3. Mailing Services Price Change
Effective Jan. 26, 2014
Total average increase of 6.0% on Market
Dominant products
The Price Cap
CPI: 1.6%
Based on Consumer Price Index
PRC formula a moving average of CPI data
Exigent: 4.3%
3
4. Mailing Services Price Change
Effective Jan. 26, 2014
CPI Rate Case
Regulatory Review
(within)
PRC Filing
Implementation
(within)
45 days
77 days
Sep 26th
PRC Review / Decision
Nov 21st
Prices Change
Jan 26th, 2014
Exigent Rate Case
Regulatory Review
(within)
PRC Filing
90 days
Implementation
(within)
32 days
Sep 26th
PRC Review / Decision
Dec 24th
4
5. Mailing Services Price Change
Effective Jan. 26, 2014
Classification Changes
New price category for First-Class® Metered
Single-Piece
Revision of residual structure in First-Class
Mail ®
Introduces FSS pricing
5
6. Mailing Services Price Change
Effective Jan. 26, 2014
First-Class Meter Rate
Meter Rate of $0.48 for one ounce is available for
Single-Piece mail, whether mailed at retail, or as
residual in a commercial mailing
Available for meter, permit imprint, pre-cancelled
stamps, & PC Postage
Existing requirements for Single-Piece mail remain
unchanged
For permit imprint mailings, the minimum piece
requirement of at least 200 pieces remains
6
7. Mailing Services Price Change
Effective Jan. 26, 2014
Residual Mail
First-Class Mail® Letters Residual Mail
changes for January 2014:
►Blended rate of $0.50 for mailings containing
1 oz. and 2 oz. pieces
►Option to separate pieces by weight and pay
prevailing Single-Piece prices
►$0.48 for 1 oz.
►$0.69 for 2 oz.
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8. Mailing Services Price Change
Effective Jan. 26, 2014
Flats Sequencing System (FSS) Pricing
Establishes DFSS (FSS Facility) Entry Rate
Structure
►For approximately 50% of FSS zones, the
SCF is not an FSS site
Periodicals
►No pallet charge for scheme pallets entered
at DFSS
Standard Flats
►$0.001 per piece discount for pieces on
DFSS-entered scheme pallets
8
9. Mailing Services Price Change
Effective Jan. 26, 2014
Full Service IMb® Incentives Remain in Place
First-Class Mail®: $0.003
Standard Mail®: $0.001
Periodicals: $0.001
Bound Printed Matter Flats: $0.001
9
16. Mailing Services Price Change
Effective Jan. 26, 2014
Standard Mail®
5.9% overall increase
Product
Percent
Change
Letters
5.9%
Flats
6.2%
Carrier Route Letters, Flats, and Parcels
6.0%
High Density / Saturation Letters
5.6%
High Density / Saturation Flats and Parcels
5.7%
Parcels
6.2%
EDDM-Retail
9.4%
16
17. Mailing Services Price Change
Effective Jan. 26, 2014
Key Standard Mail Prices
Current
Price
New
Price
Percent
Change
Letters
0.247
0.261
5.7%
Flats
0.362
0.386
6.6%
(Flat entered at Origin)
0.279
0.295
5.7%
High Density/Saturation
Letters
0.189
0.198
4.8%
High Density/Saturation
Flats
0.201
0.211
5.0%
0.160
0.175
9.4%
(5-Digit Auto entered at Origin)
(5-Digit Auto Flat entered at Origin)
Carrier Route
(Saturation Letter entered at Origin)
(Saturation Flat entered at Origin)
EDDM-Retail
17
18. Mailing Services Price Change
Effective Jan. 26, 2014
Standard Mail®
Detached Address Labels (DALs)
Price increases to 3.4 cents from 3.1 cents
18
19. Mailing Services Price Change
Effective Jan. 26, 2014
Standard Nonprofit Mail®
The average revenue per piece from Nonprofit
“products” must equal, as nearly as practicable,
60 percent of the average revenue per piece for
commercial Standard Mail
USPS continues to make every effort to keep the
nonprofit discounts equal to commercial
discounts
19
20. Mailing Services Price Change
Effective Jan. 26, 2014
Key Standard Nonprofit Mail Prices
Current
Price
New
Price
Percent
Change
0.135
0.143
5.9%
0.216
0.237
9.7%
(Flat entered at Origin)
0.202
0.216
6.9%
High Density/Saturation
Letters
0.115
0.121
5.2%
0.126
0.131
4.0%
Letters
(5-Digit Auto entered at Origin)
Flats
(5-Digit Auto Flat entered at Origin)
Carrier Route
(Saturation Letter entered at Origin)
High Density/Saturation
Flats
(Saturation Flat entered at Origin)
20
21. Mailing Services Price Change
Effective Jan. 26, 2014
Periodicals
Percent
Change
Barcoded Machinable Flats Carrier Route
Basic
(Piece Rates)
6.2%
Barcoded Machinable Flats 5-Digit (Piece
Rates)
5.8%
Outside County
5.9%
Inside County
6.0%
Note: No individual publication prices will increase greater than 7.5%.
21
23. Mailing Services Price Change
Effective Jan. 26, 2014
Extra Services
6.9% overall increase
Product
Percent Change
PO Boxes™
6.9%
Certified Mail®
6.5%
Return Receipt
6.1%
Registered Mail™
6.3%
Insurance
7.8%
COD
8.4%
All Other
7.8%
23
24. Mailing Services Price Change
Effective Jan. 26, 2014
2014 Proposed Promotions
Mobile Technology Integration
►
Build upon previous promotions and continue strategy to encourage
mailers to integrate direct mail with mobile technology
Technology Drives Relevance
►
Leverage the value of innovative direct mail techniques that are
effective but less widely used
Leverage Value of First-Class Mail®
►
Promotions intended to slow the declining volume trends and ensure
reply mail and FCM advertising remain a relevant part of the FCM
mix
New Customer Acquisition
►
Program to provide incentive for new small business customers to
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try direct mail
Pending USPS and PRC approval
25. JAN – FEB - MARCH
FIRST-CLASS MAIL
Mailing Services Price Change
Effective Jan. 26, 2014
APRIL – MAY - JUNE
JULY – AUG - SEPT
OCT – NOV - DEC
Earned Value Promotion
Color Print in First-Class Mail
Transactions Promotion
Promotion Period
April 1 – June 30
Promotion Period
Aug 1 – Dec 31
STANDARD AND FIRST-CLASS MAIL Mail and Digital Personalization Promotion
Branded Color Mobile
Technology Promotion
Promotion Period
Feb 1 – March 31
Promotion Period
May 1 – June 30
Premium Advertising Promotion
*mail prepared/ presented as FCM
Promotion Period
April 1 – June 30
STANDARD MAIL
Emerging Technology Featuring NFC Promotion
Promotion Period
Aug 1 – Sept 30
Mail Drives Mobile
Commerce Promotion
Promotion Period
Nov 1 – Dec 31
EDDM MAIL
EDDM Coupon Program
Tentative Program Period
March 1 – Dec 31
All promotions are subject to PRC approval.
26. Mailing Services Price Change
Effective Jan. 26, 2014
Resources
Online
Postal Explorer® ─ pe.usps.com
Current and new prices
Including downloadable price files
Federal Register notices
Domestic Mail Manual & International Mail Manual
DMM Advisory ─ posted on Postal Explorer, also
special e-mail updates
®
26
27. Mailing Services Price Change
Effective Jan. 26, 2014
Shipping Services
Domestic products
Priority Mail Express™
Priority Mail®
Parcel Select®
Parcel Return Service
First-Class Package Service®
Standard Post™
Other Competitive Offerings
27
28. Mailing Services Price Change
Effective Jan. 26, 2014
Shipping Services (cont’d)
International products
Global Express Guaranteed® (GXG®)
Priority Mail Express International™
Priority Mail International®
First-Class Package International Service®
International Priority Airmail® (IPA®)
International Surface Air Lift® (ISAL®)
Airmail M-Bag®
Competitive Extra Services
28
29. Mailing Services Price Change
Effective Jan. 26, 2014
Domestic Shipping Services
Product
Overall Average
Increase
Priority Mail Express
3.0%
Priority Mail
0.0%
Parcel Select
9.2%
Parcel Return Service
3.0%
First-Class Package
Service
5.0%
Standard Post
5.2%
29
31. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail Express ─ new Zone 9
For Freely Associated States (FAS)
Palau, Micronesia, Marshall Islands
Separate zone to align price with cost of
transportation
31 31
34. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail ─ Retail Prices
Average Retail Increase ─ 0.0%
Flat Rate Envelopes
Regular $ 5.60
Legal
$ 5.75
Padded $ 5.95
Flat Rate Boxes
Small
$ 5.80
Medium $12.35
Large
$17.45
Large APO/FPO/DPO $15.45
34 34
35. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail ─ new Zone 9
For Freely Associated States (FAS)
Palau, Micronesia, Marshall Islands
Separate zone to align price with cost of
transportation
35 35
36. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail ─ Commercial Base Prices
Regional Rate Box
Approved payment methods required
Price based on box and zone
Regional Rate Box A
15-pound maximum, starts at $5.32
Regional Rate Box B
20-pound maximum, starts at $6.16
Regional Rate Box C
25-pound maximum, starts at $15.25
Additional $0.75 fee when deposited at Retail
Commercial Plus mailers also qualify
36 36
37. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail ─ Commercial Plus Prices
Prices increase on average 0.0%
Average 14.3% below Retail prices
Prices start at $4.58
Account volume thresholds apply
Regional Rate Box also available
Annual account volume thresholds do not apply
Postage paid at Commercial Base prices
37
38. Mailing Services Price Change
Effective Jan. 26, 2014
Priority Mail ─ Commercial Plus Cubic Prices
Price based on cubic measurement and zone
Five price tiers starting at $4.58
New! Lower account volume threshold
Cubic soft pack
Priority Mail Open and Distribute®
Only tray boxes entered at Priority Mail Commercial Plus prices are charged based on the
tray box and zone to which sent rather than weight and zone
38 38
40. Mailing Services Price Change
Effective Jan. 26, 2014
Parcel Return Service
Overall Average Increase
3.0%
Average Increase by Category
Return Network Distribution Center (RNDC)
0.0%
Return Sectional Center Facility (RSCF)
0.0%
Return Delivery Unit (RDU)
5.7%
PRS–Full Network
0.0%
40 40
41. Mailing Services Price Change
Effective Jan. 26, 2014
First-Class Package Service
Overall average increase is 5.0%
Commercial Base and Commercial Plus pricing
Free USPS Tracking and confirmation of delivery with Intelligent Mail package barcode (IMpb)
®
41 41
42. Mailing Services Price Change
Effective Jan. 26, 2014
Standard Post
Overall average price increase is 5.2%
Free USPS Tracking
New! Zones 1-4 upgraded to Priority Mail*
* except for HAZMAT and live animals
A “Retail” product with payment by stamps or meter; deposited at Retail counter or Package Pickup
42 42
43. Mailing Services Price Change
Effective Jan. 26, 2014
International Shipping Services
Global Express Guaranteed (GXG)
Priority Mail Express International
Priority Mail International
First-Class Package International Service
International Priority Airmail (IPA)
International Surface Air Lift (ISAL)
Direct Sacks of Printed Matter to One Addressee
(Airmail M-bags)
International Extra Services
43
44. Mailing Services Price Change
Effective Jan. 26, 2014
Global Express Guaranteed (GXG)
Average Overall Increase
Commercial Base Price
3.0%
Lower than Retail by up to 13%
Commercial Plus pricing
Annual revenue commitment required
Prices lower than Retail by up to 20%
Global Expedited Package Services – NonPublished Rates (GEPS – NPR) contracts
44
45. Mailing Services Price Change
Effective Jan. 26, 2014
First-Class Package International Service
Average Overall Increase
Commercial Base Price
0.8%
Lower than Retail by up to
14%
Commercial Plus pricing
Prices lower than Retail by up to 19%
E-USPS DELCON INTL™ available to 12 more countries
Eligible for Package Pickup or Pickup On Demand
service
45
46. Mailing Services Price Change
Effective Jan. 26, 2014
Other International Mail Changes
Product
Average Overall Increase
Airmail M-Bag
2.9%
International Priority Airmail (IPA)
-2.5%
International Surface Air Lift (ISAL)
-2.9%
Not all IPA and ISAL mail flown to destination country
Number of price groups increases to 20
Price groups 1-14 shape-based pricing
Separate containers for each shape (post cards & letters;
flats; packages)
Weight limits for flat-size and package-size items change
Minimum weight for direct country price tier decreases
Permanently suspend service to Cuba, Iran, North Korea, Sudan,
Syria
46
47. Mailing Services Price Change
Effective Jan. 26, 2014
Resources
Postal Explorer® ─ pe.usps.com
Current and new prices
downloadable price files
Federal Register notices
link to the Postal Bulletin
Domestic Mail Manual (DMM®) and International Mail
Manual (IMM®)
DMM Advisory – posted on Postal Explorer
Also special email updates. Subscribe via e-mail:
dmmadvisory@usps.com
47