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Understanding USPSService Changes & HowThey Impact YourBusinessA Practical Guidefrom Pitney Bowes                    Under...
Your presenter                 Dana Wagner, Manager of Customer                 Education, began his Pitney Bowes career i...
On the minds of every business that relies on mail as part of itsoperations:                    What are the U.S. Postal ...
USPS Changes• Pricing Changes• Program Changes• Service Level Changes                          Understanding USPS Service ...
USPS Pricing Changes                 Understanding USPS Service Changes                                                   ...
Market-dominant products:             Competitive products   First-Class Mail®,                   Priority Mail®   Peri...
Effective as of January 22, 2012Highlights:                                            Change:   First-Class Mail® Letter...
Price change for all Shipping Services- + 4.6%Priority Mail- avg + 3.1%:      Updated domestic pricing for Priority Mail®...
Postal Changes2nd ounce “free” presorted & automation First-Class Mail® lettersGood news! Most commonly used for business...
Postal ChangesFirst-Class Parcels Retail First-Class Mail®          Same Price for the first 3 ounces!New Class: Commercia...
USPS Program Changes                Understanding USPS Service Changes                                                    ...
Postal Changes        ™    IMb required for automation discountsJanuary 28, 2013                 ®    Intelligent Mail ba...
USPS Summer Sale Program Period: July 1 through August 31, 2012 Discount Amount: 2% of eligible postage. IMb Requiremen...
Picture Permit Imprint Indicia The permit imprint standards allows mailers to   include a color image of a business-relat...
USPS Service Level Changes                 Understanding USPS Service Changes                                             ...
Postal ChangesNo Saturday Delivery Five-day-a-week delivery (proposed) No delivery or picked up on Saturdays to homes or...
Postal ChangesPost Office closures and service reductions Postal Service backed off closure of post offices nationwide M...
Postal Changes Central Facility Closures The United States Postal Service announced  May 17 that it would begin consolida...
Postal ChangesTimelines & LogisticsLargest impact = mail may take longer for mail to be deliveredEveryday users of First-C...
Understanding USPS Service Changes                                     June 15, 2012   20& How They Impact Your Business
•Choosing the best class of service•Choosing the right Extra Service•Redesigning mail-pieces•Leveraging automation pricing...
Postal ChangesBest PracticesSelect the Right Class of MailHelp reduce postage expenditures: Non-personal mail pieces -> c...
Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives    Proof of Mailing?    Proof of...
Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives    Proof of Mailing?    Proof of...
Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives    Proof of Mailing    Proof of ...
Postal ChangesBest PracticesRedesign - Envelopes to Cards Targets First-Class Mail® price increase Redesigning envelope ...
Postal ChangesBest PracticesRedesign – Flats to Letter-sizeMay reduce postage up to 40%!Tips to redesign: Duplex pages U...
Postal Changes Best PracticesRedesign – Flats to Letter-size (continued)    Quantity                                      ...
Postal ChangesBest PracticesRedesign – Parcels to FlatsMay save up to 30% on postage costs!Tips: flats must be rectangula...
Postal Changes Best PracticesAutomate for Cost-Efficient Processing Prepare as much automation-compatible mail as possibl...
Postal ChangesBest PracticesUse “2nd Ounce Free” forTrans-promotional marketingPresorted & Automation First-ClassMail® let...
Postal ChangesBest PracticesTrack for VisibilityKnowledge = EfficiencyTrack using Intelligent Mail barcode(IMb) Visibilit...
Responding to timelines & logistics changes Talk to Comptroller, CFO, CEO Discuss impact on Days of Sales Outstanding an...
Front-end ProcessingUsing the correct address iscriticalTwo parts to address quality   Physical portion of   address   ...
Front-end ProcessingIndividual, business or familycomponentU.S. Postal Serviceapproved Move Updatesolutions:     Ancillar...
Postal Changes  ResourcesCreate “shortcuts” in your browser forthese sites! USPS -      Postal Explorer®http://pe.usps.g...
Postal ChangesBest Practices Anticipate changes in your  processes Leverage technology Seek efficiency and cost effecti...
What Does Pitney Bowes Do?                        Document Binding      CASS Software with                           Solut...
Thank you!   Questions?Please Contact us at  1-800-322-8000             Understanding USPS Service Changes                ...
Every connection is a new opportunity™The Corporate logo, SendSuite, and Pitney Bowes are trademarks owned by Pitney Bowes...
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Understanding USPS® Service Changes & How They Impact Your Business

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A 2012 practical guide from Pitney Bowes. This presentation covers USPS® pricing, program and service level changes.

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Understanding USPS® Service Changes & How They Impact Your Business

  1. 1. Understanding USPSService Changes & HowThey Impact YourBusinessA Practical Guidefrom Pitney Bowes Understanding USPS Service Changes June 15, 2012 1 & How They Impact Your Business
  2. 2. Your presenter Dana Wagner, Manager of Customer Education, began his Pitney Bowes career in Seattle in 1982 and held increasingly responsible sales and management positions in the US marketing organization. For the past 7 years he has been a part of the Corporate Learning and Development organization. Dana is currently responsible for the award winning Mail Management Seminar series and other client centered carrier and product education programs. Understanding USPS Service Changes June 15, 2012 2 & How They Impact Your Business
  3. 3. On the minds of every business that relies on mail as part of itsoperations:  What are the U.S. Postal Service changes?  What does it mean for me?  How do I plan for the changes? Understanding USPS Service Changes June 15, 2012 3 & How They Impact Your Business
  4. 4. USPS Changes• Pricing Changes• Program Changes• Service Level Changes Understanding USPS Service Changes June 15, 2012 4 & How They Impact Your Business
  5. 5. USPS Pricing Changes Understanding USPS Service Changes June 15, 2012 5 & How They Impact Your Business
  6. 6. Market-dominant products: Competitive products First-Class Mail®,  Priority Mail® Periodicals,  Express Mail® Standard Mail®,  First-Class Package Service™ Single-piece Parcel Post®,  Parcel Select®, Media Mail®,  Lightweight Parcel Select® Bound Printed Matter,  International services Library Mail,  Global Express Guaranteed® First-Class Mail® International  Express Mail International® most Extra Services  Priority Mail International®  International Priority Airmail™  International  Surface Air Lift®  Airmail M-bags Understanding USPS Service Changes June 15, 2012 6 & How They Impact Your Business
  7. 7. Effective as of January 22, 2012Highlights: Change: First-Class Mail® Letters (1 oz.) +1 ¢ (44¢ to 45¢) Letters additional ounces unchanged (20¢) Postcards +3 ¢ Letters to Canada or Mexico (1 oz.) +5 ¢ Letters to other int‟l destinations (1 oz.) +7 ¢ Understanding USPS Service Changes June 15, 2012 7 & How They Impact Your Business
  8. 8. Price change for all Shipping Services- + 4.6%Priority Mail- avg + 3.1%:  Updated domestic pricing for Priority Mail®  New Regional Rate Box CExpress Mail- avg + 3.4%:  Lower Express Mail retail prices for ½ lb. and 1 lb. packages to local and close destinations  Lower Express Commercial Base prices: 5% on average  New Flat Rate Box Understanding USPS Service Changes June 15, 2012 8 & How They Impact Your Business
  9. 9. Postal Changes2nd ounce “free” presorted & automation First-Class Mail® lettersGood news! Most commonly used for business invoicing & direct mail Opportunities to advertise new services and products to their customers as part of bill and statement mailings. Understanding USPS Service Changes June 15, 2012 9 & How They Impact Your Business
  10. 10. Postal ChangesFirst-Class Parcels Retail First-Class Mail® Same Price for the first 3 ounces!New Class: Commercial First-Class Package Service™ Higher volume lightweight package shippersCommercial Base:•13 ounce max weight•Non-personal content only- OPEN to USPS™ inspection!•Postage paid using PC Postage, an IBI meter, or a permit imprint•At least 500 Presorted parcels per mailingCommercial Plus:•Up to 15.999 ounces- „sweet spot‟ over 13 ounces•Personal and non-personal items- Closed to USPS inspection!•Postage paid though permit imprint advance deposit account•At least 500 Presorted parcels per mailing or single-piece mailings need at least 200 pieces or 50 lbsper mailing.•Requires a customer commitment agreement with USPS® to mail more than 5,000 Commercial First-Class Package Service machinable parcels in a calendar year. Understanding USPS Service Changes June 15, 2012 10 & How They Impact Your Business
  11. 11. USPS Program Changes Understanding USPS Service Changes June 15, 2012 11 & How They Impact Your Business
  12. 12. Postal Changes ™ IMb required for automation discountsJanuary 28, 2013 ® Intelligent Mail barcode (IMb™) required for automation letters and flats, Permit Reply Mail and Qualified Business Reply Mail (QBRM) price eligibility Each mail piece must have an IMb™January, 2014- proposed ® Full Service Intelligent Mail compliance Unique IMb™ for mailpieces and handling units Electronic submission of postal documentation Electronic scheduling of drop shipments Understanding USPS Service Changes June 15, 2012 12 & How They Impact Your Business
  13. 13. USPS Summer Sale Program Period: July 1 through August 31, 2012 Discount Amount: 2% of eligible postage. IMb Requirements: Mailings of automation letters or flats must have Intelligent Mail® barcodes. Eligible Mail:  Standard Mail® letters and flats  Nonprofit Standard Mail letters and flats  First-Class Mail® presort and automation letters, cards and flats Additional Eligibility:  The mobile barcode or similar print technology must take a consumer to a mobile optimized site that either enables mobile commerce or is personalized for the recipient. usps.com/mobilebarcodepromotion Understanding USPS Service Changes June 15, 2012 13 & How They Impact Your Business
  14. 14. Picture Permit Imprint Indicia The permit imprint standards allows mailers to include a color image of a business-related design, such as corporate logos or trademarks, as part of the indicia on a Full-Service Intelligent Mail Barcode mailing. USPS is now requesting:  1 cent per piece add-on for First Class Mail  2 cents per piece add-on for Standard Mail. Mailers interested in utilizing the picture permit imprint indicia should go to: https://www.usps.com/business/picture-permit.htm Understanding USPS Service Changes June 15, 2012 14 & How They Impact Your Business
  15. 15. USPS Service Level Changes Understanding USPS Service Changes June 15, 2012 15 & How They Impact Your Business
  16. 16. Postal ChangesNo Saturday Delivery Five-day-a-week delivery (proposed) No delivery or picked up on Saturdays to homes or businesses No collection from blue boxes Understanding USPS Service Changes June 15, 2012 16 & How They Impact Your Business
  17. 17. Postal ChangesPost Office closures and service reductions Postal Service backed off closure of post offices nationwide May 9 USPS announced that it will allow rural post offices to remain open, but with reduced hours. Trim operations at 13,000 post offices to between two and six hours per day Understanding USPS Service Changes June 15, 2012 17 & How They Impact Your Business
  18. 18. Postal Changes Central Facility Closures The United States Postal Service announced May 17 that it would begin consolidating 48 mail processing centers beginning in July 2012  Additional 92 processing centers to be consolidated in February 2013  89 more consolidated in early 2014. Area Mail Processing (AMP) on USPS.gov site http://about.usps.com/news/service- alerts/facility-closures.htm  Facilities targeted for closure  Where mail processed at these facilities will be routed. Understanding USPS Service Changes June 15, 2012 18 & How They Impact Your Business
  19. 19. Postal ChangesTimelines & LogisticsLargest impact = mail may take longer for mail to be deliveredEveryday users of First-Class Mail®Critical delivery deadlinesCash-flow (sending out invoices)  + 2 – 4 days?  impact on A/P  impact on A/R  scheduling of staffingLogistics of plant and facility closures  Drive mail to another local entry area  Increased fuel costs, staffing costs, vehicle usage, timing Understanding USPS Service Changes June 15, 2012 19 & How They Impact Your Business
  20. 20. Understanding USPS Service Changes June 15, 2012 20& How They Impact Your Business
  21. 21. •Choosing the best class of service•Choosing the right Extra Service•Redesigning mail-pieces•Leveraging automation pricing•Improving address quality Understanding USPS Service Changes June 15, 2012 21 & How They Impact Your Business
  22. 22. Postal ChangesBest PracticesSelect the Right Class of MailHelp reduce postage expenditures: Non-personal mail pieces -> consider Standard Mail®  Postage lower than First-Class Mail®  Nonprofit prices ~ 40% less than regular Standard Mail®  Destination Entry Discounts  Postage “same” for like-shape pieces < 3.3 oz. For heavier non-personal parcels, consider Package Services  Postage lower than Priority Mail®  Media Mail®, Library Mail, Bound Printed Matter and Parcel Post® Understanding USPS Service Changes June 15, 2012 22 & How They Impact Your Business
  23. 23. Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives  Proof of Mailing?  Proof of Delivery? • Signature? • Restrict Delivery?  Protection in transit? Understanding USPS Service Changes June 15, 2012 23 & How They Impact Your Business
  24. 24. Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives  Proof of Mailing?  Proof of Delivery • Signature? • Restrict Delivery?  Protection in transit? Lower costs for e-services  Delivery Confirmation and Signature Confirmation Service • Often used with First Class mail parcels and priority mail • Mailer doesn‟t need to go to the post office – saving time, processing, and money Understanding USPS Service Changes June 15, 2012 24 & How They Impact Your Business
  25. 25. Postal ChangesBest PracticesLeverage Extra Services Choose based on service objectives  Proof of Mailing  Proof of Delivery • Signature • Restrict Delivery?  Protection in transit? Lower costs for e-services  Utilize Electronically Filed Certified Mail and Electronic Return Receipt • Signature files are electronic • Easier to manage • Significant process improvement • ERR less than half the cost of ‘Green Card’ RR Understanding USPS Service Changes June 15, 2012 25 & How They Impact Your Business
  26. 26. Postal ChangesBest PracticesRedesign - Envelopes to Cards Targets First-Class Mail® price increase Redesigning envelope contents into card formatBenefits:  No “openability” issue  Cards can be “coupons”  Lower material costs  First-Class Mail® post card price is generally lower than Standard Mail letter price  Ability to leverage QR code - to lead recipients to website! Understanding USPS Service Changes June 15, 2012 26 & How They Impact Your Business
  27. 27. Postal ChangesBest PracticesRedesign – Flats to Letter-sizeMay reduce postage up to 40%!Tips to redesign: Duplex pages Use lighter weight paper Narrow page margins Smaller fonts Half or tri-fold contents Understanding USPS Service Changes June 15, 2012 27 & How They Impact Your Business
  28. 28. Postal Changes Best PracticesRedesign – Flats to Letter-size (continued) Quantity Potential Savings 1,000 1 oz. flats converted to letters up to $326* 1,000 2 oz. flats converted to letters up to $496 ** 1,000 3 oz. flats converted to letters up to $416 **** Mixed ADC price for 1-oz automation-price flats vs. Mixed AADC price of 1-oz automation-price letters** Mixed ADC price for 2-oz automation-price flats vs. Mixed AADC price of 2-oz automation-price letters - the substantial savings “2nd ounce free” for commercial First-Class Mail® letters*** Mixed ADC price for 3-oz automation-price flats to the Mixed AADC price of 3-oz automation-price letters Understanding USPS Service Changes June 15, 2012 28 & How They Impact Your Business
  29. 29. Postal ChangesBest PracticesRedesign – Parcels to FlatsMay save up to 30% on postage costs!Tips: flats must be rectangular uniform in thickness flexible commercial flats must also meet deflection criteria.Example:Documents sent out in “ring binder.”Rigid structure disqualifies it as being a flat. Replace binding or outer covering to a soft, flexible cover* to save . Get envelopes that are the right fit for content - helps meet uniform thickness requirements.Flexibility must meet U.S. Postal Service standards Understanding USPS Service Changes June 15, 2012 29 & How They Impact Your Business
  30. 30. Postal Changes Best PracticesAutomate for Cost-Efficient Processing Prepare as much automation-compatible mail as possible Apply delivery point routing barcodes – Use Intelligent Mail barcode Prepare and sort according to U.S. Postal Service regulationsBenefits:  Reduce postage expenditures  Cut processing steps and time  Maximizing prospects of timely delivery Understanding USPS Service Changes June 15, 2012 30 & How They Impact Your Business
  31. 31. Postal ChangesBest PracticesUse “2nd Ounce Free” forTrans-promotional marketingPresorted & Automation First-ClassMail® letters Most commonly used for business invoicing Opportunities to advertise new services and products to customers as part of bill and statement mailings Consider „piggy backing‟ with business partners! Understanding USPS Service Changes June 15, 2012 31 & How They Impact Your Business
  32. 32. Postal ChangesBest PracticesTrack for VisibilityKnowledge = EfficiencyTrack using Intelligent Mail barcode(IMb) Visibility sending out or receivingBenefits Plan for timely delivery Understand regional differences Meet timing objectives Anticipate response needs Map out cash flow Schedule staff Better customer service (anticipating payments) Understanding USPS Service Changes June 15, 2012 32 & How They Impact Your Business
  33. 33. Responding to timelines & logistics changes Talk to Comptroller, CFO, CEO Discuss impact on Days of Sales Outstanding and cash to cash cycle Understand TOTAL costs to adjust logistics/timing Ensure all outbound addresses are as accurate as possible Leverage courtesy reply mail envelopes (correctly addressed and bar-coded) Understanding USPS Service Changes June 15, 2012 33 & How They Impact Your Business
  34. 34. Front-end ProcessingUsing the correct address iscriticalTwo parts to address quality Physical portion of address  Individual, business or family componentSolutions:Physical portion of the address: CASS ™ certified software Standardizes physical portion of the address Assigns a delivery point routing barcode Understanding USPS Service Changes June 15, 2012 34 & How They Impact Your Business
  35. 35. Front-end ProcessingIndividual, business or familycomponentU.S. Postal Serviceapproved Move Updatesolutions:  Ancillary Endorsements  Address Change Service (ACS)  FASTforward® and U- Move systems  NCOALink® product Understanding USPS Service Changes June 15, 2012 35 & How They Impact Your Business
  36. 36. Postal Changes ResourcesCreate “shortcuts” in your browser forthese sites! USPS -  Postal Explorer®http://pe.usps.gov/default.asp  Federal Register Postal Explorer®  RIBBS –Customer Support Center https://ribbs.usps.gov/ Pitney Bowes-  Postal Informationhttp://www.pb.com/postal-information/  Pitney Bowes - Customer Connections  Postal Advisor on „My account‟ Understanding USPS Service Changes June 15, 2012 36 & How They Impact Your Business
  37. 37. Postal ChangesBest Practices Anticipate changes in your processes Leverage technology Seek efficiency and cost effectiveness Engage Pitney Bowes, in creative solutions and problem solving Understanding USPS Service Changes June 15, 2012 37 & How They Impact Your Business
  38. 38. What Does Pitney Bowes Do? Document Binding CASS Software with Solutions List Management Custom & Standard Address Printing Envelopes AutomationHigh Speed Color Printer Document Management Fold and Insert & Reformatting Mail Openers Mailing SolutionsLow Cost $0.02 per print Intelligent Inserting Software USPS FedEx UPS Eliminate manual Green Cards and Visitor Self Check-in Shredders Carrier Management save $1.20 postage Shipping Automation per piece!!! Consolidate all Inbound Package 6% - 12% Postal Discounts Permits & Earn Interest Service Agreements USPS Postal Kiosk Logging & Delivery On Printing Devices Understanding USPS Service Changes June 15, 2012 38 & How They Impact Your Business
  39. 39. Thank you! Questions?Please Contact us at 1-800-322-8000 Understanding USPS Service Changes June 15, 2012 39 & How They Impact Your Business
  40. 40. Every connection is a new opportunity™The Corporate logo, SendSuite, and Pitney Bowes are trademarks owned by Pitney Bowes Inc.Postal Service, USPS, First-Class Mail, First-Class, First-Class Package Service, Express Mail, Priority Mail, Parcel Select, DeliveryConfirmation, Global Express Guaranteed, Express Mail International, Priority Mail International, International Priority Airmail, andInternational Surface Air Lift are trademarks owned by the United States Postal Service. Understanding USPS Service Changes June 15, 2012 40 & How They Impact Your Business

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