The document discusses upcoming decreases to USPS rates in April 2016, with savings ranging from 2.9-6.8% for various mail classes like First Class Mail, Periodicals, and Standard Mail. It provides details on which rate categories are decreasing and examples of potential postage savings. The presentation aims to inform mailers of the upcoming rate changes and tips for taking advantage of the lower costs.
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April 2016 USPS Rate Change Presentation
1. April 2016 USPS® Rates Decrease
- What You Need To Know
Speaker: Adam Lewenberg
President of Postal Advocate Inc.
2. Meeting Instructions
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March 30, 2016 2
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March 30, 2016 3
Meeting Instructions
5. Meeting Instructions
March 30, 2016 5
• This presentation is being recorded and will be made available upon
request. You will also be able find it on our website under FAQs/Resources
• If you have any issues during the meeting contact Doris Tam at 888-977-
6245 x 512 or email me at doris.tam@postaladvocate.com and I’ll be happy
to assist
6. Adam Lewenberg - Background and Experience
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 58,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Industry Co Chair- Boston Postal Customer Council/Mail Systems Management
Association member. CMDSS and MDC Certifications.
• Featured Writer for Mailing Systems Technology Magazine.
• Worked for one of the largest mailing vendors for over 17 years
– Director of national sales for presort, tabletop inserters, addressing
hardware/software and green offerings.
– Was one of the top 5 account managers nationally working with some of
the nations top accounts.
• Not affiliated with any mailing vendor - Unbiased advice.
March 30, 2016 6
7. April 2016 USPS® Rates Decrease
- What You Need To Know
Speaker: Adam Lewenberg
President of Postal Advocate Inc.
8. What We’ll Cover:
• Why are rates going down
• What rates are going down
• Savings Tips
• What you need to do
March 30, 2016 8
New rates take effect Sunday April
10, 2016
9. Why is this happening?
• In January 2014, the USPS approved a 4.3% exigent surcharge
increase because of their dire financial situation
• Mainly due to the recession and declining First-Class mail volumes.
• An order from the Postal Regulatory Commission (PRC) requires this
4.3 percent exigent surcharge to be reversed after the Postal Service
has collected additional funds totaling $4.6 billion.
March 30, 2016 9
10. What Rates are Impacted
• Market Dominant – Impacted
– First-Class Mail®
• Single Piece Letters and Cards.
• Presort Letters and Cards
• Flats
• Parcels
• Outbound single piece international.
– Periodicals
– Special Services
– Standard Mail®
• Letters
• Flats
• Parcels
• High Density/Saturation Letters
• Every Door Direct Mail Retail
• Parcels
– Package Services
• Bound Printed Matter Flats and
Parcels
• Media/Library Mail
• Competitive – Not Impacted
– Priority Mail Express™
– Priority Mail®
– First Class Package Service™
– Parcel Select®
– Standard Post™
– Extra Services
– Return Services
– Mailer Services
– Recipient Services
March 30, 2016 10
11. First-Class Mail®
Retail - Savings – 2.9-4.4%
March 30, 2016 11
Weight
Ounces
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
1 $0.49 $0.47 -4.1% $0.98 $0.94 -4.1% $2.54 $2.45 -3.5%
2 $0.71 $0.68 -4.2% $1.20 $1.15 -4.2% $2.54 $2.45 -3.5%
3 $0.93 $0.89 -4.3% $1.42 $1.36 -4.2% $2.54 $2.45 -3.5%
6 N/A N/A $2.08 $1.99 -4.3% $3.14 $3.02 -3.8%
13 N/A N/A $3.62 $3.46 -4.4% $4.54 $4.35 -4.2%
Post Card $0.35 $0.34 -2.9%
First-Class Mail® Retail
Letters Flats Parcels
• First-Class Mail® stamp goes down by $.02 for letters
• $.04 for flats and $.09 for Parcels.
• Additional ounce rate goes down from $.22 to $.21.
• Savings stay around 4% for every weight break.
Weight
Ounces
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
1 $0.485 $0.465 -4.1%
2 $0.705 $0.675 -4.3%
3 $0.925 $0.885 -4.3%
Letters
Metered Letters
Meter/PC
Postage
Customers
still save $.05
per letter!
13. Commercial
Savings – 3.8—6.8%
March 30, 2016 13
Weight
Ounces
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New
Rates
4/10/16 % Increase
Prior to
4/10/16
New
Rates
4/10/16 % Increase
Automation 5 Digit 1 $0.391 $0.376 -3.8% $0.470 $0.438 -6.8% $0.260 $0.250 -3.8%
Automation 3 Digit 1 $0.416 $0.399 -4.1% $0.662 $0.630 -4.8% $0.275 $0.263 -4.4%
Automation AADC 1 $0.416 $0.399 -4.1% $0.702 $0.670 -4.6% $0.275 $0.263 -4.4%
Automation Mixed AADC 1 $0.439 $0.419 -4.6% $0.782 $0.750 -4.1% $0.284 $0.272 -4.2%
Presorted (Non Automation) 1 $0.471 $0.452 -4.0% $0.831 $0.798 -4.0% $0.295 $0.283 -4.1%
Commercial First-Class Mail®
Letters Flats* Post Cards
• Automation 5 digit flats see an extra savings to 6.8%.
Savings Tip: Analyze if using the presort service still makes sense.
• Medium volume mailers using a presort provider where you were metering at $.471 (vs. the metered
rate of $.485) you were saving $.014 per piece. With the new rate change, this difference is going
down to $.013 per piece ($.465-.452). Some of these services make you date your mail for the next
day or pay pickup fees.
• At one point the spread in rates was almost $.03, but now at $.013 you may want to validate that your
volumes and savings justify using the service.
• Second ounce rides free! (USPS future discussions on third ounce rides free!)
14. Standard Mail®
Savings – 2.4-6.1%
March 30, 2016 14
Weight
Ounces
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Automation 5 Digit ≤3.3 $0.266 $0.255 -4.1% $0.392 $0.376 -4.1%
Automation 3 Digit ≤3.3 $0.283 $0.274 -3.2% $0.479 $0.467 -2.5%
Automation AADC/ADC ≤3.3 $0.283 $0.274 -3.2% $0.536 $0.522 -2.6%
Automation Mixed AADC/ADC-Origin ≤3.3 $0.304 $0.291 -4.3% $0.569 $0.539 -5.3%
Weight
Ounces
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Prior to
4/10/16
New
Rates
4/10/16
%
Increase
Automation 5 Digit ≤3.3 $0.147 $0.140 -4.8% $0.249 $0.237 -4.8%
Automation 3 Digit ≤3.3 $0.164 $0.159 -3.0% $0.336 $0.328 -2.4%
Automation AADC/ADC ≤3.3 $0.164 $0.159 -3.0% $0.393 $0.383 -2.5%
Automation Mixed AADC/ADC-Origin ≤3.3 $0.185 $0.176 -4.9% $0.426 $0.400 -6.1%
Standard Mail®
Standard Mail® Nonprofit
Letters Flats
Letters Flats
Tip: Use this savings to send out higher volumes that can bring in more
customers and sales. If you can now increase your mail volumes by 4% for the
same postage costs, how would that impact your bottom line?
Tip 2: Consider using a consolidation
service to share in the $.045 mail entry
discounts.
15. International Rates
March 30, 2016 15
Group
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
Canada $1.20 $1.15 -4.2% $1.20 $1.15 -4.2% $1.20 $1.15 -4.2%
Mexico $1.20 $1.15 -4.2% $1.79 $1.72 -3.9% $1.20 $1.15 -4.2%
Group 3-5 $1.20 $1.15 -4.2% $2.21 $2.13 -3.6% $1.20 $1.15 -4.2%
Group 6-9 $1.20 $1.15 $2.06 $1.98 -3.9% $1.20 $1.15 -4.2%
First-Class Mail International®
1 Ounce 2 Ounce Post Cards
Country
International
Rate Codes
Argentina 8
Australia 6
China 6
Egypt 6
France 3
India 6
Nigeria 4
Norway 5
Russia 4
South Africa 4
16. Library and Media Mail
March 30, 2016 16
Weight LB's
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
1 $2.59 $2.48 -4.2% $1.79 $1.70 -5.0% $2.33 $2.24 -3.9%
2 $3.07 $2.94 -4.2% $2.27 $2.16 -4.8% $2.81 $2.70 -3.9%
3 $3.55 $3.40 -4.2% $2.75 $2.62 -4.7% $3.29 $3.16 -4.0%
5 $4.51 $4.32 -4.2% $3.71 $3.54 -4.6% $4.25 $4.08 -4.0%
10 $6.91 $6.62 -4.2% $6.11 $5.84 -4.4% $6.65 $6.38 -4.1%
15 $9.31 $8.92 -4.2% 8.51 8.14 -4.3% 9.05 8.68 -4.1%
Weight LB's
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New Rates
4/10/16 % Increase
1 $2.72 $2.61 -4.0% $1.88 $1.79 -4.8% $2.45 $2.36 -3.7%
2 $3.22 $3.09 -4.0% $2.38 $2.27 -4.6% $2.95 $2.84 -3.7%
3 $3.72 $3.57 -4.0% $2.88 $2.75 -4.5% $3.45 $3.32 -3.8%
5 $4.72 $4.53 -4.0% $3.88 $3.71 -4.4% $4.45 $4.28 -3.8%
10 $7.22 $6.93 -4.0% $6.38 $6.11 -4.2% $6.95 $6.68 -3.9%
15 $9.72 $9.33 -4.0% 8.88 8.51 -4.2% 9.45 9.08 -3.9%
Library Mail
Single Piece 5-Digit Presort Basic Presort
Media Mail
Single Piece 5-Digit Presort Basic Presort
Media Mail® service has special eligibility requirements for permissible contents. Media Mail rates are limited to the items listed below:
Books (at least 8 pages).
Sound recordings and video recordings, such as CDs and DVDs.
Playscripts and manuscripts for books, periodicals, and music.
Printed music.
Computer-readable media containing prerecorded information and guides or scripts prepared solely for use with such media.
Sixteen millimeter or narrower width films.
Printed objective test materials and their accessories.
Printed educational reference charts.
Loose-leaf pages and their binders consisting of medical information for distribution to doctors, hospitals, medical schools, and medical students.
Library Mail® Similar contents to Media Mail.
Each piece must show in the address or return
address the name of a school, college,
university, public library, museum, or herbarium
or the name of a nonprofit religious, educational,
scientific, philanthropic (charitable), agricultural,
labor, veterans, or fraternal organization or
association.
17. Special Services
Savings – 0 - 4.1%
March 30, 2016 17
Special Services Retail Electronic
Prior to
4/10/16
New Rates
4/10/16 % Increase
Prior to
4/10/16
New
Rates
4/10/16 % Increase
Certificate of Mailing $1.35 $1.30 -3.7%
Registered™ without Insurance $12.20 $11.70 -4.1%
Certified Mail™ $3.45 $3.30 -4.3%
Return Receipt $2.80 $2.70 -3.6% $1.40 $1.35 -3.6%
USPS Tracking
First-Class™ Package Svcs parcels $0.00 $0.00 0.0% $0.00 $0.00 0%
Standard Mail® parcels $0.36 $0.35 -2.8%
Priority Mail® $0.00 $0.00 0.0% $0.00 $0.00 0%
Signature Confirmation $3.00 $2.90 -3.3% $2.45 $2.35 -4.1%
Sending Certified Mail with Return Receipt - The price will now be
$6.47(Compared to $6.74) for a one ounce letter.
Savings Tips:
1. Check your 2-3 day rates with your private carriers to see if they are less
money.
2. Consider switching to Electronic Return Receipt which saves $1.35 each.
18. What you need to do:
• If you have a mail machine, make sure you
download the new rates before April 10, 2016
when the rates take into effect to take full
advantage of the decrease.
• Here are links to the different meter vendors:
• Pitney Bowes:
http://support.pb.com/ekip/index?page=rate_change
• Neopost: http://www.neopostusa.com/resources/rate-
change-information
• FP: http://www.fp-usa.com/ratechange/
• Stamps.com: http://www.stamps.com/usps/current-postage-
rates/
• Go to the USPS Postal Explorer website for more
information: pe.usps.gov
March 30, 2016 18
19. Helping multi-location
organizations streamline
their mailing costs
58,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$2,200,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $21,000,000 IN CLIENT SAVINGS
$559K
57%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 200+ years of industry experience
• Comprehensive web-based tool
providing visibility of all mail
and equipment spend
• Time Savings - Assistance
in fleet management
visit www.postaladvocate.com or call (888)977-MAIL(6245)
20. Sign Limited Agency
Agreement/Kick-Off Call.
Provide copies of vendor
invoices, AP export,
location list,
equipment inventory list.
Present savings opportunities
and get client approval.
Postal Advocate provides
ongoing support,
manages renewals, billing
and vendor compliance.
Provide enterprise visibility of
all spend, costs and
documented savings
through enterpriseAdvocate.
Provide client log-in.
1 2
3
4 5 6
HOW IT
WORKS
Work with current vendor to build population
report, contract terms/start/end dates,
postage volumes, costs.
Analyze spend, check for contract
compliance, billing errors, vendor
fees/overcharges, lost postage.
Identify savings opportunities.
Submit vendor credit requests,
lost postage forms and
eliminate avoidable fees.
Negotiate pricing. Create catalog.
Work with locations-
asset validation, rightsize, termination…
Full implementation of savings.
visit www.postaladvocate.com or call (888)977-MAIL(6245)
Conduct Analysis
NO COST – AUDIT PHASE CONTRACTED CLIENT
21. Contact info: (20pt)
March 30, 2016 21
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com