greater cleveland pcc april 24, 2009

New Mailing Services Prices – May 11, 2009 – Updated March 30

Greater Cleveland PCC

April 24, 2009

2New Mailing Services Prices – May 11, 2009 – Updated March 30

• PCSC - created November 27, 2004• Consolidated 5 RCSC’s• San Francisco RCSC closed on December 30, 2004• Northern Virginia and Memphis RCSC’s closed on

January 8 and 22• Chicago RCSC closed January 28, 2005

Pricing and Classification Service Center - PCSC

3New Mailing Services Prices – May 11, 2009 – Updated March 30

• One location to serve the entire country• Provided customers with consistency of rulings and

interpretation of DMM standards• New National Customer Rulings Program

• Provides pre-production rulings for mailer’s who mail in multiple locations

PCSC

4New Mailing Services Prices – May 11, 2009 – Updated March 30

• Periodicals Authorizations• Nonprofit Authorizations• Customer Appeals / Refund Requests• Approvals for Exceptions to Mailing Standards• National Customer Rulings• Resolve Mail Classification Issues

The PCSC Role

New Mailing Services Prices – May 11, 2009 – Updated March 30

New Mailing Services

Prices

May 11, 2009

6New Mailing Services Prices – May 11, 2009 – Updated March 30

Mailing Services89% total revenue

First-Class Mail Standard Mail Periodicals Package Services Special Services

First-Class Mail: 58%

Standard Mail: 31%

Periodicals: 4%Special Services: 4%Package Services: 3%

7New Mailing Services Prices – May 11, 2009 – Updated March 30

Mailing Services

Consumer Price Index (CPI) cap Annual, predictable price changes Announce in February and implement in May

8New Mailing Services Prices – May 11, 2009 – Updated March 30

CPI Cap (12 month moving average)

2008 Cap

2009 Cap

2.9%

3.8%

9New Mailing Services Prices – May 11, 2009 – Updated March 30

First-Class Mail

Average +3.78%

Product % Change

Single-Piece Letters & Cards 4.62

Presort Letters & Cards 3.08

Flats 3.83

Parcels 2.57

International 4.07

10New Mailing Services Prices – May 11, 2009 – Updated March 30

First-Class Mail – Single-Piece

Letters: 44¢ (+2¢) Flats: 88¢ (+5¢) Parcels: $1.22 (+5¢) Postcards: 28¢ (+1¢) Unchanged:

Additional ounce Nonmachinable surcharge

11New Mailing Services Prices – May 11, 2009 – Updated March 30

Align auto and machinable letter characteristics

Provide choices Optional 5-digit, 3-digit, and AADC

preparation for auto letters Maintain 2.2¢ incentive for 5-digit No change in the additional-ounce prices for

automation/presort letters, flats, and parcels

First-Class Mail – Commercial

12New Mailing Services Prices – May 11, 2009 – Updated March 30

Auto flats Must use delivery point POSTNET

barcode or Intelligent Mail barcode with delivery point routing code

First-Class Mail – Commercial

13New Mailing Services Prices – May 11, 2009 – Updated March 30

First-Class Mail International

Separate prices for Canada and Mexico Canada:75¢ (+3¢) Mexico: 79¢ (+7¢) All other countries: 98¢ (+4¢)

No change to country groups

14New Mailing Services Prices – May 11, 2009 – Updated March 30

Standard Mail

Average +3.78%

Product % Change

Letters 3.83

Flats 2.31

Parcels and NFMs 16.40

High Density / Saturation Letters 1.25

High Density / Saturation Flats and Parcels 2.23

Carrier Route Basic Letters, Flats, and Parcels 4.31

15New Mailing Services Prices – May 11, 2009 – Updated March 30

Align auto and machinable letter characteristics

Provide choices Optional 5-digit, 3-digit, and AADC preparation

for auto letters Optional AADC preparation for machinable letters

Move Update compliance (January 4, 2010)

Standard Mail

16New Mailing Services Prices – May 11, 2009 – Updated March 30

Irregular parcels/NFMs (less than 6 ounces) 3-digit changes to SCF ADC and MADC changes to BMC and MBMC Origin entry

– BMC prices limited to pallets– MBMC prices for other preparation

Drop ship entry– 5-digit, SCF, and BMC prices

Standard Mail – Packages

17New Mailing Services Prices – May 11, 2009 – Updated March 30

Machinable parcels/NFMs (6 ounces and over) Origin entry

– BMC prices limited to pallets– MBMC prices for other preparation

Drop ship entry– 5-digit and BMC prices

Standard Mail – Packages

18New Mailing Services Prices – May 11, 2009 – Updated March 30

Lower-than-average price increase: +2.9% Lowered some pound rates to encourage

more content

Standard Mail – Catalogs

19New Mailing Services Prices – May 11, 2009 – Updated March 30

Encourage volume growth Additional pieces Frequency

Incentives for new volume 4.0¢ flats 3.7¢ letters

One-year program Enrollment through June 11, 2009

Standard Mail – Saturation Mail

20New Mailing Services Prices – May 11, 2009 – Updated March 30

Periodicals

Average +3.97%

Product % Change

Outside-County 3.97

In-County 3.80

No preparation changes Free address correction service with

full-service Intelligent Mail option

21New Mailing Services Prices – May 11, 2009 – Updated March 30

Package Services

Average +3.80%

Product % Change

Parcel Post (retail) 4.45

BPM Flats -2.00

BPM Parcels 2.50

Media Mail and Library Mail 7.47

Simplify Parcel Post Remove BMC designations, Local Zone, and nonmachinable

surcharge

22New Mailing Services Prices – May 11, 2009 – Updated March 30

Special Services

Average +3.84% Certified Mail: $2.80 (+10¢) Return Receipt: $2.30 (+10¢) Annual Mailing Fees: $185 (+$5) Confirm Service

New Bronze tier

23New Mailing Services Prices – May 11, 2009 – Updated March 30

Full-Service Intelligent Mail

Immediate benefits in May Free Address Correction Service Start-the-clock information

Full-service prices (November 29) 0.3¢ less for First-Class Mail 0.1¢ less for Standard Mail, Periodicals, and Bound Printed

Matter flats Long-term benefits

Actionable information– Operations, marketing, and finance

Paperless documentation

24New Mailing Services Prices – May 11, 2009 – Updated March 30

Changes to Original Proposals

Move Update noncompliance charge of 7 cents per piece for Standard Mail delayed until January 2010

First-Class Mail must have used an authorized Move Update method for discount prices

Noncompliant Standard Mail – Mailers must still comply with Move Update but we will work with mailers to bring into compliance – do not assess additional postage

Merlin (PBV PostalOne!) verification process will not be used until January 2010

25New Mailing Services Prices – May 11, 2009 – Updated March 30

Changes to Original Proposals

Mandatory First-Class Mail flats tray base requirement – not implemented (Current standards apply)

New tabbing/sealing requirements for booklet-type mailpieces at auto letter prices delayed – Not implemented at this time. Final rule will be implemented in September 2009

Current standards will apply for folded self-mailers; recommendations will be implemented in September 2009

Retain current minimum thickness standards

for automation letters

26New Mailing Services Prices – May 11, 2009 – Updated March 30

•For Mailpieces that do not meet the flexibility criteria, but are able to demonstrate compatibility with Postal processing equipment.

•Only after pieces have been tested and given PCSC approval.

Eligibility For Flats That Are Not Flexible - (Effective May 2009)

27New Mailing Services Prices – May 11, 2009 – Updated March 30

•Current standards applicable to automation flats will be extended to all flat-size mail

•Includes saturation carrier route flats.

Polywrap Standards(effective May 2009)

28New Mailing Services Prices – May 11, 2009 – Updated March 30

•Polywrap selvage will be included when measuring maximum length and height of a mailpiece

•Polywrap selvage will not be included when measuring minimum length and height of a mailpiece

Redefine Dimensions for Flat-Size Mailpiece (Effective May 2009)

29New Mailing Services Prices – May 11, 2009 – Updated March 30

•Extend the deflection standards currently applicable to automation flat-size mail to all flat-size mailpieces except saturation carrier route prices.

•All flats tested with the length placed perpendicular.

•One inch less vertical droop

Deflection Standards (Effective May 2009)

30New Mailing Services Prices – May 11, 2009 – Updated March 30

•Eliminate bundling requirements for First-Class Mail commercial flats.

•New tray based preparation.

•Prices based on sort level of the tray.

•Minimum pieces per tray changed from 90 to 50

Flat-size Mail Preparation

(Effective May 2009)

Flat-size Mail Preparation (Effective May 2009)

31New Mailing Services Prices – May 11, 2009 – Updated March 30

•Merge standards for nonautomation and automation flats.

•Foldable to a height no greater than 5”

•Loose inserts less than 75% of the size of the host, limited to single ply unfolded card.

•New Irregular Flats category

•Eliminate NFM category

Proposals For May 2010

32New Mailing Services Prices – May 11, 2009 – Updated March 30

New address standards for flats (went into effect

March 2009) specify: Address location Address format

New Address Placement Standards

33New Mailing Services Prices – May 11, 2009 – Updated March 30

Prior – Manual Current – FSSNew Address Placement Standards

34New Mailing Services Prices – May 11, 2009 – Updated March 30

The new address location standards apply to these presorted, automation, and carrier route flats:

Periodicals Standard Mail Package Services — Media Mail, Library Mail, and

Bound Printed Matter

New Address Placement Standards

35New Mailing Services Prices – May 11, 2009 – Updated March 30

Address location:

Address must be in top half of mailpiece.

When the address is on an insert polywrapped with the host piece, the address must remain within the top half throughout processing and delivery.

New Address Placement Standards

36New Mailing Services Prices – May 11, 2009 – Updated March 30

Bound edgeon right

Joh

n D

oe

123 M

ain

St

An

ywh

ere, US

A 12

345

Joh

n D

oe

123

Ma

in S

tA

nyw

her

e, U

SA

12

345

Can face left or right

John Doe123 Main StAnywhere, USA 12345

Can be left or right justified, or centered

John Doe123 Main StAnywhere, USA 12345

Cannot readupside down

TopHalf

Bound edgeon right

TopHalf

New Address Placement Standards

37New Mailing Services Prices – May 11, 2009 – Updated March 30

The top is:

Either of the shorter edges on enveloped or polywrapped pieces.

The upper edge when the spine is placed on the right-hand side of an unenclosed piece.

Either of the shorter edges on CR or ECR saturation pieces.

New Address Placement Standards

38New Mailing Services Prices – May 11, 2009 – Updated March 30

“Vertical” address may cross midpoint if it begins or ends within 1 inch of top edge.

New Address Placement Standards

Jo

hn

Do

e12

3 M

ain

St

An

ywh

ere,

US

A 1

2345

Small flat

Important for digests and other small flats.

39New Mailing Services Prices – May 11, 2009 – Updated March 30

On a horizontal envelope

(a “landscape” mailpiece), the “top” is the left or right edge.

New Address Placement Standards

John Doe123 Main StAnywhere, USA 12345

To

pH

alf

Sender123 Main StreetAnytown US 12345

40New Mailing Services Prices – May 11, 2009 – Updated March 30

*DMM 707.19.2, 335.2, 365.2 Arranging Pieces in a Bundle ("Facing")

“…all pieces in a bundle must be "faced" (arranged with the addresses in the same read direction), with an address visible on the top of the piece.”

*This will be changed to allow the address to read any way as long as the address on the piece is the same top half in bundle.

Flat Address Change Addressing In Bundles

41New Mailing Services Prices – May 11, 2009 – Updated March 30

Address format:

All commercial flats must be addressed using at least 8-point type (each letter or figure must be at least 0.080 inch high).

Flats using POSTNET or Intelligent Mail barcode with a delivery point routing code may use 6-point type (each letter or figure must be at least 0.065 inch high) if the address is printed in all capital letters.

New Address Format Standards

42New Mailing Services Prices – May 11, 2009 – Updated March 30

Address format:

Sans-serif font preferred (Arial, Helvetica).

All capital letters preferred.

New Address Format Standards

43New Mailing Services Prices – May 11, 2009 – Updated March 30

Additional standards for automation pieces:

Address characters cannot overlap. Address lines cannot touch or overlap (0.028-inch clearance preferred).

Address elements may be separated by no more than five blank spaces.

New Address Format Standards

44New Mailing Services Prices – May 11, 2009 – Updated March 30

Resources

USPS.com/prices New Price List Downloadable price files Federal Register notices

Postal Explorer (pe.usps.com)

DMM Advisory (dmmadvisory@usps.com)

PCC Insider (pccinsider@usps.com)

MailPro (usps.com/mailpro)