January MSMA Web Learning Event

Transcription

1 Welcome to the January MSMA Web Learning Event Join the audio conference by phone: 1) Dial Join the meeting: * 2) Enter conference ID: # * Long distance charges may apply. Register your participation and receive a copy of today s presentation: Jud Thurman at jud.thurman@airmail.net to register you participation in this webinar. Please provide your name, company, and full contact information so we can record your participation. (If you have additional people participating in the webinar on your computer link, provide all names and contact information.) 1

2 January 2014 USPS Price and Regulatory Changes for Mailing and Shipping Services

3 Your presenters Dr. Janet Lockhart-Jones joined Pitney Bowes in September 2012 to fulfill the cross-enterprise role of Curriculum Manager, Postal Education. In this capacity, Janet serves as a postal education trainer, Subject Matter Expert (SME) and consultant to Pitney Bowes and its clients. Janet s professional career includes 15+ years with the United States Postal Service and 10 years as an independent leadership development and learning consultant servicing the hi-tech industry. Janet holds the degrees of Doctor of Education, Master of Science in Human Resources Management and Bachelor of Science in Business. She is the Postal Education Chair of the Sacramento Postal Customer Council (PCC), a member of MSMA, and is a Certified Mailpiece Design Consultant (MDC). Paul Kovlakas 23 year career with Pitney Bowes spans roles in Product Development & Product Management, covering Mail List & Addressing Software and Hardware Solutions, as well as pbsmartpostage, the first entirely cloud based PC Postage mailing and shipping solution in the industry. Paul is currently Director of Postal Relations at Pitney Bowes, responsible for Address Quality & Intelligent Mail Initiatives. Paul holds 9 mailing related patents, currently serves as a member or director in a number of industry associations, and has been an active participant in MTAC (Mailers Technical Advisory Committee) Work Groups, Task Teams and User Groups. He is a member of MSMA, and is a Certified Mailpiece Design Consultant (MDC).

4 Session Objectives Understand 2014 USPS price and regulatory changes impacting the mailing industry Walk-away from the session with greater clarity on how the 2014 proposed changes will affect your mailing operations Understand the changes and opportunities that are available to reduce postage expenditures Looking ahead to the future

5 WHAT S INSIDE Agenda Background Highlights The Details Promotions Intelligent Mail Barcode The Future Resources

6 Classes of Mail Affected Market Dominant First-Class Mail Single-Piece Letters & Cards Presort Letters & 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 (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass

7 Background Proposed Market Dominant Price Adjustments 1. Consumer Price Index-Urban (CPI-U) Price Proposal (Approved w/full-service IMb Exception) Average price increase of 1.69% 2. Exigent or Above-the-Cap Price Proposal (Approved) Average price increase of 4.30% (temporary; less than 2 yrs) 1.69% CPI % Exigent = 5.99% overall average increase Proposed Shipping Services/Competitive Products Price Adjustment) (Approved) Overall price increase is 2.4%

8 NEW: First-Class Meter Rate Save 1 on First-Class letters that have postage affixed using: Postage Meter Permit Imprint PC Postage Pre-canceled stamps No piece minimums No preparation requirement No requirement to report those pieces on a postage statement The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new Meter Price will have postage applied directly to the pieces, and will be deposited as Retail mail.

9 First-Class Mail Change Highlights Retail First-Class Single-Piece one-ounce letter increase From $0.46 to $0.49 cents Metered Mail letters $0.48 Changes to residual First-Class Mail letters price structure The USPS continues to price AADC and 3-Digit Letters and Cards at the same level Second-ounce free continues for all Presort First Class Mail letters (Non-automation and Automation) Full-Service Intelligent Mail barcode $.003 incentive maintained Full-Service Intelligent Mail mandate not approved; delayed until after 2014

10 Special Services Change Highlights 1 Certificate of Mailing January 26, 2014 Basic $1.30 Firm Book Mailing 0.47 Bulk: First 1,000 pcs 7.80 Each Add l 1,000 pcs 0.95 Certified Mail $3.30 Return Receipt Requested at time of mailing Electronic $1.35 Green Card 2.70 Merchandise 4.40 Requested after mailing 5.25

11 Special Services Change Highlights 2 USPS Tracking January 26 th, 2014 First Class Mail (Parcels Only) Retail $1.05 First Class Mail (Parcels Only) Electronic 0.00 First Class Package Service Electronic 0.00 Priority Mail Retail 0.00 Priority Mail Electronic 0.00 Standard Post Retail 0.00 Standard Mail Parcels Electronic 0.23 Package Services Retail 1.05 Package Services Electronic 0.23 Parcel Select Electronic Electronic 0.00 Signature Confirmation January 26, 2014 Electronic $2.35 Retail 2.90

12 Key Details

13 First-Class Mail Retail Letters (1 oz.) $0.46 to $0.49 $0.48 New Metered Mail Rate Letters additional ounces $0.21 First Class Mail International Global Forever Stamp (1 oz.) $1.10 to $1.15 Price change First Class Postcards $0.33 to $0.34

14 Key First-Class Mail Single-Piece Prices *all prices one ounce Current Price January 26, 2014 Stamp Price Metered Price Single-Piece Flats Single-Piece Cards Retail Parcels

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16 First-Class Mail Retail Parcels First 3 ounces in each FCM parcel category still a single price cell $.18 additional ounce price after 3 ounces Oz. Current 26-Jan

17 Commercial Residual Single-Piece Letters: Two Options Mailers may continue using current preparation standards Residual 1oz and 2oz pieces presented in the same tray receive the blended price on those pieces NEW: Mailers have the option of separating out 1oz and 2oz pieces and paying the lower metered rate Weight Not Over (ounces) 26-Jan 1 $ $0.69 Blended $0.50

18 IMb Full- Service Mandate Beginning in January 2014, the USPS is requiring mailers receiving automation discounts to be Full-Service IMb compliant. Full Service Intelligent Mail was proposed to REQUIRED for: Postcards (First-Class Mail only) Letters, and flats when mailed using: First-Class Mail Standard Mail Periodicals Flats mailed at Bound Printed Matter prices

19 Why should I still move forward with Full- Service IMb? It's not going away Leverage the $$$ already spent Save $$$ - reduce your mailing costs Use the barcode intelligence to make information-based business decisions Enhanced Visibility Free Address Change Service Take advantage of cost-saving promotions all require Full-Service IMb participation

20 Promotions Overview Mobile Technology Promotions Encourages mailers to integrate direct mail with mobile technology using best practices in mobile marketing Branded Color Mobile Technology Emerging Technology Featuring NFC Promotion Mail Drives Mobile Commerce Promotion Technology Drives Relevance Leverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns Color Print in First-Class Mail Transactions Promotion Mail and Digital Personalization Promotion

21 Promotions Overview Leverage Value of First-Class Mail Intended to slow the volume decline in First-Class Mail by ensuring reply mail, transactional mail and First-Class advertising remain a relevant part of the First-Class Mail marketing mix Premium Advertising Promotion Earned Value Promotion New Customer Acquisition Provides an extra incentive for new customers to try direct mail EDDM Coupon Promotion

22 Branded Color Mobile Technology Promotion Registration opens December 15 th March 31st Promotion Period: February 1 March 31 st, % upfront discount

23 Promotion Details

24 WHAT S INSIDE Agenda Highlights, details, and cost saving strategies for: First-Class Mail Special Services Shipping/Competitive products Pitney Bowes Resources

25 Shipping Services (Competitive Products) - Classes of Mail Affected Priority Mail Express Priority Mail First-Class Package Service Parcel Select Standard Post Extra Services Return Services Mailer Services Recipient Services

26 Competitive Services Average increases Product Average Increase Priority Mail Express 3.0% Priority Mail Net 0% First Class Package Service 5.0% Parcel Select 9.2% Standard Post 5.2%

27 Shipping Services Change Highlights Priority Mail - Average net ZERO price increase in Retail and CBP New Priority Mail Express 10:30 a.m. delivery time option for an additional $5.00 New Flat Rate Commercial Base and Commercial Plus prices for Priority Mail Express International and Priority Mail International Intelligent Mail Package Barcode required on all commercial parcels A fee of $0.20 assessed on commercial parcels without an Intelligent Mail Package Barcode (IM pb) when the targeted thresholds have been exceeded. (1/27 for Competitive Products, fee and date when assessment begin for Market Dominant TBD)

28 Shipping Services Change Highlights (continued) Meter customers are exempt from the 20-cent surcharge Meter customers must adopt an IMpb compliant solution by January 2015 or lose Commercial Base Pricing (CBP) New labels forthcoming for meter customers. SMS (Text) Tracking Updates

29 Key Details Shipping Services

30 Priority Mail Express Overall average retail price increase of 3% Pricing by Zone, Retail, Commercial Base and Commercial Plus continues Retail Flat Rate Envelope, Legal Flat Rate Envelope, and Padded Flat Rate Envelope is increasing from $19.95 to $ Flat Rate Box price is increasing from $39.95 to $ Optional 10:30 am delivery for a fee of $5.00 (but not available between all origin-destination ZIP codes). A new label is forthcoming from the USPS. Priority Mail Express Hold for Pickup available by 10:30 for no additional charge (not available to all ZIP codes).

31 Priority Mail Overall average net zero (0%) price increase. Many Priority Mail Flat Rates are NOT changing. Exception: Large Flat Rate Box is increasing from $16.85 to $ Commercial Plus and Commercial Plus Cubic volume thresholds being lowered to 50,000 pcs. Free USPS Tracking and $50 insurance continues with Retail or IMpb compliant barcode. Up to $100 of insurance for Commercial Plus.

32 Intelligent Mail Package Barcode (IM pb) Required on ALL Commercial Parcels/Packages $0.20 per piece surcharge for Competitive Products pieces failing to meet the January 26 th standards for IMpb use and falling outside established thresholds. Meter customers are EXEMPT from the surcharge; they have until January 2015 to adopt an IMpb compliant solution. After this date, retail prices apply. Label 400 (existing) or IMpb complaint barcode, or new USPS supplied labels will be accepted from meter customers throughout 2014 and are required for Commercial Base Pricing (CBP). A new label is forthcoming for meter customers to use with Priority Mail

33 Intelligent Mail Package Barcode (IM pb) Exclusions Parcels paid at retail price and inducted through a retail transaction Periodicals parcels Standard Mail Marketing parcels sent as product samples that bear a simplified address or those using a detached address label (DAL) Priority Mail letters and flats using stamps for postage payment and mailpieces using Priority Mail Forever Prepaid Flat Rate packaging. Priority Mail letters and flats prepared in a high-speed environment may, upon authorization, use an Intelligent Mail barcode (IMb ) in lieu of an IMpb provided each of these pieces bear a unique IMb that cannot be reused for 45 days, and are supported by Mail.dat or Mail.XML.

34 Intelligent Mail Package Barcode (IM pb) Certified Mail and Registered Mail Current Legacy barcoded labels can be used during a transition period. USPS releasing color banner-only labels for use when shipment/mailpiece already has a printed IMpb barcoded shipping label.

35 Intelligent Mail Package Barcode (IM pb) Surcharge example:

36 Summary CPI price proposal for Market Dominant Products The new Meter Rate category will afford meter customers a one-cent discount off First-Class stamped letters. Shipping Services/Competitive Products proposal filed. Exigent Price Proposal Full-Service Intelligent Mail mandate for letters and flats was not approved Intelligent Mail package barcode required for all commercial parcels Cost saving alternatives are plentiful

37 USPS news sources you can rely on

38 USPS news sources you can rely on

39 USPS news sources you can rely on

40 THANK YOU.