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Our Guide to the Upcoming USPS Changes
- January 2024 Rate Increase
- USPS Mandatory Meter Migration
2
Background and Experience
Speaker: Adam Lewenberg
President/CEO of Postal Advocate Inc.
• The only mail audit and recovery firm in the US and Canada
• Manage a portfolio of 201,000 pieces of mailing equipment for the largest US
companies.
• Speak and teach nationally on mail savings and industry trends.
Former Industry Co Chair- Boston Postal Customer Council and Mail Systems Management
Association. 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’
largest accounts.
Our Guide to the Upcoming USPS Changes
- January 2024 Rate Increase
- USPS Mandatory Meter Migration
4
What We’ll Cover:
1. Details of the proposed increase and how it impacts you
2. How to budget for the increase
3. Details of the forced migration
4. Devices impacted and timelines
5. Creating visibility to your equipment that needs to be migrated
6. Mail equipment options available
7. Enterprise Online Postage solutions – Where and why these systems make sense
8. Rightsizing strategies that can save up to 80%!
9. Planning and implementation
10. Ongoing visibility and control of future migration phases
New rates would take effect Sunday January 21, 2024
*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
5
23-56% increases in past 29 months!
Letter volume
dropping fast!
Making up for
volume declines
with rate changes
Increased number
of drop off points
with fewer pieces
per stop.
Volumes seldom go
up after a major
correction.
Date
First-Class
Mail® Retail
Letters
First-Class
Mail® Metered
Letters
First-Class
Mail® Flats
First-Class
Mail® Auto
Letters
First-Class
Mail® Auto
Flats
Marketing-
Mail® Letters
Marketing-
Mail® Flats
1/21/2024 3.0% 1.6% 3.0% 1.8% 1.2% 1.1% 3.8%
7/9/2023 4.8% 5.0% 5.0% 5.8% 16.7% 6.4% 8.0%
1/22/2023 5.0% 5.3% 4.0% 3.3% 8.0% 3.2% 6.1%
7/10/2022 4.2% 8.1% 10.9% 6.5% 13.0% 6.3% 7.8%
8/29/2021 5.5% 3.9% 16.0% 7.5% 17.3% 8.0% 9.0%
Last 29 Mo Increase 22.5% 23.9% 38.9% 24.9% 56.2% 25.0% 34.7%
1/24/2021 0% 2% 0% 2% 7% 1% 9%
1/26/2020 0% 0% 0% 2% -4% 2% 4%
1/27/2019 10% 6% 0% 1% 2% 2% 5%
1/21/2018 2% 2% 2% 1% -2% 0% 5%
1/22/2017 4% -1% 4% 0% 0% -1% 2%
4/10/2016 -4% -4% -4% -4% -5% -4% -4%
5/31/2015 0% 1% 0% 2% 2% 1% 2%
1/26/2014 7% 5% 7% 6% 7% 6% 6%
1/27/2013 2% 2% 2% 2% 2% 2% 2%
1/12/2012 2% 2% 2% 3% 4% 2% 2%
6
First-Class Mail® Single Piece
• 3% Increase on 1 Oz Letters
• 1 Oz Flats increase from $1.35 to
$1.39.
• Postcards increase by 3.9%
• Additional ounce rate still $0.24.
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
1 $0.66 $0.68 3.0% $1.35 $1.39 3.0%
2 $0.90 $0.92 2.2% $1.59 $1.63 2.5%
3 $1.14 $1.16 1.8% $1.83 $1.87 2.2%
6 N/A N/A $2.55 $2.59 1.6%
13 N/A N/A $4.23 $4.27 0.9%
Post Card $0.51 $0.53 3.9%
Letters Flats
First-Class Mail® Retail
7
First-Class Mail® Metered Letters
Metered mail (including Online Postage) will save $.04 per piece over
stamps purchased from the Post Office (6%)
Savings over First-Class Mail® Retail
@ $.68 each vs $.64 Metered
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
1 $0.630 $0.640 1.6%
2 $0.870 $0.880 1.1%
3 $1.110 $1.120 0.9%
Letters
Metered Letters
Annual Postage # of Pieces @ $.64 each Savings @ $.04 Each
$1,000 1,563 $62.50
$2,000 3,125 $125.00
$10,000 15,625 $625.00
$100,000 156,250 $6,250.00
$1,000,000 1,562,500 $62,500.00
First-Class® Mail Metered Savings
8
First-Class Mail® Commercial
• 2% increase for automation letters
• Flats increase by 1-2% (First ounce only)
• Postcards increasing by 1%
• Full Service IMB customers still qualify for the additional $.003 savings
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Automation 5 Digit 1 $0.498 $0.507 1.8% $0.831 $0.841 1.2% $0.355 $0.357 0.6%
Automation 3 Digit $1.037 $1.047 1.0%
Automation AADC 1 $0.537 $0.547 1.9% $1.098 $1.108 0.9% $0.376 $0.378 0.5%
Automation Mixed AADC 1 $0.561 $0.571 1.8% $1.234 $1.244 0.8% $0.388 $0.390 0.5%
Presorted (Non Automation) 1 $1.270 $1.300 2.4%
Commercial First-Class Mail®
Letters Flats* Post Cards
9
Convert Flats to Letters
Savings Strategies
• Fold flats to #10 and 6” x 9.5” where possible 50-71% savings! (Up to 12 sheets into a 6X9.5 envelope)
• Use presort services or automate internally to get up to 3.5 ounces for letters at the 1-ounce rate.
• Consider paper reduction strategies – Duplexing, smaller fonts, or links to web content vs. printing.
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® -
Automation
Letter Savings
1-2 $1.39 $0.64 $0.571 $.507-.571 54-64%
3-4 $1.63 $0.64 $0.571 $.507-.571 61-69%
6-10 $1.87 $0.88 $0.571 $.507-.571 53-73%
Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces
Letter Envelope - Example 6X9 or #10
10
First-Class Mail® Savings Options
• Use Meters or Online Postage to save $.04 on letters.
• Consider presort services if you run over 500 pieces per day or have one-time mailings over 1000 pieces.
• Automating your mailings in house can have drastic postage savings.
• Presort and automation levels go up to 3.5 ounces for the same rate.
• Flats and post cards can have the same automation rates as letters.
• Consider moving generic content mail from First Class to Marketing Mail
Mail Piece Examples
First-Class Mail®
Retail Single Piece
First-Class Mail®
Metered Single
Piece
Typical Presort
Service - First-
Class Mail®
First-Class
Mail® -
Automation
Marketing
Mail® -
Automation
Marketing
Mail® Non
Profit-
Automation
1 Ounce #10 Envelope $0.68 $0.64 $0.571 .507-.571 $.33-.385 $.173-.228
3 Ounce Newsletter (6X9) $1.14 $1.11 $0.561 $.498-.561 $.33-.385 $.173-.228
8 Ounce Flat (9X12) $3.03 $3.03 $2.950 $2.511-2.914 $1.09-1.46 $.75-1.12
Post Card $0.51 $0.51 $0.388 $.357-.390 n/a n/a
Single Piece Rates Automation Mail with Barcodes
11
Marketing Mail® (Formerly called Standard Mail)
• 1% increase for letters
• Lightweight Flats increase at 2-5%
• Heavy Flats > 4 Oz at 2-4% increase based on weight
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Automation 5 Digit ≤3.5 $0.326 $0.330 1.2% $0.609 $0.639 4.9%
Automation 3 Digit ≤4 $0.786 $0.816 3.8%
Automation AADC/ADC ≤3.5 $0.361 $0.365 1.1% $0.893 $0.923 3.4%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.381 $0.385 1.0% $0.976 $1.006 3.1%
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Automation 5 Digit ≤3.5 $0.171 $0.173 1.2% $0.384 $0.400 4.2%
Automation 3 Digit ≤4 $0.561 $0.577 2.9%
Automation AADC/ADC ≤3.5 $0.206 $0.208 1.0% $0.668 $0.684 2.4%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.226 $0.228 0.9% $0.751 $0.767 2.1%
Marketing Mail®
Letters Flats
Marketing Mail® Nonprofit
Letters Flats
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Automation 5 Digit >4 $0.609 $0.639 4.9% $0.896 $0.901 0.6%
Automation 3 Digit >4 $0.786 $0.816 3.8% $0.896 $0.901 0.6%
Automation AADC/ADC >4 $0.893 $0.923 3.4% $0.896 $0.901 0.6%
Automation Mixed AADC/ADC-Origin >4 $0.976 $1.006 3.1% $0.896 $0.901 0.6%
Weight
Ounces
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24 % Increase
Automation 5 Digit >4 $0.384 $0.400 4.2% $0.706 $0.707 0.1%
Automation 3 Digit >4 $0.561 $0.577 2.9% $0.706 $0.707 0.1%
Automation AADC/ADC >4 $0.668 $0.684 2.4% $0.706 $0.707 0.1%
Automation Mixed AADC/ADC-Origin >4 $0.751 $0.767 2.1% $0.706 $0.707 0.1%
Marketing Mail® Commercial Flats > 4 Oz
Per Piece Per Pound
Marketing Mail® Nonprofit Flats > 4 Oz
Per Piece Per Pound
12
Marketing Mail® Savings Options
• Use Entry level discounts to move mail closer to its destination for large savings!
• Savings on letters increased by 17% in July and stayed constant on this rate change.
• Mail can move faster through the postal system
• Look for outsource providers that can move the highest percent of mail to the Sectional Center Facilities
(DSCF) and are in the best geographic areas to support these moves.
Convert Flats to Letters wherever possible
• Lower rates - $.173-.385 for up to 3.5 ounces vs. flats that are $.40-1.01 for up to 4 ounces.
• Lower rate increases
Prior to
01/21/24
New Rates
01/21/24 % Change
Prior to
01/21/24
New Rates
01/21/24 % Change
Prior to
01/21/24
New Rates
01/21/24 % Change
DNDC $0.027 $0.027 0.0% $0.071 $0.071 0.0% $0.071 $0.071 0.0%
DSCF $0.035 $0.035 0.0% $0.091 $0.091 0.0% $0.091 $0.091 0.0%
Letters Flats <4 Ounces Flats >4 Ounces
Destination Entry Discounts for Marketing Mail
13
Priority Mail®
December 20, 2023
13
Most popular USPS® package service
13 ounce to 70LB items 1-3 day delivery throughout the
US
9 primary zones based on distance.
Highlights
• Lower increase for Commercial then Retail
• Larger discounts for heavier items.
Average %
Increase Retail
Commercial
Base
Flat Rate 4% 7%
1-5LB 6% 5%
6-10LB 6% 5%
11-25LB 6% 6%
Over 25LB 13% 10%
14
Priority Mail® Express
December 20, 2023
14
Up to 70LB items 1 day Guaranteed Delivery
9 primary zones based on distance.
Highlights
• Flat 6 % increase to all weights and zones.
Average %
Increase Retail
Commercial
Base
Flat Rate 6% 6%
1-5LB 6% 6%
6-10LB 6% 6%
11-25LB 6% 6%
Over 25LB 6% 6%
15
New Service – USPS Ground Advantage™ - Added in July 2023
December 20, 2023
15
• 2-5 day delivery service throughout US
• 4 ounce – 70LB in weight – One standard service regardless of weight
• Replaces the following services:
• USPS First-Class Package Service® - Same rates as current
• USPS Parcel Select Ground® Service
• USPS Retail Ground® Service
• $100 of insurance included – can be expanded up to $5,000
• Customers can use USPS Ground Advantage Return service
• Up to 80% savings over Priority Mail – 32% savings for items 10LB and less
• Retail and Commercial versions – 26% savings for Commercial 10LB and less
Average %
Increase Retail
Commercial
Base
<1LB 5% 5%
1-5LB 5% 5%
6-10LB 5% 6%
11-25LB 5% 6%
Over 25LB 5% 3%
16
Savings Tip - Move to Commercial Rates
• Huge discounts over retail rates.
• Free tracking on usps.com.
• Need to process through a Online Postage
solution to get the discounts. (Click-N-Ship
from the USPS does not allow for Commercial
Rates – Only Retail)
• 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.
December 20, 2023
16
Average % Increase Commercial Savings over Retail
Flat Rate 13%
1-5LB 31%
6-10LB 29%
11-25LB 30%
Over 25LB 17%
Average % Increase Commercial Savings over Retail
Flat Rate 13%
1-5LB 15%
6-10LB 15%
11-25LB 13%
Over 25LB 12%
Average % Increase Commercial Savings over Retail
<1LB 24%
1-5LB 23%
6-10LB 30%
11-25LB 32%
Over 25LB 16%
USPS Priority Mail®
USPS Priority Mail® Express
USPS Ground Advantage™
17
Commercial Savings Examples
December 20, 2023
17
Online Postage starts at
around $15 per month!
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
Ground Advantage (Less than 10 LB) 26% $250.00 $185.00 -$65.00
Priority Mail (Less than 10LB) 30% $500.00 $350.00 -$150.00
Priority Mail Express (Less than 10LB) 14% $250.00 $215.00 -$35.00
Total $1,000.00 $750.00 -$250.00
Medium
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
Ground Advantage (Less than 10 LB) 26% $2,500.00 $1,850.00 -$650.00
Priority Mail (Less than 10LB) 30% $5,000.00 $3,500.00 -$1,500.00
Priority Mail Express (Less than 10LB) 14% $2,500.00 $2,150.00 -$350.00
Total $10,000.00 $7,500.00 -$2,500.00
High
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
Ground Advantage (Less than 10 LB) 26% $25,000.00 $18,500.00 -$6,500.00
Priority Mail (Less than 10LB) 30% $50,000.00 $35,000.00 -$15,000.00
Priority Mail Express (Less than 10LB) 14% $25,000.00 $21,500.00 -$3,500.00
Total $100,000.00 $75,000.00 -$25,000.00
18
Savings Tips – Compare your packaging vs. Flat Rate Envelopes and Boxes
• Your package is less expensive for local
zones
• Flat price regardless of where it is
going.
• Bigger discounts the farther away the
item is going.
• Free packaging
• Available for Priority and Express Mail
December 20, 2023
18
Priority Mail® Commercial Example
Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9
Flat Rate Envelope $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50
1LB $7.90 $8.00 $8.09 $8.25 $9.36 $9.61 $9.86 $10.59 $22.60
% Savings -8% -6% -5% -3% 9% 12% 14% 20% 62%
Small Flat Rate Box $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05
2LB $8.34 $8.47 $8.73 $8.97 $10.34 $11.59 $12.84 $14.22 $30.35
% Savings -9% -7% -4% -1% 12% 22% 30% 36% 70%
Medium Flat Rate Boxes $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00
10LB $11.46 $11.53 $12.83 $13.96 $18.57 $26.54 $34.50 $40.24 $85.88
% Savings -40% -39% -25% -15% 14% 40% 54% 60% 81%
Large Flat Rate Boxes $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85
20LB $16.78 $17.24 $18.46 $19.81 $29.72 $42.24 $54.75 $64.21 $137.03
% Savings -30% -27% -18% -10% 26% 48% 60% 66% 84%
19
Savings Tip: Convert Priority Mail to Ground Advantage
December 20, 2023
19
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a Monopoly
(Private carriers start at 1LB)
1-5 day delivery
Highlights
Consistent service for all weights
Delivery is 2-5 days vs. 1-3 days but at a significant savings
• < 1 LB – 79% Savings
• 1 - 5LB – 20% Savings
• 6 -10LB – 27% Savings
• 11 - 25LB – 27% Savings
• > 25LB – 15% Savings
20
Comparing Costs
Weight Overnight 2 Day 3 Day Ground USPS Priority Mail® USPS Ground Advantage™
Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 2-5
0.5 LB Ltr $30.00 $23.00 $15.00 $10.00 $7.64 $4.06
1 LB $34.00 $24.00 $15.00 $10.00 $7.64 $5.93
Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-5
0.5 LB Ltr $45.00 $25.00 $18.00 $11.00 $8.05 $4.15
1 LB $63.00 $25.00 $18.00 $11.00 $8.24 $6.07
Zone 8 - Coast to Coast 1 2 3 2-3 2-3 2-3
0.5 LB Ltr $56.00 $38.00 $33.00 $13.00 $8.05 $4.44
1 LB $86.00 $38.00 $33.00 $13.00 $10.07 $6.78
Other Charges
Fuel Surcharge 14% 14% 14% 14% 0% 0%
Residential Fee $5.85 $5.85 $5.85 $5.25 $0 $0
Delivery Area Surcharges $3.70-7.15 $3.70-7.15 $3.70-7.15 $3.70-7.15 $0 $0
Address Correction Fee $21.00 $21.00 $21.00 $21.00 $0 $0
Discounts Varies by Client Varies by Client Varies by Client Varies by Client
Minimum Service Fees Varies by Client Varies by Client Varies by Client Varies by Client
Dimensional Rates All Items L*W*H/139 All Items L*W*H/139 All Items L*W*H/139 All Items L*W*H/139
Only items over 12X12X12,
L*W*H/166
Only items over 12X12X12,
L*W*H/166
21
Parcel Savings Recommendations
• Prices are going to keep going up at faster rates with the growth in the
shipping space and limited number of suppliers.
• There are too many factors in calculating a shipping price to rely only on
free carrier provided solutions.
• Need ways to compare rates side by side to make the best decisions.
• More and more people will be working remotely in the future.
• Cloud-based tools are needed to support their mail and shipping needs.
• Multi-carrier tools are available to rate shop for the lowest costs to send.
• Some of these tools can generate postage stamps from the same
platform.
• Enterprise versions are available to manage all users on a single
platform.
• All of these solutions create efficiencies and savings.
• 50% of all postage meters in the US have to be upgraded by 2024 and
these systems can work for less than $300 in spend and be significantly
less expenses.
22
Additional Rate Change Items
Group
Prior to
01/21/24
New Rates
01/21/24 % Increase
Prior to
01/21/24
New
Rates
01/21/24
%
Increase
Prior to
01/21/24
New Rates
01/21/24
%
Increase
Canada $1.50 $1.55 3.3% $1.50 $1.55 3.3% $1.50 $1.55 3.3%
Mexico (Group 2) $1.50 $1.55 3.3% $2.27 $2.35 3.5% $1.50 $1.55 3.3%
Group 3-5 $1.50 $1.55 3.3% $2.80 $2.80 0.0% $1.50 $1.55 3.3%
Group 6-9 $1.50 $1.55 3.3% $2.60 $2.80 7.7% $1.50 $1.55 3.3%
First-Class Mail International®
1 Ounce 2 Ounce Post Cards
Weight LB's
Prior to
01/21/24
New Rates
01/21/24 % Increase
1 $3.72 $3.92 5.4%
2 $4.43 $4.62 4.3%
5 $6.56 $6.72 2.4%
10 $10.11 $10.25 1.4%
Single Piece
Library Mail
Weight LB's
Prior to
01/21/24
New Rates
01/21/24 % Increase
1 $3.92 $4.13 5.4%
2 $4.67 $4.87 4.3%
5 $6.92 $7.09 2.5%
10 $10.67 $10.82 1.4%
Single Piece
Media Mail
23
Special
Services
Special Services Retail Electronic
Prior to
01/21/24
New Rates
01/21/24 % Increase
New
Rates
01/21/24
New
Rates
01/21/24 % Increase
Certificate of Mailing $1.95 $2.00 2.6%
Registered™ without Insurance $16.80 $16.80 0.0%
Certified Mail™ $4.35 $4.40 1.1%
Return Receipt $3.55 $3.65 2.8% $2.10 $2.32 10.5%
Insurance $100 $3.45 $3.50 1.4%
Insurance $500 $9.05 $9.15 1.1%
Marketing Mail® parcels Tracking $0.26 $0.29 11.5%
Signature Confirmation $4.05 $4.15 2.5% $3.25 $3.50 7.7%
Annual Permit Fees $310.00 $320.00 3.2%
Business Reply Mail
Permit Fee $310.00 $320.00 3.2%
Account Maintenance Fee $910.00 $930.00 2.2%
Quarterly Fee $3,150 $3,200 1.6%
Basic $1.05 $1.07 1.9%
High Volume $0.130 $0.133 2.3%
QBRM Basic $0.090 $0.091 1.1%
QBRM High Volume $0.018 $0.019 5.6%
24
Certified Mail with Electronic Return Receipt (eRR)
• Save $1.33 by switching to an electronic version.
25
Savings Strategies – Business Reply Mail
• Have an inventory of all your Business Reply
accounts.
• Link in the USPS ACS system.
• Validate that all accounts are being used.
• Make sure accounts are set up at the right levels.
• Monitor usage in monthly/quarterly reviews.
• Significant savings by having accounts in the right
program as you can see in the table.
• Additional savings by having visibility to all USPS
permit accounts for proper optimization.
Business Reply Mail Basics Basic
High
Volume
QBRM
Basic
QBRM
High
Volume
Annual Permit Fee $320 $320 $320 $320
Annual Account Maintenance Fee $0 $930 $930 $930
Quarterly Fee $0 $0 $0 $3,200
Total Annual Fees $320 $1,250 $1,250 $14,050
Fee per piece $1.070 $0.133 $0.091 $0.019
Postage for 1 ounce mail $0.680 $0.680 $0.659 $0.659
Total cost - Fee and Postage $1.750 $0.813 $0.750 $0.678
Annual Cost by pieces
100 $495 $1,331 $1,325 $14,118
250 $758 $1,453 $1,438 $14,220
500 $1,195 $1,657 $1,625 $14,389
1000 $2,070 $2,063 $2,000 $14,728
2500 $4,695 $3,283 $3,125 $15,745
5000 $9,070 $5,315 $5,000 $17,440
10000 $17,820 $9,380 $8,750 $20,830
25000 $44,070 $21,575 $20,000 $31,000
50000 $87,820 $41,900 $38,750 $47,950
100000 $175,320 $82,550 $76,250 $81,850
250000 $437,820 $204,500 $188,750 $183,550
500000 $875,320 $407,750 $376,250 $353,050
1000000 $1,750,320 $814,250 $751,250 $692,050
26
How To Budget For This
Increase
Email:
Makayla.miller@postaladvoc
ate.com for a copy of this
excel budgeting tool.
Class Weight
% Of
Class % Change
Estimated
Current
Spend
Estimated
New
Spend Difference
First-Class Mail® Metered Letters 1 85% 3.0%
2 10% 2.2%
3 5% 1.8%
Total 2.9% $0.00 $0.00
First-Class Mail® Flats 3% $0.00 $0.00
First-Class Mail® Automation Letters 2% $0.00 $0.00
First-Class Mail® Automation Flats 1% $0.00 $0.00
Certified with Return Reciept 3% $0.00 $0.00
Priority Mail® Express Retail 6% $0.00 $0.00
Priority Mail® Express Commercial 6% $0.00 $0.00
Priority Mail® Retail 7% $0.00 $0.00
Priority Mail® Commercial 7% $0.00 $0.00
Ground Advantage® Retail 5% $0.00 $0.00
Ground Advantage® Commercial 5% $0.00 $0.00
Marketing Mail®
Letters 1% $0.00 $0.00
Flats 15% $0.00 $0.00
Other Misc Mail 3% $0.00 $0.00
Total $0.00 $0.00 $0.00
27
What you need to do:
If you have a mail machine, make sure you download
the new rates before January 21, 2024
Here are links to the different meter vendors:
FP:
http://www.fp-usa.com/ratechange/
Quadient:
https://www.quadient.com/resources/postal-rate-information
Pitney Bowes:
http://www.pitneybowes.com/us/postal-information/rate-change-
info.html
Stamps.com:
https://blog.stamps.com/
Go to the USPS Postal Explorer website for more information:
http://pe.usps.gov/PriceChange/Index
Download the Postal
Advocate Rate Comparison
Guide –
www.postaladvocate.com
28
USPS® Forced Meter Migration
• The USPS® is decertifying all Information Based Indicia (IBI) compliant postage meters by June 30, 2024. New devices must be Intelligent Mail Indicia
(IMI) compliant or will no longer be approved for use. Here is what you need to know:
• Current IBI devices will need to be replaced with new devices and cannot be retrofitted
• The USPS is doing this to provide a higher level of security and visibility to the mail pieces
• Metering devices will need constant internet connectivity (vs. only at the time of refill) to be compliant
• We estimate that 40-70% of the postage meters in the United States will not meet this new standard and will need to be replaced with potential supply
chain issues based on chip shortages
Value to the USPS®
• Better automate their operations
• Higher security specifications due to the rise in threats and challenges
• Validate correct postage amounts
• Issue refunds automatically through the device
• Have more control over what mail is entering their network
29
Products Impacted
The meter models requiring replacement and the associated timelines for replacement are shown
below
Please Note: The above chart is subject to change and what is known today.
Please contact us or your vendor for final confirmation.
Pitney Bowes Quadient (Neopost/Hasler) FP
MailStation (K7**) IS/IM-280 Validate meters over 2 years old
DM1**, DM2** (P7**, PL**, PR**) IS/IM-330, 350
DM3** (3C**) IN/IH-360
DM4** (4C**, 6C**) IS/IM-420, 430
C200, C300, C400 (1H00, 2H00) IN/IH-600 Hand Feed (HF)
Infinity (Production Inserter Base Meter -
1M0T, 1R0T)
Connect+ 1, 2 and 3000 (1W00, 4W00, MSF*) IS/IM440, 460, 480, 490
SendProP 1, 2 and 3000 (1W00, 4W00, MSF*) IN/IH600 (Auto Feed), 700, 750, 760
IS/IM5000, 6000
IJ-15k and WJ-Pro
Meters that need to be replaced by 6/30/2024
Meters that need to be replaced by 12/31/2027
Meters that need to be replaced by 12/31/2026
30
Client Challenges with Migration
• Network Connectivity – All meters need to be constantly connected
• IT issues with meters on the network
• Expensive meter vendor mobile connectors
• Costs – Replacement like for like units will typically be more expensive
• Creating visibility to the equipment that needs to be replaced across the enterprise.
• Collecting the requirements for the new equipment.
• Bidding the cost between vendors and models.
• Implementing the new units
• Returning old equipment
• Refunding postage from the old units – Issue if you change vendors or account numbers.
*Only 6 months to make this change – Potential supply chain issues – We estimate 350,000 devices need to be changed.
31
Creating Visibility
1. Obtain account numbers for your equipment and leases
2. Equipment models (to see if they match the list above) and serial numbers so you can gain access to the vendors web portals.
3. Contract expiration dates – Some of this equipment will be on leases or rentals that could expire in the future or be on evergreen
agreements.
4. Mail volumes – It is important to know how much postage is being processed to better plan for rightsizing the future equipment.
5. Features needed – In the new solution, what is required for feeding, weighing, accounting etc.
Methodology – Build a master inventory list
• See if you have any reports or agreements provided by your mailing vendors.
• Go to accounts payable and do a search of the main mailing vendor names.
• Request copies of invoices from specific line items from the accounts payable reports to get a higher level of detail.
• Create an account on the meter vendors website. You need to link an account number and a serial number for linkage.
• Search the online account for postage usage, contract expiration dates (Available from Pitney Bowes Only) and equipment details.
• Call the meter vendors for other visibility items required.
Postal Advocate will build this list for
any client with over 20 locations with
equipment at no fee or obligation
32
Mail Solution Options
Mail Equipment Model Types
Category Online Postage Online Postage Enterprise Stand Alone Meter Automatic Mail Machine - Mid Volume
Automatic Mail Machine with Internal
Scale - Mid Volume
Automatic Mail Machine with
Internal Scale - High Volume
Monthly Postage Range <$400 <$400 $100-600 $400-2,000 $2,000-5,000 $4,000-25,000
Monthly Piece Range <800 <800 200-1,200 800-4,000 4,000-10,000 8,000-50,000
Specifications
Speed 15-45 80-120 130-160/70-100 with internal scale
160-300-160/100-200 with
internal scale
Thickness Capability local printer local printer Up to 3/8" Min.: .007"Max.: 5/16" Min.: .007" Max.: 5/8" Min.: .007" Max.: 3/4"
Feeding Send to local printer Send to local printer Hand Feed Automatic Feed Automatic Feed w/internal weigh Automatic Feed w/internal weigh
Sealing n/a n/a Some Models Included Included Included
Scale 10LB Sold Separatly 5-10 LB 5-149 LB 5-149 LB 5-149 LB
Accounting Unlimited Unlimited 10 to 50 25-3000 25-3000 25-3000
Accounting Type Std Web Accounting Web Accounting Web Accounting
Typical Price Ranges $10-30 per mo
$1-10 per month per
location - One fixed fee for
the enterprise $25-100 per mo $170-300 per mo $350-600 per mo $700-1300 per mo
33
Rightsizing Opportunities – 40-90% Cost Savings
• Does the internal weighing systems and automatic feeding systems justify the costs based on your mail
volumes?
• Internal Weighing System Cost - $200-300 per month increase
• Automatic Feeding Cost - $100-200 per month increase
• Can you live with lower weight capacity scales because heavier items are typically going UPS®/FedEx ®or
there are other scales that can be used onsite?
• Standard scales – 5LB
• Higher capacity scales – 10, 15, 30, 70 and 149LB – Can add $30-100 per month
*Note – 150LB Electric non-integrated scale can costs $113 at your office supply store – See image.
• Are all the features in the current mailing system being fully utilized? Examples: Mail Accounting, custom
weighing, conveyor stackers, special services etc.
• Can online postage be an option vs. low volume meters? There are 20% postage savings for parcels and
can be expanded to UPS® and FedEx® processing.
• If you have more than 10 locations, or work from home staff, can enterprise online postage options work
for uniform processing and visibility across the enterprise.
34
Online Postage
• Most common remote mailing solution
• Subscription model
• Print from any computer with an internet connection and a printer.
• Postage stamps
• Directly onto envelope (Along with destination and return address)
• Stamp Sheets (Most common) – Purchased from online postage
provider.
• Vendor provided label printer
• 4” x 6” - Shipping labels
• Regular paper (To be taped to the item or use labelope)
• Avery type labels (Purchased from office supply provider)
• Inexpensive compared to postage meters and typical costs range from $10-30
per month.
• Cloud-based and can be accessed from any device.
• Easy to deploy and use – Within 7-10 days, you can receive your login
credentials, a scale and starter labels. There are simple online tutorials to get
you started quickly.
• Visibility to all history and package tracking statuses.
• Some systems have multiple carrier options to process UPS®/FedEx®/DHL®
• Significant postage savings –some newer postage meters may come with an
online postage subscription to get these rates.
Mail Type Stamps Postage Meter Online Postage Savings % Savings
1 Ounce Letter $0.68 $0.64 $0.64 $0.04 6%
1 Ounce Certified Mail with Return Reciept $8.73 $7.36-8.69 $7.36 $1.37 16%
Ground Advantage 4 OZ (Formerly 1st CL Parcel) $5.00-5.55 $5.00-5.55 $3.79-4.36 $1.19-1.21 21-24%
Ground Advantage 8 OZ (Formerly 1st CL Parcel) $5.70-6.15 $5.70-6.15 $4.21-4.68 $1.47-1.49 21-23%
Ground Advantage 15.99 OZ (Formerly 1st CL Parcel) $8.00-9.00 $8.00-9.00 $6.17-7.15 $1.83-1.85 26-36%
Ground Advantage 5LB $10.75-21.65 $10.75-21.65 $7.94-13.88 $2.81-7.77 26-36%
Ground Advantage 10LB $13.40-33.20 $13.40-33.20 $8.42-16.24 $4.98-16.96 37-51%
Priority Mail 1LB $9.25-13.45 $9.25-13.45 $7.13-10.67 $2.12-2.78 21-23%
Priority Mail 5LB $12.45-31.15 $12.45-31.15 $7.46-23.83 $4.99-7.32 23-40%
Priority Mail 10LB $15.50-51.95 $15.50-51.95 $7.46-23.83 $8.04-28.12 52-54%
Priority Mail Express 1LB $30.95-54.75 $30.95-54.75 $26.75-47.25 $4.20-7.50 14%
35
Why is it easier for a company to send an $15
Overnight item than a $.64 letter?
• Use free carrier provided solutions
• Simple to use and defined process across the organization
• All users can ship from any location at any time
o Includes home office and traveling users.
• All charges are summarized by cost center and downloadable into an excel file
for uploads
• Multiple ways to process
o Postage Meters - $30-1300 per month
o Online Postage - $10-30 per month
o End users purchasing Stamps at the Post Office at a 5-40% premium – (Cost to go to the USPS)
o Courier mail to a hub location to process at $5-15 per pickup
• No defined process across the organization
• The location determines how mail gets processed based on purchased
technology
o The majority of locations will need to drive to the USPS® to purchase stamps and will not have
the correct denominations for heavier items.
• Limited visibility to postage spends. Fragmented process between vendors,
petty cash and credit cards.
36
Enterprise Online Options – Fastest growth segment
Enterprise Online Postage is the same as standard Online Postage with the main
difference being how multiple locations can be controlled under a central administration
license.
This offers the following benefits:
• Simplicity of onboarding new users
• Reporting on all location and user activities from a central dashboard.
• Managing billing for subscriptions, supplies and postage
• Controlling user access (This includes removing users who are no longer active)
• Single Sign On - Some systems have this option to link to an active directory to eliminate
password management.
• Platforms can be expanded to process UPS®, FedEx® and DHL® with real time rate shopping.
• Certified Mail Capabilities
• Electronic Return Receipts at $1.33 savings
• Firm Mail Book creation
• All signature files are automatically downloaded with a central repository to hold all
information
• If you have more than 10 locations using Online Postage, we recommend having them
controlled through an enterprise license.
Eliminate the need for low
volume meters – 70% Savings!
37
Central Administration – Keys To Success
With users spread out at different locations, working remotely and
with different needs, how do you implement and manage these
systems to ensure success?
Postal Advocate Central Administration
1. Defining requirements
2. System implementation
3. Training
4. Onboarding users
5. Managing user access
6. Case and issue management
7. Monitoring usage
8. Reporting and chargback on key metrics
9. Quantifying savings
10.Expanding and promoting usage
• Dedicated client specific landing page
• Customized messages and links for common questions.
• Pull down menu for common carrier requests
• Once the case is submitted:
• Email is sent to Postal Advocate to start the process
• Email is sent to the requestor with a case number
• Activity is created and notes are entered into their location record.
• Resolutions are taken care of by Postal Advocate with communication to
the location and closure to the activity.
• All cases, activities, contacts and notes are stored for reporting and
archiving.
38
Migration Planning & Implementation
• Create your inventory report - Make sure it has contract end dates and spends for all equipment.
• Document postage spends by location so you can properly right size.
• Understand the features your locations need.
• Compare pricing and features with multiple vendors.
• Order the new solutions
• Validate that the new solution is installed.
• Remove the current systems.
• Validate that the postage is recovered.
• Make sure all locations across the enterprise are covered.
39
Ongoing Visibility and Control
Important to keep a
master list or
database of all of
your mailing
equipment,
contract terms,
spends, invoices
and postage
balances for the
following reasons:
Ongoing Rightsizing
Needs – Mail
volumes will
continue to go
down and solutions
will need to be
resized. We average
56% and you can do
the same with
proper oversight.
Invoice Validation –
The vendors are not
perfect billers and
we have been able
to recover $19
million for our
clients and the key
is reviewing every
invoice against a
master database
and validating the
charges with the
end users.
Postage
Management – We
have recovered $13
million for our
clients in dormant
postage. These are
the places you need
to look to find this
money:
•Overfunding the
meters – Devices
sitting with large
balances
•Prefunding accounts
•Advance accounts
Location Support –
To make sure your
offices have the
best mailing options
and support
available.
Manage Future
Migrations – 2026
and 2027
requirements
To offset future
USPS price
increases – Rate
shave gone up 18-
38% over the last 19
months with two
rate increases
expected annually.
40
Helping multi-location
organizations streamline
their mailing costs
Over 201,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$23,000,000
in lost postage, vendor
Overcharges, and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $85,000,000 IN CLIENT SAVINGS
$1.9M
56%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 218+ 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)
WE REPRESENT LEADING MULTI-LOCATION
COMPANIES IN THESE INDUSTRIES
Banking
8 of Top 15
Uniforms
3 of Top 4
Insurance
3 of Top 10
Pharmacy
1 of Top 2
Dairy
1 of Top 2
Utilities
2 of Top 10
Radio
1 of Top 3
Small Package Delivery
1 of Top 2
Scientific Instrument MFG
3 of Top 10
Kidney Dialysis Centers
1 of Top 2
Document Destruction
1 of Top 3
Outdoor Advertising
1 of Top 3
Food Manufacturing
1 of Top 2
Business Services
1 of Top 5
Long Term Care
2 of Top 10
Cable Providers
2 of Top 5
Higher Education
1 of Top 3
Pest Control
1 of Top 3
Paper Products
1 of Top 3
Title Insurance
1 of Top 2
Mutual Funds
1 of Top 5
OVER $85,000,000 IN CLIENT SAVINGS
Commercial Real Estate
2 of Top 30
Accounting Services
1 of Top 3
Telecommunications
3 of Top 10
Health Clubs
1 of Top 3
Engineering Services
1 of Top 3
TV Networks
1 of Top 5
Auto Auctions
1 of Top 2
Average Client
Savings
56%
*Information found in Hoovers ranking on company revenue in a specific industry. 2016
Recovered over
$23,000,000
in lost postage, vendor
overcharges and fees
visit www.postaladvocate.com or call (888)977-MAIL(6245)
42
No Cost or Obligation Portfolio Assessment
• Create an inventory of all mailing equipment throughout the US. This includes contract terms, costs,
postage spends, and vendor fees.
• Provide visibility to what equipment needs to be replaced.
• Develop a mail optimization plan that includes the following:
o Rightsized mail plan that will typically reduce costs by over 50%.
o Details on enterprise online postage platforms that can eliminate meters and provide mail access
to all locations and users.
o Reduced pricing on mailing equipment for the locations that still have needs.
o Process plan that details how Ricoh can manage the transition and ongoing oversight.
• Timeframe to complete – 30 days
• Client Requirements
o Sign our letter of authority letting us review your mailing equipment spend.
o Provide any mail equipment reports (If available)
o Run an accounts payable search for the last 12 months of the main mailing vendors: Pitney
Bowes, Quadient (Neopost, Hasler, Mail Finance), FP, Stamps.com.
o Provide a small sample of requested invoice copies.
o Meet with us to review the results.
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Our Guide to the 2024 USPS® Rate Change

  • 1. Our Guide to the Upcoming USPS Changes - January 2024 Rate Increase - USPS Mandatory Meter Migration
  • 2. 2 Background and Experience Speaker: Adam Lewenberg President/CEO of Postal Advocate Inc. • The only mail audit and recovery firm in the US and Canada • Manage a portfolio of 201,000 pieces of mailing equipment for the largest US companies. • Speak and teach nationally on mail savings and industry trends. Former Industry Co Chair- Boston Postal Customer Council and Mail Systems Management Association. 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’ largest accounts.
  • 3. Our Guide to the Upcoming USPS Changes - January 2024 Rate Increase - USPS Mandatory Meter Migration
  • 4. 4 What We’ll Cover: 1. Details of the proposed increase and how it impacts you 2. How to budget for the increase 3. Details of the forced migration 4. Devices impacted and timelines 5. Creating visibility to your equipment that needs to be migrated 6. Mail equipment options available 7. Enterprise Online Postage solutions – Where and why these systems make sense 8. Rightsizing strategies that can save up to 80%! 9. Planning and implementation 10. Ongoing visibility and control of future migration phases New rates would take effect Sunday January 21, 2024 *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
  • 5. 5 23-56% increases in past 29 months! Letter volume dropping fast! Making up for volume declines with rate changes Increased number of drop off points with fewer pieces per stop. Volumes seldom go up after a major correction. Date First-Class Mail® Retail Letters First-Class Mail® Metered Letters First-Class Mail® Flats First-Class Mail® Auto Letters First-Class Mail® Auto Flats Marketing- Mail® Letters Marketing- Mail® Flats 1/21/2024 3.0% 1.6% 3.0% 1.8% 1.2% 1.1% 3.8% 7/9/2023 4.8% 5.0% 5.0% 5.8% 16.7% 6.4% 8.0% 1/22/2023 5.0% 5.3% 4.0% 3.3% 8.0% 3.2% 6.1% 7/10/2022 4.2% 8.1% 10.9% 6.5% 13.0% 6.3% 7.8% 8/29/2021 5.5% 3.9% 16.0% 7.5% 17.3% 8.0% 9.0% Last 29 Mo Increase 22.5% 23.9% 38.9% 24.9% 56.2% 25.0% 34.7% 1/24/2021 0% 2% 0% 2% 7% 1% 9% 1/26/2020 0% 0% 0% 2% -4% 2% 4% 1/27/2019 10% 6% 0% 1% 2% 2% 5% 1/21/2018 2% 2% 2% 1% -2% 0% 5% 1/22/2017 4% -1% 4% 0% 0% -1% 2% 4/10/2016 -4% -4% -4% -4% -5% -4% -4% 5/31/2015 0% 1% 0% 2% 2% 1% 2% 1/26/2014 7% 5% 7% 6% 7% 6% 6% 1/27/2013 2% 2% 2% 2% 2% 2% 2% 1/12/2012 2% 2% 2% 3% 4% 2% 2%
  • 6. 6 First-Class Mail® Single Piece • 3% Increase on 1 Oz Letters • 1 Oz Flats increase from $1.35 to $1.39. • Postcards increase by 3.9% • Additional ounce rate still $0.24. Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase 1 $0.66 $0.68 3.0% $1.35 $1.39 3.0% 2 $0.90 $0.92 2.2% $1.59 $1.63 2.5% 3 $1.14 $1.16 1.8% $1.83 $1.87 2.2% 6 N/A N/A $2.55 $2.59 1.6% 13 N/A N/A $4.23 $4.27 0.9% Post Card $0.51 $0.53 3.9% Letters Flats First-Class Mail® Retail
  • 7. 7 First-Class Mail® Metered Letters Metered mail (including Online Postage) will save $.04 per piece over stamps purchased from the Post Office (6%) Savings over First-Class Mail® Retail @ $.68 each vs $.64 Metered Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase 1 $0.630 $0.640 1.6% 2 $0.870 $0.880 1.1% 3 $1.110 $1.120 0.9% Letters Metered Letters Annual Postage # of Pieces @ $.64 each Savings @ $.04 Each $1,000 1,563 $62.50 $2,000 3,125 $125.00 $10,000 15,625 $625.00 $100,000 156,250 $6,250.00 $1,000,000 1,562,500 $62,500.00 First-Class® Mail Metered Savings
  • 8. 8 First-Class Mail® Commercial • 2% increase for automation letters • Flats increase by 1-2% (First ounce only) • Postcards increasing by 1% • Full Service IMB customers still qualify for the additional $.003 savings Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Automation 5 Digit 1 $0.498 $0.507 1.8% $0.831 $0.841 1.2% $0.355 $0.357 0.6% Automation 3 Digit $1.037 $1.047 1.0% Automation AADC 1 $0.537 $0.547 1.9% $1.098 $1.108 0.9% $0.376 $0.378 0.5% Automation Mixed AADC 1 $0.561 $0.571 1.8% $1.234 $1.244 0.8% $0.388 $0.390 0.5% Presorted (Non Automation) 1 $1.270 $1.300 2.4% Commercial First-Class Mail® Letters Flats* Post Cards
  • 9. 9 Convert Flats to Letters Savings Strategies • Fold flats to #10 and 6” x 9.5” where possible 50-71% savings! (Up to 12 sheets into a 6X9.5 envelope) • Use presort services or automate internally to get up to 3.5 ounces for letters at the 1-ounce rate. • Consider paper reduction strategies – Duplexing, smaller fonts, or links to web content vs. printing. 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® - Automation Letter Savings 1-2 $1.39 $0.64 $0.571 $.507-.571 54-64% 3-4 $1.63 $0.64 $0.571 $.507-.571 61-69% 6-10 $1.87 $0.88 $0.571 $.507-.571 53-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  • 10. 10 First-Class Mail® Savings Options • Use Meters or Online Postage to save $.04 on letters. • Consider presort services if you run over 500 pieces per day or have one-time mailings over 1000 pieces. • Automating your mailings in house can have drastic postage savings. • Presort and automation levels go up to 3.5 ounces for the same rate. • Flats and post cards can have the same automation rates as letters. • Consider moving generic content mail from First Class to Marketing Mail Mail Piece Examples First-Class Mail® Retail Single Piece First-Class Mail® Metered Single Piece Typical Presort Service - First- Class Mail® First-Class Mail® - Automation Marketing Mail® - Automation Marketing Mail® Non Profit- Automation 1 Ounce #10 Envelope $0.68 $0.64 $0.571 .507-.571 $.33-.385 $.173-.228 3 Ounce Newsletter (6X9) $1.14 $1.11 $0.561 $.498-.561 $.33-.385 $.173-.228 8 Ounce Flat (9X12) $3.03 $3.03 $2.950 $2.511-2.914 $1.09-1.46 $.75-1.12 Post Card $0.51 $0.51 $0.388 $.357-.390 n/a n/a Single Piece Rates Automation Mail with Barcodes
  • 11. 11 Marketing Mail® (Formerly called Standard Mail) • 1% increase for letters • Lightweight Flats increase at 2-5% • Heavy Flats > 4 Oz at 2-4% increase based on weight Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Automation 5 Digit ≤3.5 $0.326 $0.330 1.2% $0.609 $0.639 4.9% Automation 3 Digit ≤4 $0.786 $0.816 3.8% Automation AADC/ADC ≤3.5 $0.361 $0.365 1.1% $0.893 $0.923 3.4% Automation Mixed AADC/ADC-Origin ≤3.5 $0.381 $0.385 1.0% $0.976 $1.006 3.1% Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Automation 5 Digit ≤3.5 $0.171 $0.173 1.2% $0.384 $0.400 4.2% Automation 3 Digit ≤4 $0.561 $0.577 2.9% Automation AADC/ADC ≤3.5 $0.206 $0.208 1.0% $0.668 $0.684 2.4% Automation Mixed AADC/ADC-Origin ≤3.5 $0.226 $0.228 0.9% $0.751 $0.767 2.1% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Automation 5 Digit >4 $0.609 $0.639 4.9% $0.896 $0.901 0.6% Automation 3 Digit >4 $0.786 $0.816 3.8% $0.896 $0.901 0.6% Automation AADC/ADC >4 $0.893 $0.923 3.4% $0.896 $0.901 0.6% Automation Mixed AADC/ADC-Origin >4 $0.976 $1.006 3.1% $0.896 $0.901 0.6% Weight Ounces Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Automation 5 Digit >4 $0.384 $0.400 4.2% $0.706 $0.707 0.1% Automation 3 Digit >4 $0.561 $0.577 2.9% $0.706 $0.707 0.1% Automation AADC/ADC >4 $0.668 $0.684 2.4% $0.706 $0.707 0.1% Automation Mixed AADC/ADC-Origin >4 $0.751 $0.767 2.1% $0.706 $0.707 0.1% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound
  • 12. 12 Marketing Mail® Savings Options • Use Entry level discounts to move mail closer to its destination for large savings! • Savings on letters increased by 17% in July and stayed constant on this rate change. • Mail can move faster through the postal system • Look for outsource providers that can move the highest percent of mail to the Sectional Center Facilities (DSCF) and are in the best geographic areas to support these moves. Convert Flats to Letters wherever possible • Lower rates - $.173-.385 for up to 3.5 ounces vs. flats that are $.40-1.01 for up to 4 ounces. • Lower rate increases Prior to 01/21/24 New Rates 01/21/24 % Change Prior to 01/21/24 New Rates 01/21/24 % Change Prior to 01/21/24 New Rates 01/21/24 % Change DNDC $0.027 $0.027 0.0% $0.071 $0.071 0.0% $0.071 $0.071 0.0% DSCF $0.035 $0.035 0.0% $0.091 $0.091 0.0% $0.091 $0.091 0.0% Letters Flats <4 Ounces Flats >4 Ounces Destination Entry Discounts for Marketing Mail
  • 13. 13 Priority Mail® December 20, 2023 13 Most popular USPS® package service 13 ounce to 70LB items 1-3 day delivery throughout the US 9 primary zones based on distance. Highlights • Lower increase for Commercial then Retail • Larger discounts for heavier items. Average % Increase Retail Commercial Base Flat Rate 4% 7% 1-5LB 6% 5% 6-10LB 6% 5% 11-25LB 6% 6% Over 25LB 13% 10%
  • 14. 14 Priority Mail® Express December 20, 2023 14 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • Flat 6 % increase to all weights and zones. Average % Increase Retail Commercial Base Flat Rate 6% 6% 1-5LB 6% 6% 6-10LB 6% 6% 11-25LB 6% 6% Over 25LB 6% 6%
  • 15. 15 New Service – USPS Ground Advantage™ - Added in July 2023 December 20, 2023 15 • 2-5 day delivery service throughout US • 4 ounce – 70LB in weight – One standard service regardless of weight • Replaces the following services: • USPS First-Class Package Service® - Same rates as current • USPS Parcel Select Ground® Service • USPS Retail Ground® Service • $100 of insurance included – can be expanded up to $5,000 • Customers can use USPS Ground Advantage Return service • Up to 80% savings over Priority Mail – 32% savings for items 10LB and less • Retail and Commercial versions – 26% savings for Commercial 10LB and less Average % Increase Retail Commercial Base <1LB 5% 5% 1-5LB 5% 5% 6-10LB 5% 6% 11-25LB 5% 6% Over 25LB 5% 3%
  • 16. 16 Savings Tip - Move to Commercial Rates • Huge discounts over retail rates. • Free tracking on usps.com. • Need to process through a Online Postage solution to get the discounts. (Click-N-Ship from the USPS does not allow for Commercial Rates – Only Retail) • 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. December 20, 2023 16 Average % Increase Commercial Savings over Retail Flat Rate 13% 1-5LB 31% 6-10LB 29% 11-25LB 30% Over 25LB 17% Average % Increase Commercial Savings over Retail Flat Rate 13% 1-5LB 15% 6-10LB 15% 11-25LB 13% Over 25LB 12% Average % Increase Commercial Savings over Retail <1LB 24% 1-5LB 23% 6-10LB 30% 11-25LB 32% Over 25LB 16% USPS Priority Mail® USPS Priority Mail® Express USPS Ground Advantage™
  • 17. 17 Commercial Savings Examples December 20, 2023 17 Online Postage starts at around $15 per month! Class Commercial Savings Estimated Current Spend Estimated New Spend Difference Ground Advantage (Less than 10 LB) 26% $250.00 $185.00 -$65.00 Priority Mail (Less than 10LB) 30% $500.00 $350.00 -$150.00 Priority Mail Express (Less than 10LB) 14% $250.00 $215.00 -$35.00 Total $1,000.00 $750.00 -$250.00 Medium Class Commercial Savings Estimated Current Spend Estimated New Spend Difference Ground Advantage (Less than 10 LB) 26% $2,500.00 $1,850.00 -$650.00 Priority Mail (Less than 10LB) 30% $5,000.00 $3,500.00 -$1,500.00 Priority Mail Express (Less than 10LB) 14% $2,500.00 $2,150.00 -$350.00 Total $10,000.00 $7,500.00 -$2,500.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference Ground Advantage (Less than 10 LB) 26% $25,000.00 $18,500.00 -$6,500.00 Priority Mail (Less than 10LB) 30% $50,000.00 $35,000.00 -$15,000.00 Priority Mail Express (Less than 10LB) 14% $25,000.00 $21,500.00 -$3,500.00 Total $100,000.00 $75,000.00 -$25,000.00
  • 18. 18 Savings Tips – Compare your packaging vs. Flat Rate Envelopes and Boxes • Your package is less expensive for local zones • Flat price regardless of where it is going. • Bigger discounts the farther away the item is going. • Free packaging • Available for Priority and Express Mail December 20, 2023 18 Priority Mail® Commercial Example Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 Flat Rate Envelope $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 1LB $7.90 $8.00 $8.09 $8.25 $9.36 $9.61 $9.86 $10.59 $22.60 % Savings -8% -6% -5% -3% 9% 12% 14% 20% 62% Small Flat Rate Box $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 $9.05 2LB $8.34 $8.47 $8.73 $8.97 $10.34 $11.59 $12.84 $14.22 $30.35 % Savings -9% -7% -4% -1% 12% 22% 30% 36% 70% Medium Flat Rate Boxes $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 10LB $11.46 $11.53 $12.83 $13.96 $18.57 $26.54 $34.50 $40.24 $85.88 % Savings -40% -39% -25% -15% 14% 40% 54% 60% 81% Large Flat Rate Boxes $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 $21.85 20LB $16.78 $17.24 $18.46 $19.81 $29.72 $42.24 $54.75 $64.21 $137.03 % Savings -30% -27% -18% -10% 26% 48% 60% 66% 84%
  • 19. 19 Savings Tip: Convert Priority Mail to Ground Advantage December 20, 2023 19 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-5 day delivery Highlights Consistent service for all weights Delivery is 2-5 days vs. 1-3 days but at a significant savings • < 1 LB – 79% Savings • 1 - 5LB – 20% Savings • 6 -10LB – 27% Savings • 11 - 25LB – 27% Savings • > 25LB – 15% Savings
  • 20. 20 Comparing Costs Weight Overnight 2 Day 3 Day Ground USPS Priority Mail® USPS Ground Advantage™ Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 2-5 0.5 LB Ltr $30.00 $23.00 $15.00 $10.00 $7.64 $4.06 1 LB $34.00 $24.00 $15.00 $10.00 $7.64 $5.93 Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-5 0.5 LB Ltr $45.00 $25.00 $18.00 $11.00 $8.05 $4.15 1 LB $63.00 $25.00 $18.00 $11.00 $8.24 $6.07 Zone 8 - Coast to Coast 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $56.00 $38.00 $33.00 $13.00 $8.05 $4.44 1 LB $86.00 $38.00 $33.00 $13.00 $10.07 $6.78 Other Charges Fuel Surcharge 14% 14% 14% 14% 0% 0% Residential Fee $5.85 $5.85 $5.85 $5.25 $0 $0 Delivery Area Surcharges $3.70-7.15 $3.70-7.15 $3.70-7.15 $3.70-7.15 $0 $0 Address Correction Fee $21.00 $21.00 $21.00 $21.00 $0 $0 Discounts Varies by Client Varies by Client Varies by Client Varies by Client Minimum Service Fees Varies by Client Varies by Client Varies by Client Varies by Client Dimensional Rates All Items L*W*H/139 All Items L*W*H/139 All Items L*W*H/139 All Items L*W*H/139 Only items over 12X12X12, L*W*H/166 Only items over 12X12X12, L*W*H/166
  • 21. 21 Parcel Savings Recommendations • Prices are going to keep going up at faster rates with the growth in the shipping space and limited number of suppliers. • There are too many factors in calculating a shipping price to rely only on free carrier provided solutions. • Need ways to compare rates side by side to make the best decisions. • More and more people will be working remotely in the future. • Cloud-based tools are needed to support their mail and shipping needs. • Multi-carrier tools are available to rate shop for the lowest costs to send. • Some of these tools can generate postage stamps from the same platform. • Enterprise versions are available to manage all users on a single platform. • All of these solutions create efficiencies and savings. • 50% of all postage meters in the US have to be upgraded by 2024 and these systems can work for less than $300 in spend and be significantly less expenses.
  • 22. 22 Additional Rate Change Items Group Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Prior to 01/21/24 New Rates 01/21/24 % Increase Canada $1.50 $1.55 3.3% $1.50 $1.55 3.3% $1.50 $1.55 3.3% Mexico (Group 2) $1.50 $1.55 3.3% $2.27 $2.35 3.5% $1.50 $1.55 3.3% Group 3-5 $1.50 $1.55 3.3% $2.80 $2.80 0.0% $1.50 $1.55 3.3% Group 6-9 $1.50 $1.55 3.3% $2.60 $2.80 7.7% $1.50 $1.55 3.3% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/21/24 New Rates 01/21/24 % Increase 1 $3.72 $3.92 5.4% 2 $4.43 $4.62 4.3% 5 $6.56 $6.72 2.4% 10 $10.11 $10.25 1.4% Single Piece Library Mail Weight LB's Prior to 01/21/24 New Rates 01/21/24 % Increase 1 $3.92 $4.13 5.4% 2 $4.67 $4.87 4.3% 5 $6.92 $7.09 2.5% 10 $10.67 $10.82 1.4% Single Piece Media Mail
  • 23. 23 Special Services Special Services Retail Electronic Prior to 01/21/24 New Rates 01/21/24 % Increase New Rates 01/21/24 New Rates 01/21/24 % Increase Certificate of Mailing $1.95 $2.00 2.6% Registered™ without Insurance $16.80 $16.80 0.0% Certified Mail™ $4.35 $4.40 1.1% Return Receipt $3.55 $3.65 2.8% $2.10 $2.32 10.5% Insurance $100 $3.45 $3.50 1.4% Insurance $500 $9.05 $9.15 1.1% Marketing Mail® parcels Tracking $0.26 $0.29 11.5% Signature Confirmation $4.05 $4.15 2.5% $3.25 $3.50 7.7% Annual Permit Fees $310.00 $320.00 3.2% Business Reply Mail Permit Fee $310.00 $320.00 3.2% Account Maintenance Fee $910.00 $930.00 2.2% Quarterly Fee $3,150 $3,200 1.6% Basic $1.05 $1.07 1.9% High Volume $0.130 $0.133 2.3% QBRM Basic $0.090 $0.091 1.1% QBRM High Volume $0.018 $0.019 5.6%
  • 24. 24 Certified Mail with Electronic Return Receipt (eRR) • Save $1.33 by switching to an electronic version.
  • 25. 25 Savings Strategies – Business Reply Mail • Have an inventory of all your Business Reply accounts. • Link in the USPS ACS system. • Validate that all accounts are being used. • Make sure accounts are set up at the right levels. • Monitor usage in monthly/quarterly reviews. • Significant savings by having accounts in the right program as you can see in the table. • Additional savings by having visibility to all USPS permit accounts for proper optimization. Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $320 $320 $320 $320 Annual Account Maintenance Fee $0 $930 $930 $930 Quarterly Fee $0 $0 $0 $3,200 Total Annual Fees $320 $1,250 $1,250 $14,050 Fee per piece $1.070 $0.133 $0.091 $0.019 Postage for 1 ounce mail $0.680 $0.680 $0.659 $0.659 Total cost - Fee and Postage $1.750 $0.813 $0.750 $0.678 Annual Cost by pieces 100 $495 $1,331 $1,325 $14,118 250 $758 $1,453 $1,438 $14,220 500 $1,195 $1,657 $1,625 $14,389 1000 $2,070 $2,063 $2,000 $14,728 2500 $4,695 $3,283 $3,125 $15,745 5000 $9,070 $5,315 $5,000 $17,440 10000 $17,820 $9,380 $8,750 $20,830 25000 $44,070 $21,575 $20,000 $31,000 50000 $87,820 $41,900 $38,750 $47,950 100000 $175,320 $82,550 $76,250 $81,850 250000 $437,820 $204,500 $188,750 $183,550 500000 $875,320 $407,750 $376,250 $353,050 1000000 $1,750,320 $814,250 $751,250 $692,050
  • 26. 26 How To Budget For This Increase Email: Makayla.miller@postaladvoc ate.com for a copy of this excel budgeting tool. Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First-Class Mail® Metered Letters 1 85% 3.0% 2 10% 2.2% 3 5% 1.8% Total 2.9% $0.00 $0.00 First-Class Mail® Flats 3% $0.00 $0.00 First-Class Mail® Automation Letters 2% $0.00 $0.00 First-Class Mail® Automation Flats 1% $0.00 $0.00 Certified with Return Reciept 3% $0.00 $0.00 Priority Mail® Express Retail 6% $0.00 $0.00 Priority Mail® Express Commercial 6% $0.00 $0.00 Priority Mail® Retail 7% $0.00 $0.00 Priority Mail® Commercial 7% $0.00 $0.00 Ground Advantage® Retail 5% $0.00 $0.00 Ground Advantage® Commercial 5% $0.00 $0.00 Marketing Mail® Letters 1% $0.00 $0.00 Flats 15% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00
  • 27. 27 What you need to do: If you have a mail machine, make sure you download the new rates before January 21, 2024 Here are links to the different meter vendors: FP: http://www.fp-usa.com/ratechange/ Quadient: https://www.quadient.com/resources/postal-rate-information Pitney Bowes: http://www.pitneybowes.com/us/postal-information/rate-change- info.html Stamps.com: https://blog.stamps.com/ Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 28. 28 USPS® Forced Meter Migration • The USPS® is decertifying all Information Based Indicia (IBI) compliant postage meters by June 30, 2024. New devices must be Intelligent Mail Indicia (IMI) compliant or will no longer be approved for use. Here is what you need to know: • Current IBI devices will need to be replaced with new devices and cannot be retrofitted • The USPS is doing this to provide a higher level of security and visibility to the mail pieces • Metering devices will need constant internet connectivity (vs. only at the time of refill) to be compliant • We estimate that 40-70% of the postage meters in the United States will not meet this new standard and will need to be replaced with potential supply chain issues based on chip shortages Value to the USPS® • Better automate their operations • Higher security specifications due to the rise in threats and challenges • Validate correct postage amounts • Issue refunds automatically through the device • Have more control over what mail is entering their network
  • 29. 29 Products Impacted The meter models requiring replacement and the associated timelines for replacement are shown below Please Note: The above chart is subject to change and what is known today. Please contact us or your vendor for final confirmation. Pitney Bowes Quadient (Neopost/Hasler) FP MailStation (K7**) IS/IM-280 Validate meters over 2 years old DM1**, DM2** (P7**, PL**, PR**) IS/IM-330, 350 DM3** (3C**) IN/IH-360 DM4** (4C**, 6C**) IS/IM-420, 430 C200, C300, C400 (1H00, 2H00) IN/IH-600 Hand Feed (HF) Infinity (Production Inserter Base Meter - 1M0T, 1R0T) Connect+ 1, 2 and 3000 (1W00, 4W00, MSF*) IS/IM440, 460, 480, 490 SendProP 1, 2 and 3000 (1W00, 4W00, MSF*) IN/IH600 (Auto Feed), 700, 750, 760 IS/IM5000, 6000 IJ-15k and WJ-Pro Meters that need to be replaced by 6/30/2024 Meters that need to be replaced by 12/31/2027 Meters that need to be replaced by 12/31/2026
  • 30. 30 Client Challenges with Migration • Network Connectivity – All meters need to be constantly connected • IT issues with meters on the network • Expensive meter vendor mobile connectors • Costs – Replacement like for like units will typically be more expensive • Creating visibility to the equipment that needs to be replaced across the enterprise. • Collecting the requirements for the new equipment. • Bidding the cost between vendors and models. • Implementing the new units • Returning old equipment • Refunding postage from the old units – Issue if you change vendors or account numbers. *Only 6 months to make this change – Potential supply chain issues – We estimate 350,000 devices need to be changed.
  • 31. 31 Creating Visibility 1. Obtain account numbers for your equipment and leases 2. Equipment models (to see if they match the list above) and serial numbers so you can gain access to the vendors web portals. 3. Contract expiration dates – Some of this equipment will be on leases or rentals that could expire in the future or be on evergreen agreements. 4. Mail volumes – It is important to know how much postage is being processed to better plan for rightsizing the future equipment. 5. Features needed – In the new solution, what is required for feeding, weighing, accounting etc. Methodology – Build a master inventory list • See if you have any reports or agreements provided by your mailing vendors. • Go to accounts payable and do a search of the main mailing vendor names. • Request copies of invoices from specific line items from the accounts payable reports to get a higher level of detail. • Create an account on the meter vendors website. You need to link an account number and a serial number for linkage. • Search the online account for postage usage, contract expiration dates (Available from Pitney Bowes Only) and equipment details. • Call the meter vendors for other visibility items required. Postal Advocate will build this list for any client with over 20 locations with equipment at no fee or obligation
  • 32. 32 Mail Solution Options Mail Equipment Model Types Category Online Postage Online Postage Enterprise Stand Alone Meter Automatic Mail Machine - Mid Volume Automatic Mail Machine with Internal Scale - Mid Volume Automatic Mail Machine with Internal Scale - High Volume Monthly Postage Range <$400 <$400 $100-600 $400-2,000 $2,000-5,000 $4,000-25,000 Monthly Piece Range <800 <800 200-1,200 800-4,000 4,000-10,000 8,000-50,000 Specifications Speed 15-45 80-120 130-160/70-100 with internal scale 160-300-160/100-200 with internal scale Thickness Capability local printer local printer Up to 3/8" Min.: .007"Max.: 5/16" Min.: .007" Max.: 5/8" Min.: .007" Max.: 3/4" Feeding Send to local printer Send to local printer Hand Feed Automatic Feed Automatic Feed w/internal weigh Automatic Feed w/internal weigh Sealing n/a n/a Some Models Included Included Included Scale 10LB Sold Separatly 5-10 LB 5-149 LB 5-149 LB 5-149 LB Accounting Unlimited Unlimited 10 to 50 25-3000 25-3000 25-3000 Accounting Type Std Web Accounting Web Accounting Web Accounting Typical Price Ranges $10-30 per mo $1-10 per month per location - One fixed fee for the enterprise $25-100 per mo $170-300 per mo $350-600 per mo $700-1300 per mo
  • 33. 33 Rightsizing Opportunities – 40-90% Cost Savings • Does the internal weighing systems and automatic feeding systems justify the costs based on your mail volumes? • Internal Weighing System Cost - $200-300 per month increase • Automatic Feeding Cost - $100-200 per month increase • Can you live with lower weight capacity scales because heavier items are typically going UPS®/FedEx ®or there are other scales that can be used onsite? • Standard scales – 5LB • Higher capacity scales – 10, 15, 30, 70 and 149LB – Can add $30-100 per month *Note – 150LB Electric non-integrated scale can costs $113 at your office supply store – See image. • Are all the features in the current mailing system being fully utilized? Examples: Mail Accounting, custom weighing, conveyor stackers, special services etc. • Can online postage be an option vs. low volume meters? There are 20% postage savings for parcels and can be expanded to UPS® and FedEx® processing. • If you have more than 10 locations, or work from home staff, can enterprise online postage options work for uniform processing and visibility across the enterprise.
  • 34. 34 Online Postage • Most common remote mailing solution • Subscription model • Print from any computer with an internet connection and a printer. • Postage stamps • Directly onto envelope (Along with destination and return address) • Stamp Sheets (Most common) – Purchased from online postage provider. • Vendor provided label printer • 4” x 6” - Shipping labels • Regular paper (To be taped to the item or use labelope) • Avery type labels (Purchased from office supply provider) • Inexpensive compared to postage meters and typical costs range from $10-30 per month. • Cloud-based and can be accessed from any device. • Easy to deploy and use – Within 7-10 days, you can receive your login credentials, a scale and starter labels. There are simple online tutorials to get you started quickly. • Visibility to all history and package tracking statuses. • Some systems have multiple carrier options to process UPS®/FedEx®/DHL® • Significant postage savings –some newer postage meters may come with an online postage subscription to get these rates. Mail Type Stamps Postage Meter Online Postage Savings % Savings 1 Ounce Letter $0.68 $0.64 $0.64 $0.04 6% 1 Ounce Certified Mail with Return Reciept $8.73 $7.36-8.69 $7.36 $1.37 16% Ground Advantage 4 OZ (Formerly 1st CL Parcel) $5.00-5.55 $5.00-5.55 $3.79-4.36 $1.19-1.21 21-24% Ground Advantage 8 OZ (Formerly 1st CL Parcel) $5.70-6.15 $5.70-6.15 $4.21-4.68 $1.47-1.49 21-23% Ground Advantage 15.99 OZ (Formerly 1st CL Parcel) $8.00-9.00 $8.00-9.00 $6.17-7.15 $1.83-1.85 26-36% Ground Advantage 5LB $10.75-21.65 $10.75-21.65 $7.94-13.88 $2.81-7.77 26-36% Ground Advantage 10LB $13.40-33.20 $13.40-33.20 $8.42-16.24 $4.98-16.96 37-51% Priority Mail 1LB $9.25-13.45 $9.25-13.45 $7.13-10.67 $2.12-2.78 21-23% Priority Mail 5LB $12.45-31.15 $12.45-31.15 $7.46-23.83 $4.99-7.32 23-40% Priority Mail 10LB $15.50-51.95 $15.50-51.95 $7.46-23.83 $8.04-28.12 52-54% Priority Mail Express 1LB $30.95-54.75 $30.95-54.75 $26.75-47.25 $4.20-7.50 14%
  • 35. 35 Why is it easier for a company to send an $15 Overnight item than a $.64 letter? • Use free carrier provided solutions • Simple to use and defined process across the organization • All users can ship from any location at any time o Includes home office and traveling users. • All charges are summarized by cost center and downloadable into an excel file for uploads • Multiple ways to process o Postage Meters - $30-1300 per month o Online Postage - $10-30 per month o End users purchasing Stamps at the Post Office at a 5-40% premium – (Cost to go to the USPS) o Courier mail to a hub location to process at $5-15 per pickup • No defined process across the organization • The location determines how mail gets processed based on purchased technology o The majority of locations will need to drive to the USPS® to purchase stamps and will not have the correct denominations for heavier items. • Limited visibility to postage spends. Fragmented process between vendors, petty cash and credit cards.
  • 36. 36 Enterprise Online Options – Fastest growth segment Enterprise Online Postage is the same as standard Online Postage with the main difference being how multiple locations can be controlled under a central administration license. This offers the following benefits: • Simplicity of onboarding new users • Reporting on all location and user activities from a central dashboard. • Managing billing for subscriptions, supplies and postage • Controlling user access (This includes removing users who are no longer active) • Single Sign On - Some systems have this option to link to an active directory to eliminate password management. • Platforms can be expanded to process UPS®, FedEx® and DHL® with real time rate shopping. • Certified Mail Capabilities • Electronic Return Receipts at $1.33 savings • Firm Mail Book creation • All signature files are automatically downloaded with a central repository to hold all information • If you have more than 10 locations using Online Postage, we recommend having them controlled through an enterprise license. Eliminate the need for low volume meters – 70% Savings!
  • 37. 37 Central Administration – Keys To Success With users spread out at different locations, working remotely and with different needs, how do you implement and manage these systems to ensure success? Postal Advocate Central Administration 1. Defining requirements 2. System implementation 3. Training 4. Onboarding users 5. Managing user access 6. Case and issue management 7. Monitoring usage 8. Reporting and chargback on key metrics 9. Quantifying savings 10.Expanding and promoting usage • Dedicated client specific landing page • Customized messages and links for common questions. • Pull down menu for common carrier requests • Once the case is submitted: • Email is sent to Postal Advocate to start the process • Email is sent to the requestor with a case number • Activity is created and notes are entered into their location record. • Resolutions are taken care of by Postal Advocate with communication to the location and closure to the activity. • All cases, activities, contacts and notes are stored for reporting and archiving.
  • 38. 38 Migration Planning & Implementation • Create your inventory report - Make sure it has contract end dates and spends for all equipment. • Document postage spends by location so you can properly right size. • Understand the features your locations need. • Compare pricing and features with multiple vendors. • Order the new solutions • Validate that the new solution is installed. • Remove the current systems. • Validate that the postage is recovered. • Make sure all locations across the enterprise are covered.
  • 39. 39 Ongoing Visibility and Control Important to keep a master list or database of all of your mailing equipment, contract terms, spends, invoices and postage balances for the following reasons: Ongoing Rightsizing Needs – Mail volumes will continue to go down and solutions will need to be resized. We average 56% and you can do the same with proper oversight. Invoice Validation – The vendors are not perfect billers and we have been able to recover $19 million for our clients and the key is reviewing every invoice against a master database and validating the charges with the end users. Postage Management – We have recovered $13 million for our clients in dormant postage. These are the places you need to look to find this money: •Overfunding the meters – Devices sitting with large balances •Prefunding accounts •Advance accounts Location Support – To make sure your offices have the best mailing options and support available. Manage Future Migrations – 2026 and 2027 requirements To offset future USPS price increases – Rate shave gone up 18- 38% over the last 19 months with two rate increases expected annually.
  • 40. 40 Helping multi-location organizations streamline their mailing costs Over 201,000 pieces of equipment, managed by Postal Advocate Recovered over $23,000,000 in lost postage, vendor Overcharges, and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $85,000,000 IN CLIENT SAVINGS $1.9M 56% Average Client Savings Average Equipment Savings HOW WE DO IT • 218+ 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)
  • 41. WE REPRESENT LEADING MULTI-LOCATION COMPANIES IN THESE INDUSTRIES Banking 8 of Top 15 Uniforms 3 of Top 4 Insurance 3 of Top 10 Pharmacy 1 of Top 2 Dairy 1 of Top 2 Utilities 2 of Top 10 Radio 1 of Top 3 Small Package Delivery 1 of Top 2 Scientific Instrument MFG 3 of Top 10 Kidney Dialysis Centers 1 of Top 2 Document Destruction 1 of Top 3 Outdoor Advertising 1 of Top 3 Food Manufacturing 1 of Top 2 Business Services 1 of Top 5 Long Term Care 2 of Top 10 Cable Providers 2 of Top 5 Higher Education 1 of Top 3 Pest Control 1 of Top 3 Paper Products 1 of Top 3 Title Insurance 1 of Top 2 Mutual Funds 1 of Top 5 OVER $85,000,000 IN CLIENT SAVINGS Commercial Real Estate 2 of Top 30 Accounting Services 1 of Top 3 Telecommunications 3 of Top 10 Health Clubs 1 of Top 3 Engineering Services 1 of Top 3 TV Networks 1 of Top 5 Auto Auctions 1 of Top 2 Average Client Savings 56% *Information found in Hoovers ranking on company revenue in a specific industry. 2016 Recovered over $23,000,000 in lost postage, vendor overcharges and fees visit www.postaladvocate.com or call (888)977-MAIL(6245)
  • 42. 42 No Cost or Obligation Portfolio Assessment • Create an inventory of all mailing equipment throughout the US. This includes contract terms, costs, postage spends, and vendor fees. • Provide visibility to what equipment needs to be replaced. • Develop a mail optimization plan that includes the following: o Rightsized mail plan that will typically reduce costs by over 50%. o Details on enterprise online postage platforms that can eliminate meters and provide mail access to all locations and users. o Reduced pricing on mailing equipment for the locations that still have needs. o Process plan that details how Ricoh can manage the transition and ongoing oversight. • Timeframe to complete – 30 days • Client Requirements o Sign our letter of authority letting us review your mailing equipment spend. o Provide any mail equipment reports (If available) o Run an accounts payable search for the last 12 months of the main mailing vendors: Pitney Bowes, Quadient (Neopost, Hasler, Mail Finance), FP, Stamps.com. o Provide a small sample of requested invoice copies. o Meet with us to review the results.