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January 2017 USPS® Rates Increase Webinar

Adam Lewenberg is the president of Postal Advocate Inc., a mail audit and recovery firm. He speaks nationally on upcoming USPS rate changes and mail savings opportunities. On January 19, 2017, he summarized the key January 2017 USPS rate changes, including a 4.3% increase to First-Class stamps, decreases and small increases for most Marketing Mail rates, and increases of 1-7% for Priority Mail and Priority Mail Express depending on weight and zone. He provided tips for saving on various mail classes.

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January 2017 USPS® Rate Change
- What You Need To Know
Speaker: Adam Lewenberg
President of Postal Advocate Inc.
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 over 69,000 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 18 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.
January 19, 2017 2
What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
January 19, 2017 3
New rates take into effect Sunday
January 22, 2017
We will focus on the most common rate structures. For more detail on other mail classes and
services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index
First-Class Mail® Single Piece
• 1.1% Decrease to 9% Increase
• Price of a stamp is increasing from $0.47 to $0.49 – 4.3% increase
• No price increase to the additional ounce rate so the % gets smaller as
items gets heavier.
• Flats increasing from $.94 to $.98 – believed because it is 2 stamps.
• Parcels are going up the most because of growth in this segment.
January 19, 2017 4
Weight
Ounces
Prior to
01/22/17
New Rates
01/22/17
%
Increase
Prior to
01/22/1
7
New Rates
01/22/17
%
Increase
Prior to
01/22/17
New Rates
01/22/17
%
Increase
1 $0.47 $0.49 4.3% $0.94 $0.98 4.3% $2.45 $2.67 9.0%
2 $0.68 $0.70 2.9% $1.15 $1.19 3.5% $2.45 $2.67 9.0%
3 $0.89 $0.91 2.2% $1.36 $1.40 2.9% $2.45 $2.67 9.0%
6 N/A N/A $1.99 $2.03 2.0% $3.02 $3.03 0.3%
13 N/A N/A $3.46 $3.50 1.2% $4.35 $4.29 -1.4%
Post Card $0.34 $0.34 0.0%
First-Class Mail® Retail
Letters Flats Parcels
First-Class Mail® Single Piece - The Good News
• Using a postage meter or a PC postage will have a price
reduction from $0.465 down to $0.46.
• Metered mail (including PC Postage) will now save $.03
per piece over stamps purchased from the Post Office!
January 19, 2017 5
Weight
Ounces
Prior to
01/22/17
New Rates
01/22/17
%
Increase
1 $0.465 $0.460 -1.1%
2 $0.675 $0.670 -0.7%
3 $0.885 $0.880 -0.6%
Letters
Metered Letters
Savings over First-Class
Mail® Retail @ $.49 each
Annual Postage # of Pieces @ $.46 each Savings @ $.03 Each
$1,000 2,174 $65.22
$10,000 21,739 $652.17
$100,000 217,391 $6,521.74
$1,000,000 2,173,913 $65,217.39
First-Class® Mail Metered Savings
Postage meters and PC Postage start at about $20 per month and
can make your mail easier to manage.
First-Class Mail® Commercial
• 0.8% Decrease to 1.8% Increase
• Mailers will see extra discounts at the 5-digit category and
it may mean it’s time to renegotiate rates with your presort
service as they’re getting a larger share of the savings.
• Biggest change in this category is increasing the weight
limit for the Letter rates from 2 to 3.5 ounces
– Second Ounce Rides Free is now up to 3.5 Ounces Ride Free!
January 19, 2017 6
Weight
Ounces
Priorto
01/22/17
NewRates
01/22/17
%
Increase
Priorto
01/22/17
New
Rates
01/22/17
%
Increase
Priorto
01/22/17
New
Rates
01/22/17
%
Increase
Automation5 Digit 1 $0.376 $0.373 -0.8% $0.438 $0.446 1.8% $0.250 $0.253 1.2%
Automation3 Digit $0.630 $0.630 0.0%
AutomationAADC 1 $0.399 $0.403 1.0% $0.670 $0.670 0.0% $0.263 $0.266 1.1%
AutomationMixedAADC 1 $0.419 $0.423 1.0% $0.750 $0.750 0.0% $0.272 $0.274 0.7%
Presorted(NonAutomation) 1 $0.452 $0.453 0.2% $0.798 $0.798 0.0% $0.283 $0.284 0.4%
Commercial First-Class Mail®
Letters Flats* Post Cards
Full Service IMB customers still qualify for the additional $.003 savings.
Weight
Ounces
Prior to
01/22/17
New Rates
01/22/17
%
Increase
1 $0.465 $0.460 -1.1%
2 $0.675 $0.670 -0.7%
3 $0.885 $0.880 -0.6%
Letters
Metered Letters

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January 2017 USPS® Rates Increase Webinar

  • 1. January 2017 USPS® Rate Change - What You Need To Know Speaker: Adam Lewenberg President of Postal Advocate Inc.
  • 2. 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 over 69,000 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 18 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. January 19, 2017 2
  • 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips January 19, 2017 3 New rates take into effect Sunday January 22, 2017 We will focus on the most common rate structures. For more detail on other mail classes and services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index
  • 4. First-Class Mail® Single Piece • 1.1% Decrease to 9% Increase • Price of a stamp is increasing from $0.47 to $0.49 – 4.3% increase • No price increase to the additional ounce rate so the % gets smaller as items gets heavier. • Flats increasing from $.94 to $.98 – believed because it is 2 stamps. • Parcels are going up the most because of growth in this segment. January 19, 2017 4 Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/1 7 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $0.47 $0.49 4.3% $0.94 $0.98 4.3% $2.45 $2.67 9.0% 2 $0.68 $0.70 2.9% $1.15 $1.19 3.5% $2.45 $2.67 9.0% 3 $0.89 $0.91 2.2% $1.36 $1.40 2.9% $2.45 $2.67 9.0% 6 N/A N/A $1.99 $2.03 2.0% $3.02 $3.03 0.3% 13 N/A N/A $3.46 $3.50 1.2% $4.35 $4.29 -1.4% Post Card $0.34 $0.34 0.0% First-Class Mail® Retail Letters Flats Parcels
  • 5. First-Class Mail® Single Piece - The Good News • Using a postage meter or a PC postage will have a price reduction from $0.465 down to $0.46. • Metered mail (including PC Postage) will now save $.03 per piece over stamps purchased from the Post Office! January 19, 2017 5 Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $0.465 $0.460 -1.1% 2 $0.675 $0.670 -0.7% 3 $0.885 $0.880 -0.6% Letters Metered Letters Savings over First-Class Mail® Retail @ $.49 each Annual Postage # of Pieces @ $.46 each Savings @ $.03 Each $1,000 2,174 $65.22 $10,000 21,739 $652.17 $100,000 217,391 $6,521.74 $1,000,000 2,173,913 $65,217.39 First-Class® Mail Metered Savings Postage meters and PC Postage start at about $20 per month and can make your mail easier to manage.
  • 6. First-Class Mail® Commercial • 0.8% Decrease to 1.8% Increase • Mailers will see extra discounts at the 5-digit category and it may mean it’s time to renegotiate rates with your presort service as they’re getting a larger share of the savings. • Biggest change in this category is increasing the weight limit for the Letter rates from 2 to 3.5 ounces – Second Ounce Rides Free is now up to 3.5 Ounces Ride Free! January 19, 2017 6 Weight Ounces Priorto 01/22/17 NewRates 01/22/17 % Increase Priorto 01/22/17 New Rates 01/22/17 % Increase Priorto 01/22/17 New Rates 01/22/17 % Increase Automation5 Digit 1 $0.376 $0.373 -0.8% $0.438 $0.446 1.8% $0.250 $0.253 1.2% Automation3 Digit $0.630 $0.630 0.0% AutomationAADC 1 $0.399 $0.403 1.0% $0.670 $0.670 0.0% $0.263 $0.266 1.1% AutomationMixedAADC 1 $0.419 $0.423 1.0% $0.750 $0.750 0.0% $0.272 $0.274 0.7% Presorted(NonAutomation) 1 $0.452 $0.453 0.2% $0.798 $0.798 0.0% $0.283 $0.284 0.4% Commercial First-Class Mail® Letters Flats* Post Cards Full Service IMB customers still qualify for the additional $.003 savings. Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $0.465 $0.460 -1.1% 2 $0.675 $0.670 -0.7% 3 $0.885 $0.880 -0.6% Letters Metered Letters
  • 7. First-Class Mail® Savings Options - Letters • 3-ounce Metered Letter at $0.88 to a Commercial rate of $0.373 – 58% savings! • For flat (9x12 or 10x 13), consider folding them into a 6x9 envelope • 3-ounce flat at $1.40, could cost only $0.373 assuming it could be automated through in-house software or presort services • Automation Mail can now add extra content at no additional charge! January 19, 2017 7 Weight Ounces Priorto 01/22/17 NewRates 01/22/17 Priorto 01/22/17 NewRates 01/22/17 Savingsover Retail Priorto 01/22/17 NewRates 01/22/17 Savingsover Metered 1 $0.47 $0.49 $0.465 $0.46 6.1% $.376-.419 $.373-.423 8-19% 2 $0.68 $0.70 $0.675 $0.67 4.3% .376-.419 $.373-.423 37-44% 3 $0.89 $0.91 $0.885 $0.88 3.3% $.626-.669 $.373-.423 52-58% 3.5 $1.10 $1.12 $1.095 $1.09 2.7% $.751-.794 $.373-.423 61-66% Retail(Stamps) First-Class Mail® Letter Options Metered Commercial(Automation)
  • 8. Converting Light Weight Flats to Letters • Light Weight Flats – Look for average flat prices of $1.40 or less. Over 50% Savings by folding. – 6X9 Envelopes only require that you fold in half. January 19, 2017 8 Flat Envelope Sheets First Class Mail® Flat - Large Envelope First Class Mail® Letter - 6X9 Envelope (Metered) Typical Presort Service - First- Class Mail® Letter First-Class Mail® - Automatio n Letter Savings 1-2 $0.98 $0.46 $0.45 $.373-.423 53-62% 3-4 $1.19 $0.46 $0.45 $.373-.423 61-69% 6-10 $1.40 $0.67 $0.45 $.373-.423 52-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  • 9. Marketing Mail® (Formerly called Standard Mail) • 4.3% Decrease to 3% Increase • The USPS has eliminated the 3-Digit sort level for Letters which will hopefully make preparation easier. • Letter weight limit has increased from 3.3 to 3.5 ounces before per pound rates are required. • Flats have also increased the weight break from 3.3 to 4 ounces prior to pound rates being calculated. January 19, 2017 9 Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Automation 5 Digit ≤3.5 $0.255 $0.251 -1.6% $0.376 $0.387 2.9% Automation 3 Digit $0.467 $0.478 2.4% Automation AADC/ADC ≤3.5 $0.274 $0.271 -1.1% $0.522 $0.533 2.1% Automation Mixed AADC/ADC-Origin ≤3.5 $0.291 $0.288 -1.0% $0.539 $0.550 2.0% Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Automation 5 Digit ≤3.5 $0.140 $0.134 -4.3% $0.237 $0.244 3.0% Automation 3 Digit $0.328 $0.335 2.1% Automation AADC/ADC ≤3.5 $0.159 $0.154 -3.1% $0.383 $0.390 1.8% Automation Mixed AADC/ADC-Origin ≤3.5 $0.176 $0.171 -2.8% $0.400 $0.407 1.7% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats
  • 10. Priority Mail Rate Categories • Retail – At USPS Counter or through a postage meter. • Commercial Base – Through a PC Postage Solution (USPS.com will no longer qualify for these rates and will default to retail) • Commercial Plus – Through a contracted agreement with the USPS. – Priority Mail® - 50,000 packages per year across facilities January 19, 2017 10
  • 11. Priority Mail® January 19, 2017 11 Most popular USPS package service 13 ounce to 70LB items 1-3 day delivery throughout the US 9 primary zones based on distance. Highlights • 19% Decrease to 62% Increase • Small to no increases to most weights and zones except for 15-32 pound items going in zone 1-4 which are increasing by as much as 62% • Flat rate items are seeing the largest overall increases. • If you are running Priority Mail® items at Retail rates using Click-N-Ship® or a postage meter, consider switching to a PC Postage solution that utilizes Commercial rates which saves 15% overall and ranges from 3-39% based on weight and zone • Contact the USPS if you are sending out over 50,000 packages per year for Plus Rates. Weight LB's Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $6.45-10.00 $6.65-10.50 3-6% $5.75-9.76 $5.95-9.89 1-9% $5.60-9.47 $5.75-9.59 1-9% 5 $9.85-30.25 $9.85-30.25 (-17)-0% $7.39-28.30 $7.17-28.72 (-3)-3% $7.17-27.45 $6.96-27.86 (-3)-3% 10 $12.65-52.10 $12.65-52.10 0-23% $8.69-49.43 $9.09-50.17 1-23% $8.43-47.94 $8.82-48.66 2-23% 25 $22.55-99.10 $22.55-92.10 0.0% $17.76-89.43 $18.11-90.77 2-20% $17.23-86.74 $17.56-88.04 1-10% 50 $32.55-156.95 $32.55-156.95 0.0% $25.96-141.59 $26.74-143.71 1-3% $25.18-137.34 $25.94-139.40 1-3% Flat Rate Envelope $6.45 $6.65 3.1% $5.75 $5.95 3.5% $5.60 $5.95 6.3% Legal Flat Rate Envelope $6.45 $6.95 7.8% $5.75 $6.25 8.7% $5.60 $6.25 11.6% Padded Flat Rate Envelope $6.80 $7.20 5.9% $6.10 $6.50 6.6% $5.90 $6.50 10.2% Small Flat Rate Box $6.80 $7.15 5.1% $6.10 $6.45 5.7% $5.90 $6.45 9.3% Medium Flat Rate Boxes $13.45 $13.60 1.1% $11.95 $12.40 3.8% $11.60 $12.40 6.9% Large Flat Rate Boxes $18.75 $18.85 0.5% $16.35 $17.05 4.3% $15.85 $17.05 7.6% USPS Priority Mail® Retail Commercial Base Commercial Plus
  • 12. Priority Mail® Express January 19, 2017 12 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • 1-7% Increase (Depending on Weight and Zone) • Retail rates increased 3% overall but 5% for Flat Rate and less than 10LB items. • Commercial rates increased 1% overall but 3% for Flat Rate and less than 10LB items. • Plus discounts have been eliminated and rates are the same as Commercial Base. Weight LB's Prior to 01/22/17 New Rates 01/22/17 %Increase Prior to 01/22/17 New Rates 01/22/17 %Increase Prior to 01/22/17 New Rates 01/22/17 %Increase 1 $22.95-44.65 $23.75-46.20 3-4% $20.66-40.19 $21.18-41.19 2-3% $20.66-40.19 $21.18-41.19 2-3% 5 $24-70.20 $24.95-74.45 4-6% $21.60-63.18 $22.14-64.76 2-3% $21.60-63.18 $22.14-64.76 2-3% 10 $36.15-103.50 $37.60-109.80 4-6% $32.54-93.15 $33.35-95.48 2-3% $32.54-93.15 $33.35-95.48 2-3% 25 $65.95-180.25 $67.25-183.85 2.0% $59.36-162.23 $59.95-163.85 1.0% $59.36-162.23 $59.95-163.85 1.0% 50 $116.85-333.35 $119.20-340.00 2.0% $105.17-300.02 $106.22-303.02 1.0% $105.17-300.02 $106.22-303.02 1.0% Flat Rate Envelope $22.95 $23.75 3.5% $20.66 $21.18 2.5% $20.66 $21.18 2.5% Legal Flat Rate Envelope $22.95 $23.95 4.4% $20.66 $21.28 3.0% $20.66 $21.28 3.0% Padded Flat Rate Envelope $22.95 $24.45 6.5% $20.66 $21.64 4.7% $20.66 $21.64 4.7% USPS Priority Mail® Express Retail Commercial Base Commercial Plus
  • 13. Savings Tips - Move to Commercial Rates • Huge discounts over retail rates. • Free tracking on usps.com. • Need to process through a PC Postage solution to get the discounts. • Multiple vendor options to process packages – • Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape. January 19, 2017 13 Retail Commercial Base Commercial Plus Weight LB's January 22, 2017 January 22, 2017 % Savings over Retail January 22, 2017 % Savings over Base 1 $6.65-10.50 $5.95-9.89 6-13% $5.75-9.59 3% 5 $9.85-30.25 $7.17-28.72 5-27% $6.96-27.86 3% 10 $12.65-52.10 $9.09-50.17 4-28% $8.82-48.66 3% 25 $22.55-99.10 $18.11-90.77 8-25% $17.56-88.04 3% 50 $32.55-156.95 $26.74-143.71 8-19% $25.94-139.40 3% Flat Rate Envelopes $6.65 $5.95 11% $5.95 0% Small Flat Rate Box $7.15 $6.45 10% $6.45 0% Medium Flat Rate Boxes $13.60 $12.40 9% $12.40 0% Large Flat Rate Boxes $18.85 $17.05 10% $17.05 0% Retail Commercial Base Weight LB's January 22, 2017 January 22, 2017 % Savings over Retail 1 $23.75-46.20 $21.18-41.19 11% 5 $24.95-74.45 $22.14-64.76 11-13% 10 $37.60-109.80 $33.35-95.48 11-13% 25 $67.25-183.85 $59.95-163.85 11% 50 $119.20-340 $106.22-303.02 11% Flat Rate Envelopes $23.75 $21.18 11% USPS Priority Mail® USPS Priority Mail® Express 15% Average Savings 11% Average Savings
  • 14. First-Class Mail® Package Service January 19, 2017 14 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day deliveryHighlights • 0.4 to 17.8% Increase • Greatest increase – As items get heavier with 15.99 ounces prices going up to 17.8% • Save by converting from Retail to Commercial with improved tracking! Weight Ounces Prior to 01/22/17 New Rates 01/22/17 % Increase Up to 4 $2.60 $2.61 0.4% 4-8 $2.60 $2.77 6.5% 10 $3.35 $3.46 3.3% 12 $3.45 $3.74 8.4% 14 $3.55 $4.02 13.2% 15.99 $3.65 $4.30 17.8% First-Class® Package Service Letters Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $2.67 $2.61 2% 5 $2.85 $2.77 3% 6 $3.03 $2.77 9% 7 $3.21 $2.77 14% 8 $3.39 $2.77 18% 9 $3.57 $3.32 7% 10 $3.75 $3.46 8% 11 $3.93 $3.60 8% 12 $4.11 $3.74 9% 13 $4.29 $3.88 10% 14 $6.65-10.50 $4.02 40-62% 15 $6.65-10.50 $4.16 37-60% 15.999 $6.65-10.50 $4.30 35-59% Convert from Retail to Commercial
  • 15. Additional Rate Change Items January 19, 2017 15 Group Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Canada $1.15 $1.15 0.0% $1.15 $1.15 0.0% $1.15 $1.15 0.0% Mexico (Group 2) $1.15 $1.15 0.0% $1.72 $1.72 0.0% $1.15 $1.15 0.0% Group 3-5 $1.15 $1.15 0.0% $2.13 $2.13 0.0% $1.15 $1.15 0.0% Group 6-9 $1.15 $1.15 $1.98 $1.98 0.0% $1.15 $1.15 0.0% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $2.48 $2.50 0.8% $1.70 $1.73 1.8% $2.24 $2.38 6.2% 2 $2.94 $2.97 1.0% $2.16 $2.20 1.9% $2.70 $2.85 5.6% 5 $4.32 $4.38 1.4% $3.54 $3.61 2.0% $4.08 $4.26 4.4% 10 $6.62 $6.70 1.2% $5.84 $5.93 1.5% $6.38 $6.58 3.1% Weight LB's Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase 1 $2.61 $2.63 0.8% $1.79 $1.82 1.7% $2.36 $2.51 6.4% 2 $3.09 $3.12 1.0% $2.27 $2.31 1.8% $2.84 $3.00 5.6% 5 $4.53 $4.59 1.3% $3.71 $3.78 1.9% $4.28 $4.47 4.4% 10 $6.93 $7.01 1.2% $6.11 $6.20 1.5% $6.68 $6.89 3.1% Single Piece 5-Digit Presort Basic Presort Library Mail Single Piece 5-Digit Presort Basic Presort Media Mail
  • 16. Special Services January 19, 2017 16 Special Services Prior to 01/22/17 New Rates 01/22/17 % Increase Prior to 01/22/17 New Rates 01/22/17 % Increase Certificate ofMailing $1.30 $1.35 3.8% Registered™ without Insurance $11.70 $11.70 0.0% Certified Mail™ $3.30 $3.35 1.5% Return Receipt $2.70 $2.75 1.9% $1.35 $1.45 7.4% USPS Tracking First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0% Marketing Mail® parcels $0.35 $0.37 5.7% Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0% Signature Confirmation $2.90 $2.90 0.0% $2.35 $2.45 4.3% Retail Electronic
  • 17. Certified Mail with Electronic Return Receipt (ERR) • Save $1.30 by switching to an electronic version. January 19, 2017 17
  • 18. Savings Tips Compare Rates with the Private Carriers - For every package Benefits to USPS • Don’t charge extra fees for: – Fuel surcharge – Residential, DAS Surcharges – Saturday Delivery – Address Correction Fees • Best rates for lightweight items to residences (Less than 5 LB’s) • First Class Parcel rates for items less than 16 ounces. ($2.61-4.30 per item!) • Free boxes Benefits UPS & FedEx* • Negotiate rates based on volumes. • Guaranteed delivery with refunds. • Ground service with 1-5 day guaranty(Many areas are 1-3 days). • Dedicated account managers. • Typically have the best rates items over 5LB’s or lighter weights going to businesses. *Assumes that you have a corporate agreement. January 19, 2017 18 Multi Carrier options: 1. Manually compare between systems. 2. Cloud based multi carrier systems – simple to complex. 3. PC/Server based multi carrier systems.
  • 19. How To Budget For This Increase 1. Enter last years spend. 2. Estimate % based on type of mail. Below is an example on how to set this up. Tip: If you are seeing your mix of mail having a higher percentage increase, edit this on the template. January 19, 2017 19 % of Mail Spend Amount % Increase 2017 Budget Amount 2016 USPS Mail Spend $100,000 % of Spent for Letters/Flats 80% $80,000 1% $80,000 % Spent for Packages/Expedited 20% $20,000 5% $21,000.00 2017 USPS Mail Spend $101,000
  • 20. What you need to do: • If you have a mail machine, make sure you download the new rates before January 22, 2017 when the rates take into effect to take full advantage of the decrease. • Here are links to the different meter vendors: • Pitney Bowes: http://www.pitneybowes.com/us/postal-information/rate-change-info.html • Neopost/Hasler: http://www.neopostusa.com/resources/rate-change-information • FP: http://www.fp-usa.com/ratechange/ • Stamps.com: https://stamps.custhelp.com/app/answers/detail/a_id/1685/~/january-2017-usps- rate-changes • Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index January 19, 2017 20 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 21. Rate Summary • First-Class Mail® Single Piece – 1.1% Decrease to 9% Increase • First-Class Mail® Single Piece Metered Letters – $.03 savings over Retail and price is reducing from $.465 to $.46! • First-Class Mail® Commercial – 0.8% Decrease to 2% Increase – Base price level increases from 2 ounces to 3.5 ounces! • Marketing Mail® - 4.3% Decrease to 3% Increase – Maximum weight for letters and flats goes up prior to per piece/pound rating. • Priority Mail® - 19% Decrease to 62% Increase – Budget 5% to cover for different weights and zones. • Priority Mail® Express – 1 – 7% Increase – Budget 5% to cover for different weights and zones. • First-Class® Mail Package Service – 0.4% to 17.8% Increase January 19, 2017 21
  • 22. Savings Summary • Use a postage meter or PC Postage to save $.03 per letter. • Convert Letters and Flats to Automation Classes – up to 62% Savings! – Up to 3.5 ounces for the price of 1 ounce! – Fold flats for additional savings – Faster delivery – Automated address validation • Convert Priority Mail® from Retail to Commercial – 15% average savings for Priority Mail® – 11% average savings for Priority Mail® Express • Convert First-Class Mail® Parcels from Retail to Commercial – 2-62% Savings • User Electronic Return Receipt with Certified Mail - $1.30 Savings. • Compare pricing across carriers for the best rate on each package. January 19, 2017 22
  • 23. Upcoming Webinars • March - The Future of Mailing – Connectivity Made Easy – Most postage meters are connected to analog phone lines that cost $300-600 per year to maintain. – Phone companies are planning on stopping analog lines and the meter companies are requiring that future meters get connected to the network to fill and update rates. – In this webinar we will cover: • Benefits of networked meters • Challenges getting meters connected • Resources where you can go for help. • Tips for streamlining this process January 19, 2017 23
  • 24. Helping multi-location organizations streamline their mailing costs 69,000 pieces of equipment, managed by Postal Advocate Recovered over $4,700,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $26,000,000 IN CLIENT SAVINGS $697K 60% 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)
  • 25. 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
  • 26. Contact info: (20pt) January 19, 2017 26 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com