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January 2019 USPS® Rate Change
- What You Need To Know
Background and Experience
Speaker: Adam Lewenberg
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 121,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Former Industry Co Chair- Boston Postal Customer Council and Mail Systems
Management Association. 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.
December 12, 2018 2
What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
December 12, 2018 3
New rates take into effect Sunday
January 27, 2019
We will focus on the most common rate structures. For more detail on other mail classes and
services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index
First-Class Mail® Single Piece
• 7.6% Decrease to 10% Increase based on weight
• Price of a stamp is increasing from $0.50 to $0.55 – 10% increase
• Flats rates are decreasing!
• Additional ounce rate decreasing from $.21 to $.15. Drastic reduction as
items get heavier.
December 12, 2018 4
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
1 $0.50 $0.55 10.0% $1.00 $1.00 0.0%
2 $0.71 $0.70 -1.4% $1.21 $1.15 -5.0%
3 $0.92 $0.85 -7.6% $1.42 $1.30 -8.5%
6 N/A N/A $2.05 $1.75 -14.6%
13 N/A N/A $3.52 $2.80 -20.5%
Post Card $0.35 $0.35 0.0%
Letters Flats
First-Class Mail® Retail
First-Class Mail® Single Piece - Metered Letters
• Using a postage meter or a PC postage solution will
have a price increase from $0.47 to $0.50.
• Metered mail (including PC Postage) will still save $.05
per piece over stamps purchased from the Post Office!
December 12, 2018 5
Savings over First-Class
Mail® Retail @ $.55 each
Postage meters and PC Postage start at about $15 per month and
can make your mail easier to manage.
Annual Postage # of Pieces @ $.50 each Savings @ $.05 Each
$1,000 2,000 $100.00
$10,000 20,000 $1,000.00
$100,000 200,000 $10,000.00
$1,000,000 2,000,000 $100,000.00
First-Class® Mail Metered Savings
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
1 $0.470 $0.500 6.4%
2 $0.680 $0.650 -4.4%
3 $0.890 $0.800 -10.1%
Letters
Metered Letters
First-Class Mail® Commercial
• 1% Average increase for letters. Smallest
increases at the lowest sort levels.
• Flats saw a 0-3% increase which will be
offset by the reduction of the additional
ounce levels from $.21-.15.
• Post Cards show no increase
December 12, 2018 6
Full Service IMB customers still qualify for the additional $.003 savings.
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Automation 5 Digit 1 $0.378 $0.383 1.3% $0.474 $0.486 2.5% $0.257 $0.257 0.0%
Automation 3 Digit $0.593 $0.605 2.0%
Automation AADC 1 $0.408 $0.412 1.0% $0.632 $0.644 1.9% $0.268 $0.268 0.0%
Automation Mixed AADC 1 $0.424 $0.428 0.9% $0.705 $0.727 3.1% $0.274 $0.274 0.0%
Presorted (Non Automation) 1 $0.458 $0.459 0.2% $0.799 $0.799 0.0% $0.280 $0.280 0.0%
Commercial First-Class Mail®
Letters Flats* Post Cards
Commercial First-Class Mail®
Weight
Prior to
01/27/19
New Rates
01/27/19 % Increase
1 $0.705 $0.727 3%
3 $1.125 $1.027 -9%
5 $1.545 $1.327 -14%
7 $1.965 $1.627 -17%
9 $2.385 $1.927 -19%
11 $2.805 $2.227 -21%
13 $3.225 $2.527 -22%
Automation Flats - Mixed ADC
First-Class Mail® Savings Options - Letters
• 3-ounce Metered Letter at $0.91 to a Commercial rate of $0.378 – 58%
savings!
• Automation Mail can add extra content at no additional charge!
December 12, 2018 7
Weight
Ounces Prior to 01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/22/17
New Rates
01/22/17
Savings over
Metered
1 $0.50 $0.55 10.0% $0.47 $0.50 6.4% $.378-.424 $.383-.428 14-23%
2 $0.71 $0.70 -1.4% $0.68 $0.65 -4.4% $.378-.424 $.383-.428 34-41%
3 $0.92 $0.85 -7.6% $0.89 $0.80 -10.1% $.378-.424 $.383-.428 47-52%
3.5 $1.13 $1.00 -11.5% $1.10 $0.95 5.0% $.378-.424 $.383-.428 55-60%
First-Class Mail® Letter Options
Metered Commercial (Automation)Retail (Stamps)
Primary Methods for Commercial Mail Rates
• Software in your office to apply barcodes and USPS Rules
• Use a Presort Service
• Outsource the entire mailing
Marketing Mail® (Formerly called Standard Mail)
• 1- 6% Increase
• Flats are seeing the highest increases and decreases.
• Destination Entry Discounts are decreasing for Letters and increasing for Flats
December 12, 2018 8
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Automation 5 Digit ≤3.5 $0.251 $0.256 2.0% $0.393 $0.405 3.1%
Automation 3 Digit ≤4 $0.500 $0.523 4.6%
Automation AADC/ADC ≤3.5 $0.274 $0.281 2.6% $0.567 $0.597 5.3%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.287 $0.291 1.4% $0.598 $0.632 5.7%
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Automation 5 Digit ≤3.5 $0.136 $0.138 1.5% $0.227 $0.231 1.8%
Automation 3 Digit ≤4 $0.334 $0.349 4.5%
Automation AADC/ADC ≤3.5 $0.159 $0.163 2.5% $0.401 $0.423 5.5%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.172 $0.173 0.6% $0.432 $0.458 6.0%
Marketing Mail®
Letters Flats
Marketing Mail® Nonprofit
Letters Flats
Prior to
01/27/19
New Rates
01/27/19 % Change
Prior to
01/27/19
New Rates
01/27/19 % Change
DNDC $0.024 $0.022 -8.3% $0.041 $0.043 4.9%
DSCF $0.031 $0.028 -9.7% $0.053 $0.053 0.0%
Letters Flats
Destination Entry Discounts for Marketing Mail
First-Class Mail® Savings Options
• Use Meters or PC Postage to save $.05 on letters
• Consider presort services if you run over 500 pieces per day or have one
time mailings over 1000 pieces.
• Automating your mailings in house can have drastic postage savings.
• Presort and automation levels go up to 3.5 ounces for the same rate.
• Flats and post cards can have the same automation rates as letters.
• Consider moving generic content mail from First Class to Marketing Mail
December 12, 2018 9
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 $0.55 $0.50 $.412-.459 $.383-.428 $.256-.291 $.138-.173
3 Ounce Newsletter (6X9) $0.85 $0.80 $.412-.459 $.383-.428 $.256-.291 $.138-.173
8 Ounce Flat (9X12) $2.35 $2.35 $1.78-1.85 $1.54-1.78 $.63-.86 $.42-.65
Post Card $0.35 $0.35 $0.280 $.257-.274 n/a n/a
Single Piece Rates Automation Mail with Barcodes
Converting Light Weight Flats to Letters
• Light Weight Flats
– Look for average flat prices of $1.60 or less. Over 50% Savings
by folding.
– 6X9 Envelopes only require that you fold in half.
December 12, 2018 10
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 $1.00 $0.50 $.412-.459 $.383-.428 50-63%
3-4 $1.15 $0.50 $.412-.459 $.383-.428 57-68%
6-10 $1.30 $0.65 $.412-.459 $.383-.428 50-71%
Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces
Letter Envelope - Example 6X9 or #10
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
December 12, 2018 11
Priority Mail®
December 12, 2018 12
Most popular USPS package service
13 ounce to 70LB items 1-3 day delivery
throughout the US
9 primary zones based on distance.
Highlights
• Flat rate and less than 5LB items are seeing the
largest overall increases.
• Commercial Plus rates are now the same as
Commercial Base.
• Retail rates are going up at the highest amounts
pushing customers to use the new technology.
Average %
Increase Retail
Commercial
Base
Commercial
Plus
Flat Rate 8% 4% 7%
1-5LB 6% 1% 5%
5-10LB 6% -1% 2%
10-25LB 7% -1% 2%
Over 25LB 7% -1% 2%
Weight LB's
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
1 $6.7-10.60 $7.35-12.20 7-15% (9% Avg) $6.55-10.02 $6.95-9.91 (-1)-7% (5% Avg) $6.35-9.72 $6.95-9.91 2-10% (8% Avg)
5 $9.85-30.25 $9.80-34.80 (-3)-15% (3% Avg) $7.41-29.15 $7.81-28.84 (-3)-5% (-2% Avg) $7.19-28.28 $7.81-28.84 0-9% (1% Avg)
10 $12.65-52.10 $13.10-59.90 4-15% (7% Avg) $9.23-50.92 $9.38-50.38 (-3)-2% (0% Avg) $8.95-49.39 $8.95-49.39 0-5% (3% Avg)
25 $22.55-99.10 $23.35-113.95 3-15% (7% Avg) $18.24-92.13 $18.04-91.15 -1.0% $17.69-89.37 $18.04-91.15 2.0%
50 $32.55-156.95 $33.70-180.50 3-15% (7% Avg) $27.54-145.86 $27.54-145.86 -1.0% $26.71-141.48 $27.25-144.32 2.0%
Flat Rate Envelope $6.70 $7.35 9.7% $6.55 $6.95 6.1% $6.35 $6.95 9.4%
Legal Flat Rate Envelope $7.00 $7.65 9.3% $6.85 $7.25 5.8% $6.65 $7.25 9.0%
Padded Flat Rate Envelope $7.25 $8.00 10.3% $7.10 $7.55 6.3% $6.90 $7.55 9.4%
Small Flat Rate Box $7.20 $7.90 9.7% $7.05 $7.50 6.4% $6.85 $7.50 9.5%
Medium Flat Rate Boxes $13.65 $14.35 5.1% $12.85 $12.80 -0.4% $12.45 $12.80 2.8%
Large Flat Rate Boxes $18.90 $19.95 5.6% $17.65 $17.60 -0.3% $17.10 $17.60 2.9%
USPS Priority Mail®
Retail Commercial Base Commercial Plus
Priority Mail® Express
December 12, 2018 13
Up to 70LB items 1 day Guaranteed Delivery
9 primary zones based on distance.
Highlights
• Retail rates growing at faster dates
• Flat rate items had the lowest increases
Average %
Increase Retail
Commercial
Base
Flat Rate 3% 3%
1-5LB 7% 6%
5-10LB 7% 6%
10-25LB 8% 6%
Over 25LB 9% 6%
Weight LB's
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
1 $24.7-48 $25.60-56.10 4-17% (6% Avg) $21.98-42.76 $22.74-49 3-15% (5% Avg) $21.98-42.76 $22.74-49 3-15% (5% Avg)
5 $25.8-77.05 $27.05-91 5-18% (7% Avg) $22.98-67.22 $23.91-77.47 4-15% (6% Avg) $22.98-67.22 $23.91-77.47 4-15% (6% Avg)
10 $38.9-113.65 $40.75-134.20 5-18% (7% Avg) $34.52-98.82 $35.99-114.20 4-15% (6% Avg) $34.52-98.82 $35.99-114.20 4-15% (6% Avg)
25 $69.70-190.30 $73.85-227.60 6-20% (9% Avg) $62.05-169.58 $64.69-195.84 4-15% (6% Avg) $62.05-169.58 $64.69-195.84 4-15% (6% Avg)
50 $123.35-351.90$130.85-420.90 6-20% (9% Avg) $109.94-313.63 $114.61-362.20 4-15% (6% Avg) $109.94-313.63 $114.61-362.20 4-15% (6% Avg)
Flat Rate Envelope $24.70 $25.50 3.2% $21.98 $22.68 3.2% $21.98 $22.68 3.2%
Legal Flat Rate Envelope $24.90 $25.70 3.2% $22.09 $22.80 3.2% $22.09 $22.80 3.2%
Padded Flat Rate Envelope $25.40 $26.20 3.1% $22.46 $23.18 3.2% $22.46 $23.18 3.2%
Retail Commercial Base Commercial Plus
USPS Priority Mail® Express
Savings Tips - 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. (Click-N-Ship from the USPS does not allow for
Commercial Rates – Only Retail)
• Multiple vendor options to process packages
• Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape.
December 12, 2018 14
18%
Average
Savings
13%
Average
Savings
Retail Commercial Base Commercial Plus
Weight LB's 1/27/2019 1/27/2019
% Savings over
Retail 1/27/2019
% Savings
over Base
1 $7.35-12.20 $6.95-9.91 5-19% (8% Avg) $6.95-9.91 0%
5 $9.80-34.80 $7.81-28.84 17-25% (21% Avg) $7.81-28.84 0%
10 $13.10-59.90 $9.38-50.38 16-40% (24% Avg) $9.38-50.38 0%
25 $23.35-113.95 $18.04-91.15 17-26% (21% Avg) $18.04-91.15 0%
50 $33.70-180.50 $27.25-144.32 17-22% (19% Avg) $27.25-144.32 0%
Flat Rate Envelopes $7.35 $6.95 5% $6.95 0%
Small Flat Rate Box $7.90 $7.50 5% $7.50 0%
Medium Flat Rate Boxes $14.35 $12.80 11% $12.80 0%
Large Flat Rate Boxes $19.95 $17.60 12% $17.60 0%
Retail Commercial Base
Weight LB's 1/27/2019 1/27/2019
% Savings over
Retail
1 $25.60-56.10 $22.74-49 11-13% (12% Avg)
5 $27.05-91 $23.91-77.47 12-15% (13% Avg)
10 $40.75-134.20 $35.99-114.12 12-15% (13% Avg)
25 $73.85-227.60 $64.69-195.84 12-14% (13% Avg)
50 $130.85-420.90 $114.61-362.2 12-14% (13% Avg)
Flat Rate Envelopes $25.50 $22.68 11%
USPS Priority Mail®
USPS Priority Mail® Express
First-Class Mail®
Package Service
December 12, 2018 15
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a
Monopoly (Private carriers start at 1LB)
1-3 day delivery
Highlights
• 16% Average increase in Retail and 12% for Commercial
• Changed from a flat rate to a zone based rate table.
• Save by converting from Retail to Commercial with improved tracking!
Weight
Ounces
First-Class Mail®
- Parcels Retail
First-Class Mail®
- Package
Services
Commercial Savings
Up to 4 $3.66-4.06 $2.66-3.09 24-27%
5 $4.39-4.81 $3.18-3.63 25-28%
6 $4.39-4.81 $3.18-3.63 25-28%
7 $4.39-4.81 $3.18-3.63 25-28%
8 $4.39-4.81 $3.18-3.63 25-28%
9 $5.19-5.66 $3.82-4.33 23-26%
10 $5.19-5.66 $3.82-4.33 23-26%
11 $5.19-5.66 $3.82-4.33 23-26%
12 $5.19-5.66 $3.82-4.33 23-26%
13 $5.71-6.27 $4.94-5.53 12-13%
14 $7.35-9.30 $4.94-5.53 33-41%
15 $7.35-9.30 $4.94-5.53 33-41%
15.999 $7.35-9.30 $4.94-5.53 33-41%
Convert from Retail to Commercial
Weight Ounces
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New Rates
01/27/19 % Increase
Up to 4 $3.50 $3.66-4.06 5-16% (10% Avg) $2.66 $2.66-3.09 0-16% (7% Avg)
7 $3.75 $4.39-4.81 17-28% (22% Avg) $3.05 $3.18-3.63 4-19% (11% Avg)
10 $4.45 $5.19-5.66 17-27% (22% Avg) $3.50 $3.82-4.33 9-24% (16% Avg)
12 $5.15 $5.19-5.66 1-10% (5% Avg) $3.82 $3.82-4.33 0-13% (6% Avg)
14 $4.38 $4.94-5.53 13-26% (19% Avg)
15.99 $4.94 $4.94-5.53 0-12% (6% Avg)
Retail Commercial Base
First-Class® Package Service
Commercial Savings Examples
December 12, 2018 16
Low
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 27% $250.00 $182.50 -$67.50
Priority Mail (Less than 10LB) 19% $500.00 $405.00 -$95.00
Priority Mail Express (Less than 10LB) 13% $250.00 $217.50 -$32.50
Total $1,000.00 $805.00 -$195.00
Medium
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 27% $2,500.00 $1,825.00 -$675.00
Priority Mail (Less than 10LB) 19% $5,000.00 $4,050.00 -$950.00
Priority Mail Express (Less than 10LB) 13% $2,500.00 $2,175.00 -$325.00
Total $10,000.00 $8,050.00 -$1,950.00
High
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 27% $25,000.00 $18,250.00 -$6,750.00
Priority Mail (Less than 10LB) 19% $50,000.00 $40,500.00 -$9,500.00
Priority Mail Express (Less than 10LB) 13% $25,000.00 $21,750.00 -$3,250.00
Total $100,000.00 $80,500.00 -$19,500.00
PC Postage starts at
around $15 per month!
Additional Rate Change Items
December 12, 2018 17
Group
Prior to
01/27/19
New
Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Prior to
01/27/19
New Rates
01/27/19
%
Increase
Canada $1.15 $1.15 0.0% $1.15 $1.15 0.0% $1.15 $1.15 0.0%
Mexico (Group 2) $1.15 $1.15 0.0% $1.72 $1.72 0.0% $1.15 $1.15 0.0%
Group 3-5 $1.15 $1.15 0.0% $2.13 $2.13 0.0% $1.15 $1.15 0.0%
Group 6-9 $1.15 $1.15 0.0% $1.98 $1.98 0.0% $1.15 $1.15 0.0%
First-Class Mail International®
1 Ounce 2 Ounce Post Cards
Weight LB's
Prior to
01/27/19
New
Rates
01/27/19 % Increase
1 $2.53 $2.61 3.2%
2 $3.01 $3.10 3.0%
5 $4.45 $4.57 2.7%
10 $6.85 $7.02 2.5%
Library Mail
Single Piece
Weight LB's
Prior to
01/27/19
New
Rates
01/27/19 % Increase
1 $2.63 $2.75 4.6%
2 $3.12 $3.27 4.8%
5 $4.59 $4.83 5.2%
10 $7.01 $7.43 6.0%
Single Piece
Media Mail
Special Services
December 12, 2018 18
Special Services Retail Electronic
Prior to
01/27/19
New Rates
01/27/19 % Increase
Prior to
01/27/19
New
Rates
01/27/19
%
Increase
Certificate of Mailing $1.40 $1.45 3.6%
Registered™ without Insurance $11.90 $12.40 4.2%
Certified Mail™ $3.45 $3.50 1.4%
Return Receipt $2.75 $2.80 1.8% $1.50 $1.60 6.7%
USPS Tracking
First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0%
Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0%
Marketing Mail® parcels $0.39 $0.40 2.6%
Signature Confirmation $3.00 $3.05 1.7% $2.55 $2.60 2.0%
Certified Mail with Electronic Return Receipt
(ERR)
• Save $1.20 by switching to an electronic version.
December 12, 2018 19
Savings Tips
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. ($2.66-4.94 per item!)
• Free boxes
Benefits UPS & FedEx*
• Negotiate rates based on volumes.
• Guaranteed delivery with refunds.
• Ground service with 1-5 day guarantee
(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.
December 12, 2018 20
Multi Carrier options:
1. Manually compare between systems.
2. Cloud based multi carrier systems – simple to complex.
3. PC/Server based multi carrier systems.
How To Budget For This Increase
December 12, 2018 21
Class Weight
% Of
Class % Change
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Metered Letters 1 85% 6%
2 10% -4%
3 5% -10%
Total 4.50% $0.00 $0.00
First Class Flats -14% $0.00 $0.00
First Class Parcles - Retail 16% $0.00 $0.00
First Class Parcles - Commercial 12% $0.00 $0.00
First Class Automation Letters 100% 1% $0.00 $0.00
First Class Automation Flats -16% $0.00 $0.00
Certified with Return Reciept 3% $0.00 $0.00
Priority Mail Retail 7% $0.00 $0.00
Priority Mail Commercial 3% $0.00 $0.00
Priority Mail Commercial Plus 6% $0.00 $0.00
Marketing Mail
Letters 2% $0.00 $0.00
Flats 4.70% $0.00 $0.00
Other Misc Mail 3% $0.00 $0.00
Total $0.00 $0.00 $0.00
Email
doris.tam@postaladvocate.com
for a copy of this excel budgeting
tool.
What you need to do:
• If you have a mail machine, make sure you
download the new rates before January
27, 2019 when the rates take into effect
• Here are links to the different meter vendors:
• Pitney Bowes:
http://www.pitneybowes.com/us/postal-information/rate-change-info.html
• Neopost/Hasler:
http://www.neopostusa.com/resources/rate-change-information
• FP:
http://www.fp-usa.com/ratechange/
• Stamps.com:
https://stamps.custhelp.com/app/answers/detail/a_id/1685/~/january-2017-usps-
rate-changes
• Go to the USPS Postal Explorer website for
more information:
http://pe.usps.gov/PriceChange/Index
December 12, 2018 22
Download the Postal
Advocate Rate
Comparison Guide –
www.postaladvocate.com
Rate Summary
• First-Class Mail® Single Piece – $.05 Increase on letters (10% Increase),
Additional ounce rate goes down $.06
• First-Class Mail® Single Piece Metered Letters – $.05 savings over Retail
and price is increasing from $.47 to $.50! (2% Increase)
• First-Class Mail® Commercial – 1% Increase for Letters, 2-3% for Flats but
flats rates should decrease due to reduction in additional ounce rate.
• Marketing Mail® - 1-3% increase for Letters and 2-6% for Flats.
• Priority Mail® - 6-8% Increase for Retail, -1 decrease to 4% increase for
Commercial and elimination of Commercial Plus discount.
• Priority Mail® Express – 3 – 9% Increase
• First-Class® Mail Package Service – 6% to 22% Increase. Elimination of flat
rate and moving to zone based like Priority Mail ®.
December 12, 2018 23
Savings Summary
• Use a postage meter or PC Postage to save $.05 per letter.
• Convert Letters and Flats to Automation Classes – up to 60% Savings!
– Up to 3.5 ounces for the price of 1 ounce!
– Fold flats for additional savings
– Faster delivery
– Automated address validation
• Convert Priority Mail® from Retail to Commercial to Plus
– 19% average savings for Priority Mail®
– 13% average savings for Priority Mail® Express
• Convert First-Class Mail® Parcels from Retail to Commercial – 27%
Savings
• User Electronic Return Receipt with Certified Mail - $1.20 Savings.
• Compare pricing across carriers for the best rate on each package.
December 12, 2018 24
Upcoming 2019 Webinars
December 12, 2018 25
Upcoming Webinars Date Time
Jan 2019 USPS Rate Change January 16, 2019 11:00AM EST
January 23, 2019 11:00AM EST
Top 5 Things You Need to Know About
PreSort Mailing February 20, 2019 11:00AM EST
Enterprise PC Postage - Round 3 - PC
Postage vs Postage Meters - The Evolution
of Mail March 11:00AM EST
Top 10 Ways for Enterprise To Save on Mail
Cost April 11:00AM EST
Top 9 Ways To Recover Lost Postage May 11:00AM EST
FASB - The New Standard and Gaining
Visibility to Your Mailing Fleet September 11:00AM EST
Top 10 Ways To Manage Enterprise Mailing
Spends Across the Enterprise October 11:00AM EST
Everything You Need to Know When Buying
Mail Equipment November 11:00AM EST
Budgeting for the 2020 Rate Change December 11:00AM EST
Register at www.postaladvocate.com
Helping multi-location
organizations streamline
their mailing costs
Over 121,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$15,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $43,500,000 IN CLIENT SAVINGS
$1.3M
60%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 230+ 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)
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
Contact info: (20pt)
December 12, 2018 29
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com
December 12, 2018 30

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January 2019 USPS Rates Increase Webinar Presentation

  • 1. January 2019 USPS® Rate Change - What You Need To Know
  • 2. Background and Experience Speaker: Adam Lewenberg • President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of 121,000 pieces of mailing equipment for the largest US companies. – Speak and teach nationally on mail savings and industry trends. • Former Industry Co Chair- Boston Postal Customer Council and Mail Systems Management Association. 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. December 12, 2018 2
  • 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips December 12, 2018 3 New rates take into effect Sunday January 27, 2019 We will focus on the most common rate structures. For more detail on other mail classes and services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index
  • 4. First-Class Mail® Single Piece • 7.6% Decrease to 10% Increase based on weight • Price of a stamp is increasing from $0.50 to $0.55 – 10% increase • Flats rates are decreasing! • Additional ounce rate decreasing from $.21 to $.15. Drastic reduction as items get heavier. December 12, 2018 4 Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $0.50 $0.55 10.0% $1.00 $1.00 0.0% 2 $0.71 $0.70 -1.4% $1.21 $1.15 -5.0% 3 $0.92 $0.85 -7.6% $1.42 $1.30 -8.5% 6 N/A N/A $2.05 $1.75 -14.6% 13 N/A N/A $3.52 $2.80 -20.5% Post Card $0.35 $0.35 0.0% Letters Flats First-Class Mail® Retail
  • 5. First-Class Mail® Single Piece - Metered Letters • Using a postage meter or a PC postage solution will have a price increase from $0.47 to $0.50. • Metered mail (including PC Postage) will still save $.05 per piece over stamps purchased from the Post Office! December 12, 2018 5 Savings over First-Class Mail® Retail @ $.55 each Postage meters and PC Postage start at about $15 per month and can make your mail easier to manage. Annual Postage # of Pieces @ $.50 each Savings @ $.05 Each $1,000 2,000 $100.00 $10,000 20,000 $1,000.00 $100,000 200,000 $10,000.00 $1,000,000 2,000,000 $100,000.00 First-Class® Mail Metered Savings Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $0.470 $0.500 6.4% 2 $0.680 $0.650 -4.4% 3 $0.890 $0.800 -10.1% Letters Metered Letters
  • 6. First-Class Mail® Commercial • 1% Average increase for letters. Smallest increases at the lowest sort levels. • Flats saw a 0-3% increase which will be offset by the reduction of the additional ounce levels from $.21-.15. • Post Cards show no increase December 12, 2018 6 Full Service IMB customers still qualify for the additional $.003 savings. Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Automation 5 Digit 1 $0.378 $0.383 1.3% $0.474 $0.486 2.5% $0.257 $0.257 0.0% Automation 3 Digit $0.593 $0.605 2.0% Automation AADC 1 $0.408 $0.412 1.0% $0.632 $0.644 1.9% $0.268 $0.268 0.0% Automation Mixed AADC 1 $0.424 $0.428 0.9% $0.705 $0.727 3.1% $0.274 $0.274 0.0% Presorted (Non Automation) 1 $0.458 $0.459 0.2% $0.799 $0.799 0.0% $0.280 $0.280 0.0% Commercial First-Class Mail® Letters Flats* Post Cards Commercial First-Class Mail® Weight Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $0.705 $0.727 3% 3 $1.125 $1.027 -9% 5 $1.545 $1.327 -14% 7 $1.965 $1.627 -17% 9 $2.385 $1.927 -19% 11 $2.805 $2.227 -21% 13 $3.225 $2.527 -22% Automation Flats - Mixed ADC
  • 7. First-Class Mail® Savings Options - Letters • 3-ounce Metered Letter at $0.91 to a Commercial rate of $0.378 – 58% savings! • Automation Mail can add extra content at no additional charge! December 12, 2018 7 Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/22/17 New Rates 01/22/17 Savings over Metered 1 $0.50 $0.55 10.0% $0.47 $0.50 6.4% $.378-.424 $.383-.428 14-23% 2 $0.71 $0.70 -1.4% $0.68 $0.65 -4.4% $.378-.424 $.383-.428 34-41% 3 $0.92 $0.85 -7.6% $0.89 $0.80 -10.1% $.378-.424 $.383-.428 47-52% 3.5 $1.13 $1.00 -11.5% $1.10 $0.95 5.0% $.378-.424 $.383-.428 55-60% First-Class Mail® Letter Options Metered Commercial (Automation)Retail (Stamps) Primary Methods for Commercial Mail Rates • Software in your office to apply barcodes and USPS Rules • Use a Presort Service • Outsource the entire mailing
  • 8. Marketing Mail® (Formerly called Standard Mail) • 1- 6% Increase • Flats are seeing the highest increases and decreases. • Destination Entry Discounts are decreasing for Letters and increasing for Flats December 12, 2018 8 Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Automation 5 Digit ≤3.5 $0.251 $0.256 2.0% $0.393 $0.405 3.1% Automation 3 Digit ≤4 $0.500 $0.523 4.6% Automation AADC/ADC ≤3.5 $0.274 $0.281 2.6% $0.567 $0.597 5.3% Automation Mixed AADC/ADC-Origin ≤3.5 $0.287 $0.291 1.4% $0.598 $0.632 5.7% Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Automation 5 Digit ≤3.5 $0.136 $0.138 1.5% $0.227 $0.231 1.8% Automation 3 Digit ≤4 $0.334 $0.349 4.5% Automation AADC/ADC ≤3.5 $0.159 $0.163 2.5% $0.401 $0.423 5.5% Automation Mixed AADC/ADC-Origin ≤3.5 $0.172 $0.173 0.6% $0.432 $0.458 6.0% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Prior to 01/27/19 New Rates 01/27/19 % Change Prior to 01/27/19 New Rates 01/27/19 % Change DNDC $0.024 $0.022 -8.3% $0.041 $0.043 4.9% DSCF $0.031 $0.028 -9.7% $0.053 $0.053 0.0% Letters Flats Destination Entry Discounts for Marketing Mail
  • 9. First-Class Mail® Savings Options • Use Meters or PC Postage to save $.05 on letters • Consider presort services if you run over 500 pieces per day or have one time mailings over 1000 pieces. • Automating your mailings in house can have drastic postage savings. • Presort and automation levels go up to 3.5 ounces for the same rate. • Flats and post cards can have the same automation rates as letters. • Consider moving generic content mail from First Class to Marketing Mail December 12, 2018 9 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 $0.55 $0.50 $.412-.459 $.383-.428 $.256-.291 $.138-.173 3 Ounce Newsletter (6X9) $0.85 $0.80 $.412-.459 $.383-.428 $.256-.291 $.138-.173 8 Ounce Flat (9X12) $2.35 $2.35 $1.78-1.85 $1.54-1.78 $.63-.86 $.42-.65 Post Card $0.35 $0.35 $0.280 $.257-.274 n/a n/a Single Piece Rates Automation Mail with Barcodes
  • 10. Converting Light Weight Flats to Letters • Light Weight Flats – Look for average flat prices of $1.60 or less. Over 50% Savings by folding. – 6X9 Envelopes only require that you fold in half. December 12, 2018 10 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 $1.00 $0.50 $.412-.459 $.383-.428 50-63% 3-4 $1.15 $0.50 $.412-.459 $.383-.428 57-68% 6-10 $1.30 $0.65 $.412-.459 $.383-.428 50-71% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  • 11. 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 December 12, 2018 11
  • 12. Priority Mail® December 12, 2018 12 Most popular USPS package service 13 ounce to 70LB items 1-3 day delivery throughout the US 9 primary zones based on distance. Highlights • Flat rate and less than 5LB items are seeing the largest overall increases. • Commercial Plus rates are now the same as Commercial Base. • Retail rates are going up at the highest amounts pushing customers to use the new technology. Average % Increase Retail Commercial Base Commercial Plus Flat Rate 8% 4% 7% 1-5LB 6% 1% 5% 5-10LB 6% -1% 2% 10-25LB 7% -1% 2% Over 25LB 7% -1% 2% Weight LB's Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $6.7-10.60 $7.35-12.20 7-15% (9% Avg) $6.55-10.02 $6.95-9.91 (-1)-7% (5% Avg) $6.35-9.72 $6.95-9.91 2-10% (8% Avg) 5 $9.85-30.25 $9.80-34.80 (-3)-15% (3% Avg) $7.41-29.15 $7.81-28.84 (-3)-5% (-2% Avg) $7.19-28.28 $7.81-28.84 0-9% (1% Avg) 10 $12.65-52.10 $13.10-59.90 4-15% (7% Avg) $9.23-50.92 $9.38-50.38 (-3)-2% (0% Avg) $8.95-49.39 $8.95-49.39 0-5% (3% Avg) 25 $22.55-99.10 $23.35-113.95 3-15% (7% Avg) $18.24-92.13 $18.04-91.15 -1.0% $17.69-89.37 $18.04-91.15 2.0% 50 $32.55-156.95 $33.70-180.50 3-15% (7% Avg) $27.54-145.86 $27.54-145.86 -1.0% $26.71-141.48 $27.25-144.32 2.0% Flat Rate Envelope $6.70 $7.35 9.7% $6.55 $6.95 6.1% $6.35 $6.95 9.4% Legal Flat Rate Envelope $7.00 $7.65 9.3% $6.85 $7.25 5.8% $6.65 $7.25 9.0% Padded Flat Rate Envelope $7.25 $8.00 10.3% $7.10 $7.55 6.3% $6.90 $7.55 9.4% Small Flat Rate Box $7.20 $7.90 9.7% $7.05 $7.50 6.4% $6.85 $7.50 9.5% Medium Flat Rate Boxes $13.65 $14.35 5.1% $12.85 $12.80 -0.4% $12.45 $12.80 2.8% Large Flat Rate Boxes $18.90 $19.95 5.6% $17.65 $17.60 -0.3% $17.10 $17.60 2.9% USPS Priority Mail® Retail Commercial Base Commercial Plus
  • 13. Priority Mail® Express December 12, 2018 13 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • Retail rates growing at faster dates • Flat rate items had the lowest increases Average % Increase Retail Commercial Base Flat Rate 3% 3% 1-5LB 7% 6% 5-10LB 7% 6% 10-25LB 8% 6% Over 25LB 9% 6% Weight LB's Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $24.7-48 $25.60-56.10 4-17% (6% Avg) $21.98-42.76 $22.74-49 3-15% (5% Avg) $21.98-42.76 $22.74-49 3-15% (5% Avg) 5 $25.8-77.05 $27.05-91 5-18% (7% Avg) $22.98-67.22 $23.91-77.47 4-15% (6% Avg) $22.98-67.22 $23.91-77.47 4-15% (6% Avg) 10 $38.9-113.65 $40.75-134.20 5-18% (7% Avg) $34.52-98.82 $35.99-114.20 4-15% (6% Avg) $34.52-98.82 $35.99-114.20 4-15% (6% Avg) 25 $69.70-190.30 $73.85-227.60 6-20% (9% Avg) $62.05-169.58 $64.69-195.84 4-15% (6% Avg) $62.05-169.58 $64.69-195.84 4-15% (6% Avg) 50 $123.35-351.90$130.85-420.90 6-20% (9% Avg) $109.94-313.63 $114.61-362.20 4-15% (6% Avg) $109.94-313.63 $114.61-362.20 4-15% (6% Avg) Flat Rate Envelope $24.70 $25.50 3.2% $21.98 $22.68 3.2% $21.98 $22.68 3.2% Legal Flat Rate Envelope $24.90 $25.70 3.2% $22.09 $22.80 3.2% $22.09 $22.80 3.2% Padded Flat Rate Envelope $25.40 $26.20 3.1% $22.46 $23.18 3.2% $22.46 $23.18 3.2% Retail Commercial Base Commercial Plus USPS Priority Mail® Express
  • 14. Savings Tips - 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. (Click-N-Ship from the USPS does not allow for Commercial Rates – Only Retail) • Multiple vendor options to process packages • Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape. December 12, 2018 14 18% Average Savings 13% Average Savings Retail Commercial Base Commercial Plus Weight LB's 1/27/2019 1/27/2019 % Savings over Retail 1/27/2019 % Savings over Base 1 $7.35-12.20 $6.95-9.91 5-19% (8% Avg) $6.95-9.91 0% 5 $9.80-34.80 $7.81-28.84 17-25% (21% Avg) $7.81-28.84 0% 10 $13.10-59.90 $9.38-50.38 16-40% (24% Avg) $9.38-50.38 0% 25 $23.35-113.95 $18.04-91.15 17-26% (21% Avg) $18.04-91.15 0% 50 $33.70-180.50 $27.25-144.32 17-22% (19% Avg) $27.25-144.32 0% Flat Rate Envelopes $7.35 $6.95 5% $6.95 0% Small Flat Rate Box $7.90 $7.50 5% $7.50 0% Medium Flat Rate Boxes $14.35 $12.80 11% $12.80 0% Large Flat Rate Boxes $19.95 $17.60 12% $17.60 0% Retail Commercial Base Weight LB's 1/27/2019 1/27/2019 % Savings over Retail 1 $25.60-56.10 $22.74-49 11-13% (12% Avg) 5 $27.05-91 $23.91-77.47 12-15% (13% Avg) 10 $40.75-134.20 $35.99-114.12 12-15% (13% Avg) 25 $73.85-227.60 $64.69-195.84 12-14% (13% Avg) 50 $130.85-420.90 $114.61-362.2 12-14% (13% Avg) Flat Rate Envelopes $25.50 $22.68 11% USPS Priority Mail® USPS Priority Mail® Express
  • 15. First-Class Mail® Package Service December 12, 2018 15 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • 16% Average increase in Retail and 12% for Commercial • Changed from a flat rate to a zone based rate table. • Save by converting from Retail to Commercial with improved tracking! Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $3.66-4.06 $2.66-3.09 24-27% 5 $4.39-4.81 $3.18-3.63 25-28% 6 $4.39-4.81 $3.18-3.63 25-28% 7 $4.39-4.81 $3.18-3.63 25-28% 8 $4.39-4.81 $3.18-3.63 25-28% 9 $5.19-5.66 $3.82-4.33 23-26% 10 $5.19-5.66 $3.82-4.33 23-26% 11 $5.19-5.66 $3.82-4.33 23-26% 12 $5.19-5.66 $3.82-4.33 23-26% 13 $5.71-6.27 $4.94-5.53 12-13% 14 $7.35-9.30 $4.94-5.53 33-41% 15 $7.35-9.30 $4.94-5.53 33-41% 15.999 $7.35-9.30 $4.94-5.53 33-41% Convert from Retail to Commercial Weight Ounces Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Up to 4 $3.50 $3.66-4.06 5-16% (10% Avg) $2.66 $2.66-3.09 0-16% (7% Avg) 7 $3.75 $4.39-4.81 17-28% (22% Avg) $3.05 $3.18-3.63 4-19% (11% Avg) 10 $4.45 $5.19-5.66 17-27% (22% Avg) $3.50 $3.82-4.33 9-24% (16% Avg) 12 $5.15 $5.19-5.66 1-10% (5% Avg) $3.82 $3.82-4.33 0-13% (6% Avg) 14 $4.38 $4.94-5.53 13-26% (19% Avg) 15.99 $4.94 $4.94-5.53 0-12% (6% Avg) Retail Commercial Base First-Class® Package Service
  • 16. Commercial Savings Examples December 12, 2018 16 Low Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $250.00 $182.50 -$67.50 Priority Mail (Less than 10LB) 19% $500.00 $405.00 -$95.00 Priority Mail Express (Less than 10LB) 13% $250.00 $217.50 -$32.50 Total $1,000.00 $805.00 -$195.00 Medium Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $2,500.00 $1,825.00 -$675.00 Priority Mail (Less than 10LB) 19% $5,000.00 $4,050.00 -$950.00 Priority Mail Express (Less than 10LB) 13% $2,500.00 $2,175.00 -$325.00 Total $10,000.00 $8,050.00 -$1,950.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $25,000.00 $18,250.00 -$6,750.00 Priority Mail (Less than 10LB) 19% $50,000.00 $40,500.00 -$9,500.00 Priority Mail Express (Less than 10LB) 13% $25,000.00 $21,750.00 -$3,250.00 Total $100,000.00 $80,500.00 -$19,500.00 PC Postage starts at around $15 per month!
  • 17. Additional Rate Change Items December 12, 2018 17 Group Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Canada $1.15 $1.15 0.0% $1.15 $1.15 0.0% $1.15 $1.15 0.0% Mexico (Group 2) $1.15 $1.15 0.0% $1.72 $1.72 0.0% $1.15 $1.15 0.0% Group 3-5 $1.15 $1.15 0.0% $2.13 $2.13 0.0% $1.15 $1.15 0.0% Group 6-9 $1.15 $1.15 0.0% $1.98 $1.98 0.0% $1.15 $1.15 0.0% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $2.53 $2.61 3.2% 2 $3.01 $3.10 3.0% 5 $4.45 $4.57 2.7% 10 $6.85 $7.02 2.5% Library Mail Single Piece Weight LB's Prior to 01/27/19 New Rates 01/27/19 % Increase 1 $2.63 $2.75 4.6% 2 $3.12 $3.27 4.8% 5 $4.59 $4.83 5.2% 10 $7.01 $7.43 6.0% Single Piece Media Mail
  • 18. Special Services December 12, 2018 18 Special Services Retail Electronic Prior to 01/27/19 New Rates 01/27/19 % Increase Prior to 01/27/19 New Rates 01/27/19 % Increase Certificate of Mailing $1.40 $1.45 3.6% Registered™ without Insurance $11.90 $12.40 4.2% Certified Mail™ $3.45 $3.50 1.4% Return Receipt $2.75 $2.80 1.8% $1.50 $1.60 6.7% USPS Tracking First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0% Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0% Marketing Mail® parcels $0.39 $0.40 2.6% Signature Confirmation $3.00 $3.05 1.7% $2.55 $2.60 2.0%
  • 19. Certified Mail with Electronic Return Receipt (ERR) • Save $1.20 by switching to an electronic version. December 12, 2018 19
  • 20. Savings Tips 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. ($2.66-4.94 per item!) • Free boxes Benefits UPS & FedEx* • Negotiate rates based on volumes. • Guaranteed delivery with refunds. • Ground service with 1-5 day guarantee (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. December 12, 2018 20 Multi Carrier options: 1. Manually compare between systems. 2. Cloud based multi carrier systems – simple to complex. 3. PC/Server based multi carrier systems.
  • 21. How To Budget For This Increase December 12, 2018 21 Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First Class Metered Letters 1 85% 6% 2 10% -4% 3 5% -10% Total 4.50% $0.00 $0.00 First Class Flats -14% $0.00 $0.00 First Class Parcles - Retail 16% $0.00 $0.00 First Class Parcles - Commercial 12% $0.00 $0.00 First Class Automation Letters 100% 1% $0.00 $0.00 First Class Automation Flats -16% $0.00 $0.00 Certified with Return Reciept 3% $0.00 $0.00 Priority Mail Retail 7% $0.00 $0.00 Priority Mail Commercial 3% $0.00 $0.00 Priority Mail Commercial Plus 6% $0.00 $0.00 Marketing Mail Letters 2% $0.00 $0.00 Flats 4.70% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00 Email doris.tam@postaladvocate.com for a copy of this excel budgeting tool.
  • 22. What you need to do: • If you have a mail machine, make sure you download the new rates before January 27, 2019 when the rates take into effect • Here are links to the different meter vendors: • Pitney Bowes: http://www.pitneybowes.com/us/postal-information/rate-change-info.html • Neopost/Hasler: http://www.neopostusa.com/resources/rate-change-information • FP: http://www.fp-usa.com/ratechange/ • Stamps.com: https://stamps.custhelp.com/app/answers/detail/a_id/1685/~/january-2017-usps- rate-changes • Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index December 12, 2018 22 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 23. Rate Summary • First-Class Mail® Single Piece – $.05 Increase on letters (10% Increase), Additional ounce rate goes down $.06 • First-Class Mail® Single Piece Metered Letters – $.05 savings over Retail and price is increasing from $.47 to $.50! (2% Increase) • First-Class Mail® Commercial – 1% Increase for Letters, 2-3% for Flats but flats rates should decrease due to reduction in additional ounce rate. • Marketing Mail® - 1-3% increase for Letters and 2-6% for Flats. • Priority Mail® - 6-8% Increase for Retail, -1 decrease to 4% increase for Commercial and elimination of Commercial Plus discount. • Priority Mail® Express – 3 – 9% Increase • First-Class® Mail Package Service – 6% to 22% Increase. Elimination of flat rate and moving to zone based like Priority Mail ®. December 12, 2018 23
  • 24. Savings Summary • Use a postage meter or PC Postage to save $.05 per letter. • Convert Letters and Flats to Automation Classes – up to 60% Savings! – Up to 3.5 ounces for the price of 1 ounce! – Fold flats for additional savings – Faster delivery – Automated address validation • Convert Priority Mail® from Retail to Commercial to Plus – 19% average savings for Priority Mail® – 13% average savings for Priority Mail® Express • Convert First-Class Mail® Parcels from Retail to Commercial – 27% Savings • User Electronic Return Receipt with Certified Mail - $1.20 Savings. • Compare pricing across carriers for the best rate on each package. December 12, 2018 24
  • 25. Upcoming 2019 Webinars December 12, 2018 25 Upcoming Webinars Date Time Jan 2019 USPS Rate Change January 16, 2019 11:00AM EST January 23, 2019 11:00AM EST Top 5 Things You Need to Know About PreSort Mailing February 20, 2019 11:00AM EST Enterprise PC Postage - Round 3 - PC Postage vs Postage Meters - The Evolution of Mail March 11:00AM EST Top 10 Ways for Enterprise To Save on Mail Cost April 11:00AM EST Top 9 Ways To Recover Lost Postage May 11:00AM EST FASB - The New Standard and Gaining Visibility to Your Mailing Fleet September 11:00AM EST Top 10 Ways To Manage Enterprise Mailing Spends Across the Enterprise October 11:00AM EST Everything You Need to Know When Buying Mail Equipment November 11:00AM EST Budgeting for the 2020 Rate Change December 11:00AM EST Register at www.postaladvocate.com
  • 26. Helping multi-location organizations streamline their mailing costs Over 121,000 pieces of equipment, managed by Postal Advocate Recovered over $15,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $43,500,000 IN CLIENT SAVINGS $1.3M 60% Average Client Savings Average Equipment Savings HOW WE DO IT • 230+ 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)
  • 27.
  • 28. 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
  • 29. Contact info: (20pt) December 12, 2018 29 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com