RMS Postal Workout Program

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1 RMS Postal Workout Program Workout # 6 Postage & Payment Methods Updated Response Marketing Services Knowledge That Delivers

2 Postal Workout 1. RMS Introduction & Processes 2. Mail Classification 3. Processing Category Size & Shape A. Letter & Postcard B. Flat & Parcel 4. Addressing 5. Barcodes A. Barcode Introduction B. Intelligent Mail Barcode, CRID/MID, Business Customer Gateway/PostalOne! 6. Postage and Payment Methods 7. Postal Software Data & List Processing 8. Reply & Return Mail 9. Mail Preparation & Distribution 10. Ancillary Service Endorsements ASE 11. Address Change Service ACS 12. Canadian Post 13. International Mail (Optional) 2

3 Postal Workout Program Workout Viewing Instructions You can view and listen to a exercise in your own timeframe The exercise presentation can be paused, stopped, backed up at any time You can do these exercises individually or in groups The slides are available as a.pdf that you can print for reference Each individual must fully complete the On-line Achievement Certification Quiz to finish the exercise Look for the KEY slide in every exercise Provides information on key postal elements that are affected by the exercise Postage Mailpiece Design Barcodes, etc. Displays examples of the impact 3

4 Training Objective Types of postage Class of Mail Piece, Piece and Pound, Zone Prices Reply Mail Define each payment method Precanceled Stamps Meter imprint Permit Imprint Postage Statement Business Customer Gateway 4

5 Postage Prices Are determined by: Class Category Addressing Barcodes Distribution Density RMS Rate chart is available on insiderrd in the RMS Postal Information Library - Link - 5

6 Class of Mail and Postage Express Mail Per pound, based on zone and service, or Flat Rate Envelopes/boxes Priority Mail Per pound, based on zone, or Flat Rate Envelopes/boxes First-Class Mail Per ounce Standard Mail, Commercial and Nonprofit Up to 3.3 ounces for the same price 3.3 to ounces: Piece and pound price Drop Shipment Discounts 6

7 Processing Category and Postage Some processing categories have separate prices First-Class Mail Postcard, Letters, Flats, and Packages Standard Mail Commercial and Nonprofit Letters, Flats and Marketing Parcels Bound Printed Matter Flats and Parcels 7

8 Postage Calculations and Statements Mail.dat files are generated in List Processing through the sortation software Information includes job specific data and facility information Mail.dat may be modified in Monticello Split shipments, drop shipment data, etc. Mail.dat files are uploaded to the USPS PostalOne! Site The USPS calculates the postage based on the information in the Mail.dat files. There are no more hard copy Postage Statements Estimated postage can be obtained before the job is completed The files are uploaded and used for USPS acceptance and verification 8

9 Express and Priority Mail Flat rate packaging available free from USPS Postage is paid by weight and zone Retail, Commercial, and Commercial Plus prices Different qualifications No separate processing categories Except for Flat Rate packaging 9

10 Postcard Postage Comparison First-Class Mail is the only class with Postcard prices Standard Mail Commercial Letter drop shipment prices (DNDC/DSCF) are less than First-Class Postcard rates Standard Nonprofit letter prices are less than First-Class Postcard rates Consider transitioning to a Standard Mail Folded Self-Mailer, to obtain additional Drop Ship discounts and pick-up additional real-estate to convey clients messaging. First-Class Automation Nonautomation Postcard 5-Digit 3-Digit Mixed Presort Single Barcoded Barcoded AADC AADC Piece Letter Prices Standard Automation Machinable Entry 5-Digit 3-Digit AADC Mixed AADC AADC Mixed AADC None DNDC DSCF Nonprofit Automation Machinable Entry 5-Digit 3-Digit AADC Mixed AADC AADC Mixed AADC None DNDC DSCF

11 First-Class Mail Letters 3-Digit and AADC same price Does not change mail preparation Second Ounce free No additional cost for discounted mail Automation and Presort New price for Residual from Auto or Presort Mailings Third ounce still has 2 increments of $0.125 Nonmachinable Surcharge is still $0.20 First-Class Letters Weight Automation Machinable Residual Single Piece Not Over 5-Digit 3-Digit AADC Mixed Presort From Auto or Single Ounces Barcoded Barcoded AADC Presort Mailings Piece

12 First-Class Mail Flats and Packages Postage by ounce Second ounce is not free ADC and Mixed ADC are separate prices No "nonmachinable" allowed 12

13 Standard Mail Letters Letters Automation ECR and Automation Up to 3.3 ounces for the same price Heavy Letter Automation between 3.3 and 3.5 ounces: Piece and Pound price Nonautomation - ECR, Machinable and Nonmachinable Up to 3.3 ounces for the same price 3.3 to ounces: Piece and pound price Standard Mail Nonprofit has the same price categories 13

14 Standard Mail Flats Flats Up to 3.3 ounces for the same price 3.3 to ounces: Piece and pound price "Nonmachinable" not allowed Standard Mail Nonprofit has the same price categories 14

15 Standard Mail Piece and Pound Price Two portion postage price: Per Piece price PLUS the Per Pound price Based on the actual weight of the mailpiece in pounds Estimate Postage Excel Spreadsheet tool on RMS Postal Information Library Standard Mail Nonprofit has the same price categories 15

16 Standard Mail Drop Shipment Discounts For mail that is prepared, shipped and entered at a USPS Drop Ship location - The USPS gives a postage discount PER PIECE Discount is the same for Standard Mail Commercial and Nonprofit Freight is charged per WEIGHT The heavier the piece, the less the overall savings Monticello/Dynamail, part of our postal processing software, determines when drop shipment is cost effective 16

17 Nonmachinable Letter Mail Letter mail that is nonmachinable pays more postage No Automation rates Standard Mail separate price list Standard Commercial Letters - Nonautomation For pieces 3.3 ounces or less: First-Class Mail - Surcharge of $0.20 per piece Only on presort and full price Nonmachinable Entry 5-Digit 3-Digit ADC Mixed ADC None DNDC DSCF Standard Mail Nonprofit has the same price categories Flat size cannot be nonmachinable for First-Class and Standard Mail 17

18 USPS Promotion and Incentive Programs OPI (order instructions) must indicate the promotion or incentive discount The correct data must be in the Mail.dat file submitted to PostalOne for the credits/discounts to be applied Full-Service does not mean that the client will automatically receive the discounts for each promotion/incentive Credits reduction of total postage based on the credit earned through a qualifying count on previous volume Earned Value BRM/CRM credit Discounts reduction in postage based on the qualification of the individual program for items in the mailpiece Mobile Barcode promotions Emerging Technology promotions Picture Permit Imprint promotions Other promotions as specified 18

19 Fees The USPS charges fees for the application for a permit imprint number and obtaining discounted prices Permit Imprint application $200 one-time fee Permit number must be used at least once every 24 months Annual Presort Fee $200 for Standard Mail First-Class Mail fee is covered by one facility fee Full-Service IMb annual presort fee waiver January, 2014 To qualify - 90% of the mailings under the permit number must be IMb Full-Service 19

20 Reply Mail Choices Reply Mail has different postage requirements and prices A PLACE STAMP HERE C BUSINESS REPLY MAIL FIRST-CLASS MAIL PERMIT NO 1234 CLEVELAND OH NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES AC B ABC INDUSTRIES 1220 LAKESIDE AVE E CLEVELAND OH POSTAGE WILL BE PAID BY ADDRESSEE ABC INDUSTRIES 1220 LAKESIDE AVE E CLEVELAND OH Courtesy Reply Mail (CRM) A Business Reply Mail (BRM) C NO POSTAGE NECESSARY IF MAILED IN THE UNITED STATES NO POSTAGE STAMP NECESSARY POSTAGE HAS BEEN PREPAID BY ABC INDUSTRIES 1220 LAKESIDE AVE E CLEVELAND OH NO POSTAGE STAMP NECESSARY POSTAGE HAS BEEN PREPAID BY ABC INDUSTRIES 1220 LAKESIDE AVE E CLEVELAND OH Meter Reply Mail (MRM) Permit Reply Mail (PRM) 20

21 CRM, MRM, PRM All pay Full First-Class Mail single piece prices Mailpiece design requirements Courtesy Reply Mail - CRM Adhesive Stamp Applied by respondent Meter Reply Mail - MRM Metered with no date Preapplied by client/mailer Permit Reply Mail - PRM Postage prepaid by mailer at the time of mailing First-Class outgoing mail only 21

22 Reply Mail Applications and Fees BRM/QBRM Application form PS 3615 for Permit Number No Fee QBRM Annual fee of $200 Application Form 6805 to the postmaster or manager, Business Mail Entry at the Post Office to which the QBRM pieces are to be returned. CRM and MRM do not have any applications PRM Authorization through the district manager of Business Mail Entry at the office where the permit imprint account is held 22

23 BRM/QBRM Postage and Fees Annual Permit Fee $200 Accounting Fee annual $635 or quarterly $2,125 Two BRM/QBRM groups High Volume and Basic Postage and handling fee per piece Different for BRM and QBRM Mailpiece design requirements 23

24 Postage Payment Methods Standard Mail, Nonprofit, and First-Class Mail postage is paid by: Precanceled Stamps Meter imprint Permit imprint indicia Periodicals Does not use any of those methods! 24

25 Mailpiece Design Postage Position Parallel to the address direction Above and to the right of the address area Stamps and Meter upper right corner of mailpiece Permit imprints upper right of the mailpiece or address area Fishing for You 845 Lure Ln Walleye, WI Mr. M.T. Nester 256 Fishing Creek Trl Retirement, FL Fishing for You 845 Lure Ln Walleye, WI Mr. M.T. Nester 256 Fishing Creek Trl Retirement, FL STD U.S. Postage Paid Fishing for You 25

26 Imitation of Postal Markings & Colors USPS prohibits use of deliberate imitations of postal markings Wording - Color Location - Numbering Examples include: "Express Mail", "Priority Mail", certain meter designs Requires clearance by Direct Mail Specialist Green Diamonds are ONLY for First-Class Mail Any color of green! Other colors may be used for Standard Mail 26

27 Background Clear Space Clear Space A clear space must be available on all mail for the address, postage (permit imprint, postage stamp, or meter stamp), postmarks, and postal endorsements Free of background designs and legible Metered mail has a 2D barcode All requirements for barcode readability apply 27

28 Precanceled Stamps Precanceled stamps can be used for: Presorted First-Class Mail Standard Mail Commercial and Nonprofit 1-1/2" Background clear area must be allowed to apply stamps: 1-1/2" One stamp: 1-1/2" x 1-1/2" May only have ONE precanceled stamp per mailpiece Stamp with Cancellation: 1-1/2" x 4" or more depending on other imprints 28

29 Precanceled Stamps Mailpiece must have a domestic Return Address if not canceled Optional to cancel stamps with cancellation mark Stamps are purchased in rolls of 500, 3,000 and 10,000 stamps Cannot return unused stamps Prices: Standard Mail 10 Nonprofit 5 First-Class Mail - Postcards: 15 Letters and Flats: 25 Difference between the stamp price and final postage is paid through a permit account with the postage statement 29

30 Adhesive Stamps Adhesive Stamps are: Full price First-Class Mail stamps without a price Stamps with a price (denominated) May use more than one stamp per mailpiece Standard Mail and discounted First-Class Mail Must be canceled Must add up to the amount of the appropriate precanceled stamp Full price First-Class mail Do not need to be canceled 30

31 Meter Imprint Postage printed directly on envelope Background clear area of 3 1/2" x 1 1/2" is required More depending on other imprints designs Must be legible Printed in fluorescent ink Check with facility for ink color red or black Must pass barcode background reflectance Class Marking in Meter imprint Date of Mailing Required for First-Class Mail 1 1/2 " Not used for Standard Mail 3 1/2 " 31

32 Permit Imprint Indicia Regulations Size Minimum: 1/2" x 1/2" Maximum Size 1 1/2" x 1 1/2" Font Text minimum of 4 point - must be readable RMS Standard: UPPER CASE Background Approved Option: Upper/Lower case No copy or patterns in the permit imprint indicia No color or a solid color is acceptable 1/2" PRSRT STD U.S.POSTAGE PAID ABC CO PRSRT STD U.S.POSTAGE PAID ABC CO 1 1/2" 32

33 Permit Imprint Indicia Elements 1. Class Marking 2. "U.S. Postage Paid" 3. Permit holder information Company Style Origin Styles PRESORTED STANDARD U.S. POSTAGE PAID ALICIAS COOKIE BAKERY Strict spelling and punctuation Rule or box around permit imprint indicia may be omitted 33

34 Permit Imprint Indicia Class Marking First-Class Mail PRESORTED FIRST-CLASS MAIL FIRST-CLASS MAIL (Single Piece mailing only) Standard Mail Commercial Mail STANDARD or STD PRESORTED STANDARD or PRSRT STD Nonprofit Mail NONPROFIT ORGANIZATION or NONPROFIT ORG or NONPROFIT Package Services BOUND PRINTED MATTER or BPM LIBRARY MAIL MEDIA MAIL STANDARD POST Priority Mail PRIORITY MAIL Periodicals do NOT use permit imprint indicias 34

35 Permit Imprint Indicia Styles Company Style RMS Standard No permit number or origin shown Mailpiece must have complete Return Address Origin Styles 1. Show City, State of origin permit number OR 2. Shows ZIP Code of origin permit number Presorted First-Class Mail PRSRT STD U.S. POSTAGE PAID ABC COMPANY U.S. Postage Paid City, ST Permit No. nnn Strict spelling and punctuation Rule or box around permit imprint indicia may be omitted Nonprofit Org U.S. POSTAGE PAID Mailed From ZIP Code NNNNN Permit No. NNN 35

36 Permit Imprint Indicia Designs Special Designs such as "Eagles", must be USPS approved Maximum Size with designs to the left: 1-1/2" x 4" Cannot resemble a postage stamp or meter imprint References on mailpiece to Expedited Handling require the permit imprint indicia to have class marking bolder or more prominent than other text include a clear space of at least 3/8 inch around the entire indicia PRSRT STD U.S. POSTAGE PAID COMPANY NAME 36

37 Permit Imprint Indicia Application Permit number must be purchased For postage paid with a Permit Imprint Indicia From each post office of mailing Unless under the IMb Full-Service waiver For each client Customer Name on USPS Application form 3615 used to purchase permit number must match the company name in a company style permit imprint indicia Allison's Better Cooking Company PRSRT STD U.S. PRSRT POSTAGE STD U.S. PAID POSTAGE PAID Allison s Allison's Better ABC COMPANY Cooking Company 37

38 Permit Imprint Indicia Application When obtaining the permit number, on USPS Application 3615, check all the boxes for First-Class Mail, Standard Mail, Package Services and Company Permit Imprint (section B, item 1) There is no additional cost for obtaining the permit number for all the classes of mail X X X X X 38

39 Permit Imprint Indicia Application The Applicant Information needs to be that of the client The address that will be linked through their CRID to the permit number Preferably the contact person is the client's BSA for that CRID 39

40 Return Address vs. Permit Holder Return Name and Address From Copy Does NOT have to match Permit Holder Name Permit Holder Name From USPS 3615 Company Style Permit Imprint Indicia Return Address must know where mailing statements are kept Allison's Best Confectionaries ABC Company Allison's Best Confectionaries 123 Sugar Street Sweetest, SC PRSRT STD U.S. POSTAGE PAID ABC Company Delivery Name Delivery Address Delivery City, ST ZIP+4 40

41 Nonprofit - Return Address vs. Permit Holder Authorization Name From USPS Letter Return Name/Address, Internal Name/Address, Check requests Permit Holder Name From USPS 3615 Company Style Permit Imprint indicia ABC Org A Better Contribution ORG 123 Any St DePere, WI A Better Contribution ORG 123 Any Street DePere, WI NONPROFIT U.S. POSTAGE PAID ABC ORG Delivery Name Delivery Address Delivery City, ST ZIP+4 41

42 Business Customer Gateway Electronic way to communicate with the USPS Portal gives a single entry point for USPS online business services All users can interface with the USPS via Business Customer Gateway online Portal Clients can use the portal for Managing Permits Retrieving Mailing Statements & Reports Managing CAPS Accounts 42

43 Gateway - Mail Preparer Access View As a Mail Service Provider we will be able to view mailing information for the mailings you are preparing, including: Postage statements Supporting documentation Other mail status reports PostalOne! Dashboard 43

44 Gateway - Electronic 3602 Statement View Postage Statements online Electronic Statement.pdf Download the Postage Statement as.pdf, Excel or.csv file Use Estimated Postage statements to review postage needs Example of page 1 44

45 Impact Mailpiece Design Postage in the incorrect location or unreadable Mailing may be denied Incorrect postage on the mailpiece Additional postage may be needed Overpayment may not be refunded Depends on how the mailpiece is handled Inactive permits Mailing is held until permit issues are resolved 45

46 Training Objective Types of postage Class of Mail Piece, Piece and Pound, Zone Prices Reply Mail Define each payment method Precanceled Stamps Meter Imprint Permit Imprint Postage Statement Business Customer Gateway 46

47 RMS Postal Workout Exercise RR Donnelley has won the Pillar Bank Friends program for about 1mm pieces The package consists of a 2/1 #10 Closed Faced OE, 2 page 2/1 ProteusJet Duplexed Letter w/lift Note Mailing as Standard Class - Pillar Bank submits copy with the following permit imprint U.S. POSTAGE PAID PILLAR BANK 47

48 RMS Postal Workout Exercise What would you do next? 48

49 RMS Postal Workout Exercise Using the RMS checklist you discover that the Permit Imprint does not have the Class of Mail listed in the permit area Without the Class of Mail, the mailing can only receive full price First-Class Mail rates You advise Pillar Bank that the permit copy needs to change to include the correct Class of Mail requested You also advise them that a full return address is required 49

50 RMS Postal Workout Exercise Pillar Bank agrees to have the permit copy changed and adds their return address The Bank can now receive Standard Mail prices Including Drop Shipment discounts at a rate of $0.033/pc NDC and $0.043/pc SCF Participate and receive CoPal Savings The difference in postage between Standard Mail and full price First-Class Mail is over $250,000 50

51 RMS Postal Workout Exercise Kingston Animal Society is mailing an Event Reminder Notice to members that registered for their Your Friend dinner and dancing event. The Reminder Notice is about 1mm pieces and is a Postcard Format 4" x 6 1/2" 4pc / 2pc KAS is expecting to mail at the USPS Postcard Rates 51

52 RMS Postal Workout Exercise What would you do next? 52

53 RMS Postal Workout Exercise Using the RMS checklist you identify their requested format size is larger than the maximum First-Class Postcard size of 4 1/8" x 5 7/8" You provide KAS the following options - Decrease the format size to fit into the First-Class maximum size Mail the same format size card at Nonprofit Letter rates Lower postage rates as compared to Postcard rates Increase the format size of the card or change to a Folded Self-Mailer and mail at Nonprofit Letter rates Lower postage rates as compared to Postcard rates 53

54 RMS Postal Workout Exercise KAS decides to take advantage of the additional real-estate and mail a larger card at Nonprofit rates KAS can now receive Standard Nonprofit Mail prices Including Drop Shipment discounts at a rate of $0.033/pc NDC and $0.043/pc SCF Participate and receive CoPal Savings The difference in postage between Standard Nonprofit Mail and Postcard Mail is on average $0.105/pc or $105,000 RMS has increased revenue due to format change 54

55 To Complete the RMS Postal Workout # 6 Postage & Payment Methods Please access and complete the On-line Achievement Certification Quiz Thank You! 55

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