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2013 USPS
          Updates
                +



           Rich Cicha
Director, Client Postal Solutions
2013 Postage Rate Increase
PAEA requirement – Rates cannot go up on average more than CPI



                               • Prices for all products
                                 (Mailing and Shipping
                                 services) will increase by
                                 4-percent
                               • Prices for Mailing
                                 Services, such as regular
                                 letters and advertising
                                 matter, will increase only
                                 2.6-percent



                                                                 2
2013 Postage Rate Increase


Average increase of 2.57%
Highlights of the increase:
• Letters (1oz.) – 1-cent increase to
  46 cents
• Letters additional ounces –
  unchanged at 20 cents
• Letters to all international
  destinations (1oz.) - $1.10
• Postcards – 1-cent increase to 33
  cents




                                        3
How can you minimize the increase?
       Post Mailing Solutions can help…



                       • Take advantage of drop-
                         shipping discounts
                       • Consider commingling

                       • Consider co-palletization
                         and/or co-mailing




                                                     4
Other ways to keep costs down?
    Take advantage of the promotions being offered by the
                        USPS in 2013

•   Mobile Coupon and Click to Call
•   Earned value Reply Mail
•   Emerging Technologies
•   Picture Permit
•   Product Samples
•   Mobile “Buy it Now”




                                                            5
Mobile Coupon and Click to Call

• Mobile Coupon
• Click to Call
• 2% upfront discount

Registration- Jan 15- April 30
Program Period- March 1-
April 30




                                        6
Earned Value Reply Mail

            • Credit for BRM and
              CRM counted
            • Registered permits
              required
            • .o2 per piece discount

            Registration- Jan 1- March 30
            Program Period- April 1- June 30




                                               7
Emerging Technologies

            • Near-Field
              Communication
            • Augmented Reality
            • Authentication
            • 2% overall discount

            Registration begins June 1
            Program Period- Aug 1- Sept 30




                                        8
9
Picture Permit

     • Customized Permit
       Indicia
     • Pre-testing and design
       approval required
     • Per piece fee waived

     Registration Begins June 1
     Program Period- Aug 1- Sept 30
     6 month lead time recommended


                                      10
Product Samples


• Mail containing
  product samples
• Trial size to incite
  purchase
• 5% off eligible postage

Registration begins May 1
Program Period- Aug 1- Sept 30


                                 11
Mobile Buy it Now

     • Mobile barcode to
       mobile optimized site
     • Tangible items shipped
       via USPS
     • 2% off total purchase

     Registration begins Sept 15
     Program Period- Nov 1- Dec 31




                                     12
Extensive Postal losses
The USPS reported losses of over 16 Billion
            Dollars in 2012


                         What will this
                         mean about
                         the future of
                          the USPS?


                                          13
Extensive Postal losses

• $11.1 billion from prefunding
  retiree health benefits
• Prefunding – 70% of net loss
• $13.4 billion outside the control
  of the Postal Service
• But… Revenue from package
  service business increased by
  $926 million



                                      14
What can be done?
 • Congress pass comprehensive legislation to
   move the Postal Service toward financial
   health
 • Provide business mailers with new
   opportunities to connect
   with customers in a more
   individualized way.
• Allow USPS to determine
   delivery frequency

                                            15
What can be done?
• Allow USPS to offer
  non-postal products
  and services
• Develop a more
  streamlined
  governance model
  for USPS
• Resolving the overfunding of the Postal
  Service’s obligation to the Federal
  Employees’ Retirement System (FERS).
                                            16
17
18
19
20
Network Rationalization
    What potential hurdles are there?


                     Delivery uncertainty

                     Changes in Service Standards

                     Campaign planning affected

                     What to do??




                                                  21
Mail Tracking is becoming more
important than ever during this
      era of consolidation




                                  22
Tracking by Drop Ship Location
                                 23
Individual Scan Detail




                         24
Liked what you heard?

  Please visit us at
www.sourcelink.com
for all things Postal




                        25

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2013 USPS Updates

  • 1. 2013 USPS Updates + Rich Cicha Director, Client Postal Solutions
  • 2. 2013 Postage Rate Increase PAEA requirement – Rates cannot go up on average more than CPI • Prices for all products (Mailing and Shipping services) will increase by 4-percent • Prices for Mailing Services, such as regular letters and advertising matter, will increase only 2.6-percent 2
  • 3. 2013 Postage Rate Increase Average increase of 2.57% Highlights of the increase: • Letters (1oz.) – 1-cent increase to 46 cents • Letters additional ounces – unchanged at 20 cents • Letters to all international destinations (1oz.) - $1.10 • Postcards – 1-cent increase to 33 cents 3
  • 4. How can you minimize the increase? Post Mailing Solutions can help… • Take advantage of drop- shipping discounts • Consider commingling • Consider co-palletization and/or co-mailing 4
  • 5. Other ways to keep costs down? Take advantage of the promotions being offered by the USPS in 2013 • Mobile Coupon and Click to Call • Earned value Reply Mail • Emerging Technologies • Picture Permit • Product Samples • Mobile “Buy it Now” 5
  • 6. Mobile Coupon and Click to Call • Mobile Coupon • Click to Call • 2% upfront discount Registration- Jan 15- April 30 Program Period- March 1- April 30 6
  • 7. Earned Value Reply Mail • Credit for BRM and CRM counted • Registered permits required • .o2 per piece discount Registration- Jan 1- March 30 Program Period- April 1- June 30 7
  • 8. Emerging Technologies • Near-Field Communication • Augmented Reality • Authentication • 2% overall discount Registration begins June 1 Program Period- Aug 1- Sept 30 8
  • 9. 9
  • 10. Picture Permit • Customized Permit Indicia • Pre-testing and design approval required • Per piece fee waived Registration Begins June 1 Program Period- Aug 1- Sept 30 6 month lead time recommended 10
  • 11. Product Samples • Mail containing product samples • Trial size to incite purchase • 5% off eligible postage Registration begins May 1 Program Period- Aug 1- Sept 30 11
  • 12. Mobile Buy it Now • Mobile barcode to mobile optimized site • Tangible items shipped via USPS • 2% off total purchase Registration begins Sept 15 Program Period- Nov 1- Dec 31 12
  • 13. Extensive Postal losses The USPS reported losses of over 16 Billion Dollars in 2012 What will this mean about the future of the USPS? 13
  • 14. Extensive Postal losses • $11.1 billion from prefunding retiree health benefits • Prefunding – 70% of net loss • $13.4 billion outside the control of the Postal Service • But… Revenue from package service business increased by $926 million 14
  • 15. What can be done? • Congress pass comprehensive legislation to move the Postal Service toward financial health • Provide business mailers with new opportunities to connect with customers in a more individualized way. • Allow USPS to determine delivery frequency 15
  • 16. What can be done? • Allow USPS to offer non-postal products and services • Develop a more streamlined governance model for USPS • Resolving the overfunding of the Postal Service’s obligation to the Federal Employees’ Retirement System (FERS). 16
  • 17. 17
  • 18. 18
  • 19. 19
  • 20. 20
  • 21. Network Rationalization What potential hurdles are there? Delivery uncertainty Changes in Service Standards Campaign planning affected What to do?? 21
  • 22. Mail Tracking is becoming more important than ever during this era of consolidation 22
  • 23. Tracking by Drop Ship Location 23
  • 25. Liked what you heard? Please visit us at www.sourcelink.com for all things Postal 25