USPS Shipping Services Rate, Product and other Changes for 2016

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1 USPS Shipping Services Rate, Product and other Changes for 2016

2 Meet your Speaker Dr. Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal education trainer, consultant, and subject matter expert to Pitney Bowes and its clients. Janet s professional career includes 21 years with the United States Postal Service and 10 years as an independent leadership development and learning consultant servicing hi-tech companies in the Silicon Valley and around the world. Dr. Lockhart-Jones has worked in India, Europe, Brazil, Argentina, Canada, Puerto Rico, Mexico and throughout the United States. Janet holds the degrees of Doctor of Education in Organization and Leadership, a Master of Science in Human Resources Management and Bachelor of Science in Business Administration. She also holds the credential of Certified Project Manager from Stanford University Center of Professional Development. Dr. Lockhart-Jones enjoys serving as the Education Chair for the Sacramento Postal Customer Council. She is also active in MSMA, a Certified Mailpiece Design Consultant (MDC), a USPS Certified Executive Mail Center Manager (EMCM) and a paid Public Speaker.

3 What is not changing; what is changing Rate and product comparisons USPS 2016 Promotions and Incentives Tips and strategies to keep costs down

4 Effective Date of USPS Shipping Changes Note: All changes are now APPROVED by the Postal Regulatory Commission (PRC).

5 USPS What s not changing

6 Mailing Services Market Dominant Classes of Mail Affected Market Dominant First-Class Mail Single-Piece Letters & Cards Presort Letters & Cards Flats Parcels Outbound Single-Piece International Standard Mail Letters Flats Parcels No Change in January 2016 High Density/Saturation Letters Every Door Direct Mail Retail Parcels Periodicals Special Services Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass JANUARY 2015 PBI Internal use only 6

7 Shipping Services

8 Shipping Services January 2016 changes focuses on the below products: Softwaregenerated IM pb label required Priority Mail Express Priority Mail First-Class Package Service Parcel Select Standard Post Extra Services Return Services Mailer Services Recipient Services JANUARY 2015 PBI Internal use only 8

9 General changes Product changes and eliminations What is going away - Eliminations Priority Mail Regional Rate Box C Priority Mail International Regional Rate Box C Priority Mail Critical Mail Priority Mail Express Flat Rate Boxes (Retail and CBP) Priority Mail Express International Flat Rate Boxes First Class Package Service (FCPS) - Domestic Commercial Plus price category First Class Package Service 5-digit, 3-digit, and ADC presort level pricing Parcel Select Origin Network Distribution Center (ONDC) Presort and Network Distribution (NDC) Presort Price Categories Parcel Return Service RNDC price category JANUARY 2015 PBI Internal use only 9

10 More about FC Package Service -Domestic Weight maximum set at ounces Only single piece pricing available; no minimum volume First 8 ounces is a single price of $2.60 Intelligent Mail package barcode required No letter mail; packages subject to inspection JANUARY 2015 PBI Internal use only 10

11 FC Package Service vs First-Class Mail Parcel Lower pricing above 3 ounces IMpb solution required Contents may not meet standards of letter mail Maximum weight is ounces > 3 ounces, FCPS has better pricing Label 400 required Maximum weight is 13 ounces Contents can be any mailable matter JANUARY 2015 PBI Internal use only 11

12 More about First-Class Package Service Single Piece parcels may not contain personal letter mail or mail that by law, must go as First-Class Mail (e.g. bills, statements, invoices, and personal letters). Additionally, the Postal Service has a right by law to open and inspect FCPS parcels to ensure compliance.

13 Shipping Services Price increases Domestic = 9.8% INTL = 10.2% Domestic = 15.6 % INTL = 11.6% Domestic = 12.8% INTL 21.6% Retail Ground (formerly Standard Post) = 10% avg. price increase * All % increases are across the board averages JANUARY 2015 PBI Internal use only 13

14 Priority Mail Express Overall average price increase of 15.6% Retail prices to rise an average of 14.4% Pricing by Zone, Retail, Commercial Base and Commercial Plus continues Retail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope is increasing to $ Commercial Base pricing increasing an average of 17.7%. Commercial Plus pricing is increasing to an average of 48.2% Long term goal is to eliminate Commercial Plus pricing in 2017 USPS Click N Ship moving to Retail pricing only for PME

15 Priority Mail Express First-Class Mail Retail Parcels Retail Commercial Base..... Note: Priority Mail Express items may weigh up to 70lbs

16 First-Class Priority Mail Mail Express Retail Parcels Priority Mail Express CPP to increase 48.2% to match CBP Note: Priority Mail Express items may weigh up to 70lbs

17 Priority Mail Overall average price increase of 9.8% Retail prices to rise an average of 8.6% Pricing by Zone, Retail, Commercial Base and Commercial Plus continues Regional Rate Box C and Critical Mail to be eliminated Priority Mail - Retail Increase Flat Rate Envelopes % Legal Flat Rate Envelope % Padded Flat Rate Envelope % Small Flat Rate Box % Medium Flat Rate Boxes % Large Flat Rate Boxes % APO/FPO/DPO Large Flat Rate Box % Enterprise Learning & Development Enterprise Learning & Development

18 Priority Mail Regular Flat Rate Envelope is $6.45; Legal Size and Padded Flat Rate Envelopes, $6.45 and $6.80 respectively. Commercial Base pricing increasing an average of 9.4%. Commercial Plus pricing to increase 13.3% USPS Click N Ship moving to Retail pricing only for Priority Mail Enterprise Learning & Development Enterprise Learning & Development

19 Priority Mail Retail vs. Comm Base Save 50%+ over Retail in 4-25lb. range, Zones 1-5 Enterprise Enterprise Learning & Learning Development & Development

20 Priority Mail Regional Rates Potentially save even more with Regional Rate Boxes The USPS best kept secret! Box A1 Box A2 (Existing Surcharge is $0.75) Box B1 Notes USPS Produced packaging only Packaging available only at USPS.com or at a Post Office Low cost shipping option for PC/online shippers IMpb required Regional Rate Box A 15lb. Max weight limit Regional Rate Box B 20lb. Max weight limit Box B2 Enterprise Learning & Development Enterprise Learning & Development

21 Regional Rates vs. CBP Notes: a. A Boxes ship at the same rate as a regular 2-lb package. B boxes ship at the same rate as a 4-lb package b. Use A box for items over two pounds that fit in an A box (up to 15 lbs.) c. Use B box for items over 4 pounds that fit into a B box (up to 20 lbs.) Enterprise Learning & Development Enterprise Learning & Development A 15 lb. package shipped at Commercial Based rates, priced by weight and zone, to Zone 8 in regular Priority Mail packaging will Cost $44.85 vs. Regional Rate Box A to Zone 8, which would cost only $ Regional Rate Box shipments require an online or PC postage option and the Intelligent Mail package barcode. Regional Rate packaging is available for free at usps.com.

22 Parcel Select Changes Prices for Parcel Select Lightweight (less than 1 pound), will increase by 23.5%. Pricing will favor DDU entry. Parcel Select Nonpresort will be rebranded as Parcel Select Ground, and will see a 1.9% price increase. On average, prices across non-lightweight Parcel Select, the Postal Service's bulk ground shipping product, will increase 3.1%. Parcel Select Origin Network Distribution Center (ONDC) Presort and Network Distribution Center (NOC) Presort price categories will be eliminated because of low customer demand, and to simplify product offerings.

23 USPS Click-N-Ship Change USPS Click-N-Ship moving to Retail pricing only for PME and Priority Mail. Consumers can use a credit card to pay for postage **Small mailers and shippers who use Click N Ship to send Priority or Priority Mail Express and want to retain CBP, may need adopt a vendor-offered alternative. Not Changing USPS Meter Label Solution which replaced Click-N-Ship for Business earlier in the year. Meter required to pay for postage. Supports CBP. Not Changing- Click-N-Ship for Business Professional For higher volume shippers, payment accounts, etc. Supports CBP. Enterprise Learning & Development Enterprise Learning & Development

24 General changes Name Changes From Standard Post Parcel Select Non Presort To Retail Ground Parcel Select Ground Enterprise Learning & Development Enterprise Learning & Development

25 2016 USPS Promotions ( for Mailing Services)

26 BRM and CRM First-Class Mail Letters Full Service IMb - First-Class Mail presort & automation letters, cards & flats - Standard Mail letters and flats - Nonprofit Standard Mail letters and flats Letters and flats Standard Mail letters and flats Nonprofit Standard Mail letters and flats

27 Shipping Tips and Ways to Lower Shipping Costs

28 Tip 1: What to look for? Which carriers do you use? Doing nothing will cost you something, usually more! How much are you spending annually on small package transportation costs? Who are you shipping to? How do you select a service type? What types of packages do you ship, and what do they weigh? Review your carrier bills to see What the mix of carrier services are? What percent of your shipping cost are surcharges? How many of your shipments are 1 pound or less, and what service is applied? What zones do you ship to? What percent of your carrier bills are adjustments? Adjustment From Commercial To Residential 28

29 Tip 2: By Shifting Demand, you may be able to control costs more effectively. Pick the low cost carrier/service based on cost and your service delivery objectives The USPS is a great choice now Best rates to homes for packages up to 25 pounds, shipments in zones 1 to 5 Free Tracking with IMpb UPS and FedEx already use USPS for lastmile delivery. This may not only save a significant amount of money, but will help mitigate the risk of shipping with just one carrier. UPS USPS FedEx Carrier Usage 29

30 Tip 3: Adopt Effective Shipping Management Practices and Lower Total Transportation Cost Bring all your carriers onto one platform Reduce manual workflows to facilitate a stronger, more efficient shipping operation Become a Smart Shipper! Implement an Address Hygiene Reduce or eliminate returns Integrate a robust solution with core business applications Strive toward ONE monthly bill for all USPS, FedEx & UPS services Automatically track each shipment for delivery time and provide a report of carrier on time performance Talk to your vendor account executive to learn about solutions that can help you to: Do all of the above Optimize service selection based on cost and delivery objective Evaluate alternatives to manage surcharges Gain added leverage in rate & fee negotiation 30

31 Questions? Need more Info? Send questions or requests for additional information directly to your Account Executive Pb.com 31

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