USPS® Rate Change 2017: What You Need To Know
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Tom Ryan hosted a presentation about upcoming USPS rate changes. Some key points: - Overall rates will increase less than 1% for marketing mail and 3.9% for competitive packages. First-Class stamps increased to 49 cents. - Metered mail rates for 1oz decreased slightly to 46 cents, saving 3 cents compared to stamps. Additional ounce rates did not change. - Priority Mail and Priority Mail Express rates increased on average 3.9% and 2.4% respectively. Commercial base rates offer discounts off retail. - Dimensional weighting policies changed for carriers like UPS and FedEx to use a 139 factor for packages over 1 cubic foot instead of 166.
USPS® Rate Change 2017: What You Need To Know
- 1. USPS® Rate Change What the rate change means to you Presented by Tom Ryan
- 2. Welcome and thank you for joining us. USPS® headlines Rate updates by service Ideas for savings & cost control Helpful resources Tom Ryan 2
- 3. Welcome and thank you for joining us. Tom Ryan A long time ago … Today 34 years in the industry Certified Postal Consultant Industry roles in sales, marketing, product development 3
- 4. First- Class Mail® Priority Mail® Priority Mail Express® Package Services Domestic Extra Services Standard Mail® 4
- 5. USPS® Rate Changes Mailing Services: First-Class Mail®, Standard Mail®, Media Mail™, Library Mail, Bound Printed Matter, Extra Services (i.e. Certified Mail™) Package Services: Priority Mail®, Priority Mail Express®, Parcel Select, First-Class™ Package Service Market Dominant Competitive Overall less than 1% increase Overall 3.9% increase 5
- 6. First-Class Mail® Now 49¢ Was 47¢ 2¢ Current Price New Price Change Stamp Price 1 oz. $0.47 $0.49 + 4.3% Meter Price 1 oz. 0.465 0.46 SAVE 3¢ Additional Ounces 0.21 0.21 0.0% Single-Piece Post Cards 0.34 0.34 0.0% Single-Piece Flats 1 oz. 0.94 0.98 4.3% Flats = Rectangular, uniformly thick, not rigid. Save 6.1% with Metered Mail 6
- 7. Modern Postage Meters Track package deliveries Compare costs for services Print shipping labels 6% Discount plus … 7
- 8. 8 First-Class Mail® with Online Postage PC Postage® stamps Permit Imprints Pre-Cancelled stamps Also save 3 cents per piece for 1 – 2 – 3 oz – up to 3.5 ounces 8
- 9. Domestic Special Services • Certified Mail™ increase - from $3.30 to $3.35 Retail Green Card $2.75 – Up 5¢ Electronic $1.45 – Up 10¢ Weekly report Consolidated data Digital record keeping • Savings for E-RR now $1.30 per piece (47% vs 50%) • Return Receipt is only available at time of mailing 9
- 10. New First-Class™ Commercial Letter Rates Weight Not Over (oz.) 5-Digit AADC Mixed AADC 1 $0.373 $0.403 $0.423 2 $0.373 $0.403 $0.423 3 $0.373 $0.403 $0.423 3.5 $0.373 $0.403 $0.423 2016 Rates 2017 Rates • 500 piece minimum to qualify for First-Class Commercial Letter Rate • Of 500 pieces, 150 piece minimum to qualify for 5-Digit and AADC B B 10
- 11. Standard Mail Becomes Marketing Mail The new indicia and/or postage markings for Marketing Mail should not be used for letter or flat mail until January 2018 at the earliest. Continue to use Presorted Standard Or PRSRT STD ?11
- 12. Key First-Class Mail® Single-Piece (Retail) Prices *Closed against Postal inspection. 12
- 13. • Overall 4.1% increase • Previously one price ($2.60) for up to 8 ounces • Rates now split - under 4 ounces and 5 to 8 ounces • Positioned as a lightweight shipping option used by businesses for fulfillment purposes. • Only Non-personal matter allowed; open to postal inspection • Intelligent Mail® Package Barcode (IMpb) Required Shipping Services First-Class™ Package Service 13
- 14. • Overall 3.9% average increase • Existing Structure stays the same • Retail pricing increasing on average 3.3% • Commercial Base pricing will increase 4.1% on average, but will reflect an average 13.6% discount off Retail prices • Commercial Plus Pricing will offer lower pricing to large- volume customers. • Price increase will average 4.5%; set at 16.8% off Retail rates. Shipping Services Priority Mail® 14
- 15. • Commercial Base pricing will increase 2.4% on average and set at a flat 11.2% off Retail pricing. • Commercial Plus Price matched to Commercial Base pricing in 2016 and will continue in 2017 • Retail Flat Rate, Legal Flat Rate and Padded Flat Rate envelopes will all have differentiated pricing for 2017. Shipping Services Priority Mail Express® ?15
- 16. Pre-printed USPS tracking label + OR Two approaches Software Generated Label USPS® Tracking Available Since 2015 Commercial Base (CBP) or Commercial Plus (CPP) rates CBP averages 13.6% off Retail Rates Enhanced Tracking Free Insurance: $50 CBP and $100 CPP Retail rates (no discount) Insurance if it is scanned at Post Office Retail Counter 16
- 17. Retail versus Commercial Base Pricing Priority Mail® Retail CBP Save $ Save % Flat Rate Envelopes $ 6.65 $ 5.95 $ 0.70 10.5% Legal Flat Rate Envelope $ 6.95 $ 6.25 $ 0.70 10.1% Padded Flat Rate Envelope $ 7.20 $ 6.50 $ 0.70 9.7% Small Flat Rate Box $ 7.15 $ 6.45 $ 0.70 9.8% Medium Flat Rate Boxes $ 13.60 $ 12.40 $ 1.20 8.8% Large Flat Rate Boxes $ 18.85 $ 17.05 $ 1.80 9.5% Zones Weight Not Over (Lbs) L, 1 & 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9 1 $ 0.70 $ 0.64 $ 0.69 $ 0.67 $ 0.64 $ 0.83 $ 1.10 $ 0.61 5 $ 2.68 $ 2.94 $ 2.76 $ 3.20 $ 3.02 $ 2.72 $ 2.74 $ 1.53 10 $ 3.56 $ 4.87 $ 7.18 $ 7.14 $ 4.54 $ 2.84 $ 2.96 $ 1.93 Savings with Commercial Base Pricing Commercial Label This example is a 27% Discount over Retail 17
- 18. Flat Rate Packaging Regional Flat Rate Packaging 18
- 19. Save with Alternative Classes and Packaging Padded Flat Rate Less than 1 lb Now $7.20 Priority Mail® Flat Rate Envelope less than 1 lb. Now $6.65 Retail Priority Mail ® 13 oz. Now $6.65 to $10.50 (Zone 9) Convert to First-Class™ Parcel at Commercial Rate for $3.88 Save 50% or More! 19
- 20. • It pays to use the smallest packaging possible • Dimensional rate - length x width x height • Multi-depth or folding - easily adjusted to smaller sizes 18”x12”x12” 11-1/4"x8-3/4"x6" 18”x18”x18” Dimensional Rating Multi-Depth Multi-DepthStandard Multi-Depth - Adjustable in 6” increments 20
- 21. No! Yes! Dimensional Rating “Every inch of space matters” 21
- 22. • Foam peanuts or empty space – can you easily make the same box smaller? • Net effect of peanuts and bubbles: Air = Volume • This investment in a better box is guaranteed to reduce your long-term shipping costs. Dimensional Rating 22
- 23. Multiply length x width x height of each package (in inches) divided by carrier factor. UPS® > In 2017, packages that are greater than a cubic foot (1,728 inches) will use a 139 divisor to calculate dimensional weight FedEx® > Factor change in 2017 from 166 to 139 for Express and Ground US Domestic; the formula will now be L x W x H / 139 USPS® > Packages that are greater than a cubic foot (1,728 inches) will use a 194 divisor to calculate dimensional weight. Length x Width x Height (in.) ---------------------------------------------------------------------------------------------------------------------------------- Carrier Factor Carrier Dimensional Rating in 2017 Additionally, the USPS doesn’t DIM anything in zone 1-4. 23
- 24. USPS® Advantage for Priority Mail® or FC Parcel Consider costly surcharges that do not provide value Service USPS® FedEx® UPS® Residential Delivery Surcharge Zero +$3.85 +$3.80 Delivery Area Surcharge Residential Zero +$3.90 +$3.80 Delivery Area Surcharge Extended Residential Zero +$4.20 +$4.10 Fuel Zero Approx. 4% of shipping costs Approx. 5% of shipping costs Address Correction Fees Zero $14.00 $13.40 *Dimensional Rating for Zones 1-4 No Yes Yes Package Tracking Detail Yes Yes Yes **Weight by Ounce Up to 16 oz. Yes No No *USPS – No DIM surcharge up to a cubic foot, zones 1 to 4 ** USPS First Class Parcel is a flat rate charged by ounce up 15.99 24
- 25. USPS® Resources Great Resources https://ribbs.usps.gov/intelligentmail_schedule2017/releases/j an2017/docs/Janurary2017PriceChangeFactSheet.pdf • Visit PB.com or contact your PB Account Rep directly • www.pb.com/ratechange Video & Rate Info Support Information Pitney Bowes Key Resources 1. Search USPS Postal Explorer (http://pe.usps.gov/) 2. Search USPS RIBBS (https://ribbs.usps.gov/) 3. Redesigned RIBBS website > PostalPro. www.postalpro.usps.com 4. USPS Price Change Fact Sheet 25
- 26. Thank you for joining us 26