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Postal Advocate Capabilities- Top 10 Ways To Save on Postage with the Upcoming Rate Change

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Postal Advocate has the expertise and technology to help companies manage their shipping and mailing processes and look for best practices to optimize operations and reduce spending. We have developed a business model that provides visibility of mailing equipment and spends across organizations resulting in an average client savings of 59% and over $63 million in client savings, fees, and lost postage.

With the upcoming USPS® rate change, at this session we shared savings tips and showed you how we became the leading manager of the largest mailing fleets in the US and Canada and how we can help your company drive savings and gain visibility.

Items We Covered:
1. Shipping and Mailing Visibility
2. Process for Validation of Spends
3. Account Management Process
4. Equipment Savings Process
5. Supplies Strategies
6. Eliminating Vendor Fees and Overcharges
7. Recover Lost Postage from Dormant Accounts
8. PC Postage
9. Web Portal and Reporting
10. Free No Obligation Mailing Analysis

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Postal Advocate Capabilities- Top 10 Ways To Save on Postage with the Upcoming Rate Change

  1. 1. Name (18pt) Title (14pt) Top 10 Ways to Save on Postage with the Upcoming Rate Change Lynsie Murphy Account & Business Development Manager
  2. 2. Lynsie Murphy- Background and Experience • Account & Business Development Manager at Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of over 150,000 pieces of mailing and shipping equipment for the largest US companies. • Over 5 years of account management experience with a proven track record of success and exceeding targets. January 14, 2021 2 Not affiliated with any mailing vendor - Unbiased advice. Lynsie.Murphy@postaladvocate.com
  3. 3. What We’ll Cover 1. Shipping and Mailing Visibility 2. Process for Validation of Spends 3. Account Management Process 4. Equipment Savings Process 5. Supplies Strategies 6. Eliminating Vendor Fees and Overcharges 7. Recover Lost Postage from Dormant Accounts 8. PC Postage 9. Web Portal and Reporting 10.Free No Obligation Mailing Analysis January 14, 2021 3
  4. 4. Upcoming USPS® Rate Change January 14, 2021 4 • New rates take into effect Sunday January 24, 2021 • Metered mail (including PC Postage) will save $.04 per piece over stamps purchased from the Post Office Savings over First-Class Mail® Retail @ $.55 each Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $0.500 $0.510 2.0% 2 $0.650 $0.710 9.2% 3 $0.800 $0.910 13.8% Letters Metered Letters Annual Postage # of Pieces @ $.51 each Savings @ $.04 Each $1,000 1,961 $78.43 $2,000 3,922 $156.86 $10,000 19,608 $784.31 $100,000 196,078 $7,843.14 $1,000,000 1,960,784 $78,431.37 First-Class® Mail Metered Savings
  5. 5. How To Budget For This Increase January 14, 2021 5 Email: Makayla.Miller@postaladvocate.com for a copy of this excel budgeting tool. Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First Class Metered Letters 1 85% 0% 2 10% 0% 3 5% 0% Total 0.00% $0.00 $0.00 First Class Flats 14% $0.00 $0.00 First Class Parcels - Retail 3% $0.00 $0.00 First Class Parcels - Commercial 2% $0.00 $0.00 First Class Automation Letters 100% 2% $0.00 $0.00 First Class Automation Flats 14% $0.00 $0.00 Certified with Return Reciept 2% $0.00 $0.00 Priority Mail Retail 6% $0.00 $0.00 Priority Mail Commercial 4% $0.00 $0.00 Marketing Mail Letters 2% $0.00 $0.00 Flats 3% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00
  6. 6. What you need to do: If you have a mail machine, make sure you download the new rates before January 24, 2021 when the rates go into effect 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/2020/10/19/usps-announces- 2021-postage-rate-increase-for-mailing-services/ Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index January 14, 2021 6 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  7. 7. Helping multi-location organizations streamline their mailing costs Over 150,000 pieces of equipment, managed by Postal Advocate Recovered over $20,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $63,000,000 IN CLIENT SAVINGS $1.9M 59% Average Client Savings Average Equipment Savings HOW WE DO IT • 220+ 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)
  8. 8. 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
  9. 9. Mailing Spend Visibility • Most organizations lack complete information on their mailing spends including: – Equipment Inventory – Model, Serial Number, Description, Install Dates – Lease Details – Contract Number, Term, Amount, Items Covered and End of Lease Dates – Postage Spends – How much postage does each site use and what are the balances sitting in prepaid and advance accounts. – Other Mailing Costs – Meter Rental, Maintenance, Rate Change, Supplies. – Avoidable Fees – Late Fees, Finance Charges, Equipment Insurance, Loyalty Programs, Transaction Frees, Reset and Advance Fees • Lack of detail leads to significant overspending. Our average savings is 59% because we are managing this detail • Most organizations are spending thousands in fees and overcharges unknowingly. • Lack of controls lead to lost postage. • The Financial Accounting Standards Board (FASB) has established new lease rules (ASC 842) that require companies to record operating leases on the balance sheet as a liability vs. only declaring the expense on the income statement. – Must include the full future discounted value of the remaining lease obligations. – Public companies – Started 12/15/18 – Non Public companies – Starts 12/15/19 – Will require that you have full visibility to all leases January 14, 2021 10
  10. 10. January 14, 2021 11 STEP 1 RAW DATA Provide any current mailing vendor reports and or an export from your accounts payable system of the transactions paid to the main mailing vendors (We will provide the list of vendor names). STEP 2 STEP 3 RESEARCH Postal Advocate will work with your vendors, enter data into vendor websites, collect postage volumes and fill in all needed information. ANALYSIS Full analysis of equipment savings, fees, overcharges and lost postage. This includes details on the current portfolio, leases and equipment utilization. STEP 4 CONSOLIDATION We will create a detailed equipment inventory, add end of lease dates, postage volumes, lease spend, fees, and spend ratios to provide complete visibility. SAVINGS SUMMARY Quantify the current and future savings. This process has created an average of 59% cost reductions for our clients. Ongoing visibility through our enterpriseAdvocate™ web platform. VISIBILITY STEPS TO VISIBILITY
  11. 11. enterpriseAdvocate™ – Multi Location System - Dashboard January 14, 2021 12 The data above is for demonstrative purposes only. Data does not represent true spends and costs.
  12. 12. enterpriseAdvocate™ – Multi Location System - Dashboard January 14, 2021 13 Highlights • Simple access to all mail spends. • Visibility to fees and savings. • All account numbers are stored in one place. • Simple to drill down to an individual location or invoice. The data above is for demonstrative purposes only. Data does not represent true spends and costs. Spend Ratio What are we spending on the equipment compared to the postage used.
  13. 13. enterpriseAdvocate™ – Location View January 14, 2021 14
  14. 14. Validate Equipment Spends with Locations We typically find 5-15% of a mailing fleet is not needed and can be returned. • Bills often sent to accounts payable with limited review. • Locations not surveyed about the equipment at the location. • Little understanding of the equipment listed on bills and reports. • Vendors have little incentive to validate suspect equipment because of lost revenue. • Equipment may be sitting in storage with charges accruing. January 14, 2021 15 Criteria for Validation: • Meters not filled for over 6 months. • Expired leases. • Maintenance and meter rentals. • Equipment over 5 years old. • Folders, inserters, openers, shipping and tracking systems.
  15. 15. Postal Advocate Validation Process January 14, 2021 16 1. Find suspect equipment and charges. 2. Contact the location to validate needs. (See below). 3. Implement changes and cancellations.
  16. 16. Account Management Process January 14, 2021 17 • Upcoming Renewals and Potential Savings Opportunities – Reach out to the location and set up time to go over requirements • Send options to the location for review • Answer any questions they may have • Follow up on selection • Once the decision is made, Postal Advocate will contact the vendor and request paperwork • If we are switching vendors, we will also put together the cancellation notification for sign-off and processing • Send the paperwork to the signer for final review and sign-off • Submit the signed agreement to the vendor for processing • Follow up on delivery • Follow up with the location on the delivery and installation • Confirm that the old machine has been picked up or returned • Answer any questions or concerns
  17. 17. Equipment Savings Process January 14, 2021 18 Customized Renewal Email Postal Advocate Equipment Savings Stats Implement renewals, terminations and new equipment needs. Analyze current pricing and terms. Set Standardized equipment rates and updated MSA’s. Work with locations to define needs and show options. 1 2 3 4 5 Document all new equipment, savings and notes.
  18. 18. Renewal Email January 14, 2021 19 Detailed Location Information Company Defined Purchasing Process. Compare Current Equipment and Costs to new options. Detailed description on all equipment. Web, PDF and Video links for more information.
  19. 19. Step 2: Equipment Change Request Form January 14, 2021 20
  20. 20. Step 3: Equipment Ordered Validation with Instructions January 14, 2021 21
  21. 21. Step 4: Client Validates Completed Request January 14, 2021 22
  22. 22. Eliminate Mailing Vendor Avoidable Fees January 14, 2021 23 Monitor future invoices to validate they do not return. Create online accounts on the vendors websites. Link every location, account, meter and postage refill. Document all savings and notes. Identify avoidable fees and develop plans for their removal. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 While simplifying the billing and payable process Postage Refill Fees - Rentals $0-20 each Postage Advance Fees Included or up to 1% of the Advance Postage Advance Late Fees 0-15% of the Advance Postage Advance Finance Charges 15% or higher APR Overlimit Credit Charge Varies by Vendor Annual Fee Rewards Program Varies by Vendor Lease Late Fees Varies by Vendor and Lease Value Insurance - Leases Only Varies by Vendor and Lease Value - Automatic enrollment unless proof insurance is provided. Mailing System Fees Postal Advocate Avoidable Fees Savings Stats
  23. 23. Eliminate Mailing Vendor Overcharges January 14, 2021 24 Continue to monitor future bills looking for overcharges. Document all savings and notes. Identify transactions being overcharged. Format requests for refunds/credits. Validate refunds have been received. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 We look at every invoice to make sure you are paying the correct rates. Typical Vendor Overcharges Invoices notgiving national accountdiscounts. Meter,maintenanceand ratechangecharges when included on a lease. Bills for equipmentfromclosed sites. Resetand advancepostagefees thatshould beincluded. Loyalty points thatgo undredeemed or cashed in for personal use. Postal Advocate Credit/Overcharges Savings Stats
  24. 24. Recover Lost Postage from Dormant Accounts January 14, 2021 25 Validate that funds have been received back. Document all savings and notes. Create online visibility to every postage account and refill. Format vendor requests to validate funds. Fill in refund request forms. ✓ ✓ ✓ ✓ ✓ 1 2 3 4 5 We track down postage from terminated or forgotten meter accounts. We have found almost $6,000,000 in the last 24 months mostly residing with the mailing vendors.
  25. 25. PC Postage – Fastest growth segment of the mailing industry • 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 10-15 business 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® • Significant postage savings –some newer postage meters may come with a PC Postage subscription to get these rates. (Some newer mailing systems include PC Postage to get these discounts). January 14, 2021 26 Mail Type Stamps Postage Meter PC Postage Savings % Savings 1 Ounce Letter $0.55 $0.50 $0.50 $0.05 9% 1 Ounce Certified Mail with Return Reciept $6.85 $5.60-6.80 $5.60 $1.20-1.25 18% 5 Ounce First Class Parcel $4.39-4.81 $4.39-4.81 $3.18-3.63 $1.18-1.21 25-28% 10 Ounce First Class Parcel $5.19-5.66 $5.19-5.66 $3.82-4.33 $1.33-1.37 23-27% 15 Ounce First Class Parcel $7.35-12.20 $7.35-12.20 $4.94-5.53 $2.41-6.67 33-55% Priority Mail 1LB $7.35-12.20 $7.35-12.20 $6.95-9.91 $.80-2.29 4-19% Priority Mail 5LB $9.80-34.80 $9.80-34.80 $7.81-28.84 $1.99-5.96 17-25% Priority Mail 10LB $13.10-59.90 $13.10-59.90 $9.38-50.38 $3.72-9.52 16-40% Priority Mail Express $25.60-56.10 $25.60-56.10 $22.74-49 $2.86-7.10 11-13% Prices lower than available through postage meters.
  26. 26. PC Postage • Most common remote mailing solution • Subscription model • Print from any computer with an internet connection and a 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) – Postage stamps • Directly onto envelope (Along with destination and return address) • Stamp Sheets (Most common) – Purchased from PC Postage provider • Vendor provided label printer January 14, 2021 27
  27. 27. Cloud-Based Enterprise Options – PC Postage Enterprise PC Postage is the same as standard PC 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. • If you have more than 10 locations using PC Postage, we recommend having them controlled through an enterprise license. January 14, 2021 28
  28. 28. Postal Advocate No Risk Savings Model We will do a detailed no cost or obligation analysis outlining savings potential Fee Options Essentials – 35% of Savings Premium – 45% of Savings Premium Plus – Contracted Management Fee All Options Receive – Detailed savings statements and invoices documenting each transaction. – Online visibility to all savings and fees. – No cost web based inventory management system. January 14, 2021 29
  29. 29. Free No Obligation Mail Analysis • Completed in 2-3 weeks • Outlines, spend and specific savings opportunities • Minimal customer involvement January 14, 2021 30 Savings Summary # of Sites Meter Rentals Maintenance Agreements On Call Maintenance Lease Total Postage Spend Ratio 0.00 Item Current Year 1 Year 2 Year 3 Year 4 Combined Savings Equipment Costs Avoidable Fees (Late Fees, Finance Charges, Equip Insurance, Loyalty Plans) Contract Violations and Overcharges (Supply, maitnenance and meter discount, returned equipment) Lost Postage Total Savings
  30. 30. What we need for the mail analysis: 1. Letter of Authority – Giving us the approval to research your mailing spends. 2. Any mail equipment reports you may have – Current or Historical. 3. Accounts Payable Export of Mailing Vendor Transactions – Postal Advocate will provide a listing of vendor names. 4. Providing PDF copies of specific invoices requested from the Accounts Payable Export – We will try to limit this. 5. Meet with us to review the results January 14, 2021 31
  31. 31. Summary ✓ Visibility: We will provide you a web dashboard to all mail spends, applications and pricing. ✓ Savings: We will be monitoring your account looking for savings in equipment and fees. ✓ Recovery: We will find and recover any lost funds or overpayments from dormant/orphaned accounts. ✓ Simplicity: We will make mail related spends easy to manage. ✓ Support: We represent the best in the industry and will act as your advocate on all mail related questions. ✓ Risk Free: You only pay us when we can document specific savings. January 14, 2021 32
  32. 32. January 14, 2021 33

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