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January 2021 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 160,000 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 9, 2020 2
What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
• USPS Thoughts
December 9, 2020 3
New rates take into effect Sunday January 24,
2021
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
USPS Revenue and Volume
• Letter volume
dropping fast!
• Package volumes
increasing
• Making up for
volume declines
with rate changes
December 9, 2020 4
Service Category Current
Compare to
Previous Year Change
Percent
Change Current
Compare to
Previous
Year Change
Percent
Change
7/1/20-9/30/20
Total First-Class Mail® 5,487,745 5,882,639 -394,894 -6.71% 12,127,030 12,854,136 -727,106 -5.7%
Total USPS Marketing Mail® 3,344,305 4,010,287 -665,982 -16.61% 15,570,187 18,301,327 -2,731,140 -14.9%
Total Periodicals Mail® 226,887 283,603 -56,716 -20.00% 895,310 1,099,930 -204,620 -18.6%
Total Competitive (Parcels) 8,124,134 5,572,260 2,551,874 45.80% 1,956,459 1,326,712 629,747 47.5%
Total 17,183,071 15,748,789 1,434,282 9.11% 30,548,986 33,582,105 -3,033,119 -9.03%
4/1/20-6/30/20
Total First-Class Mail® 5,516,615 6,104,544 -587,929 -9.60% 12,041,514 13,263,435 -1,221,921 -9.2
Total USPS Marketing Mail® 2,437,751 3,874,281 -1,436,530 -37.10% 11,247,373 17,681,521 -6,434,148 -36.4
Total Periodicals Mail® 244,710 301,791 -57,081 -18.90% 980,473 1,182,523 -202,050 -17.1
Total Competitive (Parcels) 8,520,580 5,553,211 2,967,369 53.44% 2,084,562 1,315,128 769,434 0.6
Total 16,719,656 15,833,827 885,829 6% 26,353,922 33,442,607 -7,088,685 -21.2%
1/1/20-3/31/20
Total First-Class Mail® 6,420,138 6,537,750 -117,612 -1.8 14,255,575 14,406,800 -151,225 -1.0%
Total USPS Marketing Mail® 3,751,525 3,844,747 -93,222 -2.4 17,049,120 17,652,326 -603,206 -3.4%
Total Periodicals Mail® 265,485 298,024 -32,539 -10.9 1,020,818 1,163,044 -142,226 -12.2%
Total Competitive (Parcels) 6,155,002 5,538,736 616,266 11.13% 1,472,301 1,346,975 125,326 9.3%
Total 16,592,150 16,219,257 372,893 2% 33,797,814 34,569,145 -771,331 -2.2%
10/1/19-12/31/19
Total First-Class Mail® 6,771,913 6,933,099 -161,186 -2.3 14,515,399 15,101,517 -586,118 -3.9%
Total USPS Marketing Mail® 4,425,562 4,677,793 -252,231 -5.4 20,313,444 22,054,872 -1,741,428 -7.9%
Total Periodicals Mail® 286,754 310,657 -23,903 -7.7 1,109,478 1,198,058 -88,580 -7.4%
Total Competitive (Parcels) 6,771,075 6,632,419 138,656 2% 1,615,010 1,683,156 -68,146 -4.0%
Total 18,255,304 18,553,968 -298,664 -2% 37,553,331 40,037,603 -2,484,272 -6.2%
12 Month Totals 68,750,181 66,355,841 2,394,340 4% 128,254,053 141,631,460 -13,377,407 -9%
Revenue Pieces
First-Class Mail® Single Piece
• 0% Increase on 1-ounce Letters
• Additional ounce increases from $.15 to $.20 for letters. This creates a 7-
12% change for 2–3-ounce mail.
• Flats have no increase across all weights!
• Post Cards increase by 2.9%
December 9, 2020 5
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
1 $0.55 $0.55 0.0% $1.00 $1.00 0.0%
2 $0.70 $0.75 7.1% $1.20 $1.20 0.0%
3 $0.85 $0.95 11.8% $1.40 $1.40 0.0%
6 N/A N/A $2.00 $2.00 0.0%
13 N/A N/A $3.40 $3.40 0.0%
Post Card $0.35 $0.36 2.9%
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 save $.04 per
piece over stamps purchased from the Post Office!
December 9, 2020 6
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.
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
1 $0.500 $0.510 2.0%
2 $0.650 $0.710 9.2%
3 $0.800 $0.910 13.8%
Letters
Metered Letters
Annual Postage # of Pieces @ $.51 each Savings @ $.04 Each
$1,000 1,961 $78.43
$2,000 3,922 $156.86
$10,000 19,608 $784.31
$100,000 196,078 $7,843.14
$1,000,000 1,960,784 $78,431.37
First-Class® Mail Metered Savings
First-Class Mail® Commercial
• 2-2.5% Increase for automation letters
• Flats have the largest increase at 7-8%
• Post Cards increased by 3%
December 9, 2020 7
Full Service IMB customers still qualify for the additional $.003 savings
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Automation 5 Digit 1 $0.389 $0.398 2.3% $0.430 $0.460 7.0% $0.260 $0.269 3.5%
Automation 3 Digit $0.577 $0.618 7.1%
Automation AADC 1 $0.419 $0.428 2.1% $0.620 $0.666 7.4% $0.270 $0.279 3.3%
Automation Mixed AADC 1 $0.439 $0.450 2.5% $0.716 $0.774 8.1% $0.276 $0.285 3.3%
Presorted (Non Automation) 1 $0.460 $0.460 0.0% $0.810 $0.870 7.4% $0.285 $0.293 2.8%
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 7 – 9%.
• Destination Entry Discounts are flat to decreasing for Letters and growing by 44-61%
for Flats.
December 9, 2020 8
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Automation 5 Digit ≤3.5 $0.259 $0.259 0.0% $0.418 $0.450 7.7%
Automation 3 Digit ≤4 $0.543 $0.588 8.3%
Automation AADC/ADC ≤3.5 $0.284 $0.285 0.4% $0.608 $0.663 9.0%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.299 $0.304 1.7% $0.666 $0.726 9.0%
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.240 $0.256 6.7%
Automation 3 Digit ≤4 $0.365 $0.394 7.9%
Automation AADC/ADC ≤3.5 $0.163 $0.164 0.6% $0.430 $0.469 9.1%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.178 $0.183 2.8% $0.488 $0.532 9.0%
Marketing Mail®
Letters Flats
Marketing Mail® Nonprofit
Letters Flats
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Automation 5 Digit >4 $0.184 $0.200 8.7% $0.935 $1.000 7.0%
Automation 3 Digit >4 $0.309 $0.338 9.4% $0.935 $1.000 7.0%
Automation AADC/ADC >4 $0.374 $0.413 10.4% $0.935 $1.000 7.0%
Automation Mixed AADC/ADC-Origin >4 $0.432 $0.476 10.2% $0.935 $1.000 7.0%
Weight
Ounces
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Automation 5 Digit >4 $0.042 $0.039 -7.1% $0.793 $0.866 9.2%
Automation 3 Digit >4 $0.167 $0.177 6.0% $0.793 $0.866 9.2%
Automation AADC/ADC >4 $0.232 $0.252 8.6% $0.793 $0.866 9.2%
Automation Mixed AADC/ADC-Origin >4 $0.290 $0.315 8.6% $0.793 $0.866 9.2%
Marketing Mail® Commercial Flats > 4 Oz
Per Piece Per Pound
Marketing Mail® Nonprofit Flats > 4 Oz
Per Piece Per Pound
Prior to
01/24/21
New Rates
01/24/21 % Change
Prior to
01/24/21
New Rates
01/24/21 % Change
Prior to
01/24/21
New Rates
01/24/21 % Change
DNDC $0.020 $0.020 0.0% $0.043 $0.069 60.5% $0.172 $0.276 60.5%
DSCF $0.026 $0.024 -7.7% $0.054 $0.078 44.4% $0.216 $0.311 44.0%
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 $.04 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 9, 2020 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 $0.51 $.428-.46 $.398-.45 $.259-.304 $.138-.183
3 Ounce Newsletter (6X9) $0.95 $0.91 $.428-.46 $.398-.45 $.259-.304 $.138-.183
8 Ounce Flat (9X12) $2.40 $2.40 $2.17-2.27 $1.86-2.17 $.70-.98 $.47-.75
Post Card $0.36 $0.36 $0.293 $.269-.285 n/a n/a
Single Piece Rates Automation Mail with Barcodes
Converting Light Weight Flats to Letters
Lightweight Flats
– Look for average flat prices of $1.60 or less. Over 50% Savings
by folding.
– 6 x 9 Envelopes only require that you fold in half.
December 9, 2020 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® -
Automation
Letter Savings
1-2 $1.00 $0.51 $.428-.46 $.398-.45 49-60%
3-4 $1.20 $0.51 $.428-.46 $.398-.45 58-67%
6-10 $1.40 $0.71 $.428-.46 $.398-.45 49-72%
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 9, 2020 11
Priority Mail®
December 9, 2020 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
• $.40 temporary Q4 2020 increase for per
Commercial Base parcel has been eliminated.
• Flat rate envelopes are staying flat!
• 20-25% Increase to zone 9! (Alaska, Hawaii)
Average %
Increase Retail
Commercial
Base
Flat Rate 5% 3%
1-5LB 4% 3%
6-10LB 4% 3%
11-25LB 8% 7%
Over 25LB 9% 7%
Weight LB's
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New Rates
01/24/21 % Increase
1 $7.50-14.05 $7.50-14.05 2-15% (4% Avg) $7.02-11.40 $7.02-11.40 1-15% (3% Avg)
5 $10.20-40.00 $10.20-40.00 4-15% (6% Avg) $8.04-33.17 $8.04-33.17 3-15% (4% Avg)
10 $13.60-68.90 $13.60-68.90 4-15% (6% Avg) $9.76-57.94 $9.76-57.94 4-15% (5% Avg)
25 $25-131.05 $25-131.05 7-15% (10% Avg) $19.30-104.82 $19.30-104.82 7-15% (8% Avg)
50 $36.05-207.60 $36.05-207.60 7-15% (10% Avg) $29.16-165.97 $29.16-165.97 7-15% (8% Avg)
Flat Rate Envelope $7.75 $7.95 2.6% $7.15 $7.40 3.5%
Legal Flat Rate Envelope $8.05 $8.25 2.5% $7.45 $7.70 3.4%
Padded Flat Rate Envelope $8.40 $8.55 1.8% $7.75 $8.00 3.2%
Small Flat Rate Box $8.30 $8.45 1.8% $7.65 $7.90 3.3%
Medium Flat Rate Boxes $15.05 $15.50 3.0% $13.20 $13.75 4.2%
Large Flat Rate Boxes $21.10 $21.90 3.8% $18.30 $19.30 5.5%
Retail Commercial Base
USPS Priority Mail®
Priority Mail® Express
December 9, 2020 13
Up to 70LB items 1 day Guaranteed Delivery
9 primary zones based on distance.
Highlights
• $1.50 temporary Q4 2020 increase for per
Commercial Base parcel has been eliminated.
• 0% Increase to zone 1, 2 and 3 vs. 4-8%
increase for zone 4-9.
Average %
Increase Retail
Commercial
Base
Flat Rate 3% 0%
1-5LB 6% 3%
6-10LB 3% 1%
11-25LB 3% 4%
Over 25LB 3% 3%
Weight LB's
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New Rates
01/24/21 % Increase
1 $25.60-56.10 $25.60-56.10 4-17% (6% Avg) $22.74-49 $22.74-49 3-15% (5% Avg)
5 $27.05-91 $27.05-91 5-18% (7% Avg) $23.91-77.47 $23.91-77.47 4-15% (6% Avg)
10 $40.75-134.20 $40.75-134.20 5-18% (7% Avg) $35.99-114.20 $35.99-114.20 4-15% (6% Avg)
25 $73.85-227.60 $73.85-227.60 6-20% (9% Avg) $64.69-195.84 $64.69-195.84 4-15% (6% Avg)
50 $130.85-420.90$130.85-420.90 6-20% (9% Avg) $114.61-362.20 $114.61-362.20 4-15% (6% Avg)
Flat Rate Envelope $25.50 $26.35 3.3% $22.68 $22.75 0.3%
Legal Flat Rate Envelope $25.70 $26.50 3.1% $22.80 $22.95 0.7%
Padded Flat Rate Envelope $26.20 $26.95 2.9% $23.18 $23.25 0.3%
USPS Priority Mail® Express
Retail Commercial Base
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 9, 2020 14
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 9, 2020 15
Best Savings Opportunity
Less than 1 LB parcels where USPS holds a
Monopoly (Private carriers start at 1LB)
1-3 day delivery
Highlights
• $.25 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated.
• Highest increases on light weight items.
• Save by converting from Retail to Commercial with improved tracking!
• Retail rates go up to 13 ounces forcing heavier items to Priority Mail.
Commercial service goes up to 15.999 ounces.
Weight
Ounces
First-Class Mail® -
Parcels Retail
First-Class Mail®
- Package
Services
Commercial Savings
Up to 4 $4.00-4.45 $3.01-3.49 22-25%
5 $4.80-5.20 $3.46-3.85 26-28%
6 $4.80-5.20 $3.46-3.85 26-28%
7 $4.80-5.20 $3.46-3.85 26-28%
8 $4.80-5.20 $3.46-3.85 26-28%
9 $5.50-5.95 $4.04-4.68 21-27%
10 $5.50-5.95 $4.04-4.68 21-27%
11 $5.50-5.95 $4.04-4.68 21-27%
12 $5.50-5.95 $4.04-4.68 21-27%
13 $6.25-6.75 $5.19-5.98 11-17%
14 $7.70-9.90 $5.19-5.98 33-40%
15 $7.70-9.90 $5.19-5.98 33-40%
15.999 $7.70-9.90 $5.19-5.98 33-40%
Convert from Retail to Commercial
Average % Increase Retail
Commercial
Base
1-4 Ounce 6% 10%
5-8 Ounce 4% 6%
9-12 Ounce 4% 4%
13 Ounce 5% 4%
14-15.99 Ounce N/A 4%
Commercial Savings Examples
December 9, 2020 16
PC Postage starts at
around $15 per month!
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) 15% $250.00 $212.50 -$37.50
Total $1,000.00 $800.00 -$200.00
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) 15% $2,500.00 $2,125.00 -$375.00
Total $10,000.00 $8,000.00 -$2,000.00
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) 15% $25,000.00 $21,250.00 -$3,750.00
Total $100,000.00 $80,000.00 -$20,000.00
Additional Rate Change Items
December 9, 2020 17
Group
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21
%
Increase
Prior to
01/24/21
New Rates
01/24/21
%
Increase
Canada $1.20 $1.20 0.0% $1.20 $1.20 0.0% $1.20 $1.20 0.0%
Mexico (Group 2) $1.20 $1.20 0.0% $1.81 $1.81 0.0% $1.20 $1.20 0.0%
Group 3-5 $1.20 $1.20 0.0% $2.24 $2.24 0.0% $1.20 $1.20 0.0%
Group 6-9 $1.20 $1.20 0.0% $2.08 $2.08 0.0% $1.20 $1.20 0.0%
First-Class Mail International®
1 Ounce 2 Ounce Post Cards
Weight LB's
Prior to
01/24/21
New
Rates
01/24/21 % Increase
1 $2.66 $2.75 3.4%
2 $3.16 $3.28 3.8%
5 $4.66 $4.87 4.5%
10 $7.19 $7.52 4.6%
Single Piece
Library Mail
Weight LB's
Prior to
01/24/21
New
Rates
01/24/21 % Increase
1 $2.80 $2.89 3.2%
2 $3.33 $3.45 3.6%
5 $4.92 $5.13 4.3%
10 $7.60 $7.93 4.3%
Single Piece
Media Mail
Special Services
December 9, 2020 18
Special Services Retail Electronic
Prior to
01/24/21
New Rates
01/24/21 % Increase
Prior to
01/24/21
New
Rates
01/24/21 % Increase
Certificate of Mailing $1.50 $1.55 3.3%
Registered™ without Insurance $12.60 $12.90 2.4%
Certified Mail™ $3.55 $3.60 1.4%
Return Receipt $2.85 $2.85 0.0% $1.70 $1.75 2.9%
Insurance $100 $2.85 $2.95 3.5%
Insurance $500 $7.10 $7.20 1.4%
Marketing Mail® parcels Tracking $0.20 $0.20 0.0%
Signature Confirmation $3.15 $3.20 1.6% $2.65 $2.70 1.9%
Annual Permit Fees $240.00 $245.00 2.1%
Business Reply Mail
Permit Fee $240.00 $245.00 2.1%
Account Maintenance Fee $725.00 $740.00 2.1%
Quarterly Fee $2,460.00 $2,460.00 0.0%
Basic $0.85 $0.86 1.2%
High Volume $0.093 $0.096 3.2%
QBRM Basic $0.072 $0.072 0.0%
QBRM High Volume $0.015 $0.014 -6.7%
Certified Mail with Electronic Return Receipt
(eRR)
• Save $1.10 by switching to an electronic version.
December 9, 2020 19
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 9, 2020 20
Business Reply Mail Basics Basic
High
Volume
QBRM
Basic
QBRM
High
Volume
Annual Permit Fee $245 $245 $245 $245
Annual Account Maintenance Fee $0 $740 $740 $740
Quarterly Fee $0 $0 $0 $2,460
Total Annual Fees $245 $985 $985 $10,825
Fee per piece $0.860 $0.096 $0.072 $0.014
Postage for 1 ounce mail $0.550 $0.550 $0.532 $0.532
Total cost - Fee and Postage $1.410 $0.646 $0.604 $0.546
Annual Cost by pieces
100 $386 $1,050 $1,045 $10,880
250 $598 $1,147 $1,136 $10,962
500 $950 $1,308 $1,287 $11,098
968 $1,610 $1,610 $1,570 $11,354
1000 $1,655 $1,631 $1,589 $11,371
2500 $3,770 $2,600 $2,495 $12,190
5000 $7,295 $4,215 $4,005 $13,555
10000 $14,345 $7,445 $7,025 $16,285
25000 $35,495 $17,135 $16,085 $24,475
50000 $70,745 $33,285 $31,185 $38,125
100000 $141,245 $65,585 $61,385 $65,425
250000 $352,745 $162,485 $151,985 $147,325
500000 $705,245 $323,985 $302,985 $283,825
1000000 $1,410,245 $646,985 $604,985 $556,825
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. ($3.01-5.98 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 9, 2020 21
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 9, 2020 22
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% 2%
2 10% 9%
3 5% 12%
Total 3.21% $0.00 $0.00
First Class Flats 0% $0.00 $0.00
First Class Parcles - Retail 5% $0.00 $0.00
First Class Parcles - Commercial 6% $0.00 $0.00
First Class Automation Letters 100% 2% $0.00 $0.00
First Class Automation Flats 7% $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 7% $0.00 $0.00
Flats 9% $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 24,
2021 when the rates take into effect
Here are links to the different meter vendors:
FP:
http://www.fp-usa.com/ratechange/
Quadient:
https://www.quadient.com/resources/postal-rate-
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 9, 2020 23
Download the Postal
Advocate Rate
Comparison Guide –
www.postaladvocate.com
Helping multi-location
organizations streamline
their mailing costs
Over 161,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$19,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $61,000,000 IN CLIENT SAVINGS
$1.9M
59%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 175+ 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
December 9, 2020 27
December 9, 2020 28

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January 2021 USPS® Rate Change - What You Need To Know

  • 1. January 2021 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 160,000 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 9, 2020 2
  • 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips • USPS Thoughts December 9, 2020 3 New rates take into effect Sunday January 24, 2021 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. USPS Revenue and Volume • Letter volume dropping fast! • Package volumes increasing • Making up for volume declines with rate changes December 9, 2020 4 Service Category Current Compare to Previous Year Change Percent Change Current Compare to Previous Year Change Percent Change 7/1/20-9/30/20 Total First-Class Mail® 5,487,745 5,882,639 -394,894 -6.71% 12,127,030 12,854,136 -727,106 -5.7% Total USPS Marketing Mail® 3,344,305 4,010,287 -665,982 -16.61% 15,570,187 18,301,327 -2,731,140 -14.9% Total Periodicals Mail® 226,887 283,603 -56,716 -20.00% 895,310 1,099,930 -204,620 -18.6% Total Competitive (Parcels) 8,124,134 5,572,260 2,551,874 45.80% 1,956,459 1,326,712 629,747 47.5% Total 17,183,071 15,748,789 1,434,282 9.11% 30,548,986 33,582,105 -3,033,119 -9.03% 4/1/20-6/30/20 Total First-Class Mail® 5,516,615 6,104,544 -587,929 -9.60% 12,041,514 13,263,435 -1,221,921 -9.2 Total USPS Marketing Mail® 2,437,751 3,874,281 -1,436,530 -37.10% 11,247,373 17,681,521 -6,434,148 -36.4 Total Periodicals Mail® 244,710 301,791 -57,081 -18.90% 980,473 1,182,523 -202,050 -17.1 Total Competitive (Parcels) 8,520,580 5,553,211 2,967,369 53.44% 2,084,562 1,315,128 769,434 0.6 Total 16,719,656 15,833,827 885,829 6% 26,353,922 33,442,607 -7,088,685 -21.2% 1/1/20-3/31/20 Total First-Class Mail® 6,420,138 6,537,750 -117,612 -1.8 14,255,575 14,406,800 -151,225 -1.0% Total USPS Marketing Mail® 3,751,525 3,844,747 -93,222 -2.4 17,049,120 17,652,326 -603,206 -3.4% Total Periodicals Mail® 265,485 298,024 -32,539 -10.9 1,020,818 1,163,044 -142,226 -12.2% Total Competitive (Parcels) 6,155,002 5,538,736 616,266 11.13% 1,472,301 1,346,975 125,326 9.3% Total 16,592,150 16,219,257 372,893 2% 33,797,814 34,569,145 -771,331 -2.2% 10/1/19-12/31/19 Total First-Class Mail® 6,771,913 6,933,099 -161,186 -2.3 14,515,399 15,101,517 -586,118 -3.9% Total USPS Marketing Mail® 4,425,562 4,677,793 -252,231 -5.4 20,313,444 22,054,872 -1,741,428 -7.9% Total Periodicals Mail® 286,754 310,657 -23,903 -7.7 1,109,478 1,198,058 -88,580 -7.4% Total Competitive (Parcels) 6,771,075 6,632,419 138,656 2% 1,615,010 1,683,156 -68,146 -4.0% Total 18,255,304 18,553,968 -298,664 -2% 37,553,331 40,037,603 -2,484,272 -6.2% 12 Month Totals 68,750,181 66,355,841 2,394,340 4% 128,254,053 141,631,460 -13,377,407 -9% Revenue Pieces
  • 5. First-Class Mail® Single Piece • 0% Increase on 1-ounce Letters • Additional ounce increases from $.15 to $.20 for letters. This creates a 7- 12% change for 2–3-ounce mail. • Flats have no increase across all weights! • Post Cards increase by 2.9% December 9, 2020 5 Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $0.55 $0.55 0.0% $1.00 $1.00 0.0% 2 $0.70 $0.75 7.1% $1.20 $1.20 0.0% 3 $0.85 $0.95 11.8% $1.40 $1.40 0.0% 6 N/A N/A $2.00 $2.00 0.0% 13 N/A N/A $3.40 $3.40 0.0% Post Card $0.35 $0.36 2.9% Letters Flats First-Class Mail® Retail
  • 6. 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 save $.04 per piece over stamps purchased from the Post Office! December 9, 2020 6 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. Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $0.500 $0.510 2.0% 2 $0.650 $0.710 9.2% 3 $0.800 $0.910 13.8% Letters Metered Letters Annual Postage # of Pieces @ $.51 each Savings @ $.04 Each $1,000 1,961 $78.43 $2,000 3,922 $156.86 $10,000 19,608 $784.31 $100,000 196,078 $7,843.14 $1,000,000 1,960,784 $78,431.37 First-Class® Mail Metered Savings
  • 7. First-Class Mail® Commercial • 2-2.5% Increase for automation letters • Flats have the largest increase at 7-8% • Post Cards increased by 3% December 9, 2020 7 Full Service IMB customers still qualify for the additional $.003 savings Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit 1 $0.389 $0.398 2.3% $0.430 $0.460 7.0% $0.260 $0.269 3.5% Automation 3 Digit $0.577 $0.618 7.1% Automation AADC 1 $0.419 $0.428 2.1% $0.620 $0.666 7.4% $0.270 $0.279 3.3% Automation Mixed AADC 1 $0.439 $0.450 2.5% $0.716 $0.774 8.1% $0.276 $0.285 3.3% Presorted (Non Automation) 1 $0.460 $0.460 0.0% $0.810 $0.870 7.4% $0.285 $0.293 2.8% Commercial First-Class Mail® Letters Flats* Post Cards
  • 8. Marketing Mail® (Formerly called Standard Mail) • 0 - 3% Increase for letters • Flats are seeing the highest increases at 7 – 9%. • Destination Entry Discounts are flat to decreasing for Letters and growing by 44-61% for Flats. December 9, 2020 8 Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit ≤3.5 $0.259 $0.259 0.0% $0.418 $0.450 7.7% Automation 3 Digit ≤4 $0.543 $0.588 8.3% Automation AADC/ADC ≤3.5 $0.284 $0.285 0.4% $0.608 $0.663 9.0% Automation Mixed AADC/ADC-Origin ≤3.5 $0.299 $0.304 1.7% $0.666 $0.726 9.0% Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.240 $0.256 6.7% Automation 3 Digit ≤4 $0.365 $0.394 7.9% Automation AADC/ADC ≤3.5 $0.163 $0.164 0.6% $0.430 $0.469 9.1% Automation Mixed AADC/ADC-Origin ≤3.5 $0.178 $0.183 2.8% $0.488 $0.532 9.0% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit >4 $0.184 $0.200 8.7% $0.935 $1.000 7.0% Automation 3 Digit >4 $0.309 $0.338 9.4% $0.935 $1.000 7.0% Automation AADC/ADC >4 $0.374 $0.413 10.4% $0.935 $1.000 7.0% Automation Mixed AADC/ADC-Origin >4 $0.432 $0.476 10.2% $0.935 $1.000 7.0% Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit >4 $0.042 $0.039 -7.1% $0.793 $0.866 9.2% Automation 3 Digit >4 $0.167 $0.177 6.0% $0.793 $0.866 9.2% Automation AADC/ADC >4 $0.232 $0.252 8.6% $0.793 $0.866 9.2% Automation Mixed AADC/ADC-Origin >4 $0.290 $0.315 8.6% $0.793 $0.866 9.2% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound Prior to 01/24/21 New Rates 01/24/21 % Change Prior to 01/24/21 New Rates 01/24/21 % Change Prior to 01/24/21 New Rates 01/24/21 % Change DNDC $0.020 $0.020 0.0% $0.043 $0.069 60.5% $0.172 $0.276 60.5% DSCF $0.026 $0.024 -7.7% $0.054 $0.078 44.4% $0.216 $0.311 44.0% Letters Flats <4 Ounces Flats >4 Ounces Destination Entry Discounts for Marketing Mail
  • 9. First-Class Mail® Savings Options • Use Meters or PC Postage to save $.04 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 9, 2020 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 $0.51 $.428-.46 $.398-.45 $.259-.304 $.138-.183 3 Ounce Newsletter (6X9) $0.95 $0.91 $.428-.46 $.398-.45 $.259-.304 $.138-.183 8 Ounce Flat (9X12) $2.40 $2.40 $2.17-2.27 $1.86-2.17 $.70-.98 $.47-.75 Post Card $0.36 $0.36 $0.293 $.269-.285 n/a n/a Single Piece Rates Automation Mail with Barcodes
  • 10. Converting Light Weight Flats to Letters Lightweight Flats – Look for average flat prices of $1.60 or less. Over 50% Savings by folding. – 6 x 9 Envelopes only require that you fold in half. December 9, 2020 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® - Automation Letter Savings 1-2 $1.00 $0.51 $.428-.46 $.398-.45 49-60% 3-4 $1.20 $0.51 $.428-.46 $.398-.45 58-67% 6-10 $1.40 $0.71 $.428-.46 $.398-.45 49-72% 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 – Rates are the same as Base December 9, 2020 11
  • 12. Priority Mail® December 9, 2020 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 • $.40 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • Flat rate envelopes are staying flat! • 20-25% Increase to zone 9! (Alaska, Hawaii) Average % Increase Retail Commercial Base Flat Rate 5% 3% 1-5LB 4% 3% 6-10LB 4% 3% 11-25LB 8% 7% Over 25LB 9% 7% Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $7.50-14.05 $7.50-14.05 2-15% (4% Avg) $7.02-11.40 $7.02-11.40 1-15% (3% Avg) 5 $10.20-40.00 $10.20-40.00 4-15% (6% Avg) $8.04-33.17 $8.04-33.17 3-15% (4% Avg) 10 $13.60-68.90 $13.60-68.90 4-15% (6% Avg) $9.76-57.94 $9.76-57.94 4-15% (5% Avg) 25 $25-131.05 $25-131.05 7-15% (10% Avg) $19.30-104.82 $19.30-104.82 7-15% (8% Avg) 50 $36.05-207.60 $36.05-207.60 7-15% (10% Avg) $29.16-165.97 $29.16-165.97 7-15% (8% Avg) Flat Rate Envelope $7.75 $7.95 2.6% $7.15 $7.40 3.5% Legal Flat Rate Envelope $8.05 $8.25 2.5% $7.45 $7.70 3.4% Padded Flat Rate Envelope $8.40 $8.55 1.8% $7.75 $8.00 3.2% Small Flat Rate Box $8.30 $8.45 1.8% $7.65 $7.90 3.3% Medium Flat Rate Boxes $15.05 $15.50 3.0% $13.20 $13.75 4.2% Large Flat Rate Boxes $21.10 $21.90 3.8% $18.30 $19.30 5.5% Retail Commercial Base USPS Priority Mail®
  • 13. Priority Mail® Express December 9, 2020 13 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • $1.50 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • 0% Increase to zone 1, 2 and 3 vs. 4-8% increase for zone 4-9. Average % Increase Retail Commercial Base Flat Rate 3% 0% 1-5LB 6% 3% 6-10LB 3% 1% 11-25LB 3% 4% Over 25LB 3% 3% Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $25.60-56.10 $25.60-56.10 4-17% (6% Avg) $22.74-49 $22.74-49 3-15% (5% Avg) 5 $27.05-91 $27.05-91 5-18% (7% Avg) $23.91-77.47 $23.91-77.47 4-15% (6% Avg) 10 $40.75-134.20 $40.75-134.20 5-18% (7% Avg) $35.99-114.20 $35.99-114.20 4-15% (6% Avg) 25 $73.85-227.60 $73.85-227.60 6-20% (9% Avg) $64.69-195.84 $64.69-195.84 4-15% (6% Avg) 50 $130.85-420.90$130.85-420.90 6-20% (9% Avg) $114.61-362.20 $114.61-362.20 4-15% (6% Avg) Flat Rate Envelope $25.50 $26.35 3.3% $22.68 $22.75 0.3% Legal Flat Rate Envelope $25.70 $26.50 3.1% $22.80 $22.95 0.7% Padded Flat Rate Envelope $26.20 $26.95 2.9% $23.18 $23.25 0.3% USPS Priority Mail® Express Retail Commercial Base
  • 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 9, 2020 14 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
  • 15. First-Class Mail® Package Service December 9, 2020 15 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • $.25 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • Highest increases on light weight items. • Save by converting from Retail to Commercial with improved tracking! • Retail rates go up to 13 ounces forcing heavier items to Priority Mail. Commercial service goes up to 15.999 ounces. Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $4.00-4.45 $3.01-3.49 22-25% 5 $4.80-5.20 $3.46-3.85 26-28% 6 $4.80-5.20 $3.46-3.85 26-28% 7 $4.80-5.20 $3.46-3.85 26-28% 8 $4.80-5.20 $3.46-3.85 26-28% 9 $5.50-5.95 $4.04-4.68 21-27% 10 $5.50-5.95 $4.04-4.68 21-27% 11 $5.50-5.95 $4.04-4.68 21-27% 12 $5.50-5.95 $4.04-4.68 21-27% 13 $6.25-6.75 $5.19-5.98 11-17% 14 $7.70-9.90 $5.19-5.98 33-40% 15 $7.70-9.90 $5.19-5.98 33-40% 15.999 $7.70-9.90 $5.19-5.98 33-40% Convert from Retail to Commercial Average % Increase Retail Commercial Base 1-4 Ounce 6% 10% 5-8 Ounce 4% 6% 9-12 Ounce 4% 4% 13 Ounce 5% 4% 14-15.99 Ounce N/A 4%
  • 16. Commercial Savings Examples December 9, 2020 16 PC Postage starts at around $15 per month! 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) 15% $250.00 $212.50 -$37.50 Total $1,000.00 $800.00 -$200.00 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) 15% $2,500.00 $2,125.00 -$375.00 Total $10,000.00 $8,000.00 -$2,000.00 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) 15% $25,000.00 $21,250.00 -$3,750.00 Total $100,000.00 $80,000.00 -$20,000.00
  • 17. Additional Rate Change Items December 9, 2020 17 Group Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Canada $1.20 $1.20 0.0% $1.20 $1.20 0.0% $1.20 $1.20 0.0% Mexico (Group 2) $1.20 $1.20 0.0% $1.81 $1.81 0.0% $1.20 $1.20 0.0% Group 3-5 $1.20 $1.20 0.0% $2.24 $2.24 0.0% $1.20 $1.20 0.0% Group 6-9 $1.20 $1.20 0.0% $2.08 $2.08 0.0% $1.20 $1.20 0.0% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $2.66 $2.75 3.4% 2 $3.16 $3.28 3.8% 5 $4.66 $4.87 4.5% 10 $7.19 $7.52 4.6% Single Piece Library Mail Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $2.80 $2.89 3.2% 2 $3.33 $3.45 3.6% 5 $4.92 $5.13 4.3% 10 $7.60 $7.93 4.3% Single Piece Media Mail
  • 18. Special Services December 9, 2020 18 Special Services Retail Electronic Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Certificate of Mailing $1.50 $1.55 3.3% Registered™ without Insurance $12.60 $12.90 2.4% Certified Mail™ $3.55 $3.60 1.4% Return Receipt $2.85 $2.85 0.0% $1.70 $1.75 2.9% Insurance $100 $2.85 $2.95 3.5% Insurance $500 $7.10 $7.20 1.4% Marketing Mail® parcels Tracking $0.20 $0.20 0.0% Signature Confirmation $3.15 $3.20 1.6% $2.65 $2.70 1.9% Annual Permit Fees $240.00 $245.00 2.1% Business Reply Mail Permit Fee $240.00 $245.00 2.1% Account Maintenance Fee $725.00 $740.00 2.1% Quarterly Fee $2,460.00 $2,460.00 0.0% Basic $0.85 $0.86 1.2% High Volume $0.093 $0.096 3.2% QBRM Basic $0.072 $0.072 0.0% QBRM High Volume $0.015 $0.014 -6.7%
  • 19. Certified Mail with Electronic Return Receipt (eRR) • Save $1.10 by switching to an electronic version. December 9, 2020 19
  • 20. 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 9, 2020 20 Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $245 $245 $245 $245 Annual Account Maintenance Fee $0 $740 $740 $740 Quarterly Fee $0 $0 $0 $2,460 Total Annual Fees $245 $985 $985 $10,825 Fee per piece $0.860 $0.096 $0.072 $0.014 Postage for 1 ounce mail $0.550 $0.550 $0.532 $0.532 Total cost - Fee and Postage $1.410 $0.646 $0.604 $0.546 Annual Cost by pieces 100 $386 $1,050 $1,045 $10,880 250 $598 $1,147 $1,136 $10,962 500 $950 $1,308 $1,287 $11,098 968 $1,610 $1,610 $1,570 $11,354 1000 $1,655 $1,631 $1,589 $11,371 2500 $3,770 $2,600 $2,495 $12,190 5000 $7,295 $4,215 $4,005 $13,555 10000 $14,345 $7,445 $7,025 $16,285 25000 $35,495 $17,135 $16,085 $24,475 50000 $70,745 $33,285 $31,185 $38,125 100000 $141,245 $65,585 $61,385 $65,425 250000 $352,745 $162,485 $151,985 $147,325 500000 $705,245 $323,985 $302,985 $283,825 1000000 $1,410,245 $646,985 $604,985 $556,825
  • 21. 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. ($3.01-5.98 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 9, 2020 21 Multi-Carrier options: 1. Manually compare between systems. 2. Cloud based multi carrier systems – simple to complex. 3. PC/Server based multi carrier systems.
  • 22. How To Budget For This Increase December 9, 2020 22 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% 2% 2 10% 9% 3 5% 12% Total 3.21% $0.00 $0.00 First Class Flats 0% $0.00 $0.00 First Class Parcles - Retail 5% $0.00 $0.00 First Class Parcles - Commercial 6% $0.00 $0.00 First Class Automation Letters 100% 2% $0.00 $0.00 First Class Automation Flats 7% $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 7% $0.00 $0.00 Flats 9% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00
  • 23. What you need to do: If you have a mail machine, make sure you download the new rates before January 24, 2021 when the rates take into effect Here are links to the different meter vendors: FP: http://www.fp-usa.com/ratechange/ Quadient: https://www.quadient.com/resources/postal-rate- 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 9, 2020 23 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 24. Helping multi-location organizations streamline their mailing costs Over 161,000 pieces of equipment, managed by Postal Advocate Recovered over $19,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $61,000,000 IN CLIENT SAVINGS $1.9M 59% Average Client Savings Average Equipment Savings HOW WE DO IT • 175+ 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