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January 2020 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 158,000 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 18, 2019 2
What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
December 18, 2019 3
New rates take into effect Sunday
January 26, 2020
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
• 0% Increase on letters
• Flats rates are increasing due to additional ounce rate going from $.15 to
$.20. Drastic increase as items get heavier.
December 18, 2019 4
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
1 $0.55 $0.55 0.0% $1.00 $1.00 0.0%
2 $0.70 $0.70 0.0% $1.15 $1.20 4.3%
3 $0.85 $0.85 0.0% $1.30 $1.40 7.7%
6 N/A N/A $1.75 $2.00 14.3%
13 N/A N/A $2.80 $3.40 21.4%
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 no price increases for letters!
• Metered mail (including PC Postage) will still save $.05
per piece over stamps purchased from the Post Office!
December 18, 2019 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
01/26/20
New Rates
01/26/20 % Increase
1 $0.500 $0.500 0.0%
2 $0.650 $0.650 0.0%
3 $0.800 $0.800 0.0%
Letters
Metered Letters
First-Class Mail® Commercial
• 2% Average increase for letters.
• Flats have the largest increase with the
additional ounce levels moving from $.15-.20.
• Post Cards increased by 1%.
December 18, 2019 6
Full Service IMB customers still qualify for the additional $.003 savings.
Commercial First-Class Mail®
Weight
Prior to
01/26/20
New Rates
01/26/20 % Increase
1 $0.727 $0.716 -2%
3 $1.027 $1.116 9%
5 $1.327 $1.516 14%
7 $1.627 $1.916 18%
9 $1.927 $2.316 20%
11 $2.227 $2.716 22%
13 $2.527 $3.116 23%
Automation Flats - Mixed ADC
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Automation 5 Digit 1 $0.383 $0.389 1.6% $0.486 $0.430 -11.5% $0.257 $0.260 1.2%
Automation 3 Digit $0.605 $0.577 -4.6%
Automation AADC 1 $0.412 $0.419 1.7% $0.644 $0.620 -3.7% $0.268 $0.270 0.7%
Automation Mixed AADC 1 $0.428 $0.439 2.6% $0.727 $0.716 -1.5% $0.274 $0.276 0.7%
Presorted (Non Automation) 1 $0.459 $0.460 0.2% $0.799 $0.810 1.4% $0.280 $0.285 1.8%
Commercial First-Class Mail®
Letters Flats* Post Cards
Marketing Mail® (Formerly called Standard Mail)
• 0 - 3% Increase for letters
• Flats are seeing the highest increases at 2 – 7%.
• Destination Entry Discounts are decreasing for Letters and staying flat to increasing
for Flats.
December 18, 2019 7
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Automation 5 Digit ≤3.5 $0.256 $0.259 1.2% $0.405 $0.418 3.2%
Automation 3 Digit ≤4 $0.523 $0.543 3.8%
Automation AADC/ADC ≤3.5 $0.281 $0.284 1.1% $0.597 $0.608 1.8%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.291 $0.299 2.7% $0.632 $0.666 5.4%
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.231 $0.240 3.9%
Automation 3 Digit ≤4 $0.349 $0.365 4.6%
Automation AADC/ADC ≤3.5 $0.163 $0.163 0.0% $0.423 $0.430 1.7%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.173 $0.178 2.9% $0.458 $0.488 6.6%
Marketing Mail®
Letters Flats
Marketing Mail® Nonprofit
Letters Flats
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Automation 5 Digit >4 $0.178 $0.184 3.4% $0.907 $0.935 3.1%
Automation 3 Digit >4 $0.296 $0.309 4.4% $0.907 $0.935 3.1%
Automation AADC/ADC >4 $0.370 $0.374 1.1% $0.907 $0.935 3.1%
Automation Mixed AADC/ADC-Origin >4 $0.405 $0.432 6.7% $0.907 $0.935 3.1%
Weight
Ounces
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Automation 5 Digit >4 $0.037 $0.042 13.5% $0.775 $0.793 2.3%
Automation 3 Digit >4 $0.155 $0.167 7.7% $0.775 $0.793 2.3%
Automation AADC/ADC >4 $0.229 $0.232 1.3% $0.775 $0.793 2.3%
Automation Mixed AADC/ADC-Origin >4 $0.264 $0.290 9.8% $0.775 $0.793 2.3%
Marketing Mail® Commercial Flats > 4 Oz
Per Piece Per Pound
Marketing Mail® Nonprofit Flats > 4 Oz
Per Piece Per Pound
Prior to
01/26/20
New Rates
01/26/20 % Change
Prior to
01/26/20
New Rates
01/26/20 % Change
Prior to
01/26/20
New Rates
01/26/20 % Change
DNDC $0.022 $0.020 -9.1% $0.043 $0.043 0.0% $0.171 $0.172 0.6%
DSCF $0.028 $0.026 -7.1% $0.053 $0.054 1.9% $0.213 $0.216 1.4%
Letters Flats <4 Ounces Flats >4 Ounces
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 18, 2019 8
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 $.419-.46 $.389-.439 $.259-.299 $.138-.178
3 Ounce Newsletter (6X9) $0.85 $0.80 $.419-.46 $.389-.439 $.259-.299 $.138-.178
8 Ounce Flat (9X12) $2.40 $2.40 $2.12-2.21 $1.83-2.12 $.651-.90 $.44-.69
Post Card $0.35 $0.35 $0.280 $.26-.285 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 18, 2019 9
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® -
Automation
Letter Savings
1-2 $1.00 $0.50 $.419-.46 $.389-.439 50-61%
3-4 $1.20 $0.50 $.419-.46 $.389-.439 58-67%
6-10 $1.40 $0.65 $.419-.46 $.389-.439 54-72%
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 – Rates
are the same as Base
December 18, 2019 10
Priority Mail®
December 18, 2019 11
Most popular USPS package service
13 ounce to 70LB items 1-3 day delivery
throughout the US
9 primary zones based on distance.
Highlights
• Heaviest items are increasing the most.
• Retail rates are going up at the highest amounts
pushing customers to use the new technology.
Weight LB's
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New Rates
01/26/20 % Increase
1 $7.35-12.20 $7.50-14.05 2-15% (4% Avg) $6.95-9.91 $7.02-11.40 1-15% (3% Avg)
5 $9.80-34.80 $10.20-40.00 4-15% (6% Avg) $7.81-28.84 $8.04-33.17 3-15% (4% Avg)
10 $13.10-59.90 $13.60-68.90 4-15% (6% Avg) $9.38-50.38 $9.76-57.94 4-15% (5% Avg)
25 $23.35-113.95 $25-131.05 7-15% (10% Avg) $18.04-91.15 $19.30-104.82 7-15% (8% Avg)
50 $33.70-180.50 $36.05-207.60 7-15% (10% Avg) $27.54-145.86 $29.16-165.97 7-15% (8% Avg)
Flat Rate Envelope $7.35 $7.75 5.4% $6.95 $7.15 2.9%
Legal Flat Rate Envelope $7.65 $8.05 5.2% $7.25 $7.45 2.8%
Padded Flat Rate Envelope $8.00 $8.40 5.0% $7.55 $7.75 2.6%
Small Flat Rate Box $7.90 $8.30 5.1% $7.50 $7.65 2.0%
Medium Flat Rate Boxes $14.35 $15.05 4.9% $12.80 $13.20 3.1%
Large Flat Rate Boxes $19.95 $21.10 5.8% $17.60 $18.30 4.0%
Retail Commercial Base
USPS Priority Mail®
Average % Increase Retail
Commercial
Base
Flat Rate 5% 3%
1-5LB 6% 4%
5-10LB 6% 5%
10-25LB 9% 8%
Over 25LB 10% 8%
Priority Mail® Express
December 18, 2019 12
Up to 70LB items 1 day Guaranteed Delivery
9 primary zones based on distance.
Highlights
• Retail rates growing at faster rates
• Flat rate items had the lowest increases
Weight LB's
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New Rates
01/26/20 % Increase
1 $24.7-48 $25.60-56.10 4-17% (6% 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)
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)
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)
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)
Flat Rate Envelope $24.70 $25.50 3.2% $21.98 $22.68 3.2%
Legal Flat Rate Envelope $24.90 $25.70 3.2% $22.09 $22.80 3.2%
Padded Flat Rate Envelope $25.40 $26.20 3.1% $22.46 $23.18 3.2%
USPS Priority Mail® Express
Retail Commercial Base
Average % Increase Retail
Commercial
Base
Flat Rate 3% 0%
1-5LB 6% 3%
5-10LB 3% 1%
10-25LB 3% 4%
Over 25LB 3% 4%
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 18, 2019 13
Average % Increase Commercial Savings over Retail
Flat Rate 9%
1-5LB 17%
6-10LB 22%
11-25LB 23%
Over 25LB 20%
Average % Increase Commercial Savings over Retail
Flat Rate 14%
1-5LB 15%
6-10LB 15%
11-25LB 13%
Over 25LB 12%
USPS Priority Mail®
USPS Priority Mail® Express
First-Class Mail®
Package Service
December 18, 2019 14
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a
Monopoly (Private carriers start at 1LB)
1-3 day delivery
Highlights
• 6% Average increase in Retail and 2% for Commercial
• Changed from a flat rate to a zone based rate table in 2019.
• Save by converting from Retail to Commercial with improved tracking!
Weight
Ounces
First-Class
Mail® -
Parcels Retail
First-Class
Mail® -
Parcels Retail
First-Class
Mail® -
Package
Services
Commercial
First-Class
Mail® -
Package
Services
Commercial
Commercial
Savings over
Retail $
Commercial
Savings over
Retail %
Prior to
01/26/20
New Rates
01/26/20 % Change
Prior to
01/26/20
New Rates
01/26/20 % Change
Up to 4 $3.66 $3.90 7% $2.70 $2.78 3% $1.12 29%
5 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%
6 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%
7 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%
8 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31%
9 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%
10 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%
11 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%
12 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26%
13 $5.71 $6.05 6% $5.02 $5.12 2% $0.93 15%
14 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%
15 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%
15.999 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36%
Priority Mail >13 Ounces Commercial rate goes up to 15.99 ounces
Convert from Retail to Commercial - Zone 4 Example
Commercial Savings Examples
December 18, 2019 15
PC Postage starts at
around $15 per month!
Low
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 28% $250.00 $180.00 -$70.00
Priority Mail (Less than 10LB) 16% $500.00 $420.00 -$80.00
Priority Mail Express (Less than 10LB) 15% $250.00 $212.50 -$37.50
Total $1,000.00 $812.50 -$187.50
Medium
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 28% $2,500.00 $1,800.00 -$700.00
Priority Mail (Less than 10LB) 16% $5,000.00 $4,200.00 -$800.00
Priority Mail Express (Less than 10LB) 15% $2,500.00 $2,125.00 -$375.00
Total $10,000.00 $8,125.00 -$1,875.00
High
Class
Commercial
Savings
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Parcels 28% $25,000.00 $18,000.00 -$7,000.00
Priority Mail (Less than 10LB) 16% $50,000.00 $42,000.00 -$8,000.00
Priority Mail Express (Less than 10LB) 15% $25,000.00 $21,250.00 -$3,750.00
Total $100,000.00 $81,250.00 -$18,750.00
Additional Rate Change Items
December 18, 2019 16
Group
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20
%
Increase
Prior to
01/26/20
New Rates
01/26/20
%
Increase
Canada $1.15 $1.20 4.3% $1.15 $1.20 4.3% $1.15 $1.20 4.3%
Mexico (Group 2) $1.15 $1.20 4.3% $1.72 $1.81 5.2% $1.15 $1.20 4.3%
Group 3-5 $1.15 $1.20 4.3% $2.13 $2.24 5.2% $1.15 $1.20 4.3%
Group 6-9 $1.15 $1.20 4.3% $1.98 $2.08 5.1% $1.15 $1.20 4.3%
First-Class Mail International®
1 Ounce 2 Ounce Post Cards
Weight LB's
Prior to
01/26/20
New
Rates
01/26/20 % Increase
1 $2.61 $2.66 1.9%
2 $3.10 $3.16 1.9%
5 $4.57 $4.66 2.0%
10 $7.02 $7.19 2.4%
Library Mail
Single Piece
Weight LB's
Prior to
01/26/20
New
Rates
01/26/20 % Increase
1 $2.75 $2.80 1.8%
2 $3.27 $3.33 1.8%
5 $4.83 $4.92 1.9%
10 $7.43 $7.60 2.3%
Single Piece
Media Mail
Special Services
December 18, 2019 17
Special Services Retail Electronic
Prior to
01/26/20
New Rates
01/26/20 % Increase
Prior to
01/26/20
New
Rates
01/26/20 % Increase
Certificate of Mailing $1.45 $1.50 3.4%
Registered™ without Insurance $12.40 $12.60 1.6%
Certified Mail™ $3.50 $3.55 1.4%
Return Receipt $2.80 $2.85 1.8% $1.60 $1.70 6.2%
Insurance $100 $2.80
Insurance $500 $6.95 $0.00 0.0% $0.00 $0.00 0%
Marketing Mail® parcels Tracking $0.40 $0.20 -50.0%
Signature Confirmation $3.05 $3.15 3.3% $2.60 $2.65 1.9%
Annual Permit Fees $235.00 $240.00 2.1%
Business Reply Mail
Permit Fee $235.00 $240.00 2.1%
Account Maintenance Fee $710.00 $725.00 2.1%
Quarterly Fee $2,405.00 $2,460.00 2.3%
Basic $0.83 $0.85 2.4%
High Volume $0.091 $0.093 2.2%
QBRM Basic $0.070 $0.072 2.9%
QBRM High Volume $0.014 $0.015 7.1%
Savings Strategies – Business Reply Mail
• Have an inventory of all your
Business Reply accounts.
• Link in the USPS ACS system.
• Validate that all accounts are being
used.
• Make sure accounts are set up at
the right levels.
• Monitor usage in monthly/quarterly
reviews.
• Significant savings by having
accounts in the right program as
you can see in the table.
December 18, 2019 18
Business Reply Mail Basics Basic
High
Volume
QBRM
Basic
QBRM
High
Volume
Annual Permit Fee $240 $240 $0 $0
Annual Account Maintenance Fee $0 $725 $725 $725
Quarterly Fee $0 $0 $0 $2,460
Total Annual Fees $240 $965 $725 $10,565
Fee per piece $0.850 $0.093 $0.072 $0.015
Postage for 1 ounce mail $0.550 $0.550 $0.534 $0.534
Total cost - Fee and Postage $1.400 $0.643 $0.606 $0.549
Annual Cost by pieces
100 $380 $1,029 $786 $10,620
250 $590 $1,126 $877 $10,702
500 $940 $1,287 $1,028 $10,840
611 $1,095 $1,358 $1,095 $10,900
750 $1,290 $1,447 $1,180 $10,977
1000 $1,640 $1,608 $1,331 $11,114
2500 $3,740 $2,573 $2,240 $11,938
5000 $7,240 $4,180 $3,755 $13,310
10000 $14,240 $7,395 $6,785 $16,055
25000 $35,240 $17,040 $15,875 $24,290
50000 $70,240 $33,115 $31,025 $38,015
100000 $140,240 $65,265 $61,325 $65,465
250000 $350,240 $161,715 $152,225 $147,815
500000 $700,240 $322,465 $303,725 $285,065
1000000 $1,400,240 $643,965 $606,725 $559,565
Certified Mail with Electronic Return Receipt
(ERR)
• Save $1.15 by switching to an electronic version.
December 18, 2019 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. ($2.74-5.70 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 18, 2019 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 18, 2019 21
Emai:
doris.tam@postaladvocate.com
for a copy of this excel
budgeting tool.
Class Weight % Of Class % Change
Estimated
Current
Spend
Estimated
New Spend Difference
First Class Metered Letters 1 85% 0%
2 10% 0%
3 5% 0%
Total 0.00% $0.00 $0.00
First Class Flats 14% $0.00 $0.00
First Class Parcles - Retail 3% $0.00 $0.00
First Class Parcles - Commercial 2% $0.00 $0.00
First Class Automation Letters 100% 2% $0.00 $0.00
First Class Automation Flats 14% $0.00 $0.00
Certified with Return Reciept 2% $0.00 $0.00
Priority Mail Retail 6% $0.00 $0.00
Priority Mail Commercial 4% $0.00 $0.00
Marketing Mail
Letters 2% $0.00 $0.00
Flats 3% $0.00 $0.00
Other Misc Mail 3% $0.00 $0.00
Total $0.00 $0.00 $0.00
What you need to do:
If you have a mail machine, make sure you
download the new rates before January 26,
2020 when the rates take into effect
Here are links to the different meter vendors:
• FP:
http://www.fp-usa.com/ratechange/
• Neopost/Hasler:
http://www.neopostusa.com/resources/rate-change-
information
• Pitney Bowes:
http://www.pitneybowes.com/us/postal-information/rate-
change-info.html
• 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 18, 2019 22
Download the Postal
Advocate Rate
Comparison Guide –
www.postaladvocate.com
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
– 16% average savings for Priority Mail®
– 15% average savings for Priority Mail® Express
• Convert First-Class Mail® Parcels from Retail to Commercial – 28%
Savings
• Make sure your Business Reply Mail Accounts are being managed.
• User Electronic Return Receipt with Certified Mail - $1.15 Savings.
• Compare pricing across carriers for the best rate on each package.
December 18, 2019 23
Helping multi-location
organizations streamline
their mailing costs
Over 135,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$14,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $57,000,000 IN CLIENT SAVINGS
$1.5M
58%
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)
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)
36
December 18, 2019 27
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com
December 18, 2019 28

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January 2020 USPS Rates Increase Webinar Presentation

  • 1. January 2020 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 158,000 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 18, 2019 2
  • 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips December 18, 2019 3 New rates take into effect Sunday January 26, 2020 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 • 0% Increase on letters • Flats rates are increasing due to additional ounce rate going from $.15 to $.20. Drastic increase as items get heavier. December 18, 2019 4 Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $0.55 $0.55 0.0% $1.00 $1.00 0.0% 2 $0.70 $0.70 0.0% $1.15 $1.20 4.3% 3 $0.85 $0.85 0.0% $1.30 $1.40 7.7% 6 N/A N/A $1.75 $2.00 14.3% 13 N/A N/A $2.80 $3.40 21.4% 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 no price increases for letters! • Metered mail (including PC Postage) will still save $.05 per piece over stamps purchased from the Post Office! December 18, 2019 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 01/26/20 New Rates 01/26/20 % Increase 1 $0.500 $0.500 0.0% 2 $0.650 $0.650 0.0% 3 $0.800 $0.800 0.0% Letters Metered Letters
  • 6. First-Class Mail® Commercial • 2% Average increase for letters. • Flats have the largest increase with the additional ounce levels moving from $.15-.20. • Post Cards increased by 1%. December 18, 2019 6 Full Service IMB customers still qualify for the additional $.003 savings. Commercial First-Class Mail® Weight Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $0.727 $0.716 -2% 3 $1.027 $1.116 9% 5 $1.327 $1.516 14% 7 $1.627 $1.916 18% 9 $1.927 $2.316 20% 11 $2.227 $2.716 22% 13 $2.527 $3.116 23% Automation Flats - Mixed ADC Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Automation 5 Digit 1 $0.383 $0.389 1.6% $0.486 $0.430 -11.5% $0.257 $0.260 1.2% Automation 3 Digit $0.605 $0.577 -4.6% Automation AADC 1 $0.412 $0.419 1.7% $0.644 $0.620 -3.7% $0.268 $0.270 0.7% Automation Mixed AADC 1 $0.428 $0.439 2.6% $0.727 $0.716 -1.5% $0.274 $0.276 0.7% Presorted (Non Automation) 1 $0.459 $0.460 0.2% $0.799 $0.810 1.4% $0.280 $0.285 1.8% Commercial First-Class Mail® Letters Flats* Post Cards
  • 7. Marketing Mail® (Formerly called Standard Mail) • 0 - 3% Increase for letters • Flats are seeing the highest increases at 2 – 7%. • Destination Entry Discounts are decreasing for Letters and staying flat to increasing for Flats. December 18, 2019 7 Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Automation 5 Digit ≤3.5 $0.256 $0.259 1.2% $0.405 $0.418 3.2% Automation 3 Digit ≤4 $0.523 $0.543 3.8% Automation AADC/ADC ≤3.5 $0.281 $0.284 1.1% $0.597 $0.608 1.8% Automation Mixed AADC/ADC-Origin ≤3.5 $0.291 $0.299 2.7% $0.632 $0.666 5.4% Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.231 $0.240 3.9% Automation 3 Digit ≤4 $0.349 $0.365 4.6% Automation AADC/ADC ≤3.5 $0.163 $0.163 0.0% $0.423 $0.430 1.7% Automation Mixed AADC/ADC-Origin ≤3.5 $0.173 $0.178 2.9% $0.458 $0.488 6.6% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Automation 5 Digit >4 $0.178 $0.184 3.4% $0.907 $0.935 3.1% Automation 3 Digit >4 $0.296 $0.309 4.4% $0.907 $0.935 3.1% Automation AADC/ADC >4 $0.370 $0.374 1.1% $0.907 $0.935 3.1% Automation Mixed AADC/ADC-Origin >4 $0.405 $0.432 6.7% $0.907 $0.935 3.1% Weight Ounces Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Automation 5 Digit >4 $0.037 $0.042 13.5% $0.775 $0.793 2.3% Automation 3 Digit >4 $0.155 $0.167 7.7% $0.775 $0.793 2.3% Automation AADC/ADC >4 $0.229 $0.232 1.3% $0.775 $0.793 2.3% Automation Mixed AADC/ADC-Origin >4 $0.264 $0.290 9.8% $0.775 $0.793 2.3% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound Prior to 01/26/20 New Rates 01/26/20 % Change Prior to 01/26/20 New Rates 01/26/20 % Change Prior to 01/26/20 New Rates 01/26/20 % Change DNDC $0.022 $0.020 -9.1% $0.043 $0.043 0.0% $0.171 $0.172 0.6% DSCF $0.028 $0.026 -7.1% $0.053 $0.054 1.9% $0.213 $0.216 1.4% Letters Flats <4 Ounces Flats >4 Ounces Destination Entry Discounts for Marketing Mail
  • 8. 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 18, 2019 8 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 $.419-.46 $.389-.439 $.259-.299 $.138-.178 3 Ounce Newsletter (6X9) $0.85 $0.80 $.419-.46 $.389-.439 $.259-.299 $.138-.178 8 Ounce Flat (9X12) $2.40 $2.40 $2.12-2.21 $1.83-2.12 $.651-.90 $.44-.69 Post Card $0.35 $0.35 $0.280 $.26-.285 n/a n/a Single Piece Rates Automation Mail with Barcodes
  • 9. 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 18, 2019 9 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® - Automation Letter Savings 1-2 $1.00 $0.50 $.419-.46 $.389-.439 50-61% 3-4 $1.20 $0.50 $.419-.46 $.389-.439 58-67% 6-10 $1.40 $0.65 $.419-.46 $.389-.439 54-72% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  • 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 – Rates are the same as Base December 18, 2019 10
  • 11. Priority Mail® December 18, 2019 11 Most popular USPS package service 13 ounce to 70LB items 1-3 day delivery throughout the US 9 primary zones based on distance. Highlights • Heaviest items are increasing the most. • Retail rates are going up at the highest amounts pushing customers to use the new technology. Weight LB's Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $7.35-12.20 $7.50-14.05 2-15% (4% Avg) $6.95-9.91 $7.02-11.40 1-15% (3% Avg) 5 $9.80-34.80 $10.20-40.00 4-15% (6% Avg) $7.81-28.84 $8.04-33.17 3-15% (4% Avg) 10 $13.10-59.90 $13.60-68.90 4-15% (6% Avg) $9.38-50.38 $9.76-57.94 4-15% (5% Avg) 25 $23.35-113.95 $25-131.05 7-15% (10% Avg) $18.04-91.15 $19.30-104.82 7-15% (8% Avg) 50 $33.70-180.50 $36.05-207.60 7-15% (10% Avg) $27.54-145.86 $29.16-165.97 7-15% (8% Avg) Flat Rate Envelope $7.35 $7.75 5.4% $6.95 $7.15 2.9% Legal Flat Rate Envelope $7.65 $8.05 5.2% $7.25 $7.45 2.8% Padded Flat Rate Envelope $8.00 $8.40 5.0% $7.55 $7.75 2.6% Small Flat Rate Box $7.90 $8.30 5.1% $7.50 $7.65 2.0% Medium Flat Rate Boxes $14.35 $15.05 4.9% $12.80 $13.20 3.1% Large Flat Rate Boxes $19.95 $21.10 5.8% $17.60 $18.30 4.0% Retail Commercial Base USPS Priority Mail® Average % Increase Retail Commercial Base Flat Rate 5% 3% 1-5LB 6% 4% 5-10LB 6% 5% 10-25LB 9% 8% Over 25LB 10% 8%
  • 12. Priority Mail® Express December 18, 2019 12 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • Retail rates growing at faster rates • Flat rate items had the lowest increases Weight LB's Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $24.7-48 $25.60-56.10 4-17% (6% 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) 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) 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) 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) Flat Rate Envelope $24.70 $25.50 3.2% $21.98 $22.68 3.2% Legal Flat Rate Envelope $24.90 $25.70 3.2% $22.09 $22.80 3.2% Padded Flat Rate Envelope $25.40 $26.20 3.1% $22.46 $23.18 3.2% USPS Priority Mail® Express Retail Commercial Base Average % Increase Retail Commercial Base Flat Rate 3% 0% 1-5LB 6% 3% 5-10LB 3% 1% 10-25LB 3% 4% Over 25LB 3% 4%
  • 13. 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 18, 2019 13 Average % Increase Commercial Savings over Retail Flat Rate 9% 1-5LB 17% 6-10LB 22% 11-25LB 23% Over 25LB 20% Average % Increase Commercial Savings over Retail Flat Rate 14% 1-5LB 15% 6-10LB 15% 11-25LB 13% Over 25LB 12% USPS Priority Mail® USPS Priority Mail® Express
  • 14. First-Class Mail® Package Service December 18, 2019 14 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • 6% Average increase in Retail and 2% for Commercial • Changed from a flat rate to a zone based rate table in 2019. • Save by converting from Retail to Commercial with improved tracking! Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial First-Class Mail® - Package Services Commercial Commercial Savings over Retail $ Commercial Savings over Retail % Prior to 01/26/20 New Rates 01/26/20 % Change Prior to 01/26/20 New Rates 01/26/20 % Change Up to 4 $3.66 $3.90 7% $2.70 $2.78 3% $1.12 29% 5 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31% 6 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31% 7 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31% 8 $4.39 $4.70 7% $3.22 $3.25 1% $1.45 31% 9 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26% 10 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26% 11 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26% 12 $5.19 $5.40 4% $3.88 $4.00 3% $1.40 26% 13 $5.71 $6.05 6% $5.02 $5.12 2% $0.93 15% 14 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36% 15 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36% 15.999 $7.85 $8.00 2% $5.02 $5.12 2% $2.88 36% Priority Mail >13 Ounces Commercial rate goes up to 15.99 ounces Convert from Retail to Commercial - Zone 4 Example
  • 15. Commercial Savings Examples December 18, 2019 15 PC Postage starts at around $15 per month! Low Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 28% $250.00 $180.00 -$70.00 Priority Mail (Less than 10LB) 16% $500.00 $420.00 -$80.00 Priority Mail Express (Less than 10LB) 15% $250.00 $212.50 -$37.50 Total $1,000.00 $812.50 -$187.50 Medium Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 28% $2,500.00 $1,800.00 -$700.00 Priority Mail (Less than 10LB) 16% $5,000.00 $4,200.00 -$800.00 Priority Mail Express (Less than 10LB) 15% $2,500.00 $2,125.00 -$375.00 Total $10,000.00 $8,125.00 -$1,875.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 28% $25,000.00 $18,000.00 -$7,000.00 Priority Mail (Less than 10LB) 16% $50,000.00 $42,000.00 -$8,000.00 Priority Mail Express (Less than 10LB) 15% $25,000.00 $21,250.00 -$3,750.00 Total $100,000.00 $81,250.00 -$18,750.00
  • 16. Additional Rate Change Items December 18, 2019 16 Group Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Canada $1.15 $1.20 4.3% $1.15 $1.20 4.3% $1.15 $1.20 4.3% Mexico (Group 2) $1.15 $1.20 4.3% $1.72 $1.81 5.2% $1.15 $1.20 4.3% Group 3-5 $1.15 $1.20 4.3% $2.13 $2.24 5.2% $1.15 $1.20 4.3% Group 6-9 $1.15 $1.20 4.3% $1.98 $2.08 5.1% $1.15 $1.20 4.3% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $2.61 $2.66 1.9% 2 $3.10 $3.16 1.9% 5 $4.57 $4.66 2.0% 10 $7.02 $7.19 2.4% Library Mail Single Piece Weight LB's Prior to 01/26/20 New Rates 01/26/20 % Increase 1 $2.75 $2.80 1.8% 2 $3.27 $3.33 1.8% 5 $4.83 $4.92 1.9% 10 $7.43 $7.60 2.3% Single Piece Media Mail
  • 17. Special Services December 18, 2019 17 Special Services Retail Electronic Prior to 01/26/20 New Rates 01/26/20 % Increase Prior to 01/26/20 New Rates 01/26/20 % Increase Certificate of Mailing $1.45 $1.50 3.4% Registered™ without Insurance $12.40 $12.60 1.6% Certified Mail™ $3.50 $3.55 1.4% Return Receipt $2.80 $2.85 1.8% $1.60 $1.70 6.2% Insurance $100 $2.80 Insurance $500 $6.95 $0.00 0.0% $0.00 $0.00 0% Marketing Mail® parcels Tracking $0.40 $0.20 -50.0% Signature Confirmation $3.05 $3.15 3.3% $2.60 $2.65 1.9% Annual Permit Fees $235.00 $240.00 2.1% Business Reply Mail Permit Fee $235.00 $240.00 2.1% Account Maintenance Fee $710.00 $725.00 2.1% Quarterly Fee $2,405.00 $2,460.00 2.3% Basic $0.83 $0.85 2.4% High Volume $0.091 $0.093 2.2% QBRM Basic $0.070 $0.072 2.9% QBRM High Volume $0.014 $0.015 7.1%
  • 18. Savings Strategies – Business Reply Mail • Have an inventory of all your Business Reply accounts. • Link in the USPS ACS system. • Validate that all accounts are being used. • Make sure accounts are set up at the right levels. • Monitor usage in monthly/quarterly reviews. • Significant savings by having accounts in the right program as you can see in the table. December 18, 2019 18 Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $240 $240 $0 $0 Annual Account Maintenance Fee $0 $725 $725 $725 Quarterly Fee $0 $0 $0 $2,460 Total Annual Fees $240 $965 $725 $10,565 Fee per piece $0.850 $0.093 $0.072 $0.015 Postage for 1 ounce mail $0.550 $0.550 $0.534 $0.534 Total cost - Fee and Postage $1.400 $0.643 $0.606 $0.549 Annual Cost by pieces 100 $380 $1,029 $786 $10,620 250 $590 $1,126 $877 $10,702 500 $940 $1,287 $1,028 $10,840 611 $1,095 $1,358 $1,095 $10,900 750 $1,290 $1,447 $1,180 $10,977 1000 $1,640 $1,608 $1,331 $11,114 2500 $3,740 $2,573 $2,240 $11,938 5000 $7,240 $4,180 $3,755 $13,310 10000 $14,240 $7,395 $6,785 $16,055 25000 $35,240 $17,040 $15,875 $24,290 50000 $70,240 $33,115 $31,025 $38,015 100000 $140,240 $65,265 $61,325 $65,465 250000 $350,240 $161,715 $152,225 $147,815 500000 $700,240 $322,465 $303,725 $285,065 1000000 $1,400,240 $643,965 $606,725 $559,565
  • 19. Certified Mail with Electronic Return Receipt (ERR) • Save $1.15 by switching to an electronic version. December 18, 2019 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. ($2.74-5.70 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 18, 2019 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 18, 2019 21 Emai: doris.tam@postaladvocate.com for a copy of this excel budgeting tool. Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First Class Metered Letters 1 85% 0% 2 10% 0% 3 5% 0% Total 0.00% $0.00 $0.00 First Class Flats 14% $0.00 $0.00 First Class Parcles - Retail 3% $0.00 $0.00 First Class Parcles - Commercial 2% $0.00 $0.00 First Class Automation Letters 100% 2% $0.00 $0.00 First Class Automation Flats 14% $0.00 $0.00 Certified with Return Reciept 2% $0.00 $0.00 Priority Mail Retail 6% $0.00 $0.00 Priority Mail Commercial 4% $0.00 $0.00 Marketing Mail Letters 2% $0.00 $0.00 Flats 3% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00
  • 22. What you need to do: If you have a mail machine, make sure you download the new rates before January 26, 2020 when the rates take into effect Here are links to the different meter vendors: • FP: http://www.fp-usa.com/ratechange/ • Neopost/Hasler: http://www.neopostusa.com/resources/rate-change- information • Pitney Bowes: http://www.pitneybowes.com/us/postal-information/rate- change-info.html • 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 18, 2019 22 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 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 – 16% average savings for Priority Mail® – 15% average savings for Priority Mail® Express • Convert First-Class Mail® Parcels from Retail to Commercial – 28% Savings • Make sure your Business Reply Mail Accounts are being managed. • User Electronic Return Receipt with Certified Mail - $1.15 Savings. • Compare pricing across carriers for the best rate on each package. December 18, 2019 23
  • 24. Helping multi-location organizations streamline their mailing costs Over 135,000 pieces of equipment, managed by Postal Advocate Recovered over $14,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $57,000,000 IN CLIENT SAVINGS $1.5M 58% 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)
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  • 26. 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
  • 27. Contact info: (20pt) 36 December 18, 2019 27 Questions? Contact: Adam Lewenberg - President 888-977-MAIL X 501 adam.lewenberg@postaladvocate.com