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USPS® Rate Change 2017: What You Need To Know

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USPS price changes took effect January 22, 2017.

Learn how to take advantage of savings opportunities in mailing and shipping processing, including First-Class® Mail, Presort and Special Services.


Save three cents over stamps with your Pitney Bowes postage meter.


Learn how to ship with IMpb-compliant labels to save an average of 11.2%

Discover more on this on-demand webinar, designed for businesses like yours.

Published in: Business
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USPS® Rate Change 2017: What You Need To Know

  1. 1. USPS® Rate Change What the rate change means to you Presented by Tom Ryan
  2. 2. Welcome and thank you for joining us.  USPS® headlines  Rate updates by service  Ideas for savings & cost control  Helpful resources Tom Ryan 2
  3. 3. Welcome and thank you for joining us. Tom Ryan A long time ago … Today  34 years in the industry  Certified Postal Consultant  Industry roles in sales, marketing, product development 3
  4. 4.  First- Class Mail®  Priority Mail®  Priority Mail Express®  Package Services  Domestic Extra Services  Standard Mail® 4
  5. 5. USPS® Rate Changes Mailing Services: First-Class Mail®, Standard Mail®, Media Mail™, Library Mail, Bound Printed Matter, Extra Services (i.e. Certified Mail™) Package Services: Priority Mail®, Priority Mail Express®, Parcel Select, First-Class™ Package Service Market Dominant Competitive Overall less than 1% increase Overall 3.9% increase 5
  6. 6. First-Class Mail® Now 49¢ Was 47¢ 2¢ Current Price New Price Change Stamp Price 1 oz. $0.47 $0.49 + 4.3% Meter Price 1 oz. 0.465 0.46 SAVE 3¢ Additional Ounces 0.21 0.21 0.0% Single-Piece Post Cards 0.34 0.34 0.0% Single-Piece Flats 1 oz. 0.94 0.98 4.3% Flats = Rectangular, uniformly thick, not rigid. Save 6.1% with Metered Mail 6
  7. 7. Modern Postage Meters  Track package deliveries  Compare costs for services  Print shipping labels 6% Discount plus … 7
  8. 8. 8 First-Class Mail® with Online Postage  PC Postage® stamps  Permit Imprints  Pre-Cancelled stamps Also save 3 cents per piece for 1 – 2 – 3 oz – up to 3.5 ounces 8
  9. 9. Domestic Special Services • Certified Mail™ increase - from $3.30 to $3.35 Retail Green Card $2.75 – Up 5¢ Electronic $1.45 – Up 10¢  Weekly report  Consolidated data  Digital record keeping • Savings for E-RR now $1.30 per piece (47% vs 50%) • Return Receipt is only available at time of mailing 9
  10. 10. New First-Class™ Commercial Letter Rates Weight Not Over (oz.) 5-Digit AADC Mixed AADC 1 $0.373 $0.403 $0.423 2 $0.373 $0.403 $0.423 3 $0.373 $0.403 $0.423 3.5 $0.373 $0.403 $0.423 2016 Rates 2017 Rates • 500 piece minimum to qualify for First-Class Commercial Letter Rate • Of 500 pieces, 150 piece minimum to qualify for 5-Digit and AADC B B 10
  11. 11. Standard Mail Becomes Marketing Mail The new indicia and/or postage markings for Marketing Mail should not be used for letter or flat mail until January 2018 at the earliest. Continue to use Presorted Standard Or PRSRT STD ?11
  12. 12. Key First-Class Mail® Single-Piece (Retail) Prices *Closed against Postal inspection. 12
  13. 13. • Overall 4.1% increase • Previously one price ($2.60) for up to 8 ounces • Rates now split - under 4 ounces and 5 to 8 ounces • Positioned as a lightweight shipping option used by businesses for fulfillment purposes. • Only Non-personal matter allowed; open to postal inspection • Intelligent Mail® Package Barcode (IMpb) Required Shipping Services First-Class™ Package Service 13
  14. 14. • Overall 3.9% average increase • Existing Structure stays the same • Retail pricing increasing on average 3.3% • Commercial Base pricing will increase 4.1% on average, but will reflect an average 13.6% discount off Retail prices • Commercial Plus Pricing will offer lower pricing to large- volume customers. • Price increase will average 4.5%; set at 16.8% off Retail rates. Shipping Services Priority Mail® 14
  15. 15. • Commercial Base pricing will increase 2.4% on average and set at a flat 11.2% off Retail pricing. • Commercial Plus Price matched to Commercial Base pricing in 2016 and will continue in 2017 • Retail Flat Rate, Legal Flat Rate and Padded Flat Rate envelopes will all have differentiated pricing for 2017. Shipping Services Priority Mail Express® ?15
  16. 16. Pre-printed USPS tracking label + OR Two approaches Software Generated Label USPS® Tracking Available Since 2015  Commercial Base (CBP) or Commercial Plus (CPP) rates  CBP averages 13.6% off Retail Rates  Enhanced Tracking  Free Insurance: $50 CBP and $100 CPP  Retail rates (no discount)  Insurance if it is scanned at Post Office Retail Counter 16
  17. 17. Retail versus Commercial Base Pricing Priority Mail® Retail CBP Save $ Save % Flat Rate Envelopes $ 6.65 $ 5.95 $ 0.70 10.5% Legal Flat Rate Envelope $ 6.95 $ 6.25 $ 0.70 10.1% Padded Flat Rate Envelope $ 7.20 $ 6.50 $ 0.70 9.7% Small Flat Rate Box $ 7.15 $ 6.45 $ 0.70 9.8% Medium Flat Rate Boxes $ 13.60 $ 12.40 $ 1.20 8.8% Large Flat Rate Boxes $ 18.85 $ 17.05 $ 1.80 9.5% Zones Weight Not Over (Lbs) L, 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 1 $ 0.70 $ 0.64 $ 0.69 $ 0.67 $ 0.64 $ 0.83 $ 1.10 $ 0.61 5 $ 2.68 $ 2.94 $ 2.76 $ 3.20 $ 3.02 $ 2.72 $ 2.74 $ 1.53 10 $ 3.56 $ 4.87 $ 7.18 $ 7.14 $ 4.54 $ 2.84 $ 2.96 $ 1.93 Savings with Commercial Base Pricing Commercial Label This example is a 27% Discount over Retail 17
  18. 18. Flat Rate Packaging Regional Flat Rate Packaging 18
  19. 19. Save with Alternative Classes and Packaging Padded Flat Rate Less than 1 lb Now $7.20 Priority Mail® Flat Rate Envelope less than 1 lb. Now $6.65 Retail Priority Mail ® 13 oz. Now $6.65 to $10.50 (Zone 9) Convert to First-Class™ Parcel at Commercial Rate for $3.88 Save 50% or More! 19
  20. 20. • It pays to use the smallest packaging possible • Dimensional rate - length x width x height • Multi-depth or folding - easily adjusted to smaller sizes 18”x12”x12” 11-1/4"x8-3/4"x6" 18”x18”x18” Dimensional Rating Multi-Depth Multi-DepthStandard Multi-Depth - Adjustable in 6” increments 20
  21. 21. No! Yes! Dimensional Rating “Every inch of space matters” 21
  22. 22. • Foam peanuts or empty space – can you easily make the same box smaller? • Net effect of peanuts and bubbles: Air = Volume • This investment in a better box is guaranteed to reduce your long-term shipping costs. Dimensional Rating 22
  23. 23. Multiply length x width x height of each package (in inches) divided by carrier factor. UPS® > In 2017, packages that are greater than a cubic foot (1,728 inches) will use a 139 divisor to calculate dimensional weight FedEx® > Factor change in 2017 from 166 to 139 for Express and Ground US Domestic; the formula will now be L x W x H / 139 USPS® > Packages that are greater than a cubic foot (1,728 inches) will use a 194 divisor to calculate dimensional weight. Length x Width x Height (in.) ---------------------------------------------------------------------------------------------------------------------------------- Carrier Factor Carrier Dimensional Rating in 2017 Additionally, the USPS doesn’t DIM anything in zone 1-4. 23
  24. 24. USPS® Advantage for Priority Mail® or FC Parcel Consider costly surcharges that do not provide value Service USPS® FedEx® UPS® Residential Delivery Surcharge Zero +$3.85 +$3.80 Delivery Area Surcharge Residential Zero +$3.90 +$3.80 Delivery Area Surcharge Extended Residential Zero +$4.20 +$4.10 Fuel Zero Approx. 4% of shipping costs Approx. 5% of shipping costs Address Correction Fees Zero $14.00 $13.40 *Dimensional Rating for Zones 1-4 No Yes Yes Package Tracking Detail Yes Yes Yes **Weight by Ounce Up to 16 oz. Yes No No *USPS – No DIM surcharge up to a cubic foot, zones 1 to 4 ** USPS First Class Parcel is a flat rate charged by ounce up 15.99 24
  25. 25. USPS® Resources Great Resources https://ribbs.usps.gov/intelligentmail_schedule2017/releases/j an2017/docs/Janurary2017PriceChangeFactSheet.pdf • Visit PB.com or contact your PB Account Rep directly • www.pb.com/ratechange  Video & Rate Info  Support Information Pitney Bowes Key Resources 1. Search USPS Postal Explorer (http://pe.usps.gov/) 2. Search USPS RIBBS (https://ribbs.usps.gov/) 3. Redesigned RIBBS website > PostalPro. www.postalpro.usps.com 4. USPS Price Change Fact Sheet 25
  26. 26. Thank you for joining us 26

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