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2014 USPS Rate Change Webinar for Small Business - December 11, 2013

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The USPS® will announce price changes effective in January, 2014, which will undoubtedly affect postage and other fees associated with mail shipments. This webinar discusses the impact of the price change to letters and flats. Additionally, information will be shared to help you understand how to minimize the impact of these changes to your organization and review strategies to save money and increase efficiency.

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2014 USPS Rate Change Webinar for Small Business - December 11, 2013

  1. 1. January 2014 USPS® Price and Regulatory Changes for Mailing and Shipping Services Presented by: Janet Lockhart-Jones, Ed.D., MDC Curriculum Manager, Postal Education Pitney Bowes Inc.
  2. 2. Your presenter Dr. Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal education trainer, Subject Matter Expert (SME) and consultant to Pitney Bowes and its clients. Janet’s professional career includes 15+ years with the United States Postal Service and 10 years as an independent leadership development and learning consultant servicing the hi-tech industry. Janet holds the degrees of Doctor of Education, Master of Science in Human Resources Management and Bachelor of Science in Business. She is the Postal Education Chair of the Sacramento Postal Customer Council (PCC), a member of MSMA, and is a Certified Mailpiece Design Consultant (MDC). December 17, 2013
  3. 3. Session Objectives  Understand 2014 USPS® price and regulatory changes impacting the mailing industry  Walk-away from the session with greater clarity on how the 2014 proposed changes will affect your mailing operations  Understand the changes and opportunities that are available to reduce postage expenditures
  4. 4. Agenda WHAT’S INSIDE  Highlights, details, and cost saving strategies for:  First-Class Mail®  Special Services  Shipping/Competitive products  Pitney Bowes Resources
  5. 5. Classes of Mail Affected – Market Dominant First-Class Mail®  Single-Piece Letters & Cards  Presort Letters & Cards  Flats  Parcels  Outbound Single-Piece International Periodicals Special Services Standard Mail® Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass
  6. 6. Background Proposed Market Dominant Price Adjustments 1. Consumer Price Index-Urban (CPI-U) Price Proposal (PRC APPROVED w/Full-Service IMb™ Exception)  Average price increase of 1.69% 2. Exigent or Above-the-Cap Price Proposal (Under PRC review)  Renewed exigency request – Due to depressed economic conditions  Average price increase of 4.30%  Caveat: Board of Governors reserves the right to pull the exigent price increase if Congress acts on postal reform legislation 1.69% CPI + 4.30% Exigent = 5.99% overall average increase Proposed Shipping Services/Competitive Products Price Adjustment) (Filed, Awaiting Final PRC decision)  Overall price increase is 2.4%
  7. 7. NEW: First-Class Meter Rate Save 1¢ on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps 47 46 No piece minimums No preparation requirement No requirement to report those pieces on a postage statement The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new “Meter Price” will have postage applied  directly to the pieces, and will be deposited as “Retail mail”.
  8. 8. First-Class Mail® Change Highlights  Retail First-Class Single-Piece one-ounce letter increase − CPI from .46 to .47 cents − Exigency from .46 to .49 cents (if approved)  The USPS® continues to price AADC and 3-Digit Letters and Cards at the same level  Second-ounce free continues for all Presort First Class Mail letters (Non-automation and Automation)  Full-Service Intelligent Mail® barcode $.003 incentive maintained  Full-Service Intelligent Mail mandate – not approved; delayed until after 2014
  9. 9. Special Services Change Highlights 1 Certificate of Mailing Basic Firm Book Mailing Bulk: First 1,000 pcs Each Add’l 1,000 pcs CPI Price $1.25 0.45 7.50 0.90 CPI + Exigent Price $1.30 0.47 7.80 0.95 Certified Mail $3.15 $3.30 Return Receipt Requested at time of mailing Electronic Green Card Merchandise Requested after mailing $1.30 2.60 4.20 5.05 $1.35 2.70 4.40 5.25
  10. 10. Special Services Change Highlights 2 USPS Tracking First Class Mail (Parcels Only) First Class Mail (Parcels Only) First Class Package Service Priority Mail Priority Mail Standard Post Standard Mail Parcels Package Services Package Services Parcel Select Electronic Retail Electronic Electronic Retail Electronic Retail Electronic Retail Electronic Electronic Signature Confirmation Electronic Retail CPI Price $1.00 0.22 1.00 0.22 CPI Price $2.25 2.80 CPI + Exigent Price $1.05 0.00 0.00 0.00 0.00 0.00 0.23 1.05 0.23 0.00 CPI + Exigent Price $2.35 2.90
  11. 11. Key Details
  12. 12. First-Class Mail® Retail  Letters (1 oz.)  $0.46 to $0.47 CPI  $0.47 to $0.49 Exigent  Letters additional ounces  $0.20 CPI  $0.21 Exigent  First –Class Mail® International Global Forever Stamp (1 oz.) – $1.10 to $1.15  First Class Postcards  $0.33 CPI  $0.34 Exigent Price change
  13. 13. Key First-Class Mail® Single-Piece Prices Current Price CPI Price CPI + Exigent Price Stamp Price 0.46 0.47 0.49 Meter Price 0.46 0.46 0.48 Single-Piece Flats 0.92 0.94 0.98 Single-Piece Cards 0.33 0.33 0.34 Retail Parcels 2.07 2.23 2.32
  14. 14. NEW: First-Class Meter Rate Save 1¢ on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps 47 46 No piece minimums No preparation requirement No requirement to report those pieces on a postage statement The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new “Meter Price” will have postage applied  directly to the pieces, and will be deposited as “Retail mail”.
  15. 15. First-Class Mail® Retail Parcels  First 3 ounces in each FCM parcel category still a single price cell  $.17 additional ounce price after 3 ounces (CPI) $0.18 Exigent PARCELS Oz. 1 2 3 4 5 6 7 8 9 10 11 12 13 Current 2.07 2.07 2.07 2.24 2.41 2.58 2.75 2.92 3.09 3.26 3.43 3.60 3.77 CPI 2.23 2.23 2.23 2.40 2.57 2.74 2.91 3.08 3.25 3.42 3.59 3.76 3.93 Exigent 2.32 2.32 2.32 2.50 2.68 2.86 3.04 3.22 3.40 3.58 3.76 3.94 4.12
  16. 16. Promotions Overview Mobile Technology Promotions Encourages mailers to integrate direct mail with mobile technology using best practices in mobile marketing  Branded Color Mobile Technology  Emerging Technology Featuring NFC Promotion  Mail Drives Mobile Commerce Promotion Technology Drives Relevance Leverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns  Color Print in First-Class Mail Transactions Promotion  Mail and Digital Personalization Promotion
  17. 17. Promotions Overview Leverage Value of First-Class Mail Intended to slow the volume decline in First-Class Mail by ensuring reply mail, transactional mail and First-Class advertising remain a relevant part of the First-Class Mail marketing mix  Premium Advertising Promotion  Earned Value Promotion New Customer Acquisition Provides an extra incentive for new customers to try direct mail  EDDM Coupon Promotion
  18. 18. Branded Color Mobile Technology Promotion Registration opens December 15th – March 31st Promotion Period: February 1 – March 31st, 2014 2% upfront discount Enterprise Learning & Development December 17, 2013 18
  19. 19. Promotions Details
  20. 20. IMb® Full- Service Mandate Beginning in January 2014, the USPS® is requiring mailers receiving automation discounts to be Full-Service IMb™ compliant. Full Service Intelligent Mail® was proposed to REQUIRED for:  Postcards (First-Class Mail® only)  Letters, and flats when mailed using:  First-Class Mail®  Standard Mail®  Periodicals®  Flats mailed at Bound Printed Matter® prices
  21. 21. Agenda WHAT’S INSIDE  Highlights, details, and cost saving strategies for:  First-Class Mail®  Special Services  Shipping/Competitive products  Pitney Bowes Resources
  22. 22. Shipping Services - Classes of Mail Affected          Priority Mail Express™ Priority Mail® First-Class Package Service™ Parcel Select® Standard Post™ Extra Services Return Services Mailer Services Recipient Services
  23. 23. Competitive Services Average increases Product Priority Mail Express Priority Mail Average Increase 3.0% Net 0% First Class Pkg Services 5.0% Parcel Select 9.2% Standard Post 5.2%
  24. 24. Shipping Services Change Highlights • Priority Mail® - Average net ZERO price increase in Retail and CBP • New Priority Mail Express™ 10:30 a.m. delivery time option for an additional $5.00 • New Flat Rate Commercial Base and Commercial Plus prices for Priority Mail Express International and Priority Mail International • A fee of $0.20 assessed on commercial parcels without an Intelligent Mail Package Barcode (IM®pb)
  25. 25. Key Details Shipping Services ***All Changes are Proposed until Approved***
  26. 26. Priority Mail Express™  Overall average price increase of 3%  Pricing by Zone, Retail, Commercial Base and Commercial Plus continues  Retail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope is increasing from $19.95 to $19.99.  Flat Rate Box price is increasing from $39.95 to $44.95.  Commercial Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6%  Eliminate 12:00 Noon delivery for items to Addressee  Optional 10:30 am delivery for a fee of $5.00.
  27. 27. Priority Mail®  Overall average net zero (0%) price increase.  Many Priority Mail Flat Rates are NOT changing. Exception: Large Flat Rate Box is increasing from $16.85 to $17.45.  Commercial Base pricing increasing an average of 2.9%. Commercial Plus increased to an average of 0.6%  Commercial Plus and Commercial Plus Cubic volume thresholds being lowered to 50,000 pcs  Free USPS Tracking and $50 insurance continues with Retail or IMpb compliant barcode. Up to $100 of insurance for Commercial Plus
  28. 28. Intelligent Mail Package Barcode (IM®pb)  Required on ALL Commercial Parcels/Packages  $0.20 per piece surcharge for pieces failing to meet the January 26th standards for IM®pb use and falling outside established thresholds.  Meter customers are EXEMPT from the surcharge; they have until January 2015 to adopt an IM®pb compliant solution. After this date, retail prices apply.  Label 400 (existing) or a retail tracking IM®pb complaint barcode will still be accepted from meter customers throughout 2014.  pbSmartPostage and SendSuite are IM®pb enabling solutions for meter mailers
  29. 29. Summary  CPI price proposal for Market Dominant Products  The new Meter Rate category will afford meter customers a one-cent discount off First-Class stamped letters.  Shipping Services/Competitive Products proposal filed with the PRC.  No PRC decision yet on the Exigent Price Proposal  Electronic Return Receipt (ERR) is 1/2 the cost of the retail RR green card. Other electronic confirmation services are lower than traditional or free!  Meter customers who ship must adopt an IM®pb compliant solution to continue to get the best pricing. pbSmartPostage™ , offered through December at no cost to new meter clients, is ideal for small business mailers. Talk to a Pitney Bowes representative today.
  30. 30. USPS® news sources you can rely on http://www.pb.com/ December 17, 2013
  31. 31. USPS® news sources you can rely on http://www.pb.com/postal-information/ December 17, 2013
  32. 32. USPS® news sources you can rely on http://blogs.pb.com/usps-news/ December 17, 2013
  33. 33. THANK YOU. We appreciate your business

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