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July 2022 USPS® Rate Increases
- 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 127,000 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 top accounts.
June 22, 2022 2
What We’ll Cover:
• What rates are changing
• How this impacts you
• What you need to do
• Savings tips
• USPS Thoughts
June 22, 2022 3
New rates would take effect Sunday July 10, 2022
*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® Largest increase in 10 years!
June 22, 2022 4
Letter volume
dropping fast!
Making up for
volume declines
with rate changes
Increased number
of drop off points
with fewer pieces
per stop.
Volumes seldom
go up after a
major correction.
Date
First-Class
Mail®Retail
Letters
First-Class
Mail®Metered
Letters
First-Class
Mail®Flats
First-Class
Mail®Auto
Letters
First-Class
Mail®Auto
Flats
Marketing-
Mail®Letters
Marketing-
Mail®Flats
2022-07-10 4% 8% 11% 7% 13% 6% 8%
2021-08-29 6% 4% 16% 8% 17% 8% 9%
Last 12Mo Increase 10% 12% 27% 14% 30% 14% 17%
2021-01-24 0% 2% 0% 2% 7% 1% 9%
2020-01-26 0% 0% 0% 2% -4% 2% 4%
2019-01-27 10% 6% 0% 1% 2% 2% 5%
2018-01-21 2% 2% 2% 1% -2% 0% 5%
2017-01-22 4% -1% 4% 0% 0% -1% 2%
2016-04-10 -4% -4% -4% -4% -5% -4% -4%
2015-05-31 0% 1% 0% 2% 2% 1% 2%
2014-01-26 7% 5% 7% 6% 7% 6% 6%
2013-01-27 2% 2% 2% 2% 2% 2% 2%
2012-01-12 2% 2% 2% 3% 4% 2% 2%
First-Class Mail® Single Piece
• 3.4% Increase on 1 Oz Letters
• 1 Oz Flats increase from $1.16
to $1.20.
• Postcards increase by 10%
• Additional ounce rate
increases from $.20-.24.
June 22, 2022 5
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22
%
Increase
1 $0.58 $0.60 3.4% $1.16 $1.20 3.4%
2 $0.78 $0.84 7.7% $1.36 $1.44 5.9%
3 $0.98 $1.08 10.2% $1.56 $1.68 7.7%
6 N/A N/A $2.16 $2.40 11.1%
13 N/A N/A $3.56 $4.08 14.6%
Postcard $0.40 $0.44 10.0%
First-Class Mail® Retail
Letters Flats
First-Class Mail® Metered Letters
June 22, 2022 6
• Metered mail (including Online Postage) will save $.03 per
piece over stamps purchased from the Post Office (5%)
Savings over First-Class Mail®
Retail @ $.60 each vs $.57
Metered
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
1 $0.530 $0.570 7.5%
2 $0.730 $0.810 11.0%
3 $0.930 $1.050 12.9%
Metered Letters
Letters Annual Postage # of Pieces @ $.57 each Savings @ $.03 Each
$1,000 1,887 $56.60
$2,000 3,774 $113.21
$10,000 18,868 $566.04
$100,000 188,679 $5,660.38
$1,000,000 1,886,792 $56,603.77
First-Class® Mail Metered Savings
First-Class Mail® Commercial
• 6.2 – 6.8% increase for automation letters
• Flats have the largest increase at 4.4% - 8.0%
• Postcards increasing by 7.8% - 10.1%
• Full Service IMB customers still qualify for the additional $.003 savings
June 22, 2022 7
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22
%
Increase
Prior to
07/10/22
New
Rates
07/10/22
%
Increase
Automation 5 Digit 1 $0.426 $0.455 6.8% $0.555 $0.555 0.0% $0.306 $0.330 7.8%
Automation 3 Digit $0.730 $0.762 4.4%
Automation AADC 1 $0.461 $0.491 6.5% $0.783 $0.821 4.9% $0.318 $0.348 9.4%
Automation Mixed AADC 1 $0.485 $0.515 6.2% $0.891 $0.934 4.8% $0.326 $0.359 10.1%
Presorted (Non Automation) 1 $1.000 $1.080 8.0%
Letters Flats* Post Cards
Commercial First-Class Mail®
Rate increase is only for the first
ounce. Actual increase is much
greater since additional ounces
increased from $.20-.24!
Additional Ounce Impact
• Double increase with additional ounce – First ounce + additional ounces @ 20% more.
• Greater impact on heavier items.
• Savings Strategies
– Fold flats to #10 and 6X9.5 where possible 53-73% savings! (Up to 12 sheets into a 6X9.5 envelope)
– Use presort services or automate internally to get up to 3.5 ounces for letters at the 1-ounce rate.
– Consider paper reduction strategies – Duplexing, smaller fonts, or links to web content vs. printing.
June 22, 2022 8
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 $1.20 $0.57 $0.515 $.455-.515 53-62%
3-4 $1.44 $0.57 $0.515 $.455-.515 60-68%
6-10 $1.68 $0.81 $0.515 $.455-.515 52-73%
Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces
Letter Envelope - Example 6X9 or #10
% Increase Based on Weight
Weight
Not Over
(ounces)
Flat Mixed
ADC
Flat
Presorted
Single
Piece Flat
Single
Piece
Letter
1 5% 8% 3% 8%
2 8% 10% 6% 11%
3 10% 11% 8% 13%
4 11% 13% 9%
5 12% 13% 10%
6 13% 14% 11%
7 14% 15% 12%
8 14% 15% 13%
9 15% 15% 13%
10 15% 16% 14%
11 15% 16% 14%
12 16% 16% 14%
13 16% 16% 15%
Most common Flat weights
First-Class Mail® Savings Options
• Use Meters or PC Postage to save $.03 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
June 22, 2022 9
Marketing Mail® (Formerly called Standard Mail)
• 4.0% - 6.9% increase for letters
• Flats increase at 5-17%
June 22, 2022 10
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22 % Increase
Automation 5 Digit ≤3.5 $0.277 $0.296 6.9% $0.482 $0.530 10.0%
Automation 3 Digit ≤4 $0.640 $0.684 6.9%
Automation AADC/ADC ≤3.5 $0.309 $0.328 6.1% $0.729 $0.782 7.3%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.330 $0.349 5.8% $0.798 $0.854 7.0%
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22 % Increase
Automation 5 Digit ≤3.5 $0.146 $0.154 5.5% $0.278 $0.324 16.5%
Automation 3 Digit ≤4 $0.436 $0.478 9.6%
Automation AADC/ADC ≤3.5 $0.178 $0.186 4.5% $0.525 $0.576 9.7%
Automation Mixed AADC/ADC-Origin ≤3.5 $0.199 $0.207 4.0% $0.594 $0.648 9.1%
Marketing Mail®
Letters Flats
Marketing Mail® Nonprofit
Letters Flats
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22 % Increase
Automation 5 Digit >4 $0.219 $0.258 17.8% $1.052 $1.087 3.3%
Automation 3 Digit >4 $0.377 $0.412 9.3% $1.052 $1.087 3.3%
Automation AADC/ADC >4 $0.466 $0.510 9.4% $1.052 $1.087 3.3%
Automation Mixed AADC/ADC-Origin >4 $0.535 $0.582 8.8% $1.052 $1.087 3.3%
Weight
Ounces
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22 % Increase
Automation 5 Digit >4 $0.053 $0.092 73.6% $0.900 $0.927 3.0%
Automation 3 Digit >4 $0.211 $0.246 16.6% $0.900 $0.927 3.0%
Automation AADC/ADC >4 $0.300 $0.344 14.7% $0.900 $0.927 3.0%
Automation Mixed AADC/ADC-Origin >4 $0.369 $0.416 12.7% $0.900 $0.927 3.0%
Marketing Mail® Commercial Flats > 4 Oz
Per Piece Per Pound
Marketing Mail® Nonprofit Flats > 4 Oz
Per Piece Per Pound
Marketing Mail®
Commercial Flats
Marketing Mail®
Nonprofit Flats
Weight % Increase % Increase
1 7-10% 9-17%
3 7-10% 9-17%
5 7-9% 9-14%
7 6-8% 8-11%
9 6-7% 7-10%
11 6-7% 7-9%
13 5-6% 6-8%
15 5-6% 6-7%
Marketing Mail® Savings Options
• Use Entry level discounts to move mail closer to its destination for large savings!
– Savings increased by up to 15%
– Mail can move faster through the postal system
– Look for outsource providers that can move the highest percent of mail to the Sectional Center
Facilities (DSCF) and are in the best geographic areas to support these moves.
• Convert Flats to Letters wherever possible
– Lower rates - $.146-.349 for up to 3.5 ounces vs. flats that are $.278-.854 for up to 4 ounces.
– Lower rate increases
June 22, 2022 11
Prior to
07/10/22
New Rates
07/10/22 % Change
Prior to
07/10/22
New Rates
07/10/22 % Change
Prior to
07/10/22
New Rates
07/10/22 % Change
DNDC $0.021 $0.023 9.5% $0.069 $0.069 0.0% $0.276 $0.276 0.0%
DSCF $0.027 $0.030 11.1% $0.079 $0.091 15.2% $0.318 $0.364 14.5%
Letters Flats <4 Ounces Flats >4 Ounces
Destination Entry Discounts for Marketing Mail
January 2022 Parcel Increase
UPS®
Next Day 8:30
AM
Next Day
10:30 AM
Next Day End
of Day
Two Day AM Two Day Three Day Ground
1-10 LB - Zone 2-4 (Inc Letter) 4.8% 7.4% 6.9% 6.5% 4.9% 9.9% 7.0%
1-10 LB - Zone 5-8 (Inc Letter) 4.7% 6.0% 5.8% 6.5% 4.9% 9.9% 7.0%
11-25 LB - Zone 2-4 5.7% 7.5% 7.1% 6.5% 4.9% 9.9% 5.9%
11-25 LB - Zone 5-8 5.3% 6.1% 5.8% 6.5% 4.9% 9.9% 5.8%
26-150 LB - Zone 2-4 5.2% 5.8% 6.3% 6.5% 4.8% 9.8% 5.5%
26-150 LB - Zone 5-8 6.2% 6.4% 5.9% 6.5% 4.9% 9.9% 5.8%
FedEx®
Next Day 8:30
AM
Next Day
10:30 AM
Next Day End
of Day
Two Day AM Two Day Three Day Ground
1-10 LB - Zone 2-4 (Inc Letter) 4.4% 7.4% 7.4% 9.7% 4.9% 9.9% 7.0%
1-10 LB - Zone 5-8 (Inc Letter) 4.6% 6.0% 6.0% 8.4% 4.9% 9.9% 7.0%
11-25 LB - Zone 2-4 5.6% 7.5% 7.5% 9.0% 4.9% 9.8% 6.4%
11-25 LB - Zone 5-8 5.3% 6.1% 6.1% 8.1% 4.9% 9.9% 6.0%
26-150 LB - Zone 2-4 5.2% 5.8% 6.5% 8.4% 4.8% 8.8% 5.6%
26-150 LB - Zone 5-8 6.1% 6.4% 6.1% 6.9% 4.9% 9.9% 6.1%
USPS®
Priority Mail®
Express Priority Mail®
1-10 LB - Zone 2-4 (Inc Letter) 5.0% 3.0%
1-10 LB - Zone 5-8 (Inc Letter) 9.0% 2.0%
11-25 LB - Zone 2-4 5.0% -14.0%
11-25 LB - Zone 5-8 10.0% -18.0%
26-150 LB - Zone 2-4 10.0% 10.0%
26-150 LB - Zone 5-8 13.0% 12.0%
Exceeded the overall UPS and FedEx 5.9% increase and USPS 2.7% increase
June 22, 2022 12
Comparing Costs
June 22, 2022 13
Weight Overnight 2 Day 3 Day Ground USPSPriorityMail® USPSFirst-Class® Parcel
Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 1-3
0.5 LB Ltr $26.00 $21.00 $13.50 $9.50 $7.37 $3.76
1 LB $29.00 $21.00 $13.50 $9.50 $7.37 $5.49
Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-3
0.5 LB Ltr $39.00 $23.00 $17.00 $10.50 $7.75 $3.81
1 LB $55.00 $23.00 $17.00 $10.50 $7.75 $5.57
Zone 8 - Coastto Coast 1 2 3 5 2-3 2-3
0.5 LB Ltr $50.00 $35.00 $30.00 $12.00 $7.75 $4.15
1 LB $76.00 $35.00 $30.00 $12.00 $9.68 $6.28
Other Charges
Fuel Surcharge 9-12% 9-12% 9-12% 9-12% 0% 0%
Residential Fee $5.35 $5.35 $5.35 $4.85 $0 $0
Delivery Area Surcharges $3.55-6.50 $3.55-6.50 $3.55-6.50 $3.40-6.50 $0 $0
Saturday Delivery Fee $16.00 $16.00 $16.00 $4.00 $0 $0
Address Correction Fee $18-19.50 $18-19.50 $18-19.50 $18-19.50 $0 $0
Discounts Varies by Client Varies by Client Varies by Client Varies by Client
Minimum Service Fees Varies by Client Varies by Client Varies by Client Varies by Client
Parcel Savings Recommendations
• Prices are going to keep going up at faster rates with the
growth in the shipping space and limited number of
suppliers.
• There are too many factors in calculating a shipping price
to rely only on free carrier provided solutions.
• Need ways to compare rates side by side to make the
best decisions.
• More and more people will be working remotely in the
future.
• Cloud-based tools are needed to support their mail and
shipping needs.
• Multi-carrier tools are available to rate shop for the
lowest costs to send.
• Some of these tools can generate postage stamps from
the same platform.
• Enterprise versions are available to manage all users on
a single platform.
• All of these solutions create efficiencies and savings.
June 22, 2022 14
Additional Rate Change Items
June 22, 2022 15
Group
Prior to
07/10/22
New Rates
07/10/22 % Increase
Prior to
07/10/22
New
Rates
07/10/22
%
Increase
Prior to
07/10/22
New Rates
07/10/22
%
Increase
Canada $1.30 $1.40 7.7% $1.30 $1.40 7.7% $1.30 $1.40 7.7%
Mexico (Group 2) $1.30 $1.40 7.7% $1.96 $2.11 7.7% $1.30 $1.40 7.7%
Group 3-5 $1.30 $1.40 7.7% $2.43 $2.62 7.8% $1.30 $1.40 7.7%
Group 6-9 $1.30 $1.40 7.7% $2.25 $2.42 7.6% $1.30 $1.40 7.7%
First-Class Mail International®
1 Ounce 2 Ounce Postcards
Weight LB's
Prior to
07/10/22
New Rates
07/10/22 % Increase
1 $3.03 $3.32 9.6%
2 $3.63 $3.95 8.8%
5 $5.43 $5.84 7.6%
10 $8.43 $9.08 7.7%
Library Mail
Single Piece
Weight LB's
Prior to
07/10/22
New Rates
07/10/22 % Increase
1 $3.19 $3.49 9.4%
2 $3.82 $4.16 8.9%
5 $5.71 $6.17 8.1%
10 $8.86 $9.61 8.5%
Media Mail
Single Piece
Special Services
Special Services Retail Electronic
Prior to
07/10/22
New Rates
07/10/22 % Increase
New
Rates
07/10/22
New
Rates
07/10/22
%
Increase
Certificate of Mailing $1.65 $1.75 6.1%
Registered™ without Insurance $13.75 $14.65 6.5%
Certified Mail™ $3.75 $4.00 6.7%
Return Receipt $3.05 $3.25 6.6% $1.85 $2.00 8.1%
Insurance $100 $3.15 $3.35 6.3%
Insurance $500 $7.65 $8.15 6.5%
Marketing Mail® parcels Tracking $0.24 $0.26 8.3%
Signature Confirmation $3.45 $3.65 5.8% $2.90 $3.10 6.9%
Annual Permit Fees $265.00 $275.00 3.8%
Business Reply Mail
Permit Fee $265.00 $275.00 3.8%
Account Maintenance Fee $800.00 $825.00 3.1%
Quarterly Fee $2,675 $2,850 6.5%
Basic $0.92 $0.92 0.0%
High Volume $0.110 $0.115 4.5%
QBRM Basic $0.077 $0.084 9.1%
QBRM High Volume $0.016 $0.018 12.5%
June 22, 2022 16
Certified Mail with Electronic Return Receipt
(eRR)
• Save $1.25 by switching to an electronic version.
June 22, 2022 17
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.
• Additional savings by having
visibility to all USPS permit
accounts for proper optimization.
June 22, 2022 18
2022 Rates
Business Reply Mail Basics Basic
High
Volume
QBRM
Basic
QBRM
High
Volume
Annual Permit Fee $275 $275 $275 $275
Annual Account Maintenance Fee $0 $800 $800 $800
Quarterly Fee $0 $0 $0 $2,675
Total Annual Fees $275 $1,075 $1,075 $11,775
Fee per piece $0.920 $0.115 $0.084 $0.018
Postage for 1 ounce mail $0.600 $0.600 $0.578 $0.578
Total cost - Fee and Postage $1.520 $0.715 $0.662 $0.596
Annual Cost by pieces
100 $427 $1,147 $1,141 $11,835
250 $655 $1,254 $1,241 $11,924
500 $1,035 $1,433 $1,406 $12,073
1000 $1,795 $1,790 $1,737 $12,371
2500 $4,075 $2,863 $2,730 $13,265
5000 $7,875 $4,650 $4,385 $14,755
10000 $15,475 $8,225 $7,695 $17,735
25000 $38,275 $18,950 $17,625 $26,675
50000 $76,275 $36,825 $34,175 $41,575
100000 $152,275 $72,575 $67,275 $71,375
250000 $380,275 $179,825 $166,575 $160,775
500000 $760,275 $358,575 $332,075 $309,775
1000000 $1,520,275 $716,075 $663,075 $607,775
How To Budget For This Increase
June 22, 2022 19
Email:
Makayla.miller@postaladvocate.
com for a copy of this excel
budgeting tool.
Class Weight
% Of
Class % Change
Estimated
Current
Spend
Estimated
New Spend Difference
First-Class Mail® Metered Letters 1 85% 7.5%
2 10% 11.0%
3 5% 12.9%
Total 8.1% $0.00 $0.00
First-Class Mail® Flats 11% $0.00 $0.00
First-Class Mail® Parcels - Retail 0% $0.00 $0.00
First-Class Mail® Parcels - Commercial 0% $0.00 $0.00
First-Class Mail® Automation Letters 100% 7% $0.00 $0.00
First-Class Mail® Automation Flats 13% $0.00 $0.00
Certified with Return Receipt 7% $0.00 $0.00
Priority Mail® Retail 0% $0.00 $0.00
Priority Mail® Commercial 0% $0.00 $0.00
Marketing Mail®
Letters 6% $0.00 $0.00
Flats 8% $0.00 $0.00
Rate Change Budget Calculator July 2022
What you need to do:
If you have a mail machine, make sure you
download the new rates before July 10, 2022
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://blog.stamps.com/2021/06/04/usps-to-implement-
second-postage-rate-increase-in-2021/
Go to the USPS Postal Explorer website for more
information:
http://pe.usps.gov/PriceChange/Index
June 22, 2022 20
Download the Postal
Advocate Rate
Comparison Guide –
www.postaladvocate.com
Additional Considerations
• The dominant mail vendor is requiring that all meters move off
analog phone lines in October 2022.
• 70% of all postage meters will need to be replaced by 2024 for
USPS mandates.
• Large percentage of staff will have no ability to generate postage –
(Working remotely or in locations without metering equipment) and
will default to more expensive overnight services. New cloud-based
mail and shipping options can solve this.
• Postage balances in meters, permits and associated funding
accounts are seldom centrally managed with potential for loss and
overfunding.
• Most organizations have limited visibility and expertise to the mail
spends across their locations. Having this detail is the only way to
save money. We recommend central managed visibility to drive
these cost reductions.
• There are savings methods available that can eliminate these price
increases, but they require oversight.
June 22, 2022 21
Helping multi-location
organizations streamline
their mailing costs
Over 127,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$27,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $73,000,000 IN CLIENT SAVINGS
$1.9M
56%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 220+ 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)
June 22, 2022 23
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
June 22, 2022 25
June 22, 2022 26

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July 2022 USPS® Rate Change

  • 1. July 2022 USPS® Rate Increases - 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 127,000 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 top accounts. June 22, 2022 2
  • 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips • USPS Thoughts June 22, 2022 3 New rates would take effect Sunday July 10, 2022 *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® Largest increase in 10 years! June 22, 2022 4 Letter volume dropping fast! Making up for volume declines with rate changes Increased number of drop off points with fewer pieces per stop. Volumes seldom go up after a major correction. Date First-Class Mail®Retail Letters First-Class Mail®Metered Letters First-Class Mail®Flats First-Class Mail®Auto Letters First-Class Mail®Auto Flats Marketing- Mail®Letters Marketing- Mail®Flats 2022-07-10 4% 8% 11% 7% 13% 6% 8% 2021-08-29 6% 4% 16% 8% 17% 8% 9% Last 12Mo Increase 10% 12% 27% 14% 30% 14% 17% 2021-01-24 0% 2% 0% 2% 7% 1% 9% 2020-01-26 0% 0% 0% 2% -4% 2% 4% 2019-01-27 10% 6% 0% 1% 2% 2% 5% 2018-01-21 2% 2% 2% 1% -2% 0% 5% 2017-01-22 4% -1% 4% 0% 0% -1% 2% 2016-04-10 -4% -4% -4% -4% -5% -4% -4% 2015-05-31 0% 1% 0% 2% 2% 1% 2% 2014-01-26 7% 5% 7% 6% 7% 6% 6% 2013-01-27 2% 2% 2% 2% 2% 2% 2% 2012-01-12 2% 2% 2% 3% 4% 2% 2%
  • 5. First-Class Mail® Single Piece • 3.4% Increase on 1 Oz Letters • 1 Oz Flats increase from $1.16 to $1.20. • Postcards increase by 10% • Additional ounce rate increases from $.20-.24. June 22, 2022 5 Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase 1 $0.58 $0.60 3.4% $1.16 $1.20 3.4% 2 $0.78 $0.84 7.7% $1.36 $1.44 5.9% 3 $0.98 $1.08 10.2% $1.56 $1.68 7.7% 6 N/A N/A $2.16 $2.40 11.1% 13 N/A N/A $3.56 $4.08 14.6% Postcard $0.40 $0.44 10.0% First-Class Mail® Retail Letters Flats
  • 6. First-Class Mail® Metered Letters June 22, 2022 6 • Metered mail (including Online Postage) will save $.03 per piece over stamps purchased from the Post Office (5%) Savings over First-Class Mail® Retail @ $.60 each vs $.57 Metered Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase 1 $0.530 $0.570 7.5% 2 $0.730 $0.810 11.0% 3 $0.930 $1.050 12.9% Metered Letters Letters Annual Postage # of Pieces @ $.57 each Savings @ $.03 Each $1,000 1,887 $56.60 $2,000 3,774 $113.21 $10,000 18,868 $566.04 $100,000 188,679 $5,660.38 $1,000,000 1,886,792 $56,603.77 First-Class® Mail Metered Savings
  • 7. First-Class Mail® Commercial • 6.2 – 6.8% increase for automation letters • Flats have the largest increase at 4.4% - 8.0% • Postcards increasing by 7.8% - 10.1% • Full Service IMB customers still qualify for the additional $.003 savings June 22, 2022 7 Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Automation 5 Digit 1 $0.426 $0.455 6.8% $0.555 $0.555 0.0% $0.306 $0.330 7.8% Automation 3 Digit $0.730 $0.762 4.4% Automation AADC 1 $0.461 $0.491 6.5% $0.783 $0.821 4.9% $0.318 $0.348 9.4% Automation Mixed AADC 1 $0.485 $0.515 6.2% $0.891 $0.934 4.8% $0.326 $0.359 10.1% Presorted (Non Automation) 1 $1.000 $1.080 8.0% Letters Flats* Post Cards Commercial First-Class Mail® Rate increase is only for the first ounce. Actual increase is much greater since additional ounces increased from $.20-.24!
  • 8. Additional Ounce Impact • Double increase with additional ounce – First ounce + additional ounces @ 20% more. • Greater impact on heavier items. • Savings Strategies – Fold flats to #10 and 6X9.5 where possible 53-73% savings! (Up to 12 sheets into a 6X9.5 envelope) – Use presort services or automate internally to get up to 3.5 ounces for letters at the 1-ounce rate. – Consider paper reduction strategies – Duplexing, smaller fonts, or links to web content vs. printing. June 22, 2022 8 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 $1.20 $0.57 $0.515 $.455-.515 53-62% 3-4 $1.44 $0.57 $0.515 $.455-.515 60-68% 6-10 $1.68 $0.81 $0.515 $.455-.515 52-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10 % Increase Based on Weight Weight Not Over (ounces) Flat Mixed ADC Flat Presorted Single Piece Flat Single Piece Letter 1 5% 8% 3% 8% 2 8% 10% 6% 11% 3 10% 11% 8% 13% 4 11% 13% 9% 5 12% 13% 10% 6 13% 14% 11% 7 14% 15% 12% 8 14% 15% 13% 9 15% 15% 13% 10 15% 16% 14% 11 15% 16% 14% 12 16% 16% 14% 13 16% 16% 15% Most common Flat weights
  • 9. First-Class Mail® Savings Options • Use Meters or PC Postage to save $.03 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 June 22, 2022 9
  • 10. Marketing Mail® (Formerly called Standard Mail) • 4.0% - 6.9% increase for letters • Flats increase at 5-17% June 22, 2022 10 Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Automation 5 Digit ≤3.5 $0.277 $0.296 6.9% $0.482 $0.530 10.0% Automation 3 Digit ≤4 $0.640 $0.684 6.9% Automation AADC/ADC ≤3.5 $0.309 $0.328 6.1% $0.729 $0.782 7.3% Automation Mixed AADC/ADC-Origin ≤3.5 $0.330 $0.349 5.8% $0.798 $0.854 7.0% Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Automation 5 Digit ≤3.5 $0.146 $0.154 5.5% $0.278 $0.324 16.5% Automation 3 Digit ≤4 $0.436 $0.478 9.6% Automation AADC/ADC ≤3.5 $0.178 $0.186 4.5% $0.525 $0.576 9.7% Automation Mixed AADC/ADC-Origin ≤3.5 $0.199 $0.207 4.0% $0.594 $0.648 9.1% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Automation 5 Digit >4 $0.219 $0.258 17.8% $1.052 $1.087 3.3% Automation 3 Digit >4 $0.377 $0.412 9.3% $1.052 $1.087 3.3% Automation AADC/ADC >4 $0.466 $0.510 9.4% $1.052 $1.087 3.3% Automation Mixed AADC/ADC-Origin >4 $0.535 $0.582 8.8% $1.052 $1.087 3.3% Weight Ounces Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Automation 5 Digit >4 $0.053 $0.092 73.6% $0.900 $0.927 3.0% Automation 3 Digit >4 $0.211 $0.246 16.6% $0.900 $0.927 3.0% Automation AADC/ADC >4 $0.300 $0.344 14.7% $0.900 $0.927 3.0% Automation Mixed AADC/ADC-Origin >4 $0.369 $0.416 12.7% $0.900 $0.927 3.0% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound Marketing Mail® Commercial Flats Marketing Mail® Nonprofit Flats Weight % Increase % Increase 1 7-10% 9-17% 3 7-10% 9-17% 5 7-9% 9-14% 7 6-8% 8-11% 9 6-7% 7-10% 11 6-7% 7-9% 13 5-6% 6-8% 15 5-6% 6-7%
  • 11. Marketing Mail® Savings Options • Use Entry level discounts to move mail closer to its destination for large savings! – Savings increased by up to 15% – Mail can move faster through the postal system – Look for outsource providers that can move the highest percent of mail to the Sectional Center Facilities (DSCF) and are in the best geographic areas to support these moves. • Convert Flats to Letters wherever possible – Lower rates - $.146-.349 for up to 3.5 ounces vs. flats that are $.278-.854 for up to 4 ounces. – Lower rate increases June 22, 2022 11 Prior to 07/10/22 New Rates 07/10/22 % Change Prior to 07/10/22 New Rates 07/10/22 % Change Prior to 07/10/22 New Rates 07/10/22 % Change DNDC $0.021 $0.023 9.5% $0.069 $0.069 0.0% $0.276 $0.276 0.0% DSCF $0.027 $0.030 11.1% $0.079 $0.091 15.2% $0.318 $0.364 14.5% Letters Flats <4 Ounces Flats >4 Ounces Destination Entry Discounts for Marketing Mail
  • 12. January 2022 Parcel Increase UPS® Next Day 8:30 AM Next Day 10:30 AM Next Day End of Day Two Day AM Two Day Three Day Ground 1-10 LB - Zone 2-4 (Inc Letter) 4.8% 7.4% 6.9% 6.5% 4.9% 9.9% 7.0% 1-10 LB - Zone 5-8 (Inc Letter) 4.7% 6.0% 5.8% 6.5% 4.9% 9.9% 7.0% 11-25 LB - Zone 2-4 5.7% 7.5% 7.1% 6.5% 4.9% 9.9% 5.9% 11-25 LB - Zone 5-8 5.3% 6.1% 5.8% 6.5% 4.9% 9.9% 5.8% 26-150 LB - Zone 2-4 5.2% 5.8% 6.3% 6.5% 4.8% 9.8% 5.5% 26-150 LB - Zone 5-8 6.2% 6.4% 5.9% 6.5% 4.9% 9.9% 5.8% FedEx® Next Day 8:30 AM Next Day 10:30 AM Next Day End of Day Two Day AM Two Day Three Day Ground 1-10 LB - Zone 2-4 (Inc Letter) 4.4% 7.4% 7.4% 9.7% 4.9% 9.9% 7.0% 1-10 LB - Zone 5-8 (Inc Letter) 4.6% 6.0% 6.0% 8.4% 4.9% 9.9% 7.0% 11-25 LB - Zone 2-4 5.6% 7.5% 7.5% 9.0% 4.9% 9.8% 6.4% 11-25 LB - Zone 5-8 5.3% 6.1% 6.1% 8.1% 4.9% 9.9% 6.0% 26-150 LB - Zone 2-4 5.2% 5.8% 6.5% 8.4% 4.8% 8.8% 5.6% 26-150 LB - Zone 5-8 6.1% 6.4% 6.1% 6.9% 4.9% 9.9% 6.1% USPS® Priority Mail® Express Priority Mail® 1-10 LB - Zone 2-4 (Inc Letter) 5.0% 3.0% 1-10 LB - Zone 5-8 (Inc Letter) 9.0% 2.0% 11-25 LB - Zone 2-4 5.0% -14.0% 11-25 LB - Zone 5-8 10.0% -18.0% 26-150 LB - Zone 2-4 10.0% 10.0% 26-150 LB - Zone 5-8 13.0% 12.0% Exceeded the overall UPS and FedEx 5.9% increase and USPS 2.7% increase June 22, 2022 12
  • 13. Comparing Costs June 22, 2022 13 Weight Overnight 2 Day 3 Day Ground USPSPriorityMail® USPSFirst-Class® Parcel Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 1-3 0.5 LB Ltr $26.00 $21.00 $13.50 $9.50 $7.37 $3.76 1 LB $29.00 $21.00 $13.50 $9.50 $7.37 $5.49 Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $39.00 $23.00 $17.00 $10.50 $7.75 $3.81 1 LB $55.00 $23.00 $17.00 $10.50 $7.75 $5.57 Zone 8 - Coastto Coast 1 2 3 5 2-3 2-3 0.5 LB Ltr $50.00 $35.00 $30.00 $12.00 $7.75 $4.15 1 LB $76.00 $35.00 $30.00 $12.00 $9.68 $6.28 Other Charges Fuel Surcharge 9-12% 9-12% 9-12% 9-12% 0% 0% Residential Fee $5.35 $5.35 $5.35 $4.85 $0 $0 Delivery Area Surcharges $3.55-6.50 $3.55-6.50 $3.55-6.50 $3.40-6.50 $0 $0 Saturday Delivery Fee $16.00 $16.00 $16.00 $4.00 $0 $0 Address Correction Fee $18-19.50 $18-19.50 $18-19.50 $18-19.50 $0 $0 Discounts Varies by Client Varies by Client Varies by Client Varies by Client Minimum Service Fees Varies by Client Varies by Client Varies by Client Varies by Client
  • 14. Parcel Savings Recommendations • Prices are going to keep going up at faster rates with the growth in the shipping space and limited number of suppliers. • There are too many factors in calculating a shipping price to rely only on free carrier provided solutions. • Need ways to compare rates side by side to make the best decisions. • More and more people will be working remotely in the future. • Cloud-based tools are needed to support their mail and shipping needs. • Multi-carrier tools are available to rate shop for the lowest costs to send. • Some of these tools can generate postage stamps from the same platform. • Enterprise versions are available to manage all users on a single platform. • All of these solutions create efficiencies and savings. June 22, 2022 14
  • 15. Additional Rate Change Items June 22, 2022 15 Group Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Prior to 07/10/22 New Rates 07/10/22 % Increase Canada $1.30 $1.40 7.7% $1.30 $1.40 7.7% $1.30 $1.40 7.7% Mexico (Group 2) $1.30 $1.40 7.7% $1.96 $2.11 7.7% $1.30 $1.40 7.7% Group 3-5 $1.30 $1.40 7.7% $2.43 $2.62 7.8% $1.30 $1.40 7.7% Group 6-9 $1.30 $1.40 7.7% $2.25 $2.42 7.6% $1.30 $1.40 7.7% First-Class Mail International® 1 Ounce 2 Ounce Postcards Weight LB's Prior to 07/10/22 New Rates 07/10/22 % Increase 1 $3.03 $3.32 9.6% 2 $3.63 $3.95 8.8% 5 $5.43 $5.84 7.6% 10 $8.43 $9.08 7.7% Library Mail Single Piece Weight LB's Prior to 07/10/22 New Rates 07/10/22 % Increase 1 $3.19 $3.49 9.4% 2 $3.82 $4.16 8.9% 5 $5.71 $6.17 8.1% 10 $8.86 $9.61 8.5% Media Mail Single Piece
  • 16. Special Services Special Services Retail Electronic Prior to 07/10/22 New Rates 07/10/22 % Increase New Rates 07/10/22 New Rates 07/10/22 % Increase Certificate of Mailing $1.65 $1.75 6.1% Registered™ without Insurance $13.75 $14.65 6.5% Certified Mail™ $3.75 $4.00 6.7% Return Receipt $3.05 $3.25 6.6% $1.85 $2.00 8.1% Insurance $100 $3.15 $3.35 6.3% Insurance $500 $7.65 $8.15 6.5% Marketing Mail® parcels Tracking $0.24 $0.26 8.3% Signature Confirmation $3.45 $3.65 5.8% $2.90 $3.10 6.9% Annual Permit Fees $265.00 $275.00 3.8% Business Reply Mail Permit Fee $265.00 $275.00 3.8% Account Maintenance Fee $800.00 $825.00 3.1% Quarterly Fee $2,675 $2,850 6.5% Basic $0.92 $0.92 0.0% High Volume $0.110 $0.115 4.5% QBRM Basic $0.077 $0.084 9.1% QBRM High Volume $0.016 $0.018 12.5% June 22, 2022 16
  • 17. Certified Mail with Electronic Return Receipt (eRR) • Save $1.25 by switching to an electronic version. June 22, 2022 17
  • 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. • Additional savings by having visibility to all USPS permit accounts for proper optimization. June 22, 2022 18 2022 Rates Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $275 $275 $275 $275 Annual Account Maintenance Fee $0 $800 $800 $800 Quarterly Fee $0 $0 $0 $2,675 Total Annual Fees $275 $1,075 $1,075 $11,775 Fee per piece $0.920 $0.115 $0.084 $0.018 Postage for 1 ounce mail $0.600 $0.600 $0.578 $0.578 Total cost - Fee and Postage $1.520 $0.715 $0.662 $0.596 Annual Cost by pieces 100 $427 $1,147 $1,141 $11,835 250 $655 $1,254 $1,241 $11,924 500 $1,035 $1,433 $1,406 $12,073 1000 $1,795 $1,790 $1,737 $12,371 2500 $4,075 $2,863 $2,730 $13,265 5000 $7,875 $4,650 $4,385 $14,755 10000 $15,475 $8,225 $7,695 $17,735 25000 $38,275 $18,950 $17,625 $26,675 50000 $76,275 $36,825 $34,175 $41,575 100000 $152,275 $72,575 $67,275 $71,375 250000 $380,275 $179,825 $166,575 $160,775 500000 $760,275 $358,575 $332,075 $309,775 1000000 $1,520,275 $716,075 $663,075 $607,775
  • 19. How To Budget For This Increase June 22, 2022 19 Email: Makayla.miller@postaladvocate. com for a copy of this excel budgeting tool. Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First-Class Mail® Metered Letters 1 85% 7.5% 2 10% 11.0% 3 5% 12.9% Total 8.1% $0.00 $0.00 First-Class Mail® Flats 11% $0.00 $0.00 First-Class Mail® Parcels - Retail 0% $0.00 $0.00 First-Class Mail® Parcels - Commercial 0% $0.00 $0.00 First-Class Mail® Automation Letters 100% 7% $0.00 $0.00 First-Class Mail® Automation Flats 13% $0.00 $0.00 Certified with Return Receipt 7% $0.00 $0.00 Priority Mail® Retail 0% $0.00 $0.00 Priority Mail® Commercial 0% $0.00 $0.00 Marketing Mail® Letters 6% $0.00 $0.00 Flats 8% $0.00 $0.00 Rate Change Budget Calculator July 2022
  • 20. What you need to do: If you have a mail machine, make sure you download the new rates before July 10, 2022 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://blog.stamps.com/2021/06/04/usps-to-implement- second-postage-rate-increase-in-2021/ Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index June 22, 2022 20 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 21. Additional Considerations • The dominant mail vendor is requiring that all meters move off analog phone lines in October 2022. • 70% of all postage meters will need to be replaced by 2024 for USPS mandates. • Large percentage of staff will have no ability to generate postage – (Working remotely or in locations without metering equipment) and will default to more expensive overnight services. New cloud-based mail and shipping options can solve this. • Postage balances in meters, permits and associated funding accounts are seldom centrally managed with potential for loss and overfunding. • Most organizations have limited visibility and expertise to the mail spends across their locations. Having this detail is the only way to save money. We recommend central managed visibility to drive these cost reductions. • There are savings methods available that can eliminate these price increases, but they require oversight. June 22, 2022 21
  • 22. Helping multi-location organizations streamline their mailing costs Over 127,000 pieces of equipment, managed by Postal Advocate Recovered over $27,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $73,000,000 IN CLIENT SAVINGS $1.9M 56% Average Client Savings Average Equipment Savings HOW WE DO IT • 220+ 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)
  • 24. 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