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.

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
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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
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4.  First- Class Mail®
 Priority Mail®
 Priority Mail Express®
 Package Services
 Domestic Extra Services
 Standard Mail®
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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
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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
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7. Modern Postage Meters
 Track package deliveries
 Compare costs for services
 Print shipping labels
6% Discount plus …
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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
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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
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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
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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
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12. Key First-Class Mail®
Single-Piece (Retail) Prices
*Closed against Postal inspection.
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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
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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®
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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®
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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
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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
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18. Flat Rate Packaging
Regional Flat Rate
Packaging
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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!
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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
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21. No!
Yes!
Dimensional Rating
“Every inch of space matters”
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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
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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.
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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
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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
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26. Thank you for joining us
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