April 2016 USPS Rates Decrease - What You Need To Know. Speaker: Adam Lewenberg President of Postal Advocate Inc.

Transcription

1 April 2016 USPS Rates Decrease - What You Need To Know Speaker: Adam Lewenberg President of Postal Advocate Inc.

2 Meeting Instructions There is a GoToWebinar meeting link All lines will be on mute until the end of the meeting. 1) Click the hand to ask a question and we will unmute you OR 2) Type your question in the question box and we will do our best to answer all questions Click to Raise Hand Type here to ask a question March 30,

3 Meeting Instructions Choose one of the following audio options: TO USE YOUR COMPUTER'S AUDIO: When the webinar begins, you will be connected to audio using your computer's microphone and speakers (VoIP). A headset is recommended. --OR-- TO USE YOUR TELEPHONE: If you prefer to use your phone, you must select "Use Telephone" after joining the webinar and call in using the numbers below. Dial-in 1 (213) Access Code: # Audio PIN: Shown after joining the webinar March 30,

4 Meeting Instructions To get rid of the GoToWebinar control panel so you can see the presentation March 30,

5 Meeting Instructions This presentation is being recorded and will be made available upon request. You will also be able find it on our website under FAQs/Resources If you have any issues during the meeting contact Doris Tam at x 512 or me at doris.tam@postaladvocate.com and I ll be happy to assist March 30,

6 Adam Lewenberg - Background and Experience President of Postal Advocate Inc. The only mail audit and recovery firm in the US and Canada Manage a portfolio of 58,000 pieces of mailing equipment for the largest US companies. Speak and teach nationally on mail savings and industry trends. Industry Co Chair- Boston Postal Customer Council/Mail Systems Management Association member. 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. Not affiliated with any mailing vendor - Unbiased advice. March 30,

7 April 2016 USPS Rates Decrease - What You Need To Know Speaker: Adam Lewenberg President of Postal Advocate Inc.

8 What We ll Cover: Why are rates going down What rates are going down Savings Tips What you need to do New rates take effect Sunday April 10, 2016 March 30,

9 Why is this happening? In January 2014, the USPS approved a 4.3% exigent surcharge increase because of their dire financial situation Mainly due to the recession and declining First-Class mail volumes. An order from the Postal Regulatory Commission (PRC) requires this 4.3 percent exigent surcharge to be reversed after the Postal Service has collected additional funds totaling $4.6 billion. March 30,

10 What Rates are Impacted Market Dominant Impacted First-Class Mail Single Piece Letters and Cards. Presort Letters and Cards Flats Parcels Outbound single piece international. Periodicals Special Services Standard Mail Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels Package Services Bound Printed Matter Flats and Parcels Media/Library Mail Competitive Not Impacted Priority Mail Express Priority Mail First Class Package Service Parcel Select Standard Post Extra Services Return Services Mailer Services Recipient Services March 30,

11 First-Class Mail Retail - Savings % First-Class Mail stamp goes down by $.02 for letters $.04 for flats and $.09 for Parcels. Additional ounce rate goes down from $.22 to $.21. Savings stay around 4% for every weight break. Meter/PC Postage Customers still save $.05 per letter! Weight Ounces New Rates % Increase New Rates % Increase New Rates % Increase 1 $0.49 $ % $0.98 $ % $2.54 $ % 2 $0.71 $ % $1.20 $ % $2.54 $ % 3 $0.93 $ % $1.42 $ % $2.54 $ % 6 N/A N/A $2.08 $ % $3.14 $ % 13 N/A N/A $3.62 $ % $4.54 $ % Post Card $0.35 $ % First-Class Mail Retail Letters Flats Parcels Weight Ounces Metered Letters Letters New Rates % Increase 1 $0.485 $ % 2 $0.705 $ % 3 $0.925 $ % March 30,

12 First-Class Mail Parcel/Package Rates First-Class Mail Commercial Package Retail Parcel Service Weight Ounces January 17, 2016 January 17, 2016 % Savings 1 $2.45 $2.60-6% 2 $2.45 $2.60-6% 3 $2.45 $2.60-6% 4 $2.64 $2.60 2% 5 $2.83 $2.60 8% 6 $3.02 $ % 7 $3.21 $ % 8 $3.40 $ % 9 $3.59 $3.30 8% 10 $3.78 $ % 11 $3.97 $ % 12 $4.16 $ % 13 $4.35 $ % 14 $ (Priority) $ % 15 $ (Priority) $ % $ (Priority) $ % Postage Meter or USPS Retail Counter PC Postage March 30,

13 Commercial Savings % Automation 5 digit flats see an extra savings to 6.8%. Savings Tip: Analyze if using the presort service still makes sense. Medium volume mailers using a presort provider where you were metering at $.471 (vs. the metered rate of $.485) you were saving $.014 per piece. With the new rate change, this difference is going down to $.013 per piece ($ ). Some of these services make you date your mail for the next day or pay pickup fees. At one point the spread in rates was almost $.03, but now at $.013 you may want to validate that your volumes and savings justify using the service. Second ounce rides free! (USPS future discussions on third ounce rides free!) Weight Ounces Commercial First-Class Mail Letters Flats* Post Cards New Rates % Increase New Rates % Increase New Rates % Increase Automation 5 Digit 1 $0.391 $ % $0.470 $ % $0.260 $ % Automation 3 Digit 1 $0.416 $ % $0.662 $ % $0.275 $ % Automation AADC 1 $0.416 $ % $0.702 $ % $0.275 $ % Automation Mixed AADC 1 $0.439 $ % $0.782 $ % $0.284 $ % Presorted (Non Automation) 1 $0.471 $ % $0.831 $ % $0.295 $ % March 30,

14 Standard Mail Savings % Tip 2: Consider using a consolidation service to share in the $.045 mail entry discounts. Tip: Use this savings to send out higher volumes that can bring in more customers and sales. If you can now increase your mail volumes by 4% for the same postage costs, how would that impact your bottom line? Weight Ounces Letters New Rates % Increase Flats New Rates % Increase Automation 5 Digit 3.3 $0.266 $ % $0.392 $ % Automation 3 Digit 3.3 $0.283 $ % $0.479 $ % Automation AADC/ADC 3.3 $0.283 $ % $0.536 $ % Automation Mixed AADC/ADC-Origin 3.3 $0.304 $ % $0.569 $ % Weight Ounces Standard Mail Standard Mail Nonprofit Letters New Rates % Increase Flats New Rates % Increase Automation 5 Digit 3.3 $0.147 $ % $0.249 $ % Automation 3 Digit 3.3 $0.164 $ % $0.336 $ % Automation AADC/ADC 3.3 $0.164 $ % $0.393 $ % Automation Mixed AADC/ADC-Origin 3.3 $0.185 $ % $0.426 $ % March 30,

15 International Rates Group First-Class Mail International 1 Ounce 2 Ounce Post Cards New Rates New Rates New Rates % Increase % Increase % Increase Canada $1.20 $ % $1.20 $ % $1.20 $ % Mexico $1.20 $ % $1.79 $ % $1.20 $ % Group 3-5 $1.20 $ % $2.21 $ % $1.20 $ % Group 6-9 $1.20 $1.15 $2.06 $ % $1.20 $ % International Country Rate Codes Argentina 8 Australia 6 China 6 Egypt 6 France 3 India 6 Nigeria 4 Norway 5 Russia 4 South Africa 4 March 30,

16 Library and Media Mail Weight LB's Library Mail Single Piece 5-Digit Presort Basic Presort New Rates New Rates New Rates % Increase % Increase % Increase 1 $2.59 $ % $1.79 $ % $2.33 $ % 2 $3.07 $ % $2.27 $ % $2.81 $ % 3 $3.55 $ % $2.75 $ % $3.29 $ % 5 $4.51 $ % $3.71 $ % $4.25 $ % 10 $6.91 $ % $6.11 $ % $6.65 $ % 15 $9.31 $ % % % Library Mail Similar contents to Media Mail. Each piece must show in the address or return address the name of a school, college, university, public library, museum, or herbarium or the name of a nonprofit religious, educational, scientific, philanthropic (charitable), agricultural, labor, veterans, or fraternal organization or association. Weight LB's Media Mail Single Piece 5-Digit Presort Basic Presort New Rates New Rates New Rates % Increase % Increase % Increase 1 $2.72 $ % $1.88 $ % $2.45 $ % 2 $3.22 $ % $2.38 $ % $2.95 $ % 3 $3.72 $ % $2.88 $ % $3.45 $ % 5 $4.72 $ % $3.88 $ % $4.45 $ % 10 $7.22 $ % $6.38 $ % $6.95 $ % 15 $9.72 $ % % % Media Mail service has special eligibility requirements for permissible contents. Media Mail rates are limited to the items listed below: Books (at least 8 pages). Sound recordings and video recordings, such as CDs and DVDs. Playscripts and manuscripts for books, periodicals, and music. Printed music. Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media. Sixteen millimeter or narrower width films. Printed objective test materials and their accessories. Printed educational reference charts. Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students. March 30,

17 Special Services Savings 0-4.1% Sending Certified Mail with Return Receipt - The price will now be $6.47(Compared to $6.74) for a one ounce letter. Savings Tips: 1. Check your 2-3 day rates with your private carriers to see if they are less money. 2. Consider switching to Electronic Return Receipt which saves $1.35 each. Special Services Retail Electronic New Rates % Increase Certificate of Mailing $1.35 $ % Registered without Insurance $12.20 $ % Certified Mail $3.45 $ % New Rates % Increase Return Receipt $2.80 $ % $1.40 $ % USPS Tracking First-Class Package Svcs parcels $0.00 $ % $0.00 $0.00 0% Standard Mail parcels $0.36 $ % Priority Mail $0.00 $ % $0.00 $0.00 0% Signature Confirmation $3.00 $ % $2.45 $ % March 30,

18 What you need to do: If you have a mail machine, make sure you download the new rates before April 10, 2016 when the rates take into effect to take full advantage of the decrease. Here are links to the different meter vendors: Pitney Bowes: Neopost: FP: Stamps.com: Go to the USPS Postal Explorer website for more information: pe.usps.gov March 30,

19 ENTERPRISE-WIDE MAIL AUDIT AND RECOVERY OVER $21,000,000 IN CLIENT SAVINGS Helping multi-location organizations streamline their mailing costs 58,000 pieces of equipment, managed by Postal Advocate $559K 57% Average Equipment Savings Average Client Savings HOW WE DO IT Recovered over $2,200,000 in lost postage, vendor overcharges and fees 200+ years of industry experience Comprehensive web-based tool providing visibility of all mail and equipment spend Time Savings - Assistance in fleet management visit or call (888)977-MAIL(6245)

20 1 2 Sign Limited Agency Agreement/Kick-Off Call. NO COST AUDIT PHASE Work with current vendor to build population report, contract terms/start/end dates, postage volumes, costs. HOW IT WORKS 3 Provide copies of vendor invoices, AP export, location list, equipment inventory list. CONTRACTED CLIENT Submit vendor credit requests, lost postage forms and eliminate avoidable fees. Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage. Identify savings opportunities. Conduct Analysis Negotiate pricing. Create catalog. Work with locationsasset validation, rightsize, termination Full implementation of savings Present savings opportunities and get client approval. Provide enterprise visibility of all spend, costs and documented savings through enterpriseadvocate. Provide client log-in. Postal Advocate provides ongoing support, manages renewals, billing and vendor compliance. visit or call (888)977-MAIL(6245)

21 Questions? Contact info: (20pt) Contact: Adam Lewenberg - President MAIL X 501 adam.lewenberg@postaladvocate.com March 30,

22 March 30,