May 11, 2009 USPS Price Change Endicia Makes It Easy

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1 May 11, 2009 USPS Price Change Endicia Makes It Easy Endicia 247 High Street. Palo Alto, CA 94301 800-576-3279 x140 sales@endicia.com www.endicia.com

Agenda 2 Webinar Information Price Change Overview The Second Price Change of 2009 Changes Coming in May Changes to Endicia Software Get the Most from Your Mailing Budget Resources

Webinar Information 3 Presentation Time Questions Survey Resources http://www.endicia.com/pricechange/ http://www.usps.com/prices/ Select New Mailing Service Prices Download will be Available

The Second Price Change of 2009 4 Q The U.S. Postal Service already changed prices in January. Why is there another change coming in May? A. To be consistent with industry practices, the U.S. Postal Service changed prices for Shipping Services ONLY in January. This was done to allow shippers to do a better comparison of the U.S. Postal Service to other available shipping carriers For May, ONLY Mailing prices, including stamp prices and extra services, will be changed. There will be no additional changes to the prices for Priority Mail and Express Mail postage.

The Second Price Change of 2009 5 Q The U.S. Postal Service already 2008 changed prices in January. Why is there another change coming in Price Change: May May? A. To be consistent with industry practices, the U.S. Postal Service changed prices 2009 for Shipping Services ONLY in January. This was done to allow shippers May: Mailing Classes, Package Services January: Shipping Classes Price Change and Extra Services Price Change to do a better comparison of the U.S. Postal Service to other available shipping carriers For May, ONLY Mailing prices, 2010 including stamp prices and extra services, will May: be Mailing changed. Classes, Package There Services January: Shipping Classes Price Change and Extra Services Price Change will be no additional changes to the prices for Priority Mail and Express Mail postage.

Price Change Overview - 2008 to 2009 6 Mail Class Mail Type Retail change First-Class Mail Letters and Cards 4.62% First-Class Mail Flat 3.83% First-Class Mail Parcel 2.57% Media Mail and Library Mail All 7.47% Parcel Post All 4.45%

First-Class Mail Domestic Prices 7 First-Class Mail Type 1oz. Price Current Price New Price Change Post Card $0.27 $0.28 $0.01 Envelope $0.42 $0.44 $0.02 Large Envelope $0.83 $0.88 $0.05 Package $1.17 $1.22 $0.05 Additional Ounce Price = $0.17

First-Class Mail Domestic Prices 8 First-Class Mail Type 1oz. Price Current 2 oz Letter New Stamp: Change Price Price 2008 = $0.59 2009 = $0.61 $0.59 + $0.02 = $0.61 Post Card $0.28 $0.29 $0.01 Envelope $0.42 $0.44 $0.02 3 oz Package Stamp: Large Envelope $0.83 $0.88 $0.05 2008 = $1.51 2009 = $1.56 Package $1.17 $1.22 $0.05 $1.51 + $0.05 = $1.56 Additional Ounce Price = $0.17

Media Mail Prices 9 Weight Not Over (pounds) Large Envelopes & Parcels (2008 Price) Large Envelopes & Parcels (2009 Price) Change 1 $2.23 $2.38 $0.15 2 $2.58 $2.77 $0.19 3 $2.93 $3.16 $0.23 5 $3.63 $3.94 $0.31 10 $5.38 $5.89 $0.51

Parcel Post Pricing and Changes 10 Weight Not Over (pounds) Zone Average Machinable (2008 Price) Zone Average (2009 Price) Change Percent Change 1 $4.55 $4.90 $0.35 8% 5 $8.38 $9.41 $1.03 12% 10 $12.11 $12.51 $0.40 3% Weight Not Over (pounds) Zone Average Non- Machinable (2008 Price) Zone Average (2009 Price) Change Percent Change 1 $8.25 $4.90 -$3.35-41% 5 $12.08 $9.41 -$2.67-22% 10 $15.81 $12.51 -$3.30-21%

Changes to Extra Services 11 Highlights: Delivery Confirmation 2008 Price 2009 Price Change First-Class Mail and Package Services (Parcels Only) Retail $ 0.75 $ 0.80 $ 0.05 Electronic $ 0.18 $ 0.19 $ 0.01 Priority Mail Retail $ 0.65 $ 0.70 $ 0.05 Electronic $ 0.00 $ 0.00 $ 0.00 Signature Confirmation First-Class Mail Package, Package Services, and Priority Mail 2008 Price 2009 Price Change Retail $ 2.20 $ 2.35 $ 0.15 Electronic $ 1.80 $ 1.95 $ 0.15

USPS Insurance Pricing 12 Amount of Insurance Desired $50.01 to $100 $200.01 to $300 $400.01 to $500 USPS Insurance 2008 Price USPS Insurance 2009 Price Change Endicia Insurance w/standard Service Savings with Standard Endicia Ins. w/ Premium and Above Savings with Premium and above $ 2.15 $ 2.25 $ 0.10 $ 1.10 $ 1.15 $ 0.75 $ 1.50 $ 4.60 $ 4.70 $ 0.10 $ 3.30 $ 1.40 $ 2.25 $ 2.45 $ 6.50 $ 6.70 $ 0.20 $ 5.50 $ 1.20 $ 3.75 $ 2.95 $500.01 to $600 $ 7.45 $ 7.70 $ 0.25 $ 6.60 $ 1.10 $ 4.50 $ 3.20

First-Class Mail International Prices and Changes 13 First-Class Mail Intl. 1 oz. by Type Letters and Postcards Large Envelopes Packages Canada (2009) $0.75 $1.03 $1.23 Change from 2009 $0.03 $0.05 $0.05 Mexico (2009) $0.79 $1.03 $1.23 Change from 2009 $0.07 $0.05 $0.05 Zones 3-5 (2009) $0.98 $1.24 $1.44 Change from 2009 $0.04 $0.04 $0.04 Zones 6-9 $0.98 $1.24 $1.44 Change from 2009 $0.04 $0.04 $0.04

Changes to Endicia Software: Intelligent Mail Barcode Implementation 14 The new USPS IMB barcodes allow refunds to be handled electronically. Physical refunds are no longer required for the following classes when using IMB: First-Class Letters First-Class Postcards First-Class Flats The refunded $ will be back in your account in 15 days.

Changes to Endicia Software: Intelligent Mail Barcode Implementation 15 The new USPS IMB barcodes allow refunds to be handled electronically. Physical refunds are no longer required for the following classes when using IMB: First-Class Letters First-Class Postcards First-Class Flats The refunded $ will be back in your account in 15 days.

Changes to Endicia Software: Intelligent Mail Barcode Implementation 16 Please note the differences between the old and Intelligent Mail barcodes. You may need to adjust the position of the main address on your envelope. The easiest way to achieve this is to click & drag it.

Changes to Endicia Software 17 New Customs Option: Save Lists of Customs Items

Changes to Endicia Software 18 Original Flat Rate Boxes Get a New Name: Boxes with the old name will still be accepted for delivery but the name in the software interface will become Medium Flat Rate Box.

Getting the Most from Your Mailing Budget: Saving with the USPS 19 Use USPS Free Packaging The USPS provides a wide variety of Priority Mail and Express Mail packaging free of charge http://www.usps.com/ Select, Buy Stamps and Shop.

Getting the Most from Your Mailing Budget: Saving with the USPS 20 Use Flat-Rate Options, Including International Flat-Rate Boxes and Envelopes Can Save you on heavier goods like books Items sent domestically using USPS Flat-Rate envelopes and boxes are the same price no matter what the weight. (up to 70 lbs.) Keep in mind. There are weight limits for some of the International Flat- Rate packaging. Weight limits vary for different classes and sizes so make sure you know if there is a limit for what you're using.

Getting the Most from Your Mailing Budget: Saving with the USPS 21 Re-think Your Shipping Class and Packaging: Use First-Class Parcel for your package shipping when your package is less than 13 ounces. You can still use Delivery Confirmation on First-Class parcels. You may find that the money you save on the postage will make up for the cost of providing your own box and paying $0.19 for Delivery Confirmation over using Priority Mail. Example 10 oz. First- Class Package 1 lb. Priority Package Postage $ 2.75 $ 4.80 Box $ 0.50 $ 0.00 DC $ 0.19 $ 0.00 Total $ 3.44 $ 4.80 You Save: $ 1.36

Getting the Most from Your Mailing Budget: Saving with the USPS 22 Re-think Your Shipping Class and Packaging: Size and Shape Can Affect Postage Costs: A First-Class mail piece that it fits in a regular envelope will cost less than the same piece sent in a large envelope Likewise, items sent in a First-Class large envelope rather than a First- Class package will save you on postage. First-Class Mail Type 1oz. Price Price Savings Over Next Size Envelope $0.44 $ 0.44 Large Envelope $0.88 $ 0.34 Package $1.22

Getting the Most from Your Mailing Budget: Saving with the USPS 23 Re-think Your Shipping Class and Packaging: Size and Shape Can Affect Postage Costs: Keep your Priority Mail packaging under a cubic foot to avoid dimensional weight charges.

Getting the Most from Your Mailing Budget: Saving with the USPS 24 High Volume Discounts Express Mail Commercial Plus Discounts 14.5% discount over retail Qualification 6,000 domestic Express Mail pieces during the prior 4 quarters OR Customer Commitment agreement with the USPS 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 OR Customer Commitment agreement with the USPS

Getting the Most from Your Mailing Budget: Saving with the USPS 25 High Volume Discounts Contact the Post Office: Express Mail Commercial Plus Discounts 14.5% discount over retail Qualification 6,000 domestic Express Mail pieces during the prior 4 quarters OR Customer Commitment agreement with the USPS Priority Mail Commercial Plus Discounts Average 7% discount over retail Qualification Call 1-800-ASK-USPS PackageServices@usps.gov Go to your local post office and ask to speak to your Postmaster. 100,000 domestic Priority Mail pieces during the prior calendar year OR 600 Priority Mail Open and Distribute containers in the prior calendar year OR Customer Commitment agreement with the USPS

Summary Of Discounts 26 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% Extra Services Delivery Confirmation Signature Confirmation Endicia Parcel Insurance You Save $0.70 (for Priority Mail) $0.61 (Other Classes) per package $0.40 per package Up to 51% for Standard and 67% for Premium and above vs. USPS insurance

Endicia Makes It Easy 27 Endicia software will be updated with the new prices before the price change. On Monday, May 11 th the software will automatically transition to the new prices. The USPS will continue to review prices annually. As part of any Endicia Service Plan, your software will be automatically updated with any changes, at no additional cost.

Contacting Us 28 Phone 800-576-3279 Support - Ext 130 Sales - Ext 140 7am-5pm, Pacific Time Email Sales@endicia.com Support@endicia.com Web www.endicia.com www.usps.com/prices Copy of Webinar presentation www.endicia.com/pricechange Webinar registration page