At this session, we will be discussing items that you need to consider including rates, service standards, additional mail classes, contracting as well as tips on negotiating for the future. Since 2013, Postal Advocate Inc. has helped their clients save an average of 60% and over $49 million on equipment, fees and lost postage.

1. How To Pre-Check Your Presort

2. Background and Experience
Speaker: Adam Lewenberg
• President of Postal Advocate Inc.
– The only mail audit and recovery firm in the US and Canada
– Manage a portfolio of 134,000 pieces of mailing equipment for the largest
US companies.
– Speak and teach nationally on mail savings and industry trends.
• Former Industry Co Chair- Boston Postal Customer Council and Mail Systems
Management Association. 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.
March 6, 2019 2

3. What We’ll Cover:
1. How do Presort services work?
2. How do we get the best rates?
3. Do we have the best service levels?
4. What other classes of mail can be processed?
5. Tips on negotiating for the future
6. What are additional ways to save money?
March 6, 2019 3

4. How Presort Services Work
• Revenue split arrangement with the customer and the USPS®
• Sort to the highest sort level possible and the USPS pays the difference in a Value-
Added Rebate (VAR)
– 150 Pieces+ to a 5 Digit Zip Code
– 150 Pieces to an AADC (Grouping of 3 Digit Zip Codes)
– 150 Pieces to a Mixed AADC (All other zip codes)
March 6, 2019 4
Class Weight
Single
Piece
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit Auto 5 Digit
Non
Discounted
Rate
Letter 1 $0.500 $0.459 $0.428 $0.412 $0.383 $0.041 $0.072 $0.088 $0.500 $0.117 $0.076 $0.045 $0.029
Maximum Presort Service RevenueMaximum SavingsPostage Rate
Typical Client Rate
Final Rate Paid by
Presort Service Client Savings
Total Potential
Presort Service
Revenue Per Piece

5. How Presort Services Determine Rates
• Higher volume mailers receive a larger % of the savings
Items that determine your rate:
• Mail volumes
• Frequency of mailings
• Where are the pieces going
• Transportation costs to pick up your mail
• Machine read rates
• # of Presort providers in your area
• Volume of mail the presort service is able to sort to a 5
digit vs. AADC.
March 6, 2019 5

6. Savings get larger as items get heavier
March 6, 2019 6
Class Weight
Single
Piece
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit Auto 5 Digit
Non
Discounted
Rate
Letter 1 $0.500 $0.459 $0.428 $0.412 $0.383 $0.041 $0.072 $0.088 $0.500 $0.117 $0.076 $0.045 $0.029
Letter 2 $0.650 $0.459 $0.428 $0.412 $0.383 $0.191 $0.222 $0.238 $0.650 $0.267 $0.076 $0.045 $0.029
Letter 3 $0.800 $0.459 $0.428 $0.412 $0.383 $0.341 $0.372 $0.388 $0.800 $0.417 $0.076 $0.045 $0.029
Letter 3.5 $0.950 $0.459 $0.428 $0.412 $0.383 $0.491 $0.522 $0.538 $0.950 $0.567 $0.076 $0.045 $0.029
Flat 1 $1.000 $0.799 $0.727 $0.644 $0.605 $0.486 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 3 $1.300 $1.099 $1.027 $0.944 $0.905 $0.786 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 5 $1.600 $1.399 $1.327 $1.244 $1.205 $1.086 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 7 $1.900 $1.699 $1.627 $1.544 $1.505 $1.386 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 9 $2.200 $1.999 $1.927 $1.844 $1.805 $1.686 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 11 $2.500 $2.299 $2.227 $2.144 $2.105 $1.986 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 13 $2.800 $2.599 $2.527 $2.444 $2.405 $2.286 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Maximum Presort Service RevenueMaximum SavingsPostage Rate
Typical Client Rate
Final Rate Paid by
Presort Service Client Savings
Total Potential
Presort Service
Revenue Per Piece

7. The Savings Can Add Up!
• This is just an example: Presort rates can vary greatly
by area, provider and client.
March 6, 2019 7
Annual Letter
Volume
Typical
Savings per
piece
Total
Savings
Annual Flats
Volume
Typical
Savings
Total
Savings
Combined
Savings
50,000 $0.03 $1,500 5,000 $0.20 $1,000 $2,500
100,000 $0.04 $4,000 10,000 $0.20 $2,000 $6,000
250,000 $0.04 $10,000 25,000 $0.20 $5,000 $15,000
500,000 $0.04 $20,000 50,000 $0.23 $11,500 $31,500
1,000,000 $0.05 $45,000 100,000 $0.25 $25,000 $70,000
5,000,000 $0.05 $250,000 500,000 $0.25 $125,000 $375,000
10,000,000 $0.06 $600,000 1,000,000 $0.27 $270,000 $870,000
25,000,000 $0.07 $1,750,000 2,500,000 $0.30 $750,000 $2,500,000

8. How do we get the best rates?
• Since rate change, First-Class Mail® single piece metered letters
had a $.03 increase
• The corresponding presort rates only increased by $.001-.005. This
is $.025-.029 per piece in additional added presort value!
– If your rates went up by more that $.005 your presort service is making
more from your mail!
March 6, 2019 8
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 Increase % Increase
Prior to
01/27/19
New
Rates
01/27/19 Increase % Increase
Prior
Presort
Savings
Presort
Savings
Additional
Presort
Value
Automation 5 Digit 1 $0.378 $0.383 $0.005 1.3% $0.470 $0.500 $0.030 6.4% $0.09 $0.117 $0.025
Automation AADC 1 $0.408 $0.412 $0.004 1.0% $0.470 $0.500 $0.030 6.4% $0.062 $0.088 $0.026
Automation Mixed AADC 1 $0.424 $0.428 $0.004 0.9% $0.470 $0.500 $0.030 6.4% $0.046 $0.072 $0.026
Presorted (Non Automation) 1 $0.458 $0.459 $0.001 0.2% $0.470 $0.500 $0.030 6.4% $0.012 $0.041 $0.029
Weight
Ounces
Prior to
01/27/19
New Rates
01/27/19 Increase % Increase
Prior to
01/27/19
New
Rates
01/27/19 Increase % Increase
Prior
Presort
Savings
Presort
Savings
Additional
Presort
Value
Automation 5 Digit 1 $0.474 $0.486 $0.012 2.5% $1.000 $1.000 $0.000 0.0% $0.53 $0.514 -$0.012
Automation AADC 1 $0.632 $0.644 $0.012 1.9% $1.000 $1.000 $0.000 0.0% $0.526 $0.514 -$0.012
Automation Mixed AADC 1 $0.705 $0.727 $0.022 3.1% $1.000 $1.000 $0.000 0.0% $0.368 $0.356 -$0.012
Presorted (Non Automation) 1 $0.799 $0.799 $0.000 0.0% $1.000 $1.000 $0.000 0.0% $0.295 $0.273 -$0.022
Commercial Letters Single Piece Metered Letter
Flats*
First-Class Mail®
Single Piece Flats

9. Invoice Review – Calculate Your Rate
• Metered mail rate – What do you post a 1-ounce piece of mail going
to the presort service?
• +/- Fee or Refund per piece provided by the presort service.
• + Average additional fee charged per piece. You need to look at any
miscellaneous fees tied to the piece (Reject Fees, processing fees,
pickup fees, etc.) and divide them by the total monthly pieces to get
an average piece rate.
• Example: 2000 letters per day
– Metering Mail at the Mixed AADC rate of $.428
– Charged $.012 per piece for presorting
– Charged $.01 per piece for a mail reject fee
– Charged $20 per day for mail pick up.
– Total Per Piece = $.45 + $.01 ($20/2000 Pieces) = $.46 – Savings of $.04 per piece
March 6, 2019 9

10. Presort Service Levels
• Pick-Up Time – Do you have the best pick-up time?
• Day Delay – What time is your mail entering the postal
system?
• Address Quality Issues – Does your presort service
provide you with a report from their FASTForward®
system so you can update your address records?
• MPTQM Certifications – What level of certification does
your presort service have?
• Security Procedures – Is your mail being processed in a
secure environment? Why is this important?
March 6, 2019 10

11. What other classes of mail can be processed?
1. First-Class Mail® Flats
▪ Non-Handwritten pieces 7-12 oz.
▪ USPS does not offer the Value-Added Rebate (VAR) for flats
March 6, 2019 11
TIP: Combine
your letter and
flat volumes
when negotiating
rates and
determining
eligibility
Class Weight
Single
Piece
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit
Auto 5
Digit
Presorted
(Non
Auto)
Auto
Mixed
AADC
Auto
AADC
Auto 3
Digit Auto 5 Digit
Non
Discounted
Rate
Flat 1 $1.000 $0.799 $0.727 $0.644 $0.605 $0.486 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 3 $1.300 $1.099 $1.027 $0.944 $0.905 $0.786 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 5 $1.600 $1.399 $1.327 $1.244 $1.205 $1.086 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 7 $1.900 $1.699 $1.627 $1.544 $1.505 $1.386 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 9 $2.200 $1.999 $1.927 $1.844 $1.805 $1.686 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 11 $2.500 $2.299 $2.227 $2.144 $2.105 $1.986 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Flat 13 $2.800 $2.599 $2.527 $2.444 $2.405 $2.286 $0.201 $0.273 $0.356 $0.395 $0.514 $0.313 $0.241 $0.158 $0.119
Maximum Presort Service RevenueMaximum SavingsPostage Rate
Typical Client Rate
Final Rate Paid by
Presort Service Client Savings
Total Potential
Presort Service
Revenue Per Piece
No VAR for Flats – Must meter at
the correct rate and charge an
invoice for the service fee.

12. What other classes of mail can be processed?
2. Marketing Mail
▪ Based on destination entry discounts earned by moving mail
closer to the final destination
▪ Presort service gets the mail to the right Destination Network
Distribution Center (DNDC) or Destination Sectional Center
Facility (DSCF)
March 6, 2019 12

13. What other classes of mail can be processed?
3. International Mail
– Many presort services will have partnerships with international
mailing services. Here are the most common models:
• Drop ship mail to the origin country’s postal system for reduced
rates
• Use discounted USPS services to send international mail.
4. Package Services
– This is the fastest growth segment and many presort services
are starting to offer.
• Move packages closer to their final destination to be able to take
advantage of local zones
• Use lower priced services such as Parcel Select and vs. Priority
Mail and have the USPS deliver the “Final Mile” where they have
the best rates and services.
March 6, 2019 13

14. Tips for saving money
• What can you do to make your mail easier for the presort service
that can get you better rates?
– Earlier pickup times
– Next day dating vs. same day
– Less frequent pickups
– Higher volumes of mail
– More classes of mail on a single pickup – Letters, Flats, International, Packages
– Cleaner mail – Less handwritten, validation process of your addresses.
• What other services can your presort service offer?
– Metering mail
– Mail fulfillment – Printing and preparing mail
• Review your rates annually with each USPS Increase
March 6, 2019 14

15. Additional Ways To Save Money
• Gain Visibility to your Mail – The only way to save is to improve your visibility to
your mail:
– What you are sending – Quantity, Frequency, Mail Types, Mail Issues
– Access to Presort Service Vendor Portal
– Review weekly/monthly invoices
– Compare billing to contract terms
• Consider Barcoding Yourself – Simple software can allow you to comply with postal
rules.
• Look at Your Outsourced Mailings - Many of these mailings may be going through
a presort service. Can you use your own contract for presort to get the biggest
discounts.
• Consider Your National Footprint – Can you use presort at locations currently full
rating their mail?
• Run an RFP For Presort Services – To make sure you are getting the best rates
and service levels.
• Outside Expertise – To find savings that may have been missed.
March 6, 2019 15

16. Summary
• Presort is the best and easiest way to save money on postage.
• It is important to understand how Presort Services work, thresholds,
revenue and savings.
• Visibility is key to optimizing the category.
• Multiple mail classes, locations, and service offerings can expand
the savings opportunity.
• There can be huge variances in the mail rates clients receive.
• Outside expertise can optimize this category and manage the detail
for the future.
March 6, 2019 16

17. Upcoming 2019 Webinars
March 6, 2019 17
Register at www.postaladvocate.com
Upcoming Webinars Date Time
Enterprise PC Postage - Round 3 - PC
Postage vs Postage Meters - The Evolution
of Mail April 11:00AM EST
Top 10 Ways for Enterprise To Save on Mail
Cost May 11:00AM EST
Top 9 Ways To Recover Lost Postage June 11:00AM EST
FASB - The New Standard and Gaining
Visibility to Your Mailing Fleet September 11:00AM EST
Top 10 Ways To Manage Enterprise Mailing
Spends Across the Enterprise October 11:00AM EST
Everything You Need to Know When Buying
Mail Equipment November 11:00AM EST
Budgeting for the 2020 Rate Change December 11:00AM EST

18. Helping multi-location
organizations streamline
their mailing costs
Over 134,000 pieces of
equipment, managed
by Postal Advocate
Recovered over
$12,000,000
in lost postage, vendor
overcharges and fees
ENTERPRISE-WIDEMAILAUDITANDRECOVERY
OVER $49,000,000 IN CLIENT SAVINGS
$1.5M
60%
Average Client
Savings
Average Equipment
Savings
HOW WE DO IT
• 230+ 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 6, 2019 21
Questions?
Contact: Adam Lewenberg - President
888-977-MAIL X 501
adam.lewenberg@postaladvocate.com

22. March 6, 2019 22