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April 2016 USPS Rate Change Presentation

Postal Advocate Inc.
Postal Advocate Inc.
Postal Advocate Inc.President at Postal Advocate Inc.

Postal Advocate will share all the information you need to know for this coming rate change: - What rates are going down - What you need to do - Savings tips

April 2016 USPS Rate Change Presentation

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Download to read offline
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.
1) Click the hand to ask a question and we will unmute you OR
2) Type your question in the question box and we will do our best to answer all questions
March 30, 2016 2
Click to
Raise
Hand
Type here to ask a question
Choose one of the following audio options:
TO USE YOUR COMPUTER'S AUDIO:
When the webinar begins, you will be connected to audio using your
computer's microphone and speakers (VoIP). A headset is recommended.
--OR--
TO USE YOUR TELEPHONE:
If you prefer to use your phone, you must select "Use Telephone" after
joining the webinar and call in using the numbers below.
Dial-in 1 (213) 929-4212 Access Code: 289-386-868#
Audio PIN: Shown after joining the webinar
March 30, 2016 3
Meeting Instructions
Meeting Instructions
March 30, 2016 4
• To get rid of the GoToWebinar control panel so you can see the presentation
Meeting Instructions
March 30, 2016 5
• This presentation is being recorded and will be made available upon
request. You will also be able find it on our website under FAQs/Resources
• If you have any issues during the meeting contact Doris Tam at 888-977-
6245 x 512 or email me at doris.tam@postaladvocate.com and I’ll 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.
March 30, 2016 6

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April 2016 USPS Rate Change Presentation

  • 1. April 2016 USPS® Rates Decrease - What You Need To Know Speaker: Adam Lewenberg President of Postal Advocate Inc.
  • 2. Meeting Instructions • There is a GoToWebinar meeting link • All lines will be on mute until the end of the meeting. 1) Click the hand to ask a question and we will unmute you OR 2) Type your question in the question box and we will do our best to answer all questions March 30, 2016 2 Click to Raise Hand Type here to ask a question
  • 3. Choose one of the following audio options: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. --OR-- TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. Dial-in 1 (213) 929-4212 Access Code: 289-386-868# Audio PIN: Shown after joining the webinar March 30, 2016 3 Meeting Instructions
  • 4. Meeting Instructions March 30, 2016 4 • To get rid of the GoToWebinar control panel so you can see the presentation
  • 5. Meeting Instructions March 30, 2016 5 • This presentation is being recorded and will be made available upon request. You will also be able find it on our website under FAQs/Resources • If you have any issues during the meeting contact Doris Tam at 888-977- 6245 x 512 or email me at doris.tam@postaladvocate.com and I’ll be happy to assist
  • 6. 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. March 30, 2016 6
  • 7. April 2016 USPS® Rates Decrease - What You Need To Know Speaker: Adam Lewenberg President of Postal Advocate Inc.
  • 8. What We’ll Cover: • Why are rates going down • What rates are going down • Savings Tips • What you need to do March 30, 2016 8 New rates take effect Sunday April 10, 2016
  • 9. 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. March 30, 2016 9
  • 10. 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 March 30, 2016 10
  • 11. First-Class Mail® Retail - Savings – 2.9-4.4% March 30, 2016 11 Weight Ounces Prior 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 $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® Retail Letters 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!
  • 12. First-Class Mail® Parcel/Package Rates March 30, 2016 12 Retail Parcel Commercial Package Service Weight 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
  • 13. Commercial Savings – 3.8—6.8% March 30, 2016 13 Weight Ounces Prior 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 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!)
  • 14. Standard Mail® Savings – 2.4-6.1% March 30, 2016 14 Weight Ounces Prior to 4/10/16 New Rates 4/10/16 % Increase Prior 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 % Increase Prior 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® Nonprofit Letters 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.
  • 15. International Rates March 30, 2016 15 Group Prior 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 Country International Rate Codes Argentina 8 Australia 6 China 6 Egypt 6 France 3 India 6 Nigeria 4 Norway 5 Russia 4 South Africa 4
  • 16. Library and Media Mail March 30, 2016 16 Weight LB's Prior 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's Prior 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 Mail Single Piece 5-Digit Presort Basic Presort Media Mail Single 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.
  • 17. Special Services Savings – 0 - 4.1% March 30, 2016 17 Special Services Retail Electronic Prior 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.
  • 18. 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 March 30, 2016 18
  • 19. Helping multi-location organizations streamline their mailing costs 58,000 pieces of equipment, managed by Postal Advocate Recovered over $2,200,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $21,000,000 IN CLIENT SAVINGS $559K 57% Average Client Savings Average Equipment Savings HOW WE DO IT • 200+ years of industry experience • Comprehensive web-based tool providing visibility of all mail and equipment spend • Time Savings - Assistance in fleet management visit www.postaladvocate.com or call (888)977-MAIL(6245)
  • 20. Sign Limited Agency Agreement/Kick-Off Call. Provide copies of vendor invoices, AP export, location list, equipment inventory list. Present savings opportunities and get client approval. Postal Advocate provides ongoing support, manages renewals, billing and vendor compliance. Provide enterprise visibility of all spend, costs and documented savings through enterpriseAdvocate. Provide client log-in. 1 2 3 4 5 6 HOW IT WORKS Work with current vendor to build population report, contract terms/start/end dates, postage volumes, costs. Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage. Identify savings opportunities. Submit vendor credit requests, lost postage forms and eliminate avoidable fees. Negotiate pricing. Create catalog. Work with locations- asset validation, rightsize, termination… Full implementation of savings. visit www.postaladvocate.com or call (888)977-MAIL(6245) Conduct Analysis NO COST – AUDIT PHASE CONTRACTED CLIENT
  • 21. Contact info: (20pt) March 30, 2016 21 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com