January 2009 USPS Price Change
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1 1 January 2009 USPS Price Change Endicia 247 High Street Palo Alto, CA x140
2 Agenda 2 Price Change Overview 2009 price changes Rate tiers New flat rate box The Details Express Mail Price change and rule changes Priority Mail Price change and rule changes Flat rate box Endicia Updates
3 Timing 3 Q. Last year the U.S. Postal Service changed its prices in May. Why is it happening in January this year? A. To be consistent with industry practices, the U.S. Postal Service is doing a price change at this time for its Shipping Services ONLY. This will allow shippers to do a better comparison of the U.S. Postal Service to other available shipping carriers. Mailing prices, including stamp prices and extra services, will still be changed in May.
4 Keeping Prices Under Control 4 FedEx UPS U.S. Postal Service - Retail Overnight 6.9% 6.9% 5.7% 2-3 Day 6.9% 6.9% 3.9% Ground 5.9% 5.9% 5.9% Information based on published rate increase information from FedEx, UPS, and the U.S. Postal Service websites.
5 Price Change Overview 5 USPS Shipping Services: Express Mail Priority Mail Express Mail International Priority Mail International
6 Price Change Overview 6 Volume incentives: Commercial Plus pricing, a new deeply discounted tier, replaces the current Express Mail volume rebates Shippers can qualify for Commercial Plus discounts on Priority Mail and/or Express Mail (domestic) Shippers now get their discounts immediately, instead of waiting until the end of the quarter Other Changes: Deeper discounts for Commercial Base pricing tier New Small Flat Rate Priority Mail Box
7 Price Change Overview 7 Pricing Definitions: Retail Pricing The standard counter price for postage at the Post Office. Commercial Base Pricing The discounted price available to online postage users, including Endicia customers. Commercial Plus Pricing Deeply discounted prices available to high volume shippers of domestic Priority Mail and Express Mail, including Endicia customers.
8 Express Mail Changes 8 Commercial Base saves 5% over retail! Express Mail Change (avg.) Retail + 5.7% Commercial Base + 3.7%
9 Express Mail Changes 9 Commercial Plus saves 14.5% over retail! Express Mail Commercial Plus Discounts 14.5% discount over retail Replaces volume rebates with up front discount Qualification 6,000 domestic Express Mail pieces during the prior 4 quarters Customer Commitment agreement with the USPS
10 Express Mail Illustration 10 Package Retail Commercial Base 1 lb., 8 zones $25.15 $23.89 You save $1.26! 3 lbs., 4 zones $29.85 $28.36 You save $1.49! Commercial Plus $21.50 You save $3.65! $25.52 You save $4.33! Flat Rate Envelope $17.50 $16.63 You save $0.87 $14.96 You save $2.54! Savings over U.S. Postal Service Retail Prices.
11 Express Mail Savings Over Time 11 Express Mail 3 lbs., Online Commercial Pricing Savings* Packages Shipped Per Business Day Savings Per Month Savings Per Year 1 $27.60 $331 5 $138 $1, $276 $3,312 25** $2010 $24,120 *Savings over U.S. Postal Service Retail prices based on 5 business days/week, 4 weeks/month. **Illustrates Commercial Plus Pricing discount for high volume Express Mail shippers.
12 Express Mail International Changes 12 Commercial Base saves 8% over retail!* Express Mail International Change (avg.) Retail + 8.5% The number of Country Price Groups will also expand from 9 to 10 Group 10 consists of Australia and New Zealand * No Stealth Postage Needed
13 Priority Mail Changes 13 Commercial Base saves average 4.7% over retail! Priority Mail Change (avg.) Retail + 3.9%
14 Priority Mail Changes 14 Commercial Plus saves average 7% over retail! Priority Mail Commercial Plus Discounts Average 7% discount over retail Qualification 100,000 domestic Priority Mail pieces during the prior calendar year OR 600 Priority Mail Open and Distribute containers in the prior calendar year Customer Commitment agreement with the USPS
15 Priority Mail Illustration 15 Package Retail Commercial Base Commercial Plus 7 lbs., 4 zones $12.05 $11.14 $10.90 Flat Rate Envelope $4.95 $4.80 $4.75 Small Flat Rate Box $4.95 $4.80 $4.75 Flat Rate Box $10.35 $9.85 $9.67 Large Flat Rate Box $13.95 $13.50 $13.27 Large APO/FPO Box $11.95 $11.50 $11.30
16 Priority Mail Savings Over Time 16 Priority Mail 2 lbs., Online Commercial Pricing Savings* Packages Shipped Per Business Day Savings Per Month Savings Per Year 1 $19.80 $237 5 $99 $1, $198 $2, $1,980 $23, ** $9,680 $116,160 *Savings over U.S. Postal Service Retail prices based on 5 business days/week, 4 weeks/month. Savings includes $0.65 per package for free Delivery Confirmation for Priority Mail using an approved online PC Postage vendor. **Illustrates Commercial Plus Pricing discount for high volume Priority Mail shippers.
17 Priority Mail International Changes 17 Commercial Base saves 5% over retail!* Priority Mail International Change (avg.) Retail + 8.5% The number of Country Price Groups will also expand from 9 to 10 Group 10 consists of Australia and New Zealand * No Stealth Postage Needed
18 Priority Mail Changes 18 Priority Mail Small Flat Rate Box 8 5/8 x 5 3/8 x 1 5/8 (about the size of video cassette) Delivery Confirmation is free when using online postage Can be used Domestically or Internationally Prices the same as PM Flat Rate Envelope Lowest-cost Flat Rate option
19 Priority Mail Changes 19 Priority Mail Small Flat Rate Box Pricing Retail Commercial Domestic $4.95 $4.80 Canada and Mexico* $10.95 $10.40 All other countries* $12.95 $12.30 *4 lb. Priority Mail Small Flat Rate Box limit for international shipping
20 Summary Of Discounts 20 Endicia Saves Money Over Retail Mail Class You Save Priority Mail Average of 4.7% Priority Mail High Volume Average of 7% Express Mail 5% Express Mail High Volume 14.5% Priority Mail International 5% Express Mail International 8%
21 Summary Of Discounts 21 Endicia Saves Money Over Retail Extra Services Parcel Insurance made available by Endicia Delivery Confirmation Signature Confirmation You Save Up to 63% over USPS insurance $0.65 (for Priority Mail) $0.57 (Other Classes) per package $0.40 per package
22 Endicia Makes It Easy 22 Endicia software will automatically update with the new prices. After the update, any pieces postmarked January 19, 2009 or later will use the new prices. The U.S. Postal Service will continue to review prices twice a year. As part of any Endicia Service Plan, your software will automatically update with any changes, at no additional cost.
23 Contacting Us 23 Phone Support - Ext 130 Sales - Ext 140 7am-5pm Pacific Time Sales@endicia.com Support@endicia.com Web
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