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2014 USPS PROPOSED RATE INCREASE

FACT SHEET
2014 USPS PROPOSED RATE INCREASE

FACTS

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
FACTS
Two increases were proposed
1. Consumer Price Index (CPIU) based
2. Exigency based

CPIU
•

Key Takeaways
• CPIU increase was approved November
2013, to go live in 2014.
• Exigency based is pending approval.
Deadline 12/25/2013.
• Postal Regulatory Commission (PRC)
has been affected by the government
shutdown, and may end up only
approving the consumer price index
increase request.
• Combined increases = 5.97%.

Approved 11/2013

•

In effect 2014

EXIGENCY
1. Pending PRC
approval.
2. Deadline 12/25/2013

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
2014 USPS PROPOSED RATE INCREASE

CONSUMER PRICE
INDEX (CPIU)

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
CONSUMER PRICE INDEX
An annual inflation-based increase that per each year. Overall Increase is 1.6%
across all classes of mail and mail services and fees. Both Domestic and
International rates will be affected.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
2014 USPS PROPOSED RATE INCREASE

EXIGENCY BASED
+ CPIU COMBINED

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
EXIGENCY BASED + CPIU
This one-time additional increase is due to losses suffered by the USPS during the
recession, and from consumer movement to online billing and payment. The Exigency
increase asks for an additional 4.3% across all classes of mail and mail services and
fees, on top of CPIU. Both Domestic and International rates will be affected.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
EXIGENCY BASED + CPIU
Exigency = 4.3% | CPIU = 1.6%

COMBINED INCREASE

5.97%
2014 USPS PROPOSED RATE INCREASE

FACT SHEET
EXIGENCY BASED + CPIU
This is a one time “emergency”
request to cover USPS losses of
$6.65 billion in 2012 alone.

WHY?.
Raise funds to cover
expenses

•

It is expected to raise $1.78 billion
that can potentially carry the USPS
until Congress makes fundamental
changes to the postal business by
enacting proposed cost-saving and
efficiency measures.

•

Operational
inefficiencies

•

Customer moving to
online bill pay

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
2014 USPS PROPOSED RATE INCREASE

WHAT TO DO NOW?

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
WHAT TO DO NOW?
Take a look at what you’re mailing today.

Consider:
• changing the size and shape of mail piece
• adding tracking to reduce follow-up
costs on returned payments
• rethinking how you use mail to
communicate with your customers

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
WHAT TO DO NOW?
In 2014, the USPS will offer several
promotional discounts.
• Qualifying mail gets a 2% discount off
postage
• Includes a 5 month promotion for 1st
Class statement and invoice mail that uses
dynamic full color marketing messaging.

By combining your marketing efforts with
statements and invoices into one mail
piece, customers can save on postage AND
production costs.

HOW?
Take advantage of the
5-month 2% discount.
Combine marketing
and operational
mailings.
Call Standard Register
for full color variable
high speed technology.
Save and still meet
deadlines.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
WHAT TO DO NOW?
Intelligent Mail Barcode tracking on reply mail
helps reduces time between your customer
mails in payment and payment received.
This means fewer collection calls,
more cost savings.
We even offer USPS approved double
postcard rebate checks for lawsuits and
refund programs. Our customers have saved
thousands in postage and production costs.

BOTTOM
LINE
•

Use Barcodes

•

Reduce time between
mailing and payment
receipt

•

Save money with
double postcard
rebate checks

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
2014 USPS PROPOSED RATE INCREASE

… THE GOOD NEWS

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
GOOD NEWS
BENEFITS
•

2nd ounce free is still
in effect

•

See success of 1st
class mail for
marketing

•

Be rewarded for
trying multiple
channels

•

Improve response
rates and tracking

The 2nd Ounce Free promotion
isn’t going away!
The Rate Increases will cover proposed
2014 USPS Promotions, that are aimed
at helping customers discover the
effectiveness of using 1st Class mail for
marketing, and to give customers an
incentive to try new cross channel
methods to improve customer response
rates and tracking—like adding QR codes
and Radio Frequency tags to mail.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
GOOD NEWS
Customers mailing using
pre-cancelled or permit postage
on single piece mail will enjoy a
penny per piece discount
under the new rate structure.
WHY?
It’s cheaper for the USPS to
verify postage payment on
permit postage.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
GOOD NEWS
Residual mail within a
presorted mailing will have the
2nd ounce ride free under the
new rate structure.

Every mailing has a few pieces
that fall out of the presort
scheme, so this means some
added costs savings there.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET
GOOD NEWS
Let’s Go
•

800-442-5254

•

StandardRegister.com

•

Twitter:
@SR_BizSolutions

•

Email >

Standard Register takes critical
communications seriously.
Our experienced postal experts, mail piece
designers, and solution architects are ready
to help improve the way you communicate
with your customers.

2014 USPS PROPOSED RATE INCREASE

FACT SHEET

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2014 USPS Proposed Rate Increase - Fact Sheet

  • 1. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 2. 2014 USPS PROPOSED RATE INCREASE FACTS 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 3. FACTS Two increases were proposed 1. Consumer Price Index (CPIU) based 2. Exigency based CPIU • Key Takeaways • CPIU increase was approved November 2013, to go live in 2014. • Exigency based is pending approval. Deadline 12/25/2013. • Postal Regulatory Commission (PRC) has been affected by the government shutdown, and may end up only approving the consumer price index increase request. • Combined increases = 5.97%. Approved 11/2013 • In effect 2014 EXIGENCY 1. Pending PRC approval. 2. Deadline 12/25/2013 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 4. 2014 USPS PROPOSED RATE INCREASE CONSUMER PRICE INDEX (CPIU) 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 5. CONSUMER PRICE INDEX An annual inflation-based increase that per each year. Overall Increase is 1.6% across all classes of mail and mail services and fees. Both Domestic and International rates will be affected. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 6. 2014 USPS PROPOSED RATE INCREASE EXIGENCY BASED + CPIU COMBINED 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 7. EXIGENCY BASED + CPIU This one-time additional increase is due to losses suffered by the USPS during the recession, and from consumer movement to online billing and payment. The Exigency increase asks for an additional 4.3% across all classes of mail and mail services and fees, on top of CPIU. Both Domestic and International rates will be affected. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 8. EXIGENCY BASED + CPIU Exigency = 4.3% | CPIU = 1.6% COMBINED INCREASE 5.97% 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 9. EXIGENCY BASED + CPIU This is a one time “emergency” request to cover USPS losses of $6.65 billion in 2012 alone. WHY?. Raise funds to cover expenses • It is expected to raise $1.78 billion that can potentially carry the USPS until Congress makes fundamental changes to the postal business by enacting proposed cost-saving and efficiency measures. • Operational inefficiencies • Customer moving to online bill pay 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 10. 2014 USPS PROPOSED RATE INCREASE WHAT TO DO NOW? 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 11. WHAT TO DO NOW? Take a look at what you’re mailing today. Consider: • changing the size and shape of mail piece • adding tracking to reduce follow-up costs on returned payments • rethinking how you use mail to communicate with your customers 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 12. WHAT TO DO NOW? In 2014, the USPS will offer several promotional discounts. • Qualifying mail gets a 2% discount off postage • Includes a 5 month promotion for 1st Class statement and invoice mail that uses dynamic full color marketing messaging. By combining your marketing efforts with statements and invoices into one mail piece, customers can save on postage AND production costs. HOW? Take advantage of the 5-month 2% discount. Combine marketing and operational mailings. Call Standard Register for full color variable high speed technology. Save and still meet deadlines. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 13. WHAT TO DO NOW? Intelligent Mail Barcode tracking on reply mail helps reduces time between your customer mails in payment and payment received. This means fewer collection calls, more cost savings. We even offer USPS approved double postcard rebate checks for lawsuits and refund programs. Our customers have saved thousands in postage and production costs. BOTTOM LINE • Use Barcodes • Reduce time between mailing and payment receipt • Save money with double postcard rebate checks 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 14. 2014 USPS PROPOSED RATE INCREASE … THE GOOD NEWS 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 15. GOOD NEWS BENEFITS • 2nd ounce free is still in effect • See success of 1st class mail for marketing • Be rewarded for trying multiple channels • Improve response rates and tracking The 2nd Ounce Free promotion isn’t going away! The Rate Increases will cover proposed 2014 USPS Promotions, that are aimed at helping customers discover the effectiveness of using 1st Class mail for marketing, and to give customers an incentive to try new cross channel methods to improve customer response rates and tracking—like adding QR codes and Radio Frequency tags to mail. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 16. GOOD NEWS Customers mailing using pre-cancelled or permit postage on single piece mail will enjoy a penny per piece discount under the new rate structure. WHY? It’s cheaper for the USPS to verify postage payment on permit postage. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 17. GOOD NEWS Residual mail within a presorted mailing will have the 2nd ounce ride free under the new rate structure. Every mailing has a few pieces that fall out of the presort scheme, so this means some added costs savings there. 2014 USPS PROPOSED RATE INCREASE FACT SHEET
  • 18. GOOD NEWS Let’s Go • 800-442-5254 • StandardRegister.com • Twitter: @SR_BizSolutions • Email > Standard Register takes critical communications seriously. Our experienced postal experts, mail piece designers, and solution architects are ready to help improve the way you communicate with your customers. 2014 USPS PROPOSED RATE INCREASE FACT SHEET