Common mail mistakes made trying to manage this category and ideas you can implement to fix them for the future.

1. The Main Event – PC Postage vs Postage Meters
Presented by Postal Advocate Inc.
11 Common Mail Mistakes That Could
Be Impacting Your Bottom Line
Presented by Postal Advocate Inc.
June 14, 2017

2. Adam Lewenberg - Background and Experience
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of over 70,000 pieces of mailing equipment for the
largest US and Canadian companies.
– Speak and teach nationally on mail savings and industry trends.
• Industry Co Chair- Boston Postal Customer Council/Mail Systems Management
Association member. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine.
• Worked for one of the largest mailing vendors for over 18 years
– Director of national sales for presort, tabletop inserters, addressing
hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of
the nations top accounts.
Not affiliated with any mailing vendor - Unbiased advice.
June 14, 2017 2

3. What We’ll Cover:
1. Limited Reporting and Visibility
2. USPS® Savings Programs
3. Reactive vs Proactive Returned Mail Processes
4. Rate Shopping
5. Not Comparing In-House vs Outsource Costs
6. Working with Only One Vendor
7. Manual vs Automated Processing
8. Not Exploring New Technologies
9. Not Validating Invoices for Contract Compliance
10. Treating Postage as an Expense Instead of an Asset
11. Not Getting Involved in the Mailing Community
June 14, 2017 3

4. 1. Limited Reporting and Visibility
At a bare minimum, every organization should have reporting on the
following:
1. Postage spends by month
2. Details on the largest mailing projects with historical numbers and
future projections.
3. Equipment and mailing service provider costs and terms
June 14, 2017 4

5. Steps for Visibility and Oversight
Mailing Equipment
• Get reports from your vendors that list:
– Account Numbers (Install, Lease, Prepaid and Postage Advance)
– Lease Information – Rate, Term, End of Lease, Items covered.
– Meter rentals and maintenance agreements.
– Model, serial number and description of every item.
• Go to accounts payable and pull spend reports from the main mail
vendors and USPS.
• Enter your account numbers on the vendor websites.
• Monitor your inventory, invoices and postage balances online
(Recommended to do this monthly).
• Find all active locations with equipment.
• Set up a schedule for continual review.
Similar steps should be taken for the following:
– Mail Houses and Presort Providers
– USPS Permit Accounts
June 14, 2017 5

6. 2. Not Taking Advantage of USPS Savings Programs
First-Class® Mail – Automate with Barcodes – If you have 500 pieces or
more and can run your mailing through an approved software program to
validate the addresses and apply barcodes, you can reduce costs by 8-58%.
June 14, 2017 6
Mail Piece Examples
First-Class Mail®
Retail Single Piece
First-Class Mail®
Metered Single
Piece
Typical Presort
Service - First-
Class Mail®
First-Class
Mail® -
Automation
Marketing Mail®
- Automation
Marketing
Mail® Non
Profit-
Automation
1 Ounce #10 Envelope $0.49 $0.46 $.403-.453 $.373-.453 $.251-.288 $.134-.171
3 Ounce Newsletter (6X9) $0.91 $0.88 $.403-.453 $.373-.453 $.251-.288 $.134-.171
8 Ounce Flat (9X12) $2.45 $2.45 $2.10-2.22 $1.916-$2.22 $.612-.775 $.442-.605
Post Card $0.34 $0.34 $.266-.284 $.253-.284 n/a n/a
Single Piece Rates Automation Mail with Barcodes
Flat Envelope
Sheets
First Class
Mail® Flat -
Large Envelope
First Class
Mail® Letter -
6X9 Envelope
(Metered)
Typical Presort
Service - First-
Class Mail®
Letter
First-Class
Mail® -
Automati
on Letter Savings
1-2 $0.98 $0.46 $.403-.453 $.373-.453 53-62%
3-4 $1.19 $0.46 $.403-.453 $.373-.453 61-69%
6-10 $1.40 $0.70 $.403-.453 $.373-.453 50-73%
Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces
Letter Envelope - Example 6X9 or #10
Folding Flats

7. Additional USPS Letter Promotions
June 14, 2017 7
USPS Promotions and Incentives – The USPS has a schedule of different promotions they offer to higher
volume mailers, typically geared to using the latest technologies that can improve the value of mail. These
promotions have limited time periods and require the client to be proactive in its management and refunds.

8. Package Discounting
June 14, 2017 8
Retail Commercial Base Commercial Plus
Weight LB's January 22, 2017 January 22, 2017
% Savings
over
Retail January 22, 2017
% Savings
over Base
1 $6.65-10.50 $5.95-9.89 6-13% $5.75-9.59 3%
5 $9.85-30.25 $7.17-28.72 5-27% $6.96-27.86 3%
10 $12.65-52.10 $9.09-50.17 4-28% $8.82-48.66 3%
25 $22.55-99.10 $18.11-90.77 8-25% $17.56-88.04 3%
50 $32.55-156.95 $26.74-143.71 8-19% $25.94-139.40 3%
Flat Rate Envelopes $6.65 $5.95 11% $5.95 0%
Small Flat Rate Box $7.15 $6.45 10% $6.45 0%
Medium Flat Rate Boxes $13.60 $12.40 9% $12.40 0%
Large Flat Rate Boxes $18.85 $17.05 10% $17.05 0%
USPS Priority Mail®
Weight
Ounces
First-Class Mail®
- Parcels Retail
First-Class Mail®
- Package
Services
Commercial Savings
Up to 4 $2.67 $2.61 2%
5 $2.85 $2.77 3%
6 $3.03 $2.77 9%
7 $3.21 $2.77 14%
8 $3.39 $2.77 18%
9 $3.57 $3.32 7%
10 $3.75 $3.46 8%
11 $3.93 $3.60 8%
12 $4.11 $3.74 9%
13 $4.29 $3.88 10%
14 $6.65-10.50 $4.02 40-62%
15 $6.65-10.50 $4.16 37-60%
15.999 $6.65-10.50 $4.30 35-59%
Convert from Retail to Commercial
Priority Mail® - Commercial Rates vs
Priority Mail® at Retail rates
14% average savings.
Provide better tracking and visibility.

9. 3. Reactive vs. Proactive Returned Mail Processes
What steps are done to make sure the addresses get updated in
your systems for the next mailing?
Here are the processes used by best in class mail operations:
1. They run their mail list through USPS CASS (Coding Accuracy Support
System) tools to validate that all addresses match the national database.
Next, it is run through the USPS National Change of Address (NCOA)
database to validate that the recipient is at that address.
2. Simple address fixes are made automatically. If the address has changed,
they will decide to either send the mail to the new address or reach out to
the recipient to validate the change prior to updating the system.
3. If the mail piece gets returned, there will be deeper processes to directly
reach out to the recipient to validate the correct address.
4. The best mailers will integrate this process electronically through the IMB
barcodes.
June 14, 2017 9

10. 4. Not Rate Shopping Multiple Carriers and Service Levels
STOP the “We have always done it this way” - Automated tools that can
compare rates through multiple carriers and service levels at the touch
of a button are available.
Many packages that were shipped through private carriers may be less
expensive with the USPS and vice versa. Even within a carrier, rate and
service levels need to be explored. Here are some examples:
1. USPS Priority Mail® over 1 LB going to a business may be less expensive with faster
delivery going through your private carriers if you have a decent negotiated discount.
2. Private carrier packages less than 10LB’s going to a residence may be less
expensive sending through the USPS because of residential, delivery area and fuel
surcharges.
3. Private carrier next day, two day and three day shipments may be less expensive with
the same or faster delivery shipping through that carrier’s ground service.
4. Closer shipments may be less expensive with faster delivery through private carriers
but the opposite may apply to farther light weight shipments.
5. USPS First-Class Package Service should be used for instead of USPS Priority Mail®
for any package less than 1LB.
June 14, 2017 10

11. USPS – Competitive Price Positioning
• USPS delivers to every address every day and can be less expensive than the private carriers on
residential shipments..
• Most competitive in light weight less than 10LB items going to residences.
• USPS can delivery items that are less than 1LB through First-Class rates that range from $2.61-
4.30 where the Expedited carriers start at the 1LB rates above.
• USPS provides free boxes for Priority Mail®.
• This residential, light weight segment is the fastest growth area of ecommerce.
• Private carrier ground service can have faster deliver and lower fares to closer zones.
June 14, 2017 11
Expedited Carriers
will offer discounts off
published rates but
typically have
minimum price levels.
Only the largest
clients get discounts
off the surcharges
and fees.
Zone 4 Rate Comparison USPS
Expedited
Carrier
Expedited
Carrier
Expedited
Carrier
Weight
Priority
1-3 Day Two Day 3:00 Three Day
Ground 1-5
Day
.5 LB $2.77 $17.92-18.09 $12.28-14.94 $8.14-8.22
1 LB $6.56 $17.92-18.09 $12.28-14.94 $8.14-8.22
5 LB $9.19 $22.75-22.96 $16.56-19.36 $10.68-10.74
10 LB $11.22 $33.48-33.71 $23.90-28.97 $11.44-11.51
Delivery Time Range and to Zone 4
1-3 Day,
2-3 Day 2 Day 3 Day
1-5 Day,
3 Day
Rates based research done on 05/30/2017
Residential Surcharge N/A $3.85-4.00 $3.85-4.00 $3.40-3.45
Delivery Area Surcharge (23,500 Zip Codes Qualify) N/A $2.45-4.20 $2.45-4.20 $2.30-4.20
Fuel Surcharge N/A 4.5% 4.5% 5.3%
Address Corrections N/A $13.40-14.00 $13.40-14.00 $13.40-14.00
Saturday Delivery N/A $16 $16 $16

12. Dimensional Rating Impact
• All carriers have Dimensional rates for packages over a cubic foot.
• In 2015 the major private carriers started assessing Dimensional Rates on all packages.
• USPS did not make changes and can be more competitive based on box size.
• Complexities are driving the need to have a way to compare rates across multiple carriers.
June 14, 2017 12
USPS
Expedited
Carrier
Expedited
Carrier
Expedited
Carrier
Item Description
Dimensions
Inches
Actual
Weight
LB's
New Private
Carrier DIM
Weight LB's
Priority
1-3 Day Two Day Three Day
Ground 1-5
Day
Headphones 12X8X8 1 5 $6.56 $22.75-22.96 $16.56-19.36 $10.68-10.74
Womens Hat 14X10X7 2 6 $6.83 $24.79-24.96 $18.26-22.11 $10.82-10.88
Pocket Book 19X15X5 2 9 $6.83 $31.09-31.31 $22.84-27.46 $11.32-11.44
Residential Surcharge N/A $3.85-4.00 $3.85-4.00 $3.40-3.45
Delivery Area Surcharge (23,500 Zip Codes Qualify) N/A $2.45-4.20 $2.45-4.20 $2.30-4.20
Fuel Surcharge N/A 4.5% 4.5% 5.3%
Address Corrections N/A $13.40-14.00 $13.40-14.00 $13.40-14.00
Saturday Delivery N/A $16 $16 $16
Zone 4 Rate Comparison - Updated 05/30/17

13. 5. Not Comparing In-House to Outsource Costs
Big Trend - Organizations outsourcing mail functions to groups that
have higher levels of resources (Staff, equipment, expertise)
Most common levels of outsourcing that we see:
• Presort Services – These companies will pick up your completed mail
pieces and run it through their sorters to get you better postal rates. This
compares to automating and barcoding mailings internally and then bringing
to the USPS.
• Mail Service Providers (Also known as mail houses) – From only a data
file, they will print your documents, fold, insert, seal, barcode and present to
the USPS. Look at the mailings you are doing on a regular basis to
compare your total costs against their service fees.
• On Site Mail and Print Service Providers – They will set up staff and
equipment at your location to manage the production of mailing projects as
well as day to day mail. This can take the headache out of managing the
mail and print areas while making a third party accountable to service level
standards.
June 14, 2017 13

14. 6. Working With Only One Vendor
Go to the market to validate that you are getting the best rates and
service levels
• Typically we find savings of 10-40% helping our clients through bids
• Often staying with the same vendor
• Mailing Equipment: Pitney Bowes, Neopost, Hasler, FP, Stamps.com
• Presort Services: Pitney Bowes and local providers.
• Mail Houses: Local and national players.
June 14, 2017 14

15. 7. Processing Manually vs Automated
Increase efficiency by 80-90% by automating
June 14, 2017 15
Job
Manual
Speeds
Automated
Speeds
TypicalEquipment
Investment Range
Monthly
TypicalMinimum
Threshold
Foldingand Inserting 1-300/hr 900-10,000/hr $150+permonth >1000permonth
Addressing/Labeling 1-400/hr 3-20,000/hr $200+permonth >2000permonth
MailOpening 200-400/hr 5-20,000/hr $100+permonth >1000permonth
Loggingincoming
packages/overnights 30-100/hr 120-240/hr $200+permonth >1000permonth

16. 8. Not Exploring New Technologies
• Postal Automation Software that is IMB Compliant – The USPS is trying
to get everyone using their Intelligent Mail Barcodes (IMB) and are passing
on mail savings of $.001-.003 per piece for those who use it.
• Cloud based software to easily add barcodes to every page of a
document – These barcodes can be read by automated inserters to
validate that the right number of sheets are being inserted.
• Simple Mail Ready Data File (MRDF) creation and optimization – This
means being able to send a file to the inserter, so when it scans a
document, it knows all the details about the piece (Job number, number of
pages, additional inserters needed etc.) and reports can be generated to
validate completed sets. This used to be only available for the largest
production mailers, but is now an option at the table top equipment level at
significantly lower costs.
• Cloud based rate shopping tools – We mentioned this above, but now for
as little as $30 per month you can compare your private carrier rates
against the USPS on a package by package basis.
June 14, 2017 16

17. 9. Not Validating Invoices For Contract Compliance
Most common issues that we see:
1. Mailing vendor invoices adding
equipment insurance, reset, postage
advance, late fees finance charges
incorrectly.
2. Invoices not reflecting corporate
negotiated discount levels.
3. Charges on equipment or projects that
are no longer active.
4. Presort Services and Mail Houses
charging higher than negotiated rates
or adding fees.
June 14, 2017 17
Savings Type
# of
Transactions Total Savings
Fee Savings: Late/Fin Charges 109 119,088$
Fee Savings: Loyalty Prog 460 34,576$
Fee Savings: Remove Insurance 999 184,559$
Other
Total 1568 338,223$
Postal Advocate Avoidable Fees
Savings Stats
Savings Type
# of
Transactions Total Savings
Vendor Credit: Equipment 2551 1,868,376$
Postal Advocate Credit/Overcharges
Savings Stats

18. 10. Treating Postage as an Expense Instead of an
Asset
Most organizations will send money to the meter vendors, USPS or
mail service providers to fund mailings and these values are
immediately expensed. The issue is that this money is an asset until it
is used. We have found millions in lost postage for our clients.
Most common places to look:
• Returned postage meters where the funds are never requested
back.
• Huge balances sitting in seldom used postage accounts.
• Postage Meter and USPS Permit accounts used to fund different
locations and mail service providers with no visibility to balances.
June 14, 2017 18
We have found over $2,500,000 in the last
24 months mostly residing with the
mailing vendors.

19. 11. Not Getting Involved in the Mailing
Community
There are local and national events as well as webinars that can
educate members of how to run best in class operations. Here are
some examples of their impact:
• Rate change meetings going over what areas need to be addressed,
how to budget for the changes and what is needed to optimize any
savings available.
• Vendor presentations of new technologies.
• USPS presentations on how to optimize services.
• National events that will have education and vendor sessions as
well as industry certifications.
June 14, 2017 19

20. In Summary
1. Limited Reporting and Visibility
2. USPS® Savings Programs
3. Reactive vs Proactive Returned Mail Processes
4. Rate Shopping
5. Not Comparing In-House vs Outsource Costs
6. Working with Only One Vendor
7. Manual vs Automated Processing
8. Not Exploring New Technologies
9. Not Validating Invoices for Contract Compliance
10. Treating Postage as an Expense Instead of an Asset
11. Not Getting Involved in the Mailing Community
June 14, 2017 20

21. Helping multi-location
organizations streamline
their mailing costs
70,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$4,725,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $30,000,000 IN CLIENT SAVINGS
$748K
60%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 240+ 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)

22. 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

24. Upcoming Webinars
Wed Sept 20, 2017 at 11AM EST – How Large Organizations Can
Save on Mailing Fleet Costs
June 14, 2017 24
Check out www.postaladvocate.com
to register

25. Contact info: (20pt)
June 14, 2017 25
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com

26. June 14, 2017 26