotiated pricing Commercial contract prices
New Prices – Shipping Services – May 12, 2008
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Express Mail Average +3% Sunday and holiday premium: $12.50 (introduced March 3) Zoned pricing with competitive local pricing
New Prices – Shipping Services – May 12, 2008
Retail Prices New
Weight 2007 Zones L, 1 & 2 Zone 3
Flat-Rate Envelope $16.25 $16.50 $16.501/2 lb. $16.25 $12.60 $14.653 lb. $24.50 $16.65 $21.3510 lb. $45.25 $28.60 $38.10
Rename Post Office-to-Post Office as “Hold For Pickup”
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Express Mail Commercial base prices 3% lower than Retail for
Express Mail Corporate Accounts (EMCA), Click-N-Ship, and PC Postage
New Prices – Shipping Services – May 12, 2008
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Express Mail Commercial volume prices EMCA and PC Postage
New Prices – Shipping Services – May 12, 2008
Minimum Quarterly Volume
Additional %(postal quarterly rebate)
Total % off retail
125 2% 5%438 4.5% 7.5%938 7% 10%
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Priority Mail Average +6% New large Flat-Rate box (introduced March 3)
► Lower price for APO/FPO addresses
New Prices – Shipping Services – May 12, 2008
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Priority MailCommercial base prices Lower than retail for Click-N-Ship, PC
Postage, and permit imprint
New Prices – Shipping Services – May 12, 2008
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Priority MailPrice examples
New Prices – Shipping Services – May 12, 2008
Flat-Rate 2007 Retail CommercialEnvelope $4.60 $4.80 $4.75Box (regular) $8.95 $9.80 $9.30Box (large)(introduced March)
$12.95 $12.95 $12.50Box (large) APO/FPO(introduced March 3)
$10.95 $10.95 $10.50
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Parcel Select Last-mile commercial service Average +5.7% Promote destination delivery unit (DDU) Commercial volume prices for DDU
► Based on new growth above a threshold► Annual rebates
New Prices – Shipping Services – May 12, 2008
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Parcel Return Service First-mile commercial service Average +2% Align pricing with outbound DDU
► Weight-based pricing
New Prices – Shipping Services – May 12, 2008
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Global Express Guaranteed Average +5.2%
Retail price examples
New Prices – Shipping Services – May 12, 2008
2007 New Change
1/2 lb. $37.00 $38.95 $1.955 lbs. $77.00 $82.00 $5.00
Expedited date-certain delivery with money-back guarantee to over 190 countries
Commercial base prices ► 10% lower than retail for Click-N-Ship and PC Postage
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Express Mail International Average +6%
Retail price examples
New Prices – Shipping Services – May 12, 2008
Date-certain delivery with money-back guarantee for packages sent to Pacific Rim countries
2007 New Change1/2 lb., Flat-Rate Envelope $25.00 $25.95 95¢5 lbs. $44.00 $45.50 $1.50
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Express Mail International
New Prices – Shipping Services – May 12, 2008
Commercial base prices ► 8% lower than retail for Click-N-Ship,
PC Postage, Global Shipping Software (GSS), and Express Mail Corporate Account (EMCA)
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Express Mail International
New Prices – Shipping Services – May 12, 2008
Commercial volume prices► Express Mail Corporate Account
Annual Volume Annual PostageCommercial Base Price Incentive
Commercial Volume Price
Incentive
No minimum No minimum 8%1,000–2,999 pieces $20,000–$59,999 10%3,000 pieces and above $60,000 and above 12%
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Priority Mail International Average +6.1%
Retail price examples
New Prices – Shipping Services – May 12, 2008
2007 New ChangeFlat-Rate Envelope $11.00 $11.95 95¢5 lbs. $38.00 $40.50 $2.50 Flat-Rate Box (regular) $37.00 $38.95 $1.95
New large Flat-Rate box (introduced March 3)
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Priority Mail International Commercial base prices
► 5% lower than retail for Click-N-Ship, PC Postage, and permit imprint
New Prices – Shipping Services – May 12, 2008
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International Priority Airmail (IPA) and International Surface Airlift (ISAL)
New Prices – Shipping Services – May 12, 2008
Average price increase► IPA: 12.5%► ISAL: 21.3%
Continue published prices for full-service and drop ship
Eliminate published ISAL prices for Direct Shipment► Now, available through customized agreement
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Resources
New Prices – May 12, 2008
USPS.com/prices
► Mailing Services and Shipping Services highlights► New price lists► Downloadable price files► New Postage Statements► Federal Register notices
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Resources Postal Explorer (pe.usps.com) PCC Insider – PCC e-newsletter ([email protected]) DMM Advisory – customer e-newsletter
([email protected]) P&C Weekly – employee e-newsletter
([email protected]) MailPro – late April (usps.com/mailpro)
New Prices – May 12, 2008