understanding usps® service changes & how they impact your business
DESCRIPTION
A 2012 practical guide from Pitney Bowes. This presentation covers USPS® pricing, program and service level changes.TRANSCRIPT
April 12, 2023 1Understanding USPS Service Changes & How They Impact Your Business
Understanding USPS Service Changes & How They Impact Your Business
A Practical Guide from Pitney Bowes
April 12, 2023 2Understanding USPS Service Changes & How They Impact Your Business
Your presenter
Dana Wagner, Manager of Customer Education, began his Pitney Bowes career in Seattle in 1982 and held increasingly responsible sales and management positions in the US marketing organization. For the past 7 years he has been a part of the Corporate Learning and Development organization. Dana is currently responsible for the award winning Mail Management Seminar series and other client centered carrier and product education programs.
April 12, 2023 3Understanding USPS Service Changes & How They Impact Your Business
Questions
On the minds of every business that relies on mail as part of its operations:
What are the U.S. Postal Service changes? What does it mean for me? How do I plan for the changes?
April 12, 2023 4Understanding USPS Service Changes & How They Impact Your Business
•Pricing Changes
•Program Changes
•Service Level Changes
USPS Changes
April 12, 2023 5Understanding USPS Service Changes & How They Impact Your Business
USPS Pricing Changes
April 12, 2023 6Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesPricing increases on products
January 22, 2012: USPS increased rates for both competitive and market-dominant products
Market-dominant products: First-Class Mail®, Periodicals, Standard Mail®, Single-piece Parcel Post®, Media Mail®, Bound Printed Matter, Library Mail, First-Class Mail® International most Extra Services
Competitive products Priority Mail® Express Mail® First-Class Package Service™ Parcel Select®, Lightweight Parcel Select® International services
Global Express Guaranteed® Express Mail International® Priority Mail International® International Priority Airmail™ International Surface Air Lift® Airmail M-bags
April 12, 2023 7Understanding USPS Service Changes & How They Impact Your Business
Postal Changes- Price changes for Mailing Services
Effective as of January 22, 2012
Highlights: Change:
First-Class Mail® Letters (1 oz.) +1 ¢ (44¢ to 45¢) Letters additional ounces unchanged (20¢) Postcards +3 ¢ Letters to Canada or Mexico (1 oz.) +5 ¢ Letters to other int’l destinations (1 oz.) +7 ¢
April 12, 2023 8Understanding USPS Service Changes & How They Impact Your Business
Price change for all Shipping Services- + 4.6%
Priority Mail- avg + 3.1%: Updated domestic pricing for Priority Mail® New Regional Rate Box C
Express Mail- avg + 3.4%: Lower Express Mail retail prices for ½ lb. and 1 lb. packages to local
and close destinations Lower Express Commercial Base prices: 5% on average New Flat Rate Box
Postal Changes Price changes for Shipping Services
April 12, 2023 9Understanding USPS Service Changes & How They Impact Your Business
Good news!
Most commonly used for business invoicing & direct mail
Opportunities to advertise new services and products to their customers as part of bill and statement mailings.
Postal Changes2nd ounce “free” presorted & automation First-Class Mail® letters
April 12, 2023 10Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesFirst-Class Parcels
Retail First-Class Mail®Same Price for the first 3 ounces!
New Class: Commercial First-Class Package Service™ Higher volume lightweight package shippers
Commercial Base:• 13 ounce max weight• Non-personal content only- OPEN to USPS™ inspection!• Postage paid using PC Postage, an IBI meter, or a permit imprint• At least 500 Presorted parcels per mailing
Commercial Plus:• Up to 15.999 ounces- ‘sweet spot’ over 13 ounces• Personal and non-personal items- Closed to USPS inspection!• Postage paid though permit imprint advance deposit account• At least 500 Presorted parcels per mailing or single-piece mailings need at least 200 pieces or 50 lbs
per mailing. • Requires a customer commitment agreement with USPS® to mail more than 5,000 Commercial First-
Class Package Service machinable parcels in a calendar year.
April 12, 2023 11Understanding USPS Service Changes & How They Impact Your Business
USPS Program Changes
April 12, 2023 12Understanding USPS Service Changes & How They Impact Your Business
January 28, 2013 Intelligent Mail® barcode (IMb™) required for automation letters and
flats, Permit Reply Mail and Qualified Business Reply Mail (QBRM) price eligibility
Each mail piece must have an IMb™
January, 2014- proposed Full Service Intelligent Mail
® compliance
Unique IMb™ for mailpieces and handling units
Electronic submission of postal documentation
Electronic scheduling of drop shipments
Postal Changes IMb™ required for automation discounts
April 12, 2023 13Understanding USPS Service Changes & How They Impact Your Business
USPS Summer Sale Program Period: July 1 through August 31, 2012 Discount Amount: 2% of eligible postage. IMb Requirements: Mailings of automation letters or
flats must have Intelligent Mail® barcodes. Eligible Mail:
Standard Mail® letters and flats Nonprofit Standard Mail letters and flats First-Class Mail® presort and automation letters, cards and flats
Additional Eligibility: The mobile barcode or similar print technology must take a consumer to
a mobile optimized site that either enables mobile commerce or is personalized for the recipient.
usps.com/mobilebarcodepromotion
April 12, 2023 14Understanding USPS Service Changes & How They Impact Your Business
Picture Permit Imprint Indicia
The permit imprint standards allows mailers to include a color image of a business-related design, such as corporate logos or trademarks, as part of the indicia on a Full-Service Intelligent Mail Barcode mailing.
USPS is now requesting:
1 cent per piece add-on for First Class Mail 2 cents per piece add-on for Standard Mail.
Mailers interested in utilizing the picture permit imprint indicia should go to:
https://www.usps.com/business/picture-permit.htm
April 12, 2023 15Understanding USPS Service Changes & How They Impact Your Business
USPS Service Level Changes
April 12, 2023 16Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesNo Saturday Delivery
Five-day-a-week delivery (proposed)
No delivery or picked up on Saturdays to homes or businesses
No collection from blue boxes
April 12, 2023 17Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesPost Office closures and service reductions
Postal Service backed off closure of post offices nationwide
May 9 USPS announced that it will allow rural post offices to remain open, but with reduced hours. Trim operations at 13,000 post offices to between two and six hours per day
April 12, 2023 18Understanding USPS Service Changes & How They Impact Your Business
The United States Postal Service announced May 17 that it would begin consolidating 48 mail processing centers beginning in July 2012
Additional 92 processing centers to be consolidated in February 2013
89 more consolidated in early 2014.
Area Mail Processing (AMP) on USPS.gov site
http://about.usps.com/news/service-alerts/facility-closures.htm
Facilities targeted for closure Where mail processed at these facilities
will be routed.
Postal ChangesCentral Facility Closures
April 12, 2023 19Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesTimelines & Logistics
Largest impact = mail may take longer for mail to be delivered
Everyday users of First-Class Mail® Critical delivery deadlines
Cash-flow (sending out invoices) + 2 – 4 days? impact on A/P impact on A/R scheduling of staffing
Logistics of plant and facility closures Drive mail to another local entry area Increased fuel costs, staffing costs, vehicle usage, timing
April 12, 2023 20Understanding USPS Service Changes & How They Impact Your Business
Postal Changes
Best Practices in 2012 and Beyond
April 12, 2023 21Understanding USPS Service Changes & How They Impact Your Business
Best Practices
•Choosing the best class of service
•Choosing the right Extra Service
•Redesigning mail-pieces
•Leveraging automation pricing
•Improving address quality
April 12, 2023 22Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Select the Right Class of Mail
Help reduce postage expenditures: Non-personal mail pieces -> consider Standard Mail®
Postage lower than First-Class Mail® Nonprofit prices ~ 40% less than regular Standard Mail® Destination Entry Discounts Postage “same” for like-shape pieces < 3.3 oz.
For heavier non-personal parcels, consider Package Services Postage lower than Priority Mail® Media Mail®, Library Mail, Bound Printed Matter and Parcel
Post®
April 12, 2023 23Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Leverage Extra Services
Choose based on service objectives Proof of Mailing? Proof of Delivery?
• Signature?• Restrict Delivery?
Protection in transit?
e
e
April 12, 2023 24Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Leverage Extra Services
Choose based on service objectives Proof of Mailing? Proof of Delivery
• Signature?• Restrict Delivery?
Protection in transit? Lower costs for e-services
Delivery Confirmation and Signature Confirmation Service
• Often used with First Class mail parcels and priority mail
• Mailer doesn’t need to go to the post office – saving time, processing, and money
e
e
April 12, 2023 25Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Leverage Extra Services
Choose based on service objectives Proof of Mailing Proof of Delivery
• Signature• Restrict Delivery?
Protection in transit? Lower costs for e-services
Utilize Electronically Filed Certified Mail and Electronic Return Receipt
• Signature files are electronic • Easier to manage • Significant process improvement• ERR less than half the cost of
‘Green Card’ RR
April 12, 2023 26Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Redesign - Envelopes to Cards
Targets First-Class Mail® price increase Redesigning envelope contents into card format
Benefits:
No “openability” issue Cards can be “coupons” Lower material costs First-Class Mail® post card price is generally lower than
Standard Mail letter price Ability to leverage QR code - to lead recipients to website!
April 12, 2023 27Understanding USPS Service Changes & How They Impact Your Business
Postal Changes Best Practices
Redesign – Flats to Letter-size
May reduce postage up to 40%!
Tips to redesign: Duplex pages Use lighter weight paper Narrow page margins Smaller fonts Half or tri-fold contents
April 12, 2023 28Understanding USPS Service Changes & How They Impact Your Business
Postal Changes Best Practices
Redesign – Flats to Letter-size (continued)
Quantity Potential Savings
1,000 1 oz. flats converted to letters up to $326*
1,000 2 oz. flats converted to letters up to $496 **
1,000 3 oz. flats converted to letters up to $416 ***
* Mixed ADC price for 1-oz automation-price flats vs. Mixed AADC price of 1-oz automation-price letters** Mixed ADC price for 2-oz automation-price flats vs. Mixed AADC price of 2-oz automation-price letters
- the substantial savings “2nd ounce free” for commercial First-Class Mail® letters*** Mixed ADC price for 3-oz automation-price flats to the Mixed AADC price of 3-oz automation-price letters
April 12, 2023 29Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Redesign – Parcels to FlatsMay save up to 30% on postage costs!
Tips: flats must be rectangular uniform in thickness flexible commercial flats must also meet deflection criteria.
Flexibility must meet U.S. Postal Service standards
Example:
Documents sent out in “ring binder.”Rigid structure disqualifies it as being a flat.
Replace binding or outer covering to a soft, flexible cover* to save . Get envelopes that are the right fit for content - helps meet uniform
thickness requirements.
April 12, 2023 30Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Automate for Cost-Efficient Processing
Prepare as much automation-compatible mail as possible Apply delivery point routing barcodes
– Use Intelligent Mail barcode Prepare and sort according to U.S. Postal Service regulations
Benefits: Reduce postage expenditures Cut processing steps and time Maximizing prospects of timely delivery
April 12, 2023 31Understanding USPS Service Changes & How They Impact Your Business
Use “2nd Ounce Free” forTrans-promotional marketing
Presorted & Automation First-Class Mail® letters
Most commonly used for business invoicing
Opportunities to advertise new services and products to customers as part of bill and statement mailings
Consider ‘piggy backing’ with business partners!
Postal ChangesBest Practices
April 12, 2023 32Understanding USPS Service Changes & How They Impact Your Business
Track for Visibility
Knowledge = Efficiency
Track using Intelligent Mail barcode (IMb) Visibility sending out or receiving
Benefits Plan for timely delivery Understand regional differences Meet timing objectives Anticipate response needs Map out cash flow Schedule staff Better customer service (anticipating payments)
Postal ChangesBest Practices
April 12, 2023 33Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Responding to timelines & logistics changes
Talk to Comptroller, CFO, CEO Discuss impact on Days of Sales Outstanding and cash to
cash cycle Understand TOTAL costs to adjust logistics/timing Ensure all outbound addresses are as accurate as possible Leverage courtesy reply mail envelopes (correctly addressed
and bar-coded)
April 12, 2023 34Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Solutions: Physical portion of the address:
CASS ™ certified software Standardizes physical portion of the address Assigns a delivery point routing barcode
Front-end Processing Using the correct address is
critical
Two parts to address qualityPhysical portion of
address Individual, business or
family component
April 12, 2023 35Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Front-end Processing Individual, business or family component
U.S. Postal Service approved Move Update solutions:
Ancillary Endorsements Address Change
Service (ACS) FASTforward® and U-
Move systems NCOALink® product
April 12, 2023 36Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesResources
Create “shortcuts” in your browser for these sites!
USPS - Postal Explorer®
http://pe.usps.gov/default.asp
Federal Register Postal Explorer®
RIBBS –Customer Support Center https://ribbs.usps.gov/
Pitney Bowes- Postal Information
http://www.pb.com/postal-information/
Pitney Bowes - Customer Connections Postal Advisor on ‘My account’
April 12, 2023 37Understanding USPS Service Changes & How They Impact Your Business
Postal ChangesBest Practices
Anticipate changes in your processes
Leverage technology
Seek efficiency and cost effectiveness
Engage Pitney Bowes, in creative solutions and problem solving
April 12, 2023 38Understanding USPS Service Changes & How They Impact Your Business
Mail Openers
Service Agreements On Printing Devices
Address Printing Automation
Fold and Insert Intelligent Inserting
Mailing Solutions
Carrier Management Shipping Automation
Custom & Standard Envelopes
CASS Software with List Management
Document Management & Reformatting
Software
Inbound Package Logging & Delivery
Consolidate all Permits & Earn
Interest
Visitor Self Check-in
Document Binding Solutions
Shredders
What Does Pitney Bowes Do?
USPS Postal Kiosk
High Speed Color Printer
Low Cost $0.02 per print
Eliminate manualGreen Cards and
save $1.20 postageper piece!!!
USPSFedExUPS
6% - 12% Postal Discounts
April 12, 2023 39Understanding USPS Service Changes & How They Impact Your Business
Questions?Please Contact us at
1-800-322-8000
Thank you!
April 12, 2023 40Understanding USPS Service Changes & How They Impact Your Business
Every connection is a new opportunity™
The Corporate logo, SendSuite, and Pitney Bowes are trademarks owned by Pitney Bowes Inc.
Postal Service, USPS, First-Class Mail, First-Class, First-Class Package Service, Express Mail, Priority Mail, Parcel Select, Delivery
Confirmation, Global Express Guaranteed, Express Mail International, Priority Mail International, International Priority Airmail, and
International Surface Air Lift are trademarks owned by the United States Postal Service.