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Our Guide to the 2023 USPS® Rate Change

The USPS is implementing its most significant rate increase in 10 years, effective January 22, 2023, with first-class mail rates rising between 3.2% and 8% depending on the type. Factors contributing to the increase include declining mail volume and the need to adjust operational costs. The document provides details on the new rates, potential savings strategies, and the impact on various mailing options.

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Our Guide to the 2023 USPS® Rate Change
2 Background and Experience Speaker: Adam Lewenberg President/CEO of Postal Advocate Inc. • The only mail audit and recovery firm in the US and Canada • Manage a portfolio of 180,000 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’ largest accounts.
3 What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips • USPS Thoughts New rates would take effect Sunday January 22, 2023 *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! 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 1/22/2023 5.0% 5.3% 4.0% 3.3% 8.0% 3.2% 6.1% 7/10/2022 4.2% 8.1% 10.9% 6.5% 13.0% 6.3% 7.8% 8/29/2021 5.5% 3.9% 16.0% 7.5% 17.3% 8.0% 9.0% Last 17 Mo Increase 14.7% 17.3% 30.9% 17.3% 38.3% 17.5% 22.9% 1/24/2021 0% 2% 0% 2% 7% 1% 9% 1/26/2020 0% 0% 0% 2% -4% 2% 4% 1/27/2019 10% 6% 0% 1% 2% 2% 5% 1/21/2018 2% 2% 2% 1% -2% 0% 5% 1/22/2017 4% -1% 4% 0% 0% -1% 2% 4/10/2016 -4% -4% -4% -4% -5% -4% -4% 5/31/2015 0% 1% 0% 2% 2% 1% 2% 1/26/2014 7% 5% 7% 6% 7% 6% 6% 1/27/2013 2% 2% 2% 2% 2% 2% 2% 1/12/2012 2% 2% 2% 3% 4% 2% 2%
5 First-Class Mail® Single Piece Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $0.60 $0.63 5.0% $1.20 $1.26 5.0% 2 $0.84 $0.87 3.6% $1.44 $1.50 4.2% 3 $1.08 $1.11 2.8% $1.68 $1.74 3.6% 6 N/A N/A $2.40 $2.46 2.5% 13 N/A N/A $4.08 $4.14 1.5% Post Card $0.44 $0.48 9.1% Letters Flats First-Class Mail® Retail • 5% Increase on 1 Oz Letters • 1 Oz Flats increase from $1.20 to $1.26. • Postcards increase by 9.1% • Additional ounce rate still $0.24.
6 First-Class Mail® Metered Letters Metered mail (including Online Postage) will save $.03 per piece over stamps purchased from the Post Office (5%) Savings over First-Class Mail® Retail @ $.57 each vs $.60 Metered Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $0.570 $0.600 5.3% 2 $0.810 $0.840 3.7% 3 $1.050 $1.080 2.9% Letters Metered Letters Annual Postage # of Pieces @ $.60 each Savings @ $.03 Each $1,000 1,667 $50.00 $2,000 3,333 $100.00 $10,000 16,667 $500.00 $100,000 166,667 $5,000.00 $1,000,000 1,666,667 $50,000.00 First-Class® Mail Metered Savings
7 First-Class Mail® Commercial • 3 – 3.5% increase for automation letters • Flats have the largest increase at 9.7% - 24.1.% • Postcards increasing by 6.1% - 6.7% • Full Service IMB customers still qualify for the additional $.003 savings Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit 1 $0.455 $0.471 3.5% $0.555 $0.689 24.1% $0.330 $0.352 6.7% Automation 3 Digit $0.762 $0.896 17.6% Automation AADC 1 $0.491 $0.507 3.3% $0.821 $0.955 16.3% $0.348 $0.370 6.3% Automation Mixed AADC 1 $0.515 $0.531 3.1% $0.934 $1.068 14.3% $0.359 $0.381 6.1% Presorted (Non Automation) 1 $1.080 $1.185 9.7% Commercial First-Class Mail® Letters Flats* Post Cards
8 Convert Flats to Letters • Savings Strategies • Fold flats to #10 and 6” x 9.5” 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. 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 $1.26 $0.60 $0.531 $.471-.531 52-63% 3-4 $1.50 $0.60 $0.531 $.471-.531 60-69% 6-10 $1.74 $0.84 $0.531 $.471-.531 52-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
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 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 $0.63 $0.60 $0.531 $.471-.531 $.305-.36 $.158-.213 3 Ounce Newsletter (6X9) $1.11 $1.08 $0.531 $.471-.531 $.305-.36 $.158-.213 8 Ounce Flat (9X12) $2.94 $2.94 $2.865 $2.369-2.748 $.8475-1.1715 $.5925-.9165 Post Card $0.48 $0.48 $0.381 $.352-.370 n/a n/a Single Piece Rates Automation Mail with Barcodes
10 Marketing Mail® (Formerly called Standard Mail) • 3% increase for letters • Lightweight Flats increase at 5-10% • Heavy Flats >4 OZ at 3-9% overall increase Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit ≤3.5 $0.296 $0.305 3.0% $0.530 $0.572 7.9% Automation 3 Digit ≤4 $0.684 $0.726 6.1% Automation AADC/ADC ≤3.5 $0.328 $0.339 3.4% $0.782 $0.824 5.4% Automation Mixed AADC/ADC-Origin ≤3.5 $0.349 $0.360 3.2% $0.854 $0.896 4.9% Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit ≤3.5 $0.154 $0.158 2.6% $0.324 $0.357 10.2% Automation 3 Digit ≤4 $0.478 $0.511 6.9% Automation AADC/ADC ≤3.5 $0.186 $0.192 3.2% $0.576 $0.609 5.7% Automation Mixed AADC/ADC-Origin ≤3.5 $0.207 $0.213 2.9% $0.648 $0.681 5.1% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit >4 $0.258 $0.297 15.1% $1.087 $1.101 1.3% Automation 3 Digit >4 $0.412 $0.451 9.5% $1.087 $1.101 1.3% Automation AADC/ADC >4 $0.510 $0.549 7.6% $1.087 $1.101 1.3% Automation Mixed AADC/ADC-Origin >4 $0.582 $0.621 6.7% $1.087 $1.101 1.3% Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit >4 $0.092 $0.122 32.6% $0.927 $0.941 1.5% Automation 3 Digit >4 $0.246 $0.276 12.2% $0.927 $0.941 1.5% Automation AADC/ADC >4 $0.344 $0.374 8.7% $0.927 $0.941 1.5% Automation Mixed AADC/ADC-Origin >4 $0.416 $0.446 7.2% $0.927 $0.941 1.5% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound
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 - $.158-.36 for up to 3.5 ounces vs. flats that are $.357-.896 for up to 4 ounces. • Lower rate increases Prior to 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % 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 Priority Mail® December 14, 2022 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 • Lower increase for Commercial then Retail • Local Zone 1&2 split into two zones. Zone 2 has the highest increases at up to 16% Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $8.70-19.40 $9.35-21.35 7-10% $7.37-16.39 $7.64-18.03 3-10% 5 $11.25-55.15 $11.90-60.65 6-10% $8.45-47.68 $8.74-52.45 3-10% 10 $14.10-95 $14.90-104.50 6-10% $10.29-83.29 $10.82-91.62 3-10% 25 $26.10-180.70 $27.55-198.75 6-10% $20.75-150.68 $21.16-165.75 2-10% 50 $38.55-286.25 $42.85-314.90 7-15% $34.01-238.58 $33.75-267.21 0-12% Flat Rate Envelope $8.95 $9.65 7.8% $7.75 $8.05 3.9% Legal Flat Rate Envelope $9.25 $9.95 7.6% $8.05 $8.35 3.7% Padded Flat Rate Envelope $9.65 $10.40 7.8% $8.45 $8.80 4.1% Small Flat Rate Box $9.45 $10.20 7.9% $8.25 $8.55 3.6% Medium Flat Rate Boxes $16.10 $17.10 6.2% $14.25 $14.75 3.5% Large Flat Rate Boxes $21.50 $22.80 6.0% $19.20 $19.90 3.6% Retail Commercial Base USPS Priority Mail® Average % Increase Retail Commercial Base Flat Rate 8% 4% 1-5LB 7% 4% 5-10LB 7% 5% 10-25LB 7% 5% Over 25LB 8% 4%
13 Priority Mail® Express December 14, 2022 13 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • Local Zone 1&2 split into two zones. Zone 2 has the highest increases at up to 26% Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $27.40-66.30 $29.20-66.30 0-9% $23.75-57.30 $25.25-57.30 0-8% 5 $29.25-107.55 $31.10-107.55 6-16% $24.85-90.90 $26.75-90.90 0-17% 10 $44.10-158.55 $46.80-158.55 6-15% $37.60-134.55 $39.65-134.55 0-14% 25 $78-265.05 $82.60-265.05 6-23% $68.80-235.15 $72.40-235.15 0-22% 50 $140.80-494.15 $149.10-494.15 5-26% $125.6-437.70 $131.90-437.70 0-25% Flat Rate Envelope $26.95 $28.75 6.7% $23.50 $24.90 6.0% Legal Flat Rate Envelope $27.10 $28.95 6.8% $23.75 $25.15 5.9% Padded Flat Rate Envelope $27.50 $29.45 7.1% $23.95 $25.35 5.8% USPS Priority Mail® Express Retail Commercial Base Average % Increase Retail Commercial Base Flat Rate 7% 6% 1-5LB 6% 6% 5-10LB 7% 6% 10-25LB 7% 6% Over 25LB 7% 7%
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 14, 2022 14 Average % Increase Commercial Savings over Retail Flat Rate 15% 1-5LB 20% 6-10LB 22% 11-25LB 25% Over 25LB 14% Average % Increase Commercial Savings over Retail Flat Rate 13% 1-5LB 14% 6-10LB 13% 11-25LB 13% Over 25LB 12% USPS Priority Mail® USPS Priority Mail® Express
15 Savings Tips - Move to Flat Rate Envelopes and Boxes • Flat price regardless of where it is going. • Bigger discounts the farther away the item is going. • Free packaging • Available for Priority and Express Mail December 14, 2022 15 1 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 Flat Rate Envelope $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 1LB $7.64 $7.78 $8.01 $8.24 $8.47 $8.96 $9.43 $10.07 $18.03 % Savings -5% -3% 0% 2% 5% 10% 15% 20% 55% Small Flat Rate Box $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 3LB $8.42 $8.58 $8.86 $9.25 $10.23 $13.74 $15.48 $18.45 $37.43 % Savings -2% 0% 3% 8% 16% 38% 45% 54% 77% Medium Flat Rate Boxes $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 10LB $10.82 $11.09 $12.31 $13.65 $18.57 $25.26 $32.80 $38.24 $91.62 % Savings -36% -33% -20% -8% 21% 42% 55% 61% 84% Large Flat Rate Boxes $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 20LB $16.27 $16.68 $18.70 $21.00 $29.72 $39.67 $51.80 $60.80 $153.04 % Savings -22% -19% -6% 5% 33% 50% 62% 67% 87% Priority Mail® Commercial Example
16 First-Class Mail® Package Service December 14, 2022 16 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • Local Zone 1&2 split into two zones. Zone 2 has normal increases. • Save 24-68% 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 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % Change Up to 4 $4.65 $5.00 8% $3.42 $3.75 10% $1.25 25% 5 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 6 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 7 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 8 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 9 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 10 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 11 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 12 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 13 $7.25 $7.85 8% $5.57 $6.07 9% $1.78 23% 14 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% 15 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% 15.999 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% Priority Mail >13 Ounces Commercial rate goes up to 15.99 ounces Convert from Retail to Commercial - Zone 4 Example Average % Increase Retail Commercial Base 1-4 Ounce 7% 8% 5-8 Ounce 7% 8% 9-12 Ounce 7% 8% 13 Ounce 8% 8% 14-15.99 Ounce N/A 8%
17 Commercial Savings Examples December 14, 2022 17 Online 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) 19% $500.00 $405.00 -$95.00 Priority Mail Express (Less than 10LB) 14% $250.00 $215.00 -$35.00 Total $1,000.00 $800.00 -$200.00 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) 19% $5,000.00 $4,050.00 -$950.00 Priority Mail Express (Less than 10LB) 14% $2,500.00 $2,150.00 -$350.00 Total $10,000.00 $8,000.00 -$2,000.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 28% $25,000.00 $18,000.00 -$7,000.00 Priority Mail (Less than 10LB) 19% $50,000.00 $40,500.00 -$9,500.00 Priority Mail Express (Less than 10LB) 14% $25,000.00 $21,500.00 -$3,500.00 Total $100,000.00 $80,000.00 -$20,000.00
18 Comparing Costs Weight Overnight 2 Day 3 Day Ground USPS Priority Mail® USPS First-Class® Parcel Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 1-3 0.5 LB Ltr $30.00 $23.00 $15.00 $10.00 $7.64 $3.99 1 LB $34.00 $24.00 $15.00 $10.00 $7.64 $5.85 Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $45.00 $25.00 $18.00 $11.00 $8.05 $4.15 1 LB $63.00 $25.00 $18.00 $11.00 $8.24 $6.07 Zone 8 - Coast to Coast 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $56.00 $38.00 $33.00 $13.00 $8.05 $4.44 1 LB $86.00 $38.00 $33.00 $13.00 $10.07 $6.78 Other Charges Fuel Surcharge 17% 17% 17% 17% 0% 0% Residential Fee $5.85 $5.85 $5.85 $5.25 $0 $0 Delivery Area Surcharges $3.70-7.15 $3.70-7.15 $3.70-7.15 $3.70-7.15 $0 $0 Address Correction Fee $19.50 $19.50 $19.50 $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
19 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. • 70% of all postage meters in the US have to be upgraded by 2024 and these systems can work for less than $300 in spend and be significantly less expenses.
20 Additional Rate Change Items Group Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Canada $1.40 $1.45 3.6% $1.40 $1.45 3.6% $1.40 $1.45 3.6% Mexico (Group 2) $1.40 $1.45 3.6% $2.11 $2.19 3.8% $1.40 $1.45 3.6% Group 3-5 $1.40 $1.45 3.6% $2.62 $2.71 3.4% $1.40 $1.45 3.6% Group 6-9 $1.40 $1.45 3.6% $2.42 $2.51 3.7% $1.40 $1.45 3.6% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $3.32 $3.47 4.5% 2 $3.95 $4.13 4.6% 5 $5.84 $6.11 4.6% 10 $9.08 $9.41 3.6% Single Piece Library Mail Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $3.49 $3.65 4.6% 2 $4.16 $4.35 4.6% 5 $6.17 $6.45 4.5% 10 $9.61 $9.95 3.5% Single Piece Media Mail
21 Special Services Special Services Retail Electronic Prior to 01/22/23 New Rates 01/22/23 % Increase New Rates 01/22/23 New Rates 01/22/23 % Increase Certificate of Mailing $1.75 $1.85 5.7% Registered™ without Insurance $14.65 $15.25 4.1% Certified Mail™ $4.00 $4.15 3.8% Return Receipt $3.25 $3.35 3.1% $2.00 $2.10 5.0% Insurance $100 $3.35 $3.40 1.5% Insurance $500 $8.15 $8.60 5.5% Marketing Mail® parcels Tracking $0.26 $0.26 0.0% Signature Confirmation $3.65 $3.80 4.1% $3.10 $3.25 4.8% Annual Permit Fees $275.00 $290.00 5.5% Business Reply Mail Permit Fee $275.00 $290.00 5.5% Account Maintenance Fee $825.00 $860.00 4.2% Quarterly Fee $2,850 $2,970 4.2% Basic $0.92 $1.00 8.7% High Volume $0.115 $0.120 4.3% QBRM Basic $0.084 $0.087 3.6% QBRM High Volume $0.018 $0.018 0.0%
22 Certified Mail with Electronic Return Receipt (eRR) • Save $1.25 by switching to an electronic version.
23 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. 2023 Rates Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $290 $290 $290 $290 Annual Account Maintenance Fee $0 $860 $860 $860 Quarterly Fee $0 $0 $0 $2,970 Total Annual Fees $290 $1,150 $1,150 $13,030 Fee per piece $1.000 $0.120 $0.087 $0.018 Postage for 1 ounce mail $0.600 $0.600 $0.578 $0.578 Total cost - Fee and Postage $1.600 $0.720 $0.665 $0.596 Annual Cost by pieces 100 $450 $1,222 $1,217 $13,090 250 $690 $1,330 $1,316 $13,179 500 $1,090 $1,510 $1,483 $13,328 1000 $1,890 $1,870 $1,815 $13,626 2500 $4,290 $2,950 $2,813 $14,520 5000 $8,290 $4,750 $4,475 $16,010 10000 $16,290 $8,350 $7,800 $18,990 25000 $40,290 $19,150 $17,775 $27,930 50000 $80,290 $37,150 $34,400 $42,830 100000 $160,290 $73,150 $67,650 $72,630 250000 $400,290 $181,150 $167,400 $162,030 500000 $800,290 $361,150 $333,650 $311,030 1000000 $1,600,290 $721,150 $666,150 $609,030
24 How To Budget For This Increase Email: Makayla.miller@postaladvoc ate.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% 5.3% 2 10% 3.7% 3 5% 2.9% Total 5.0% $0.00 $0.00 First-Class Mail® Flats 4% $0.00 $0.00 First-Class Mail® Parcles - Retail 7% $0.00 $0.00 First-Class Mail® Parcles - Commercial 8% $0.00 $0.00 First-Class Mail® Automation Letters 100% 3% $0.00 $0.00 First-Class Mail® Automation Flats 8% $0.00 $0.00 Certified with Return Reciept 2% $0.00 $0.00 Priority Mail® Retail 7% $0.00 $0.00 Priority Mail® Commercial 4% $0.00 $0.00 Marketing Mail® Letters 3% $0.00 $0.00 Flats 6% $0.00 $0.00 Other Misc Mail 4% $0.00 $0.00 Total $0.00 $0.00 $0.00
25 What you need to do: If you have a mail machine, make sure you download the new rates before January 22, 2023 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 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
26 Additional Considerations 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.
Helping multi-location organizations streamline their mailing costs Over 180,000 pieces of equipment, managed by Postal Advocate Recovered over $27,000,000 in lost postage, vendor overcharges and fees $1.9M 55% Average Client Savings Average Equipment Savings HOW WE DO IT • 215+ 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) ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY
WE REPRESENT LEADING MULTI-LOCATION COMPANIES IN THESE INDUSTRIES Banking 8 of Top 15 Uniforms 3 of Top 4 Insurance 3 of Top 10 Pharmacy 1 of Top 2 Dairy 1 of Top 2 Utilities 2 of Top 10 Radio 1 of Top 3 Small Package Delivery 1 of Top 2 Scientific Instrument MFG 3 of Top 10 Kidney Dialysis Centers 1 of Top 2 Document Destruction 1 of Top 3 Outdoor Advertising 1 of Top 3 Food Manufacturing 1 of Top 2 Business Services 1 of Top 5 Long Term Care 2 of Top 10 Cable Providers 2 of Top 5 Higher Education 1 of Top 3 Pest Control 1 of Top 3 Paper Products 1 of Top 3 Title Insurance 1 of Top 2 Mutual Funds 1 of Top 5 OVER $78,000,000 IN CLIENT SAVINGS Commercial Real Estate 2 of Top 30 Accounting Services 1 of Top 3 Telecommunications 3 of Top 10 Health Clubs 1 of Top 3 Engineering Services 1 of Top 3 TV Networks 1 of Top 5 Auto Auctions 1 of Top 2 Average Client Savings 55% *Information found in Hoovers ranking on company revenue in a specific industry. 2016 Recovered over $27,000,000 in lost postage, vendor overcharges and fees visit www.postaladvocate.com or call (888)977-MAIL(6245)
29
Our Guide to the 2023 USPS® Rate Change

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Our Guide to the 2023 USPS® Rate Change

  • 1.
    Our Guide tothe 2023 USPS® Rate Change
  • 2.
    2 Background and Experience Speaker:Adam Lewenberg President/CEO of Postal Advocate Inc. • The only mail audit and recovery firm in the US and Canada • Manage a portfolio of 180,000 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’ largest accounts.
  • 3.
    3 What We’ll Cover: •What rates are changing • How this impacts you • What you need to do • Savings tips • USPS Thoughts New rates would take effect Sunday January 22, 2023 *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.
    4 USPS® Largest increasein 10 years! 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 1/22/2023 5.0% 5.3% 4.0% 3.3% 8.0% 3.2% 6.1% 7/10/2022 4.2% 8.1% 10.9% 6.5% 13.0% 6.3% 7.8% 8/29/2021 5.5% 3.9% 16.0% 7.5% 17.3% 8.0% 9.0% Last 17 Mo Increase 14.7% 17.3% 30.9% 17.3% 38.3% 17.5% 22.9% 1/24/2021 0% 2% 0% 2% 7% 1% 9% 1/26/2020 0% 0% 0% 2% -4% 2% 4% 1/27/2019 10% 6% 0% 1% 2% 2% 5% 1/21/2018 2% 2% 2% 1% -2% 0% 5% 1/22/2017 4% -1% 4% 0% 0% -1% 2% 4/10/2016 -4% -4% -4% -4% -5% -4% -4% 5/31/2015 0% 1% 0% 2% 2% 1% 2% 1/26/2014 7% 5% 7% 6% 7% 6% 6% 1/27/2013 2% 2% 2% 2% 2% 2% 2% 1/12/2012 2% 2% 2% 3% 4% 2% 2%
  • 5.
    5 First-Class Mail® SinglePiece Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $0.60 $0.63 5.0% $1.20 $1.26 5.0% 2 $0.84 $0.87 3.6% $1.44 $1.50 4.2% 3 $1.08 $1.11 2.8% $1.68 $1.74 3.6% 6 N/A N/A $2.40 $2.46 2.5% 13 N/A N/A $4.08 $4.14 1.5% Post Card $0.44 $0.48 9.1% Letters Flats First-Class Mail® Retail • 5% Increase on 1 Oz Letters • 1 Oz Flats increase from $1.20 to $1.26. • Postcards increase by 9.1% • Additional ounce rate still $0.24.
  • 6.
    6 First-Class Mail® MeteredLetters Metered mail (including Online Postage) will save $.03 per piece over stamps purchased from the Post Office (5%) Savings over First-Class Mail® Retail @ $.57 each vs $.60 Metered Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $0.570 $0.600 5.3% 2 $0.810 $0.840 3.7% 3 $1.050 $1.080 2.9% Letters Metered Letters Annual Postage # of Pieces @ $.60 each Savings @ $.03 Each $1,000 1,667 $50.00 $2,000 3,333 $100.00 $10,000 16,667 $500.00 $100,000 166,667 $5,000.00 $1,000,000 1,666,667 $50,000.00 First-Class® Mail Metered Savings
  • 7.
    7 First-Class Mail® Commercial •3 – 3.5% increase for automation letters • Flats have the largest increase at 9.7% - 24.1.% • Postcards increasing by 6.1% - 6.7% • Full Service IMB customers still qualify for the additional $.003 savings Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit 1 $0.455 $0.471 3.5% $0.555 $0.689 24.1% $0.330 $0.352 6.7% Automation 3 Digit $0.762 $0.896 17.6% Automation AADC 1 $0.491 $0.507 3.3% $0.821 $0.955 16.3% $0.348 $0.370 6.3% Automation Mixed AADC 1 $0.515 $0.531 3.1% $0.934 $1.068 14.3% $0.359 $0.381 6.1% Presorted (Non Automation) 1 $1.080 $1.185 9.7% Commercial First-Class Mail® Letters Flats* Post Cards
  • 8.
    8 Convert Flats toLetters • Savings Strategies • Fold flats to #10 and 6” x 9.5” 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. 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 $1.26 $0.60 $0.531 $.471-.531 52-63% 3-4 $1.50 $0.60 $0.531 $.471-.531 60-69% 6-10 $1.74 $0.84 $0.531 $.471-.531 52-73% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  • 9.
    9 First-Class Mail® SavingsOptions • 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 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 $0.63 $0.60 $0.531 $.471-.531 $.305-.36 $.158-.213 3 Ounce Newsletter (6X9) $1.11 $1.08 $0.531 $.471-.531 $.305-.36 $.158-.213 8 Ounce Flat (9X12) $2.94 $2.94 $2.865 $2.369-2.748 $.8475-1.1715 $.5925-.9165 Post Card $0.48 $0.48 $0.381 $.352-.370 n/a n/a Single Piece Rates Automation Mail with Barcodes
  • 10.
    10 Marketing Mail® (Formerlycalled Standard Mail) • 3% increase for letters • Lightweight Flats increase at 5-10% • Heavy Flats >4 OZ at 3-9% overall increase Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit ≤3.5 $0.296 $0.305 3.0% $0.530 $0.572 7.9% Automation 3 Digit ≤4 $0.684 $0.726 6.1% Automation AADC/ADC ≤3.5 $0.328 $0.339 3.4% $0.782 $0.824 5.4% Automation Mixed AADC/ADC-Origin ≤3.5 $0.349 $0.360 3.2% $0.854 $0.896 4.9% Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit ≤3.5 $0.154 $0.158 2.6% $0.324 $0.357 10.2% Automation 3 Digit ≤4 $0.478 $0.511 6.9% Automation AADC/ADC ≤3.5 $0.186 $0.192 3.2% $0.576 $0.609 5.7% Automation Mixed AADC/ADC-Origin ≤3.5 $0.207 $0.213 2.9% $0.648 $0.681 5.1% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit >4 $0.258 $0.297 15.1% $1.087 $1.101 1.3% Automation 3 Digit >4 $0.412 $0.451 9.5% $1.087 $1.101 1.3% Automation AADC/ADC >4 $0.510 $0.549 7.6% $1.087 $1.101 1.3% Automation Mixed AADC/ADC-Origin >4 $0.582 $0.621 6.7% $1.087 $1.101 1.3% Weight Ounces Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Automation 5 Digit >4 $0.092 $0.122 32.6% $0.927 $0.941 1.5% Automation 3 Digit >4 $0.246 $0.276 12.2% $0.927 $0.941 1.5% Automation AADC/ADC >4 $0.344 $0.374 8.7% $0.927 $0.941 1.5% Automation Mixed AADC/ADC-Origin >4 $0.416 $0.446 7.2% $0.927 $0.941 1.5% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound
  • 11.
    11 Marketing Mail® SavingsOptions • 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 - $.158-.36 for up to 3.5 ounces vs. flats that are $.357-.896 for up to 4 ounces. • Lower rate increases Prior to 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % 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.
    12 Priority Mail® December 14,2022 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 • Lower increase for Commercial then Retail • Local Zone 1&2 split into two zones. Zone 2 has the highest increases at up to 16% Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $8.70-19.40 $9.35-21.35 7-10% $7.37-16.39 $7.64-18.03 3-10% 5 $11.25-55.15 $11.90-60.65 6-10% $8.45-47.68 $8.74-52.45 3-10% 10 $14.10-95 $14.90-104.50 6-10% $10.29-83.29 $10.82-91.62 3-10% 25 $26.10-180.70 $27.55-198.75 6-10% $20.75-150.68 $21.16-165.75 2-10% 50 $38.55-286.25 $42.85-314.90 7-15% $34.01-238.58 $33.75-267.21 0-12% Flat Rate Envelope $8.95 $9.65 7.8% $7.75 $8.05 3.9% Legal Flat Rate Envelope $9.25 $9.95 7.6% $8.05 $8.35 3.7% Padded Flat Rate Envelope $9.65 $10.40 7.8% $8.45 $8.80 4.1% Small Flat Rate Box $9.45 $10.20 7.9% $8.25 $8.55 3.6% Medium Flat Rate Boxes $16.10 $17.10 6.2% $14.25 $14.75 3.5% Large Flat Rate Boxes $21.50 $22.80 6.0% $19.20 $19.90 3.6% Retail Commercial Base USPS Priority Mail® Average % Increase Retail Commercial Base Flat Rate 8% 4% 1-5LB 7% 4% 5-10LB 7% 5% 10-25LB 7% 5% Over 25LB 8% 4%
  • 13.
    13 Priority Mail® Express December14, 2022 13 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • Local Zone 1&2 split into two zones. Zone 2 has the highest increases at up to 26% Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $27.40-66.30 $29.20-66.30 0-9% $23.75-57.30 $25.25-57.30 0-8% 5 $29.25-107.55 $31.10-107.55 6-16% $24.85-90.90 $26.75-90.90 0-17% 10 $44.10-158.55 $46.80-158.55 6-15% $37.60-134.55 $39.65-134.55 0-14% 25 $78-265.05 $82.60-265.05 6-23% $68.80-235.15 $72.40-235.15 0-22% 50 $140.80-494.15 $149.10-494.15 5-26% $125.6-437.70 $131.90-437.70 0-25% Flat Rate Envelope $26.95 $28.75 6.7% $23.50 $24.90 6.0% Legal Flat Rate Envelope $27.10 $28.95 6.8% $23.75 $25.15 5.9% Padded Flat Rate Envelope $27.50 $29.45 7.1% $23.95 $25.35 5.8% USPS Priority Mail® Express Retail Commercial Base Average % Increase Retail Commercial Base Flat Rate 7% 6% 1-5LB 6% 6% 5-10LB 7% 6% 10-25LB 7% 6% Over 25LB 7% 7%
  • 14.
    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 14, 2022 14 Average % Increase Commercial Savings over Retail Flat Rate 15% 1-5LB 20% 6-10LB 22% 11-25LB 25% Over 25LB 14% Average % Increase Commercial Savings over Retail Flat Rate 13% 1-5LB 14% 6-10LB 13% 11-25LB 13% Over 25LB 12% USPS Priority Mail® USPS Priority Mail® Express
  • 15.
    15 Savings Tips -Move to Flat Rate Envelopes and Boxes • Flat price regardless of where it is going. • Bigger discounts the farther away the item is going. • Free packaging • Available for Priority and Express Mail December 14, 2022 15 1 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 Flat Rate Envelope $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 $8.05 1LB $7.64 $7.78 $8.01 $8.24 $8.47 $8.96 $9.43 $10.07 $18.03 % Savings -5% -3% 0% 2% 5% 10% 15% 20% 55% Small Flat Rate Box $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 $8.55 3LB $8.42 $8.58 $8.86 $9.25 $10.23 $13.74 $15.48 $18.45 $37.43 % Savings -2% 0% 3% 8% 16% 38% 45% 54% 77% Medium Flat Rate Boxes $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 $14.75 10LB $10.82 $11.09 $12.31 $13.65 $18.57 $25.26 $32.80 $38.24 $91.62 % Savings -36% -33% -20% -8% 21% 42% 55% 61% 84% Large Flat Rate Boxes $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 $19.90 20LB $16.27 $16.68 $18.70 $21.00 $29.72 $39.67 $51.80 $60.80 $153.04 % Savings -22% -19% -6% 5% 33% 50% 62% 67% 87% Priority Mail® Commercial Example
  • 16.
    16 First-Class Mail® PackageService December 14, 2022 16 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • Local Zone 1&2 split into two zones. Zone 2 has normal increases. • Save 24-68% 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 01/22/23 New Rates 01/22/23 % Change Prior to 01/22/23 New Rates 01/22/23 % Change Up to 4 $4.65 $5.00 8% $3.42 $3.75 10% $1.25 25% 5 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 6 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 7 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 8 $5.20 $5.60 8% $3.81 $4.15 9% $1.45 26% 9 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 10 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 11 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 12 $5.90 $6.35 8% $4.42 $4.81 9% $1.54 24% 13 $7.25 $7.85 8% $5.57 $6.07 9% $1.78 23% 14 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% 15 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% 15.999 $9.45 $10.20 8% $5.57 $6.07 9% $4.13 40% Priority Mail >13 Ounces Commercial rate goes up to 15.99 ounces Convert from Retail to Commercial - Zone 4 Example Average % Increase Retail Commercial Base 1-4 Ounce 7% 8% 5-8 Ounce 7% 8% 9-12 Ounce 7% 8% 13 Ounce 8% 8% 14-15.99 Ounce N/A 8%
  • 17.
    17 Commercial Savings Examples December14, 2022 17 Online 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) 19% $500.00 $405.00 -$95.00 Priority Mail Express (Less than 10LB) 14% $250.00 $215.00 -$35.00 Total $1,000.00 $800.00 -$200.00 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) 19% $5,000.00 $4,050.00 -$950.00 Priority Mail Express (Less than 10LB) 14% $2,500.00 $2,150.00 -$350.00 Total $10,000.00 $8,000.00 -$2,000.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 28% $25,000.00 $18,000.00 -$7,000.00 Priority Mail (Less than 10LB) 19% $50,000.00 $40,500.00 -$9,500.00 Priority Mail Express (Less than 10LB) 14% $25,000.00 $21,500.00 -$3,500.00 Total $100,000.00 $80,000.00 -$20,000.00
  • 18.
    18 Comparing Costs Weight Overnight2 Day 3 Day Ground USPS Priority Mail® USPS First-Class® Parcel Zone 2 - Local within 250 miles (Delivery Time Days) 1 2 3 1 1-2 1-3 0.5 LB Ltr $30.00 $23.00 $15.00 $10.00 $7.64 $3.99 1 LB $34.00 $24.00 $15.00 $10.00 $7.64 $5.85 Zone 4 - Half way across country (Delivery Time Days) 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $45.00 $25.00 $18.00 $11.00 $8.05 $4.15 1 LB $63.00 $25.00 $18.00 $11.00 $8.24 $6.07 Zone 8 - Coast to Coast 1 2 3 2-3 2-3 2-3 0.5 LB Ltr $56.00 $38.00 $33.00 $13.00 $8.05 $4.44 1 LB $86.00 $38.00 $33.00 $13.00 $10.07 $6.78 Other Charges Fuel Surcharge 17% 17% 17% 17% 0% 0% Residential Fee $5.85 $5.85 $5.85 $5.25 $0 $0 Delivery Area Surcharges $3.70-7.15 $3.70-7.15 $3.70-7.15 $3.70-7.15 $0 $0 Address Correction Fee $19.50 $19.50 $19.50 $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
  • 19.
    19 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. • 70% of all postage meters in the US have to be upgraded by 2024 and these systems can work for less than $300 in spend and be significantly less expenses.
  • 20.
    20 Additional Rate ChangeItems Group Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Prior to 01/22/23 New Rates 01/22/23 % Increase Canada $1.40 $1.45 3.6% $1.40 $1.45 3.6% $1.40 $1.45 3.6% Mexico (Group 2) $1.40 $1.45 3.6% $2.11 $2.19 3.8% $1.40 $1.45 3.6% Group 3-5 $1.40 $1.45 3.6% $2.62 $2.71 3.4% $1.40 $1.45 3.6% Group 6-9 $1.40 $1.45 3.6% $2.42 $2.51 3.7% $1.40 $1.45 3.6% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $3.32 $3.47 4.5% 2 $3.95 $4.13 4.6% 5 $5.84 $6.11 4.6% 10 $9.08 $9.41 3.6% Single Piece Library Mail Weight LB's Prior to 01/22/23 New Rates 01/22/23 % Increase 1 $3.49 $3.65 4.6% 2 $4.16 $4.35 4.6% 5 $6.17 $6.45 4.5% 10 $9.61 $9.95 3.5% Single Piece Media Mail
  • 21.
    21 Special Services Special ServicesRetail Electronic Prior to 01/22/23 New Rates 01/22/23 % Increase New Rates 01/22/23 New Rates 01/22/23 % Increase Certificate of Mailing $1.75 $1.85 5.7% Registered™ without Insurance $14.65 $15.25 4.1% Certified Mail™ $4.00 $4.15 3.8% Return Receipt $3.25 $3.35 3.1% $2.00 $2.10 5.0% Insurance $100 $3.35 $3.40 1.5% Insurance $500 $8.15 $8.60 5.5% Marketing Mail® parcels Tracking $0.26 $0.26 0.0% Signature Confirmation $3.65 $3.80 4.1% $3.10 $3.25 4.8% Annual Permit Fees $275.00 $290.00 5.5% Business Reply Mail Permit Fee $275.00 $290.00 5.5% Account Maintenance Fee $825.00 $860.00 4.2% Quarterly Fee $2,850 $2,970 4.2% Basic $0.92 $1.00 8.7% High Volume $0.115 $0.120 4.3% QBRM Basic $0.084 $0.087 3.6% QBRM High Volume $0.018 $0.018 0.0%
  • 22.
    22 Certified Mail withElectronic Return Receipt (eRR) • Save $1.25 by switching to an electronic version.
  • 23.
    23 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. 2023 Rates Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $290 $290 $290 $290 Annual Account Maintenance Fee $0 $860 $860 $860 Quarterly Fee $0 $0 $0 $2,970 Total Annual Fees $290 $1,150 $1,150 $13,030 Fee per piece $1.000 $0.120 $0.087 $0.018 Postage for 1 ounce mail $0.600 $0.600 $0.578 $0.578 Total cost - Fee and Postage $1.600 $0.720 $0.665 $0.596 Annual Cost by pieces 100 $450 $1,222 $1,217 $13,090 250 $690 $1,330 $1,316 $13,179 500 $1,090 $1,510 $1,483 $13,328 1000 $1,890 $1,870 $1,815 $13,626 2500 $4,290 $2,950 $2,813 $14,520 5000 $8,290 $4,750 $4,475 $16,010 10000 $16,290 $8,350 $7,800 $18,990 25000 $40,290 $19,150 $17,775 $27,930 50000 $80,290 $37,150 $34,400 $42,830 100000 $160,290 $73,150 $67,650 $72,630 250000 $400,290 $181,150 $167,400 $162,030 500000 $800,290 $361,150 $333,650 $311,030 1000000 $1,600,290 $721,150 $666,150 $609,030
  • 24.
    24 How To BudgetFor This Increase Email: Makayla.miller@postaladvoc ate.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% 5.3% 2 10% 3.7% 3 5% 2.9% Total 5.0% $0.00 $0.00 First-Class Mail® Flats 4% $0.00 $0.00 First-Class Mail® Parcles - Retail 7% $0.00 $0.00 First-Class Mail® Parcles - Commercial 8% $0.00 $0.00 First-Class Mail® Automation Letters 100% 3% $0.00 $0.00 First-Class Mail® Automation Flats 8% $0.00 $0.00 Certified with Return Reciept 2% $0.00 $0.00 Priority Mail® Retail 7% $0.00 $0.00 Priority Mail® Commercial 4% $0.00 $0.00 Marketing Mail® Letters 3% $0.00 $0.00 Flats 6% $0.00 $0.00 Other Misc Mail 4% $0.00 $0.00 Total $0.00 $0.00 $0.00
  • 25.
    25 What you needto do: If you have a mail machine, make sure you download the new rates before January 22, 2023 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 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  • 26.
    26 Additional Considerations 70% ofall 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.
  • 27.
    Helping multi-location organizations streamline theirmailing costs Over 180,000 pieces of equipment, managed by Postal Advocate Recovered over $27,000,000 in lost postage, vendor overcharges and fees $1.9M 55% Average Client Savings Average Equipment Savings HOW WE DO IT • 215+ 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) ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY
  • 28.
    WE REPRESENT LEADINGMULTI-LOCATION COMPANIES IN THESE INDUSTRIES Banking 8 of Top 15 Uniforms 3 of Top 4 Insurance 3 of Top 10 Pharmacy 1 of Top 2 Dairy 1 of Top 2 Utilities 2 of Top 10 Radio 1 of Top 3 Small Package Delivery 1 of Top 2 Scientific Instrument MFG 3 of Top 10 Kidney Dialysis Centers 1 of Top 2 Document Destruction 1 of Top 3 Outdoor Advertising 1 of Top 3 Food Manufacturing 1 of Top 2 Business Services 1 of Top 5 Long Term Care 2 of Top 10 Cable Providers 2 of Top 5 Higher Education 1 of Top 3 Pest Control 1 of Top 3 Paper Products 1 of Top 3 Title Insurance 1 of Top 2 Mutual Funds 1 of Top 5 OVER $78,000,000 IN CLIENT SAVINGS Commercial Real Estate 2 of Top 30 Accounting Services 1 of Top 3 Telecommunications 3 of Top 10 Health Clubs 1 of Top 3 Engineering Services 1 of Top 3 TV Networks 1 of Top 5 Auto Auctions 1 of Top 2 Average Client Savings 55% *Information found in Hoovers ranking on company revenue in a specific industry. 2016 Recovered over $27,000,000 in lost postage, vendor overcharges and fees visit www.postaladvocate.com or call (888)977-MAIL(6245)
  • 29.