Keeping you informed on the upcoming USPS rates increase. - The good news and the bad news - How to budget for the increase - Savings Tips

1. January 2016 USPS® Rates Increase
- What You Need To Know
Speaker: Adam Lewenberg
President of Postal Advocate Inc.

2. Meeting Instructions
• There is a joinme webinar presentation link
• All lines are on mute until the end of the meeting when they will be opened
up for questions.
• Type questions into the chat box as they come up and we will do our best to
answer them.
• If you have issues hearing the webinar, make sure you have called into the
meeting vs. relying on internet audio. Dial-in +1.781.666.2350 Access
Code 813-677-689#
• If you are having issues seeing the webinar, try entering the meeting link
again and joining through the browser (Vs. downloading software).
• We will be sending a copy of the presentation out after the meeting or you
can find it on our website under FAQs/Resources
• If you have any issues during the meeting contact Doris Tam at 888-977-
6245 x512 or email me at doris.tam@postaladvocate.com and I’ll be happy
to assist
January 15, 2016 2

3. 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 58,000 pieces of mailing equipment for the largest
US 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 17 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.
January 15, 2016 3

4. January 2016 USPS® Rates Increase
- What You Need To Know
Speaker: Adam Lewenberg
President of Postal Advocate Inc.

5. What We’ll Cover:
• The good news and the bad news
• How to budget for the increase
• Savings Tips
January 15, 2016 5
New rates take into effect Sunday
January 17, 2016

6. The Good News
• The following mail classes are not increasing:
(Market Dominant Mail Classes)
– First-Class® Mail Letter and Flat
– Standard Mail
– International Letter and Flat rates
– Media Mail, Library Mail and Bound Printed Matter
– Special Services
• These are the main mail classes used by
businesses
• There is a potential for a rate decrease later this
year (Based on the Exigent 4.3% increase in 2014)
January 15, 2016 6
Common Mailings
not impacted by
increase:
• Invoices
• Statements
• Checks
• Marketing
• Day to Day
correspondence

7. The Bad News - 9.5% Overall Increase
• The following mail classes are increasing:
Competitive Mail Classes
– Priority Mail® - 9.8%
– Priority Mail® Express – 15.6%
– First Class Package Service – 12.8%
– Retail Ground (Formally Standard Post) – 10%
– Parcel Select Ground (Formally Parcel Select) – 3.1%
– First-Class Package International Service – 21.6%
– Priority Mail International – 10.2%
– Priority Mail Express International – 11.6%
January 15, 2016 7

8. Potential Reasons for the Package/Expedited
Increases
• For lightweight packages going to consumers (vs. businesses) the USPS has
significantly lower rates than the private carriers when factoring fees.
• In a recent filling to the Postal Regulatory Commission, UPS® made a complaint that
the USPS was undergoing anticompetitive policies and claimed: “In turn, the larger
market share enables the utility to better leverage economies of scale and scope,
increasing its scale and further harming its now handicapped rivals,”
• The private carriers typically increase rates at around 5% per year.
• This is their fastest growing segment and they need it to cover volume declines in
other areas. (Example: Letters and Flats)
• They are the only service delivering to every door every day. Private carriers are
using them at times to deliver the last mile.
January 15, 2016 8

9. Priority Mail Rate Categories
• Retail – At USPS Counter or through
a postage meter.
• Commercial Base – Through a PC
Postage Solution (USPS.com will no longer
qualify for these rates and will default to retail)
• Commercial Plus – Through a
contracted agreement with the USPS.
– Priority Mail® - 50,000 packages
per year across facilities
– Priority Mail® Express – 5,000
packages per year across
facilities.
January 15, 2016 9

10. Priority Mail®
January 15, 2016 10
Most popular USPS package service
13 ounce to 70LB items 1-3 day delivery
8 primary zones based on distance.
Highlights
• 9.8% overall increase.
• Largest increase in 1-5LB where they have the lowest prices.
• Heavier items having small to no increase.
• Commercial Plus customers seeing the largest increases.
• Flat Rate Envelopes and Small Boxes having the largest increases.
• Sorry Guam – Zone 9 increasing the most at 20-50%
• USPS Click and Ship now defaults to Retail (Vs. Commercial) rates.
Weight LB's
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
1 $5.75-7.15 $6.45-7.85 10-15% $5.05-6.51 $5.75-7.16 10-14% $4.95-6.25 $5.60-6.95 8-13%
5 $8.95-21.55 $9.85-23.15 5-10% $6.78-18.87 $7.39-19.81 0-9% $5.35-18.30 $7.17-19.22 3-38%
10 $12.15-37.10 $12.65-38.60 4% $8.28-32.95 $8.69-34.60 0-7% $5.60-31.73 $8.43-33.56 4-51%
25 $22.2-67.7 $22.55-70.4 0-4% $17.76-58.64 $17.76-61.57 0-5% $11.16-47.54 $17.23-86.74 18-59%
50 $31.3-105.50 $32.55-109.7 4% $25.96-91.34 $25.96-95.91 0-5% $24.96-90.52 $25.18-93.03 1-20%
Flat Rate Envelopes $5.75 $6.45 12% $5.05 $5.75 14% $4.95 $5.60 13%
Small Flat Rate Box $5.95 $6.80 14% $5.25 $6.10 16% $5.20 $5.90 13%
Medium Flat Rate Boxes $12.65 $13.45 6% $11.30 $11.95 6% $10.65 $11.60 9%
Large Flat Rate Boxes $17.90 $18.75 5% $15.80 $16.35 3% $14.80 $15.85 7%
USPS Priority Mail®
Retail Commercial Base Commercial Plus

11. First-Class Mail® Parcels
January 15, 2016 11
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a
Monopoly (Private carriers start at 1LB)
1-3 day delivery
Highlights
• 12.8% overall increase.
• Retail rates remain unchanged.
• Commercial Base rates see increases up to 69% (Light weight items)
• Elimination of presort discounts.
• Commercial Plus rates eliminated.
• Slight reductions for 13 ounce items.
• New rates go to 15.99 ounces vs. 13 ounces in the past. This is a
new savings opportunity because items would have defaulted to
Priority Mail®.
Weight Ounces
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
3 $2.54 $2.54 0% $1.54-2.04 $2.60 27-69% N/A N/A
6 $3.14 $3.14 0% $1.85-2.35 $2.60 11-41% $3.37-4.05 N/A
10 $3.94 $3.94 0% $2.57-3.07 $3.35 9-30% $3.37-4.05 N/A
13 $4.54 $4.54 0% $3.11-3.63 $3.50 (-4-13%) $3.37-4.05 N/A
15.999 N/A N/A 0% N/A $3.65 New $3.37-4.05 N/A
Retail Commercial Base Commercial Plus
USPS First-Class Mail® Parcel and Package Rates

12. Priority Mail® Express
January 15, 2016 12
Up to 70LB items 1 day Guaranteed Delivery
8 primary zones based on distance.
Highlights
• 15.6% overall increase.
• Minimal Retail increase and only on light weight local zones.
• Huge increase on Commercial Base and Plus with the largest hit on closer
zones.
• Flat rate envelopes see 14-39% increase.
• Elimination of Flat Rate Box
Weight LB's
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
Prior to Jan 17,
2016
January 17,
2016 % Change
1 $17.95-36.20 $22.95-36.6 0-28% $15.13-30 $20.66-32.94 10-37% $11.94-22.37 $20.66-28.08 39-73%
5 $24-57.55 $24-57.55 0% $16.65-39.87 $21.6-51.80 20-43% $15.07-39.33 $21.6-51.8 21-45%
10 $36.15-84.85 $36.15-84.85 0% $20.26-63.24 $32.54-76.37 21-61% $19.59-62.28 $32.54-76.37 33-66%
25 $65.95-147.75 $565.95-147.75 0% $33.99-127.57 $59.36-132.98 4-75% $33.14-124.02 $59.37-132.98 7-89%
50 $116.85-273.25 $116.85-273.25 0% $56.87-239.40 $105.17-245.93 3-94% $55.73-229.88 $105.17-245.93 7-102%
Flat Rate Envelopes $19.99 $22.95 15% $18.11 $20.66 14% $14.85 $20.66 39%
Flat Rate Box $44.95 n/a $44.95 n/a $44.95 n/a
USPS Priority Mail® Express
Retail Commercial Base Commercial Plus

13. Savings Strategies
1. Move to Commercial Rates
• Huge discounts over retail rates.
• Free tracking on usps.com.
• Need to process through a PC Postage solution to get the discounts.
• Multiple vendor options to process packages – Some are free or very low cost.
• Requires the operator to enter the address and submit to the USPS electronically
and create a shipping label vs. meter tape.
• If you are doing large volumes (50,000 per year) reach out to the USPS about
Commercial Plus discounts.
• 13-16 ounce can now be converted to First-Class® Parcel for $3.63 or less!
January 15, 2016 13
Retail Commercial Base Commercial Plus
Weight LB's
January 17,
2016 January 17, 2016 % Savings January 17, 2016
% Savings (Over
Commercial Base)
1 $6.45-7.85 $5.75-7.16 9-11% $5.60-6.95 3%
5 $9.85-23.15 $7.39-19.81 14-34% $7.17-19.22 3%
10 $12.65-38.60 $8.69-34.60 10-41% $8.43-33.56 3%
25 $22.55-70.4 $17.76-61.57 13-32% $17.23-86.74 3%
50 $32.55-109.7 $25.96-95.91 13-20% $25.18-93.03 3%
Flat Rate Envelopes $6.45 $5.75 11% $5.60 3%
Small Flat Rate Box $6.80 $6.10 10% $5.90 3%
Medium Flat Rate Boxes $13.45 $11.95 11% $11.60 3%
Large Flat Rate Boxes $18.75 $16.35 13% $15.85 3%
USPS Priority Mail®

14. Savings Strategies
2. Compare Rates with the Private Carriers - For
every package
Benefits to USPS
• Don’t charge extra fees for:
– Fuel surcharge
– Residential, DAS Surcharges
– Saturday Delivery
– Address Correction Fees
• Best rates for lightweight items to
residences (Less than 5 LB’s)
• First Class Parcel rates for items less
than 16 ounces. ($2.60-3.63 per item!)
• Free boxes
Benefits UPS & FedEx*
• Negotiate rates based on volumes.
• Guaranteed delivery with refunds.
• Ground service with 1-5 day
guaranty(Many areas are 1-3 days).
• Dedicated account managers.
• Typically have the best rates items
over 5LB’s or lighter weights going to
businesses.
*Assumes that you have a corporate agreement.
January 15, 2016 14
Multi Carrier options:
1. Manually compare between systems.
2. Cloud based multi carrier systems – simple to complex.
3. PC/Server based multi carrier systems.

15. How To Budget For This Increase
1. Enter last years spend.
2. Estimate % based on type of mail.
Below is an example on how to set this up.
Tip: If you are seeing your mix of mail having a higher
percentage increase, edit this on the template.
January 15, 2016 15
% of Mail
Spend Amount % Increase
2016 Budget
Amount
2015 USPS Mail Spend $100,000
% of Spent for Letters/Flats 80% $80,000 0% $80,000
% Spent for Packages/Expedited 20% $20,000 9.5% $21,900.00
2016 USPS Mail Spend $101,900

16. Helping multi-location
organizations streamline
their mailing costs
58,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$2,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $20,000,000 IN CLIENT SAVINGS
$559K
57%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 200 + 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)

17. 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 sites -
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

18. Contact info: (20pt)
January 15, 2016 18
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com

19. January 15, 2016 19