New Prices - May 12, 2008

Slide 1:
United States Postal Service Logo in the far left top corner.
Has the heading: 
New Prices
New Flexibility
New Opportunities
The words included are:
May 12, 2008
End of Text. 

Notes:
Title Slide
End of Slide 1.



Slide 2:
United States Postal Service Logo in the far left top corner.
Has the heading: Agenda
The words included are:
(square bullet)Postal Act of 2006
(square bullet)Mailing Services 
(square bullet)Shipping Services
(square bullet)Resources
End of Text.

Notes:
Agenda

Today, I’m here to talk about the new prices effective May 12. We’ll briefly cover the Postal Act of 2006 and the impact of the Act on how we price our products. Then we’ll cover the changes to our Mailing Services and Shipping Services and wrap up with some resources available to you.
End of Slide 2.



Slide 3:
United States Postal Service Logo in the far left top corner.
Has the heading: Postal Act of 2006
The words included are:
(square bullet)Two categories:
(arrow used as a bullet)Mailing Services with a cap
(arrow used as a bullet)Shipping Services with a floor
(square bullet)Flexibility
(square bullet)Predictability
(square bullet)Choices
(square bullet)Speed-to-market
End of Text.

Notes:
Postal Act of 2006

The Postal Accountability and Enhancement Act  — “Postal Act of 2006” —  radically changed the way we price our products. We now have two separate pricing categories, with separate requirements. Our Mailing Services have a price cap, and our Shipping Services have a price floor. We’ll get into a little more detail on how the floor works later.

And we have increased pricing flexibility. What does this mean for you? Predictability — our Mailing Services prices will change each May.  Choices — we can offer competitive prices and incentives for our Shipping Services. And it means speed-to-market — to price quickly in response to customer needs and the marketplace. 
End of Slide 3.



Slide 4:
United States Postal Service Logo in the far left top corner.
Has the heading: Mailing Services
The words included are:
(square bullet)First-Class Mail (includes First-Class Mail International)
(square bullet)Standard Mail
(square bullet)Special Services
(square bullet)Periodicals
(square bullet)Package Services
End of Text. 

Notes:
Mailing Services 

Our Mailing Services are First-Class Mail (including First-Class Mail International), Standard Mail, Periodicals, Package Services, and Special Services and account for 90 percent of all revenue – just under $66 billion in 2007. First-Class Mail is the biggest piece at $38 billion, followed by Standard Mail at $21 billion. 

Shipping Services (which we cover later) accounts for the other 10 percent of our revenue.
End of Slide 4.



Slide 5:
United States Postal Service Logo in the far left top corner.
Has the heading: Mailing Services
The words included are:
(square bullet)Consumer Price Index (CPI) cap
(square bullet)2.9% average increase by class
(square bullet)Annual, predictable price changes
(square bullet)45-day notice required
(square bullet)90-day commitment
End of Text. 

Notes:
Mailing Services

Price changes within each of these classes must average lower than inflation as measured by the Consumer Price Index. The CPI was 2.9 percent when we filed the price changes. While the price increase for each class on average must be less than the cap, individual prices within each class may increase by more or less than the cap.

We plan to adjust our Mailing Services prices each May. Although the Law requires us to provide 45 days' notice, we plan to provide 90 days' notice of the new prices each year, to help you prepare for the change. 
End of Slide 5.



Slide 6:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail
The words included are:
(square bullet)$38 billion revenue
(square bullet)Average +2.89%
There is a table.
Table Information:
6 Rows and 2 Columns.
Row 1:
Column 1:
(Header Cell)Product
Column 2:
(Header Cell)% Change

Row 2:
Column 1:
Single-Piece Letters & Cards
Column 2:
2.50

Row 3:
Column 1:
Presort Letters & Cards
Column 2:
3.55

Row 4:
Column 1:
Flats
Column 2:
1.93

Row 5:
Column 1:
Parcels
Column 2:
2.18

Row 6:
Column 1:
International
Column 2:
3.09
End of Table information. 
End of Text.
Image information:
At the middle far right is an image of a envelope, First Class Mail flat, and a parcel. 
End of Image information.

Notes:
First-Class Mail 

I mentioned earlier how the price increase for each class on average must be less than the cap, and individual prices within each class may increase by more or less than the cap. On this slide you can see how it applies to First-Class Mail. On average, First-Class Mail increases just below the cap at 2.89 percent. 

Within First-Class Mail you can see how the percentages vary by product from a 1.9 percent increase for flats to a 3.55 percent increase for presorted letters and cards.  
End of Slide 6.



Slide 7:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail – Single-Piece
The words included are:
(square bullet)Letter: 42˘ (+1˘)
(square bullet)Forever Stamp
(arrow used as a bullet)Plenty of stamps on hand
(square bullet)No more nondenominated transition stamps
End of Text.
Image Information:
At the middle far right is a image of a postage stamp that has the liberty bell on it and next to it is the words 'USA First-Class' and the word 'Forever'.
End of Image information. 

Notes:
First-Class Mail Single-Piece

Beginning May 12,  the price for a First-Class Mail single-piece stamp will be 42˘. 

We introduced the Forever Stamp last April to provide household and small business customers a way to smoothly transition to new prices. The good news is customers can continue to use the Forever Stamps they purchased for 41˘, even after the price change, as they are good indefinitely for the First-Class Mail letter price, no matter how much postage goes up. 

To ensure that enough Forever Stamps are available, we have an additional 5 billion – a 10-month supply – of Forever Stamps in our system, making shortages unlikely. 

And, for the first time ever, we will not have transitional nondenominated stamps. Customers have a choice: Forever Stamps in booklets, or 42˘ stamps in coils and panes. 42˘ stamps in coils and panes are available April 18.
End of Slide 7.



Slide 8:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail – Single-Piece
The words included are:
(square bullet)Additional ounce: 17˘ (unchanged)
(square bullet)Nonmachinable surcharge: 20˘ (+3˘)
(arrow used as a bullet)New 62˘ stamp for 1-ounce square envelopes such as greeting cards
(square bullet)Postcard: 27˘ (+1˘)
End of Text. 
Image Information:
At the middle far right is a image of a postage stamp that has a dragonfly on it and under it is the words 'USA 62'.
End of Image information.

Notes:
First-Class Mail Single-Piece

The additional-ounce price for single-piece letters, flats, and parcels remains at 17˘. The nonmachinable surcharge for all letters increases 3˘, to 20˘. We’re also producing a new 62˘ stamp for nonmachinable envelopes, such as square envelopes – a popular shape for greeting cards. The 62˘ stamp is available May 19. 
The postcard price increases 1˘, to 27˘. The 27˘ stamp is available April 25.	
End of Slide 8.



Slide 9:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail – Automation & Presort Letters
The words included are:
(square bullet)Promote efficient preparation
(square bullet)Maintain strong 2.2˘ incentive for 5-digit
(square bullet)Presort letters additional ounce  same price as for auto: 12.5˘ (- 4.5˘)
End of Text. 
Image information:
Directly below the text is an image of 6 letters, one behind the next, and a carrier box with the words 'U.S. Mail' full of letters.
End of Image information.

Notes:
First-Class Mail Automation and Presort Letters

We’re maintaining the 2.2˘ difference between 5-digit and 3-digit automation-rate letter prices to encourage efficient preparation. 

The additional-ounce price for automation letters remains 12.5˘. We have reduced the additional-ounce price for presort (nonautomation) letters from 17˘ to 12.5˘, the same price as automation letters. This will simplify mail preparation and postage verification processes.
End of Slide 9.



Slide 10:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail International
The words included are:
(square bullet)Align with domestic
(arrow used as a bullet)Shape-based pricing
There is a table.
Table Information:
4 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)1 ounce to Canada/Mexico
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New
Column 4:
(Header Cell)Change

Row 2:
Column 1:
Letter
Column 2:
69˘ 
Column 3:
72˘ 
Column 4:
3˘ 

Row 3:
Column 1:
Flat
Column 2:
69˘
Column 3:
98˘
Column 4:
+29˘

Row 4:
Column 1:
Package 
Column 2:
69˘ 
Column 3:
$1.18
Column 4:
+49˘ 
End of Table information. 
Below the Table is Text as follows:
(square bullet)Nonmachinable letter surcharge: 20˘ 
(square bullet)Align country grouping with other international products
End of Text.
Image information:
At the middle far right is an image of a envelope, First Class Mail flat, and a parcel. 
End of Image information.

Notes:
First-Class Mail International

There are several classification changes. We’re introducing shape-based pricing with separate prices for international letters, flats, and packages. This includes a 3.5-ounce maximum weight for letters, and other shape characteristics such as flexibility standards for flats. This change aligns First-Class Mail International with domestic First-Class Mail.  

The examples in this chart are for Canada and Mexico. For all other countries the 1-ounce base price for a letter is 94˘, a flat is $1.20, and a parcel is $1.40.

And, the 20˘ nonmachinable surcharge will now apply to all nonmachinable First-Class Mail International letters regardless of weight – just like domestic First-Class Mail letters.

The number of individual country price groups is expanded to nine – aligning the First-Class Mail International price groups with Priority Mail International and Express Mail International. 
End of Slide 10.



Slide 11:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail
The words included are:
(square bullet)$21 billion revenue
(square bullet)Average +2.84%
There is a table.
Table Information:
7 Rows and 2 Columns.
Row 1:
Column 1:
(Header Cell)Product
Column 2:
(Header Cell)% Change

Row 2:
Column 1:
Letters 
Column 2:
3.31

Row 3:
Column 1:
Flats
Column 2:
0.86

Row 4:
Column 1:
Parcels
Column 2:
9.66

Row 5:
Column 1:
High Density/Saturation Letters
Column 2:
1.66

Row 6:
Column 1:
High Density/Saturation Flats and Parcels
Column 2:
2.09

Row 7:
Column 1:
Carrier Route Basic Letters, Flats, and Parcels
Column 2:
2.99
End of Table information. 
End of Text.
Image information:
At the middle far right is an image of 3 manila envelopes.
End of Image information.

Notes:
Standard Mail 

Last year, Standard Mail revenue was $21 billion. On average Standard Mail increases just below the cap. Within Standard Mail you can see how the percentages vary by product, from a less-than-1 percent increase for flats to over 9 percent for parcels and Not Flat-Machinable pieces. 

The lower price change for flats reflects our decision to moderate the increases for catalogs due to the large price increases last year.

Parcels represent a distinct market that differs from the market for flats and letters, which are primarily advertising. Parcels also cost more to handle than letters and flats, and we are continuing our efforts to recognize these differences.

Nonprofit prices show a similar pattern, and are set using a formula prescribed by law. This time around, the formula results in below-average price increases.
End of Slide 11.



Slide 12:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail Flats (catalogs)
The words included are:
(square bullet)Price increase well below average
There is a table.
Table Information:
5 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)Examples (5-digit/DBMC) 
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New
Column 4:
(Header Cell)Change

Row 2:
Column 1:
3-oz Catalog 
Column 2:
30.2˘ 
Column 3:
30.6˘ 
Column 4:
+0.4˘ 

Row 3:
Column 1:
4-oz Catalog 
Column 2:
35.8˘
Column 3:
35.9˘
Column 4:
+0.1˘

Row 4:
Column 1:
5-oz Catalog 
Column 2:
39.4˘ 
Column 3:
39.4˘ 
Column 4:
0.0˘ 

Row 5:
Column 1:
8-oz Catalog 
Column 2:
47.6˘ 
Column 3:
47.5˘ 
Column 4:
-0.1˘ 
End of Table information. 
End of Text.

Notes:
Standard Mail 

The price change for flat-size catalogs is under 1 percent – well below the average – moderating their increase. 

The examples on the chart show the impact of the smaller increase on specific prices due to a reduction in the pound price for heavier catalogs. 

We hope this reduction will encourage catalog mailers to add pages to their catalogs.
End of Slide 12.



Slide 13:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail Flats
The words included are:  
(square bullet)Lower pound prices for saturation and high-density flats
There is a table.
Table Information:
5 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)Examples (Saturation at DDU) 
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New
Column 4:
(Header Cell)Change

Row 2:
Column 1:
3-oz Catalog 
Column 2:
13.6˘ 
Column 3:
14.0˘ 
Column 4:
+0.4˘ 

Row 3:
Column 1:
4-oz Catalog 
Column 2:
15.2˘
Column 3:
15.5˘
Column 4:
+0.3˘

Row 4:
Column 1:
5-oz Catalog 
Column 2:
17.6˘ 
Column 3:
17.7˘ 
Column 4:
+0.1˘ 

Row 5:
Column 1:
8-oz Catalog 
Column 2:
24.6˘ 
Column 3:
24.4˘ 
Column 4:
-0.2˘ 
End of Table information. 
End of Text.

Notes:
Standard Mail 

We have reduced the pound price for high-density and saturation flats for advertising mail that is targeted by area or neighborhood.

As shown in these pricing examples, in some instances, flats weighing more than 5 ounces will see modest price reductions. 
End of Slide 13.



Slide 14:
United States Postal Service Logo in the far left top corner.
Has the heading: Periodicals
The words included are:
(square bullet)$2.2 billion revenue
(square bullet)Average +2.72%
There is a table.
Table Information:
3 Rows and 2 Columns.
Row 1:
Column 1:
(Header Cell)Product
Column 2:
(Header Cell)% Change

Row 2:
Column 1:
Outside-County
Column 2:
2.71

Row 3:
Column 1:
In-County
Column 2:
2.63
End of Table information. 
Below the Table is the Text:
(square bullet)Allow recent changes to settle in and work on efficiency
(square bullet)New, limited-circulation pricing
End of Text. 
Image information:
At the middle far right is an image of 3 bundles of news periodicals.
End of Image information.  

Notes:
Periodicals

Last year, Periodicals revenue was $2.2 billion, less than 3 percent of our total revenue.  Over 96 percent of Periodicals mail is Outside-County. 

The average increase is 2.72 percent. 

We are not changing the new structure that includes the container incentives implemented last July. This will allow us to study the effect of the new structure and customers’ reactions to it. In addition, we will continue to work to further reduce Periodicals processing costs.  

We’re also introducing new, limited-circulation pricing for Periodicals. This applies only to Periodicals publications that have fewer than 5,000 Outside-County pieces, in addition to In-County circulation. This incentive gives these publications a 5 percent discount, much like the discount available to the Nonprofit and Classroom Periodicals. 
End of Slide 14.



Slide 15:
United States Postal Service Logo in the far left top corner.
Has the heading: Package Services
The words included are:
(square bullet)$1.8 billion revenue
(square bullet)Average +2.88%
There is a table.
Table Information:
5 Rows and 2 Columns.
Row 1:
Column 1:
(Header Cell)Product
Column 2:
(Header Cell)% Change

Row 2:
Column 1:
Parcel Post
Column 2:
3.30

Row 3:
Column 1:
BPM Flats
Column 2:
0.47

Row 4:
Column 1:
BPM Parcels
Column 2:
2.10

Row 5:
Column 1:
Media Mail and Library Mail
Column 2:
4.54
End of Table information. 
End of Text. 
Image information:
At the middle far right is an image of a package.
End of Image information.  

Notes:
Package Services

Last year, Package Services revenue was $1.8 billion, 2.4 percent of total Postal Service revenue. Package Services consists of Parcel Post, Bound Printed Matter, Media Mail, and Library Mail.

The average increase is 2.88 percent.

Media Mail and Library Mail – whose prices are linked by law – have low cost coverages and in the past have failed to cover their costs.  We are focusing on increasing the prices of this group while remaining within the overall price cap. 

Bound Printed Matter flats have the lowest handling costs. To remain within the cap, price increases for BPM flats and are below the cap to offset the larger increases for other products.
End of Slide 15.



Slide 16:
United States Postal Service Logo in the far left top corner.
Has the heading: Special Services
The words included are: 
(square bullet)$2.7 billion revenue
(square bullet)Average +2.85%
There is a table.
Table Information:
4 Rows and 2 Columns.
Row 1:
Column 1:
(Header Cell)Product
Column 2:
(Header Cell)% Change

Row 2:
Column 1:
Post Office Boxes
Column 2:
2.89

Row 3:
Column 1:
Certified Mail
Column 2:
1.89

Row 4:
Column 1:
All others
Column 2:
3.29
End of Table information. 
Below the Table is the Text:
(square bullet)Certified Mail: $2.70 (+5˘)
(square bullet)Return Receipt: $2.20 (+5˘)
(square bullet)Annual Mailing Fees: $180 (+$5)
(square bullet)Delivery Confirmation: no change
End of Text. 
Image information:
Snapshot of a 'Certified Mail Receipt'.
End of Image information. 

Notes:
Special Services

Last year, Special Services revenue was $2.7 billion. Post Office Boxes and Certified Mail account for more than half of the revenue in this group, so the changes in those two products drive the overall 2.85 percent change for Special Services. 

For Post Office Box service it is a price change only. The average increase for Post Office Box service is just over 3 percent. 

Here are a few price examples: 
Certified Mail increases 5˘, to $2.70. 
Return Receipt at the time of mailing increases 5˘, to $2.20.
Annual Mailing fees go up $5, to $180.
And there are no changes to prices for Delivery Confirmation service.	
End of Slide 16.



Slide 17:
United States Postal Service Logo in the far left top corner.
Has the heading: Shipping Services
The words included are:
(square bullet)Greater pricing freedom and flexibility
(square bullet)No price cap
(square bullet)Each product and contract must cover cost
(square bullet)Must cover 5.5% of Postal Service overhead
(square bullet)30-day notice required
(square bullet)60-day commitment
End of Text. 

Notes:
Shipping Services

Now let’s move on to shipping services. 

The Postal Act of 2006 gives us increased flexibility in pricing, product enhancements, and product introductions. 

Prices for Shipping Services products are not subject to a price cap. However, there is a price floor: each product and contract must cover its costs, and in aggregate the Shipping Services products must generate sufficient net contribution to cover 5.5 percent of our overhead.

Although the Postal Act of 2006 requires us to give a 30 days' notice, we plan to provide 60 days' notice of the new prices each year, to help you prepare for the change. 
End of Slide 17.



Slide 18:
United States Postal Service Logo in the far left top corner.
Has the heading: Shipping Services
The words included are:
(square bullet)Priority Mail
(square bullet)International
(square bullet)Express Mail
(square bullet)Parcel Select
(square bullet)Parcel Return Service
End of Text.
Image Information:
At the far right middle is an image of 2 Priority Mail Packages and 2 Express Mail pieces.
End of Image information. 

Notes:
Shipping Services

Our Shipping Services — Priority Mail, Express Mail, Parcel Select, Parcel Return Service, and International Mail products account for 10 percent of all revenue - $8 billion. Of that, Priority Mail has the lion’s share at $5.2 billion. 
End of Slide 18.



Slide 19:
United States Postal Service Logo in the far left top corner.
Has the heading: New Price Structures and Incentives
The words included are:
Price Lists
(square bullet)Retail prices
(square bullet)Commercial base prices
(square bullet)Commercial volume prices
Negotiated pricing
(square bullet)Commercial contract prices
End of Text. 

Notes:
Shipping Services 

We are introducing new price structures for our Shipping Services products. 

Retail prices are published and apply to transactions that take place in a post office or other retail location.

In Priority Mail and Express Mail we have new commercial base prices for customers who access our products through other channels, such as online, and these prices are lower than retail prices.

In addition to commercial base prices, we are also introducing commercial volume prices, providing additional discounts for customers who ship above specified volume levels. 

And, we will begin negotiated commercial contract prices with large volume shippers.
End of Slide 19.



Slide 20:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail 
The words included are:
(square bullet)Average +3%
(square bullet)Sunday and holiday premium: $12.50  (introduced March 3)
(square bullet)Zoned pricing with competitive local pricing
There is a table.
Table Information:
6 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)Retail Prices
Column 2:
(Header Cell)This is a empty cell.
Column 3:
(Header Cell)New
Column 4:
(Header Cell)This is a empty cell.

Row 2:
Column 1:
(Header Cell)Weight
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)Zones L, 1 & 2
Column 4:
(Header Cell)Zone 3

Row 3:
Column 1:
Flat-Rate Envelope
Column 2:
$16.25
Column 3:
$16.50
Column 4:
$16.50

Row 4:
Column 1:
1/2 lb.
Column 2:
$16.25
Column 3:
$12.60
Column 4:
$14.65

Row 5:
Column 1:
3 lb.
Column 2:
$24.50
Column 3:
$16.65
Column 4:
$21.35

Row 6:
Column 1:
10 lb.
Column 2:
$45.25
Column 3:
$28.60
Column 4:
$38.10
End of Table information. 
Below the Table is the Text:
(square bullet)Rename Post Office-to-Post Office as “Hold For Pickup” 
End of Text. 
Image Information:
At the far right middle is a snapshot of 2 Express Mail Pieces
End of Image information. 

Notes:
Express Mail 

The average increase is 3 percent. Early in March we introduced a Sunday/holiday $12.50 premium, in addition to postage, for guaranteed Sunday or holiday delivery of Express Mail items. Customers may also choose guaranteed delivery on the next delivery day at the standard Express Mail price. The premium does not change on May 12 and remains $12.50.

Express Mail, except for the Flat-Rate Envelope, will be fully zoned, which is consistent with standard industry practices. Zone pricing allows us to reduce prices for those items shipped locally up to Zone 3 as illustrated on the chart. The Flat-Rate Envelope price increases 25˘, to $16.50.

Prices will increase for items shipped to Zones 5 through 8 (mail transported more than 600 miles). 

We eliminate the separate price schedules for Post Office-to-Post Office and Custom Designed Services and have renamed “Post Office-to-Post Office” as “Hold For Pickup.” Express Mail Same Day Airport Service is eliminated and Custom Design service can be arranged through mailer-specific agreements.
End of Slide 20.



Slide 21:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail 
The words included are:
Commercial base prices
(square bullet)3% lower than Retail for Express Mail Corporate Accounts (EMCA), Click-N-Ship, and PC Postage
Image Information:
At the far right bottom is a snapshot of 2 Express Mail Pieces
End of Image information. 

Notes:
Express Mail 

Express Mail commercial base prices are 3 percent below retail prices and will be available to customers who use Express Mail Corporate Accounts, including Express Mail Manifest (EMM) and Federal Agency Accounts, and to registered end-users of authorized PC Postage and Click-N-Ship that pay for postage  on-line. 

NOTE: Authorized PC Postage providers are: Stamps.com, endicia, and Pitney Bowes.
End of Slide 21.



Slide 22:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail 
The words included are:
Commercial volume prices
(square bullet)EMCA and PC Postage
There is a table.
Table Information:
4 Rows and 3 Columns.
Row 1:
Column 1:
(Header Cell)Minimum Quarterly Volume
Column 2:
(Header Cell)Additional % (postal quarterly rebate)
Column 3:
(Header Cell)Total % off retail 

Row 2:
Column 1:
125
Column 2:
2% 
Column 3:
5%

Row 3:
Column 1:
438
Column 2:
4.5% 
Column 3:
7.5% 

Row 4:
Column 1:
938
Column 2:
7% 
Column 3:
10% 
End of Table information.
End of Text. 
Image Information:
At the far right top is a snapshot of 2 Express Mail Pieces.
End of Image information. 

Notes:
Express Mail 

Commercial volume rebates will be provided to customers whose account volume exceeds a minimum threshold, and who either use an Express Mail Corporate Account (EMCA), including Federal Agency Accounts, or are authorized to use PC Postage on-line. 

The rebate will be credited to each qualifying mail owner’s account each postal quarter, as follows:

These rebates are intended for end users. Third-party consolidators and postage resellers are not eligible. 
End of Slide 22.



Slide 23:
United States Postal Service Logo in the far left top corner.
Has the heading: Priority Mail
The words included are:
(square bullet)Average +6%
(square bullet)New large Flat-Rate box (introduced March 3)
(arrrow used for bullet)Lower price for APO/FPO addresses
End of Text.
Image Information:
At the far right bottom is an image of 3 priority mail pieces.
End of Image information. 

Notes:
Priority Mail 

The average retail price increase is 6 percent. 

In March, we introduced a larger flat-rate box. The new version is about            50 percent larger than the regular box (approximately half a cubic foot). We also  created a special lower price for shipments to APO/FPO addresses, at $10.95 – $2 less than the $12.95 retail price. These prices do not increase on May 12.
End of Slide 23.



Slide 24:
United States Postal Service Logo in the far left top corner.
Has the heading: Priority Mail
The words included are:
Commercial base prices
(square bullet)Lower than retail for Click-N-Ship, PC Postage, and permit imprint
End of Text.
Image Information:
At the far right bottom is an image of 3 priority mail pieces.
End of Image information. 

Notes:
Priority Mail 

In addition to retail prices, we now offer lower commercial base prices for customers who use Click-N-Ship or PC Postage on-line, and customers using permit imprint (including manifest mailing system users) with electronic Confirmation Services.
End of Slide 24.



Slide 25:
United States Postal Service Logo in the far left top corner.
Has the heading: Priority Mail
The words included are:
Price examples
There is a table.
Table Information:
5 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)Flat Rate
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)Retail 
Column 4:
(Header Cell)Commercial

Row 2:
Column 1:
Envelope
Column 2:
$4.60
Column 3:
$4.80
Column 4:
$4.75

Row 3:
Column 1:
Box (regular)
Column 2:
$8.95
Column 3:
$9.80
Column 4:
$9.30

Row 4:
Column 1:
Box (large) (introduced March)
Column 2:
$12.95
Column 3:
$12.95
Column 4:
$12.50

Row 5:
Column 1:
Box (large) APO/FPO (introduced March 3)
Column 2:
$10.95
Column 3:
$10.95
Column 4:
$10.50
End of Table information.
End of Text. 
Image Information:
At the far right top is an image of 2 priority mail pieces.
End of Image information. 


Notes:
Priority Mail 

Here we illustrate how the new commercial prices compare to retail. Unlike Express Mail, Priority Mail commercial base prices vary between 1 and 11 percent based on weight and distance. There are two Domestic Priority Mail pricing tables: Retail Pricing and Commercial Base Pricing. 

In this example you can see how the new prices compare to current prices and the difference between retail and commercial on our flat-rate products. Commercial prices are 5˘ lower for the flat-rate envelope, 50˘ lower for the regular box, and 45˘ lower for the new large box.
End of Slide 25.



Slide 26:
United States Postal Service Logo in the far left top corner.
Has the heading: Parcel Select 
The words included are:
(square bullet)Last-mile commercial service
(square bullet)Average +5.7%
(square bullet)Promote destination delivery unit (DDU)
(square bullet)Commercial volume prices for DDU
(arrow used as a bullet)Based on new growth above a threshold
(arrow used as a bullet)Annual rebates
End of Text.
Image Information:
At the far right top is an image of a Parcel Select Package.
End of Image information. 

Notes:
Parcel Select
Parcel Select is our last-mile commercial-shipping product. Most of the volume consists of parcels entered at a destination delivery unit (DDU), destination sectional center facility (DSCF), or destination bulk mail center (DBMC). FedEx, UPS, and DHL are the largest users of the product, bringing packages from large retailers to the DDU for delivery to residential addresses. Users also include several regional consolidators serving medium-size shippers.

The average increase is 5.7 percent. The increase for DDU is 5.2 percent. 

The new prices are intended to encourage shippers to enter parcels at destination delivery units. To encourage growth and continued use of Parcel Select, we offer annual rebates to large-volume shippers based on DDU growth. Customers who qualify for these incentives will receive annual rebates ranging from 2 to 14 percent of DDU postage.

Note: The Parcel Select definition has been expanded to include origin mail entered at an Intra-BMC or Inter-BMC that qualifies for a barcode discount, a BMC-Presort discount, or an OBMC-Presort discount.
End of Slide 26.



Slide 27:
United States Postal Service Logo in the far left top corner.
Has the heading: Parcel Return Service
The words included are:
(square bullet)First-mile commercial service
(square bullet)Average +2%
(square bullet)Align pricing with outbound DDU
(arrow used as a bullet)Weight-based pricing
End of Text.
Image Information:
At the far right top is an image of a Parcel Select Package.
End of Image information. 

Notes:
Parcel Return Service

Parcel Return Service is our commercial return product. While Parcel Select is our “last mile” product, PRS is our “first mile” product, created to complement Parcel Select. It consists of returns to the delivery unit (RDU) and returns to the BMC (RBMC). 

The overall average price increase is 2.2 percent. However, the average RDU price is significantly reduced.  Currently, a single RDU price is charged regardless of the weight of the piece.  In the new structure, the RDU price will vary by weight. 

Parcel Select and Parcel Return Service are priced to attract additional volume from current shippers and new customers.
End of Slide 27.



Slide 28:
United States Postal Service Logo in the far left top corner.
Has the heading: Global Express Guaranteed
The words included are:
(square bullet)Average +5.2% 
Retail price examples 
There is a table.
Table Information:
3 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)This is a empty cell.
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New 
Column 4:
(Header Cell)Change

Row 2:
Column 1:
1/2 lb.
Column 2:
$37.00
Column 3:
$38.95
Column 4:
$1.95

Row 3:
Column 1:
5 lbs.
Column 2:
$77.00
Column 3:
$82.00
Column 4:
$5.00
End of Table information.
Below the table is text that is as follows:
(square bullet)Expedited date-certain delivery with money-back guarantee to over 190 countries
(square bullet)Commercial base prices 
(arrow used as a bullet)10% lower than retail for Click-N-Ship and PC Postage
End of Text. 
Image Information:
At the far left middle is an image of a Global Express Guaranteed package with the FedEx symbol as well on it.
End of Image information. 

Notes:
Global Express Guaranteed

Global Express Guaranteed (GXG) provides the fastest, date-certain international service with a money-back guarantee to more than 190 countries.  It is provided through an alliance with FedEx Express. 

The average increase is 5.2 percent.

The price chart illustrates prices to Pacific Rim countries. GXG prices are the lowest published prices in the marketplace for this premium level service. 

Customers paying for postage on-line through Click-N-Ship or an authorized PC Postage vendor will continue to receive the commercial base price of 10 percent below the retail price. 
End of Slide 28.



Slide 29:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail International 
The words included are:
(square bullet)Average +6% 
Retail price examples 
There is a table.
Table Information:
3 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)This is a empty cell.
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New 
Column 4:
(Header Cell)Change

Row 2:
Column 1:
1/2 lb., Flat-Rate Envelope
Column 2:
$25.00 
Column 3:
$25.95 
Column 4:
95˘

Row 3:
Column 1:
5 lbs.
Column 2:
$44.00
Column 3:
$45.50
Column 4:
$1.50
End of Table information.
Below the table is text that is as follows:
(square bullet)Date-certain delivery with money-back guarantee for packages sent to select countries
End of Text. 
Image Information:
At the far left middle is an image of a Express Mail International package.
End of Image information. 

Notes:
Express Mail International

Express Mail International provides fast, reliable service to over 190 countries with date-certain service and money-back guarantee for packages sent to select countries: Japan, Hong Kong, China, Republic of South Korea, and Australia.

The average price increase is 6 percent. The price chart illustrates prices to Pacific Rim countries. 
End of Slide 29.



Slide 30:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail International
The words included are:
(square bullet)Commercial base prices 
(arrow used as a bullet)8% lower than retail for Click-N-Ship, PC Postage, Global Shipping Software (GSS), and Express Mail Corporate Account (EMCA)
End of Text. 
Image Information:
At the far right top is an image of a Express Mail International package.
End of Image information. 

Notes:
Express Mail International

Customers paying for postage on-line through Click-N-Ship or an authorized PC Postage vendor will continue to receive the commercial base price of 8 percent below the retail price. 

We are expanding availability of the commercial base prices to customers who manifest their EMI permit imprint mailing by using USPS–provided Global Shipping Software and pay for postage through an advance deposit account or Express Mail Corporate Account. 
End of Slide 30.



Slide 31:
United States Postal Service Logo in the far left top corner.
Has the heading: Express Mail International
The words included are:
(square bullet)Commercial volume prices
(arrow used as a bullet)Express Mail Corporate Account
There is a table.
Table Information:
4 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)Annual Volume
Column 2:
(Header Cell)Annual Postage
Column 3:
(Header Cell)Commercial Base Price Incentive
Column 4:
(Header Cell)Commercial Volume Price Incentive

Row 2:
Column 1:
No minimum
Column 2:
No minimum
Column 3:
8%
Column 4:
This cell is empty.

Row 3:
Column 1:
1,000–2,999 pieces
Column 2:
$20,000–$59,999
Column 3:
This cell is empty.
Column 4:
10%

Row 4:
Column 1:
3,000 pieces and above
Column 2:
$60,000 and above
Column 3:
This cell is empty.
Column 4:
12%
End of Table information.
End of Text. 
Image Information:
At the far right top is an image of a Express Mail International package.
End of Image information. 

Notes:
Express Mail International

In addition, those who qualify for the commercial base prices by paying for postage through their Express Mail Corporate Account, and whose Express Mail International volume or postage exceeds minimum thresholds, will be eligible for commercial volume price incentives. Express Mail Corporate Account customers will receive an incentive of 8 percent during the first postal quarter of the initial mailing and through the subsequent full postal quarter. 

Thereafter, the incentive for each postal quarter will be determined by the actual annualized volume of Express Mail International mailed in the previous full postal quarter or the actual annualized amount of postage paid for Express Mail International in the previous full postal quarter, whichever is higher.  

Also, customers who mail more than 5,000 Express Mail International pieces a year may be eligible for customized agreements for commercial volume price incentives. 
End of Slide 31.



Slide 32:
United States Postal Service Logo in the far left top corner.
Has the heading: Priority Mail International
The words included are:
(square bullet)Average +6.1% 
Retail price examples 
There is a table.
Table Information:
4 Rows and 4 Columns.
Row 1:
Column 1:
(Header Cell)This is a empty cell.
Column 2:
(Header Cell)2007
Column 3:
(Header Cell)New 
Column 4:
(Header Cell)Change

Row 2:
Column 1:
Flat-Rate Envelope
Column 2:
$11.00 
Column 3:
$11.95 
Column 4:
95˘

Row 3:
Column 1:
5 lbs.
Column 2:
$38.00
Column 3:
$40.50
Column 4:
$2.50

Row 4:
Column 1:
Flat-Rate Box (regular)
Column 2:
$37.00
Column 3:
$38.95
Column 4:
$1.95
End of Table information.
Below the table is text that is as follows:
(square bullet)New large Flat-Rate box (introduced March 3)
End of Text. 
Image Information:
At the far left middle is an image of a Priority Mail International piece.
End of Image information.

Notes:
Priority Mail International

Priority Mail International is a reliable, cost-effective way to send merchandise and documents to over 190 countries. 

The average increase is 6.1 percent. 

The price chart illustrates prices to Pacific Rim countries. 

The larger flat-rate box introduced March 3 remains unchanged, priced at $29.95 to Canada and Mexico and $49.95 to all other countries.
End of Slide 32.



Slide 33:
United States Postal Service Logo in the far left top corner.
Has the heading: Priority Mail International
The words included are:
(square bullet)Commercial base prices 
(arrow used as a bullet)5% lower than retail for Click-N-Ship,   PC Postage, and permit imprint
End of Text.
Image Information:
At the middle bottom of the page is a image of 3 different types of Priority Mail International mail pieces.
End of Image information. 

Notes:
Priority Mail International

Customers paying for postage on-line through Click-N-Ship or an authorized PC Postage vendor will continue to receive the commercial base price of 5 percent below the retail price. 

We are expanding availability of the commercial base price incentive to include customers who ship using a permit imprint paid through an advance deposit account and USPS–provided Global Shipping Software. 

Customers who mail more than 5,000 Priority Mail International pieces a year may be eligible for customized agreements for commercial volume price incentives.
End of Slide 33.



Slide 34:
United States Postal Service Logo in the far left top corner.
Has the heading: International Priority Airmail (IPA) and International Surface Airlift (ISAL)
The words included are:
(square bullet)Average price increase
(arrow used as a bullet)IPA: 12.5%
(arrow used as a bullet)ISAL: 21.3%
(square bullet)Continue published prices for full-service           and drop ship
(square bullet)Eliminate published ISAL prices for Direct Shipment
(arrow used as a bullet)Now, available through customized agreement
End of Text. 

Notes:
International Priority Airmail (IPA) and International Surface Airlift (ISAL) 

Costs for IPA and ISAL continue to rise.

Published prices for IPA will increase by 12.5 percent, and 21.3 percent for ISAL.

IPA and ISAL will continue to have per-piece, full-service per-pound, and drop ship per pound published prices. We will continue to have full-service and drop ship prices for M-Bags. And, incentives based on volume offered through customized agreements will continue to be available for IPA.

Published prices for ISAL Direct Shipment are eliminated, and only available through customized agreements. 
End of Slide 34.



Slide 35:
United States Postal Service Logo in the far left top corner.
Has the heading: Resources
The words included are:
(square bullet)USPS.com/prices
Image information:
Directly below this square bullet is an snapshot of a very small part of a navigational menu list from the USPS website, with only 3 navigational menu listings.
End of Image information.
(square bullet)Mailing Services and Shipping Services highlights
(square bullet)New price lists
(square bullet)Downloadable price files
(square bullet)New Postage Statements
(square bullet)Federal Register notices
End of Text. 

Notes:
Resources

USPS.com/prices is your complete resource for new prices. We have Mailing Services and Shipping Services highlights, pricing lists and downloadable files, Postage Statements, Federal Register notices, and other helpful information.
End of Slide 35.



Slide 36:
United States Postal Service Logo in the far left top corner.
Has the heading: Resources
The words included are:
(square bullet)Postal Explorer (pe.usps.com)
(square bullet)PCC Insider – PCC e-newsletter (usps.gov/pcc) 
(square bullet)DMM Advisory – customer e-newsletter (dmmadvisory@usps.com)
(square bullet)MailPro – (usps.com/mailpro)
End of Text. 

Notes:
Resources

Postal Explorer is your source for up-to-date business mailing information such as the Domestic Mail Manual, International Mail Manual, postage statements, price lists, and more. You can also link to the online postage calculator from Explorer.

PCC Insider is our e-newsletter with important information for PCC members and other mailers.

DMM Advisory is our customer e-newsletter to keep mailing professionals informed of changes to prices, mailing standards, and other important issues.

MailPro is our bi-monthly publication for mailing professionals.

If you haven’t already, please subscribe and stay informed.
End of Slide 36.