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A USPS Price Change & Full-Service IMb® - 2014 here we come!

A USPS Price Change & Full-Service IMb® - 2014 here we come!



In January 2014 the USPS is expected to implement the next price adjustment as well as changes to mailing rules and regulations, including implementing the Full Service Intelligent Mail Barcode ...

In January 2014 the USPS is expected to implement the next price adjustment as well as changes to mailing rules and regulations, including implementing the Full Service Intelligent Mail Barcode requirements. The details behind the price change and mailing regulations will determine the level of complexity a mailer has to contend with as it relates to automation discounts, Full Service IMb and more.

Watch this webinar as industry experts Ann Daley and Alison Hall discuss these time sensitive and business critical topics in more depth.

To learn more visit: http://www.pb.com/Postal-Information

For a step-by-step guide to Full-Service IMb implementation, visit http://pbi.bz/17Q3TyX



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    A USPS Price Change & Full-Service IMb® - 2014 here we come! A USPS Price Change & Full-Service IMb® - 2014 here we come! Presentation Transcript

    • A USPS PRICE CHANGE & FULL-SERVICE IMB® 2014 HERE WE COME! Ann Daley Vice President, Government & Regulatory Affairs, Pitney Bowes Alison Hall Director of Client Services – Direct Mail Solutions, Pitney Bowes
    • Agenda WHAT’S INSIDE  Background  Highlights  The Details  Promotions  Intelligent Mail® Barcode 2
    • Background 2 Proposed Market Dominant Price Adjustments 1.Consumer Price Index-Urban (CPI-U) Price Proposal  Average price increase of 1.69% 2.Exigent or Above-the-Cap Price Proposal  Renewed exigency request – Due to Great Recession  Average price increase of 4.30%  Caveat: Board of Governors reserves the right to pull the exigent price increase if Congress acts on postal reform legislation 1.69% CPI + 4.30% Exigent = 5.99% overall average increase 3
    • Timeline Target Implementation Date is January 26, 2014 4
    • Classes of Mail Affected Standard Mail® Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels First-Class Mail®  Single-Piece Letters & Cards  Presort Letters & Cards  Flats  Parcels  Outbound Single-Piece International Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass Periodicals Special Services 5
    • First-Class Mail® Change Highlights  Retail First-Class Single-Piece one-ounce letter increase − CPI from .46 to .47 cents − Exigency from .46 to .49 cents  New First-Class Mail® letter price category to be called “Metered Mail” − 1 cent less than First-Class Single-Piece  Changes to residual First-Class Mail letters price structure  The USPS® continues to price AADC and 3-Digit Letters and Cards at the same level  Second-ounce free continues for all Presort First Class Mail letters (Nonautomation and Automation)  Intelligent Mail® barcode $.003 incentive maintained 6
    • Standard Mail® Change Highlights 1  Flat Sequencing System (FSS) preparation will be required in Destination FSS (DFSS) zones  Standard Flats − $0.001 per piece discount for pieces on DFSS-entered scheme pallets  AADC and 3-Digit Presorted Letters will continue to be priced the same − Presorting requirements are NOT changing  Intelligent Mail® Barcode $.001 incentive maintained  Simple Samples – No increase in the price of Simple Samples 7
    • Standard Mail® Change Highlights 2  Customized Market Mail reduced from $.046 to $.044  New prices for EDDM – Commercial − $0.151 to $0.203, based on entry point  EDDM Retail – price increasing to 16.8 cents (CPI); 17.5 cents (Exigent)  Proposing to disallow use of detached address labels (DALs) with all Standard Mail flats mailed with simplified addresses (EDDM); therefore, all EDDM flats entered at BMEUs or Retail would have to bear simplified addresses directly on the flats 8
    • Special Services Change Highlights 1 Certificate of Mailing Basic Firm Book Mailing Bulk: First 1,000 pcs Each Add’l 1,000 pcs 5-Digit CPI Price $1.25 0.45 7.50 0.90 0.4129 CPI + Exigent Price $1.30 0.47 7.80 0.95 0.451 Certified Mail $3.15 $3.30 Return Receipt Requested at time of mailing Electronic Green Card Merchandise Requested after mailing $1.30 2.60 4.20 5.05 $1.35 2.70 4.40 5.25 9
    • Special Services Change Highlights 2 USPS Tracking First Class Mail (Parcels Only) First Class Mail (Parcels Only) First Class Package Service Priority Mail Priority Mail Standard Post Standard Mail Parcels Package Services Package Services Parcel Select Electronic CPI Price $1.00 Retail Electronic Electronic Retail Electronic Retail Electronic Retail Electronic Electronic 0.22 1.00 0.22 USPS Tracking CPI Price $2.25 2.80 Electronic Retail 10 CPI + Exigent Price $1.05 0.00 0.00 0.00 0.00 0.00 0.23 1.05 0.23 0.00 CPI + Exigent Price $2.35 2.90
    • Periodicals Change Highlights  FSS preparation will be required for Periodicals mailed in DFF Zones  FSS pricing at the bundle level, sack level, and pallet level will be introduced at all entry points  Full-Service IMb® incentive maintained 11
    • Package Services Change Highlights  FSS pricing to be introduced for BPM Flats  FSS price categories introduced for presort at originating entry, DNDC entry, DSCF entry, and DFSS entry, as well as carrier route presort at originating entry, DSCF entry, and DFSS  No FSS pricing for DDU destination entry  FSS pricing incentives for BPM flats may be introduced after January 2014  Eliminates $0.03 POSTNET barcode incentive for BPM Flats  Retains $0.001 Full-Service IMb incentive for BPM Flats 12
    • Key Details ***All Changes are Proposed until Approved*** 13
    • First-Class Mail® Retail  Letters (1 oz.)  $0.46 to $0.47 CPI  $0.47 to $0.49 Exigent  Letters additional ounces  $0.20 CPI  $0.21 Exigent  First –Class Mail® International Global Forever Stamp (1 oz.) – $1.10 to $1.15 Price change  First Class Postcards  $0.33 CPI  $0.34 Exigent 14
    • Key First-Class Mail® Single-Piece Prices Current Price CPI Price CPI + Exigent Price Stamp Price 0.46 0.47 0.49 Meter Price 0.46 0.46 0.48 Single-Piece Flats 0.92 0.94 0.98 Single-Piece Cards 0.33 0.33 0.34 Retail Parcels 2.07 2.23 2.32 15
    • NEW: First-Class Meter Rate Save 1¢ on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps 46 4 No piece minimums No preparation requirement No requirement to report those pieces on a postage statement The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new “Meter Price” will have postage applied directly to the pieces, and will be deposited as “Retail mail”. 16
    • First-Class Mail® Retail Parcels  First 3 ounces in each FCM PARCELS parcel category still a single price cell Oz. 1 2 3 4 5 6 7 8 9 10 11 12 13  $.18 additional ounce price after 3 ounces 17 Current 2.07 2.07 2.07 2.24 2.41 2.58 2.75 2.92 3.09 3.26 3.43 3.60 3.77 CPI 2.23 2.23 2.23 2.40 2.57 2.74 2.91 3.08 3.25 3.42 3.59 3.76 3.93 Exigent 2.32 2.32 2.32 2.50 2.68 2.86 3.04 3.22 3.40 3.58 3.76 3.94 4.12
    • First-Class Mail® Commercial Letters Current Price CPI Price CPI + Exigent Price Mixed AADC Automation Letters 0.405 0.415 0.435 AADC Automation Letters 0.384 0.389 0.406 3-D Automation Letters 0.384 0.389 0.406 5-D Automation Letters 0.360 0.366 0.381 18
    • First-Class Mail® Commercial Flats Current Price CPI Price CPI + Exigent Price Machinable Presort 0.772 0.782 0.815 Mixed AADC 0.740 0.750 0.782 AADC 0.640 0.659 0.691 3-Digit 0.594 0.602 0.634 5-Digit 0.406 0.4129 0.451 0.208 each additional ounce 19
    • Commercial Residual Single-Piece Letters: Two Options Mailers may continue using current preparation standards  Residual 1oz and 2oz pieces presented in the same tray receive the blended price on those pieces NEW: Mailers have the option of separating out 1oz and 2oz pieces and paying the lower metered rate Weight Not Over (ounces) 1 2 Blended 20 CPI $0.46 $0.66 $0.48 CPI+E $0.48 $0.69 $0.50
    • Key Details Standard Mail® ***All Changes are Proposed until Approved*** 21
    • Standard Mail®  Mandated Flat Sequencing System (FSS) Preparation Requirements  Flat mail going to ZIP Codes served by the FSS will require specific ways to sequence, bundle, and place mail on pallets and will be different from current methods  FSS preparation will be different when mailing at non-FSS areas  New FSS pricing  Introducing FSS Facility and FSS Scheme pricing for High Density, High Density Plus and Carrier Route Flats. $0.044 difference between Origin and DFSS Scheme  USPS to offer a $0.001 per piece discount off the DSCF price for those pieces brought to a DFSS in scheme bundles on a DFSS scheme pallet  The discount is an incentive for mailers to enter the mail at a plant where there is an FSS machine 22 Flats Sequencing System
    • Standard Mail®  Simple Samples allows you to send trial-sized products to your customers  No increase in price  Induct mail without unnecessary outer packaging  Lower prices offered for higher-volume tiers  Price reduction for Customized Market Mail from ($0.46 to $0.44)  New prices for Every Door Direct Mail (EDDM) – Commercial: EEDM Saturation Flats is $.001 less than other Saturation Flats  EDDM Retail moves to Market Dominant List – price increasing from $.16 to $.168 (CPI), $.175 (Exigency) 23
    • Standard Mail® Incentive Saturation and High Density Incentive  Encourage existing mailers to increase mail volume by rewarding them with a rebate on incremental mail pieces above a predetermined volume baseline  Commercial Saturation Mail eligible for 20% rebate  Commercial High Density Plus and High Density Mail eligible for 15%  rebate Rebate provided as a credit in the postage account in early 2015 24
    • Key Standard Mail® Prices Current Price Letters CPI Price CPI + Exigent Price 0.247 0.250 0.261 0.362 0.368 0.386 0.279 0.283 0.295 0.189 0.190 0.198 0.201 0.202 0.211 0.160 0.168 0.175 (5-D Auto entered at Origin) Flats (5-D Auto Flat entered at Origin) Carrier Route (Flat entered at Origin) High Density/Saturation Letters (Saturation Letter entered at Origin) High Density Saturation Flats (Saturation Flat entered at Origin) EDDM-Retail 25
    • Promotions Overview Mobile Technology Promotions Encourages mailers to integrate direct mail with mobile technology using best practices in mobile marketing  Branded Color Mobile Technology  Emerging Technology Featuring NFC Promotion  Mail Drives Mobile Commerce Promotion Technology Drives Relevance Leverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns  Color Print in First-Class Mail Transactions Promotion  Mail and Digital Personalization Promotion 26
    • Promotions Overview Leverage Value of First-Class Mail Intended to slow the volume decline in First-Class Mail by ensuring reply mail, transactional mail and First-Class advertising remain a relevant part of the First-Class Mail marketing mix  Premium Advertising Promotion  Earned Value Promotion New Customer Acquisition Provides an extra incentive for new customers to try direct mail  EDDM Coupon Promotion 27
    • Promotions Details 28
    • IMb® Requirements Beginning in January 2014, the USPS® will require mailers receiving automation discounts to be Full Service IMb™ compliant Full Service Intelligent Mail® will be REQUIRED for:  Postcards (First-Class Mail® only)  Letters, and flats when mailed using:  First-Class Mail®  Standard Mail®  Periodicals®  Flats mailed at Bound Printed Matter® prices 29
    • IMb® Requirements FULL-SERVICE Intelligent Mail® barcode on mailpiece x Unique serial number in barcode* x Intelligent Mail® barcode on trays and containers x Electronic Documentation (e-Docs) submission x FAST® Appointment Scheduling x *Small mailings (fewer than 10,000 pieces) can use the same serial number for all pieces, if: • Postage is affixed to each piece at the correct price OR • All pieces are of identical weight and separated by price Additional information on Full-Service requirements can be found on: http://www.pb.com/Postal-Information/Intelligent-Mail-Barcode/ 30
    • Options to Become Compliant What if I don’t move to Full-Service?  Non-Automation Rates! I want my Automation Rates!  In-house Solution  Outsource  Fully Outsource  Partial Outsource 31
    • Evaluate Implementation Options Fully Outsourced Mixed: Services & Solutions In House (with Solutions) Full Service Discounts Full Service ACS (FREE) NIXIE Processing Careful Planning Time to Implement Highest Risk Implementation Cost Recurring Costs Control 32
    • In-house or Outsource (Mixed or Full) Determine Responsibilities & Liabilities USPS® Feedback  Start-the-Clock  ACS® data  Mail data quality reports Database Management  Appends IMb  Meet Move Update Physical Mail Production  IMb® on mailpieces Mail Preparation  IM® tray and container labels Mail Presentment  Electronic documentation (eDoc) 33
    • Steps to Implementing Full-Service Intelligent Mail® 1. 2. 3. 4. 5. 6. 7. Review https://ribbs.usps.gov for critical technical information Obtain Mailer ID through USPS Business Customer Gateway Communicate your MID to your Mail Services Provider OR, Enter your new MID into your Mailing Software Create Your Intelligent Mail® barcode in Mailing Software Utilize Mailing Software to prepare to submit eDoc to USPS TEM TESTING – Submit test mailing e-documentation to the USPS for each type of mailing you may prepare for approval – Add an Intelligent Mail® Barcode to your Mail Piece Layout in Document Composition software. NEW! With TEM approved software, you can bypass TEM Testing. 8. Print mail pieces or export mail list Intelligent Mail® barcode Mailing 9. Print IMb Tray/Sack, and Container Labels 10. Submit Postal documentation electronically – Mail.dat or XML – PostalOne! or Postage Statement Wizard 11. Watch Mailer Scorecard for verification results 34
    • https://ribbs.usps.gov 35
    • NEW! Full-Service Intelligent Mail® Webinar Series https://ribbs.usps.gov/index.cfm?pag e=intellmailpresentations 36
    • Timeline for Implementation* TEM Processes submit Full service test files through TEM – USPS Postal One Week 4 ** Install Software – Train IT/Staff – Implement and Test Software Week 3 Software purchase – Week 2 Obtain CRID/MID Week 1 Test for Each Type/Class of Mail needs to be generated & submitted; i.e.; First-Class Letters, Flats, Standard Mail Letters, Flats, Periodicals. Create mailing with IMb in software Week 6 TEM TESTING – USPS Postal One Portal Weeks 4 – 5 Plan for multiple testing Back & Forth Create IM Tray/Sack & Container Labels Print/Produce Mailing with IMb * Estimated time only, results will vary ** Plan for USPS approval time and resubmission if necessary. Can bypass TEM by using software previously approved by USPS Set up Software with MID/CRID Week 3 - 4 Submit E-documentation – mail.dat, XML, or Postage Wizard Schedule FAST appointments if needed 37 TEM Full-Service (FS) Authorization Week 4 - 5
    • Full-Service IMb® Checklist  Decide Outsource (full or mixed) or Handle In-house  If Outsource, determine responsibilities and manage relationship  If In-house, start by familiarizing yourself with https://ribbs.usps.gov  NEW! Full-Service Webinar Series  Review approved software vendor list and select software      Apply for your MID at https://gateway.usps.com Find Technical Guides and tools at https://ribbs.usps.gov Prepare to use eDoc Test through TEM if needed Monitor Mailers Scorecard 38
    • Questions? Ann Daley Vice President, Government & Regulatory Affairs, Pitney Bowes ann.daley@pb.com Alison Hall Director of Client Services, Direct Mail Solutions, Pitney Bowes alison.hall@pbpresortservices.com 39
    • THANK YOU.