New Mailing Services Prices_031109


Slide 1:
United States Postal Service Logo in the far left top corner.
Has the heading: New Mailing Services Prices 
The words included are:
May 11, 2009 
End of text information.


Notes:
Title Slide

Today, I’m here to talk about the new Mailing Services prices effective May 11. Prices for most shipping services, including Express Mail and Priority Mail, were adjusted in January and will not change in May. 
End of Slide 1.



Slide 2:
United States Postal Service Logo in the far left top corner.
Has the heading: Mailing Services 
The words included are:
89% total revenue 
(square bullet)First-Class Mail 
(square bullet)Standard Mail
(square bullet)Periodicals
(square bullet)Package Services
(square bullet)Special Services 
End of text information.

Image Information:
At the far right is a pie chart and it is as follows:
Yellow: First-Class Mail: 58% 
Green: Standard Mail: 31% 
Purple: Periodicals: 4% 
Magenta: Special Services: 4% 
Light Green: Package Services: 3% 
End of Pie chart.
End of Image information.  

Notes:
Mailing Services 

Our Mailing Services are First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services and account for 89 percent of total revenue.

First-Class Mail accounts for 58 percent of the total revenue, Standard Mail is  31 percent, followed by Periodicals and Special Services at 4 percent each and Package Services at 3 percent. Package Services consists of Parcel Post, Bound Printed Matter, Media Mail, and Library Mail.
End of Slide 2.



Slide 3:
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)Annual, predictable price changes
(square bullet)Announce in February and implement in May 
End of text information.

Notes:
Mailing Services

Price changes for each of these classes on average must be less than or equal to inflation as measured by the Consumer Price Index. However, individual prices within each class of mail may increase by more or less than the cap.
We plan to announce our new Mailing Services prices each February, with implementation in May. 
End of Slide 3.



Slide 4:
United States Postal Service Logo in the far left top corner.
Has the heading: CPI Cap (12 month moving average) 
End of text information.

Image Information:
At the center of the slide is a chart and it is as follows, from left to right:
There is a arrow pointing down to the chart with the words:
2008 Cap
The chart has at the far left:
5%
4%
3%
2%
1%
0%
A red line starts at 2.9%
There is a arrow pointing down to the chart with the words:
2009 Cap
At the bottom the chart has:
Dec - 07
Jan - 08
Feb - 08
Mar - 08
Apr - 08
May - 08
Jun - 08
Jul - 08
Aug - 08
Sep - 08
Oct - 08
Nov - 08 
Dec - 08
A red line ends at 3.8% 
End of chart.
End of Image information. 

Notes:
Consumer Price Index

How does the Price Cap work? 
The Postal Regulatory Commission uses the CPI (inflation) data in a formula that has the effect of smoothing short-term variations. The Commission has a table on their website (prc.gov) that shows the monthly results of the formula and how the formula is calculated.
The May 11 price change reflects CPI data through December, which resulted in a Postal price cap of 3.8 percent. 
End of Slide 4.



Slide 5:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail 
The words included are:
Average +3.78%
There is a table.
Table:
Table has 6 Rows and 2 Columns: 
Row 1:
Column 1: (Header)Product 
Column 2: (Header)% Change 

Row 2:
Column 1: (Header)Single-Piece Letters & Cards 
Column 2: 4.62 

Row 3:
Column 1: (Header)Presort Letters & Cards 
Column 2: 3.08 

Row 4:
Column 1: (Header)Flats 
Column 2: 3.83 

Row 5:
Column 1: (Header)Parcels 
Column 2: 2.57 

Row 6:
Column 1: (Header)International 
Column 2: 4.07 
End of Table.
End of text information.

Image Information:
At the far right corner is three images and they are as follows:
Image 1:
First Class Mail Envelope
Image 2:
First Class Mail Box
Image 3:
First Class Mail Flat
End of Image information. 

Notes:
First-Class Mail 

I mentioned earlier how the price increase for each class on average must be less than or equal to the cap, while 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 3.78 percent. 
Within First-Class Mail you can see how the percentages vary by product from a 2.57 percent increase for parcels to a 4.62 percent increase for single-piece letters and cards.   
End of Slide 5.



Slide 6:
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)Letters: 44˘ (+2˘)
(square bullet)Flats: 88˘ (+5˘)
(square bullet)Parcels: $1.22 (+5˘) 
(square bullet)Postcards: 28˘ (+1˘)
(square bullet)Unchanged: 
(square bullet)Additional ounce
(square bullet)Nonmachinable surcharge 
End of text information.

Image Information:
At the far right is a snapshot of a First class Stamp.
End of Image information.

Notes:
First-Class Mail — Single-Piece

Beginning May 11,  the price for a First-Class Mail stamp is 44˘. 
We introduced the Forever Stamp in 2007 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 previously purchased, as they are good indefinitely for the First-Class Mail 1-ounce letter price, no matter how much postage goes up. 
Other price changes are a 5˘ increase in the first-ounce price for flats and parcels and 1˘ for postcards. Flats are now priced at the value of two stamps: 44˘ + 44˘ = 88˘.
The additional-ounce price and nonmachinable surcharge remain at 17˘ and 20˘. 
End of Slide 6.



Slide 7:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail – Commercial 
The words included are:
(square bullet)Align auto and machinable letter characteristics
(square bullet)Provide choices
(square bullet)Optional 5-digit, 3-digit, and AADC preparation for auto letters
(square bullet)Maintain 2.2˘ incentive for 5-digit
(square bullet)No change in the additional-ounce prices for automation/presort letters, flats, and parcels 
End of text information. 

Image Information:
At the far right is a snapshot of a tray holding many letters for processing.
End of Image information.

Notes:
First-Class Mail - Commercial
We align the standards for commercial machinable and automation letters so that machinable letters have the same physical characteristics as automation letters. The only difference is that machinable letters do not have a qualifying barcode. 
Customers will now have the option of simplified preparation. We’re making automation letter 5-digit/scheme, 3-digit/scheme, and AADC preparation optional.  Mixed AADC will be the only required sort. This gives customers the ability to choose the level of sorting that works best for them. All sort levels for machinable and nonmachinable letters remain required and we’re maintaining the 2.2˘ difference between 5-digit and 3-digit automation letter prices to encourage efficient preparation. 
The additional-ounce price remains 12.5˘ for commercial letters and 17˘ for commercial flats and parcels. 
End of Slide 7.



Slide 8:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail – Commercial
The words included are:
(square bullet)Auto flats
(square bullet)Must use delivery point POSTNET barcode or Intelligent Mail barcode with delivery point routing code 
End of text information.

Image Information:
At the far right is a snapshot of a flat tub holding many flats for processing.
End of Image information.

Notes:
First-Class Mail — Commercial
Our original proposal called for mandatory tray-based preparation for automation flats.  In response to customer feedback, mailers may continue to prepare First-Class Mail automation flats in either bundles or trays under current standards. 
Also, all automation flats must have a delivery point POSTNET barcode or Intelligent Mail barcode with the correct delivery point routing code. 
End of Slide 8.



Slide 9:
United States Postal Service Logo in the far left top corner.
Has the heading: First-Class Mail International 
The words included are: 
(square bullet)Separate prices for Canada and Mexico
(square bullet)Canada:75˘ (+3˘)
(square bullet)Mexico: 79˘ (+7˘) 
(square bullet)All other countries: 98˘ (+4˘)
(square bullet)No change to country groups 
End of text information.

Image Information:
At the far right is three images and they are as follows:
Image 1:
First Class Mail Envelope
Image 2:
First Class Mail Box
Image 3:
First Class Mail Flat
End of Image information.

Notes:
First-Class Mail International

All prices change, and we separated the prices for postcards and 1-ounce letters to Canada and Mexico. The postcard and first-ounce prices are: 75˘ for Canada, 79˘ for Mexico, and 98˘ for all other countries. 
There are no changes to country groups. 
End of Slide 9.



Slide 10:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail 
The words included are:
Average +3.78% 
There is a table.
Table:
Table has 7 Rows and 2 Columns: 
Row 1:
Column 1: (Header)Product 
Column 2: (Header)% Change 

Row 2:
Column 1: (Header)Letters
Column 2: 3.83 

Row 3:
Column 1: (Header)Flats 
Column 2: 2.31  

Row 4:
Column 1: (Header)Parcels and NFMs
Column 2: 16.40  

Row 5:
Column 1: (Header)High Density / Saturation Letters 
Column 2: 1.25 

Row 6:
Column 1: (Header)High Density / Saturation Flats and Parcels 
Column 2: 2.23  

Row 7:
Column 1: (Header)Carrier Route Basic Letters, Flats, and Parcels 
Column 2: 4.31 
End of Table.
End of text information.

Image Information:
At the far right is a snapshot of a series of flats, stacked one behind the other.
End of Image information.

Notes:
Standard Mail 

The increase for Standard Mail is 3.78 percent. Within Standard Mail you can see how the percentages vary by product, from a just-over-1 percent increase for high density/saturation letters to over 16 percent for parcels and Not Flat-Machinable pieces. 
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 costs.
Nonprofit prices show a similar pattern, and continue to pay prices that are 40 percent lower on average than the prices for regular Standard Mail. 
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)Align auto and machinable letter characteristics
(square bullet)Provide choices
(square bullet)Optional 5-digit, 3-digit, and AADC preparation for auto letters
(square bullet)Optional AADC preparation for machinable letters
(square bullet)Move Update compliance (January 4, 2010)
End of text information.

Image Information:
At the far right is a snapshot of a series of standard mail, stacked one behind the other.
End of Image information.

Notes:
Standard Mail 

As with First-Class Mail, we align the standards for machinable and automation Standard Mail letters to have the same physical characteristics, with the exception of a qualifying barcode. 
Customers will now have the option of simplified preparation. We’re making automation letter 5-digit/scheme, 3-digit/scheme, and AADC sorting optional.  Mixed AADC would be the only required sort. For machinable letters, we also make the AADC level optional. This gives customers the ability to choose the sorting level that works best for them. 
Also, just as with First-Class Mail, automation flats must have a delivery point POSTNET barcode or Intelligent Mail barcode with the correct delivery point routing code. There are no changes to the preparation of Standard Mail automation flats.	
Also beginning January 4, 2010, we are fully implementing the November 23 Move Update standards. Move Update provides customers a tool to ensure that their messages get to all the right addresses.  The new Move Update noncompliance charge will be 7 cents per piece for mailings that do not comply with the Move Update standards. 
End of Slide 11.



Slide 12:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail – Packages 
The words included are:
(square bullet)Irregular parcels/NFMs (less than 6 ounces)
(square bullet)3-digit changes to SCF
(square bullet)ADC and MADC changes to BMC and MBMC
(square bullet)Origin entry
(dash)BMC prices limited to pallets
(dash)MBMC prices for other preparation
(square bullet)Drop ship entry
(dash)5-digit, SCF, and BMC prices 
End of text information. 

Image Information:
At the far right bottom corner is a snapshot of a box mail piece.
End of Image information.

Notes:
Standard Mail 

We are revising the price categories and qualifications for irregular parcels and Not Flat-Machinable pieces weighing less than 6 ounces. These changes will reduce the number of containers in a mailing, better align the price categories with efficient processing for parcel-shaped pieces, and provide increased opportunities for mailers, including destination delivery unit prices and additional mail volumes that qualify for destination sectional center facility and destination bulk mail center prices. 
New SCF prices replace single 3-digit prices. ADC and mixed ADC prices are replaced with BMC and mixed BMC prices. 
For origin entry, mailings of 200 or more pounds prepared on BMC pallets and entered at the origin Postal facility would be eligible for BMC prices. Mailings prepared in sacks for entry at the origin postal facility would be eligible only for mixed BMC prices. 
For mailings prepared in sacks, 5-digit, SCF, and BMC prices will be limited to mailings prepared for and claimed at DBMC, DSCF, and DDU entry prices.  
End of Slide 12.



Slide 13:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail – Packages 
The words included are:
(square bullet)Machinable parcels/NFMs (6 ounces and over)
(square bullet)Origin entry
(dash)BMC prices limited to pallets
(dash)MBMC prices for other preparation
(square bullet)Drop ship entry
(dash)5-digit and BMC prices 
End of text information.

Image Information:
At the far right bottom corner is a snapshot of a box mail piece.
End of Image information.

Notes:
Standard Mail 

We are not changing the price categories for machinable parcels and NFM pieces weighing 6 ounces or more. Mailings of 200 or more pounds prepared on BMC pallets and entered at the origin facility would be eligible for BMC prices. Mailings prepared in sacks for entry at the origin postal facility would be eligible only for mixed BMC prices. 
For mailings prepared in sacks, 5-digit and BMC prices will be limited to mailings prepared for and claimed at DBMC, DSCF, and DDU entry prices. 
The surcharge for all nonbarcoded parcels and NFMs not prepared in 5-digit/scheme sacks or pallets increases to 7 cents. 
End of Slide 13.



Slide 14:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail – Catalogs 
The words included are:
(square bullet)Lower-than-average price increase: +2.9%
(square bullet)Lowered some pound rates to encourage more content 
End of text information. 

Image Information:
At the far right bottom corner is a snapshot of a series of catalogs, one stacked behind the other.
End of Image information. 

Notes:
Standard Mail 
To encourage volume growth in catalogs, we kept the price change for flat-size catalogs below the average – moderating their increase for the second year in a row. And we have reduced some pound rates for catalogs. As a result, these catalogs and flats will have lower price increases as weight increases.
This pricing can make it cost effective for catalogers to present additional products to their customers, and grow their business using the mail.
We will continue to work with the catalog industry to identify opportunities to promote growth in mail volumes. 
End of Slide 14.



Slide 15:
United States Postal Service Logo in the far left top corner.
Has the heading: Standard Mail – Saturation Mail
The words included are:
(square bullet)Encourage volume growth
(square bullet)Additional pieces
(square bullet)Frequency
(square bullet)Incentives for new volume
(square bullet)4.0˘ flats
(square bullet)3.7˘ letters
(square bullet)One-year program
(square bullet)Enrollment through June 11, 2009 
End of text information.

Image Information:
At the far right is a snapshot of advertising mail pieces, one stacked behind the other.
End of Image information.

Notes:
Standard Mail
Saturation mail is a way for customers, including local businesses, to target advertising messages geographically in a local market. To encourage volume growth and continued use of saturation Standard Mail letters and flats, we are offering a new incentive program for saturation mailers who increase their saturation letters or flats volume. This increase can result from growth in total mailed volume or growth in market coverage within an SCF area. The incentives for regular Standard Mail are 4˘ for flats and 3.7˘ for letters. The program is also available for Nonprofit Standard Mail with smaller incentives.
Mailers wishing to participate in this one-year program must submit a letter requesting participation to their District Manager of Business Mail Entry no later than June 11, 2009. 
End of Slide 15.



Slide 16:
United States Postal Service Logo in the far left top corner.
Has the heading: Periodicals 
The words included are:
Average +3.97%
There is a table.
Table:
Table has 3 Rows and 2 Column:
Row 1:
Column 1: (Header)Product 
column 2: (Header)% Change 

Row 2:
Column 1: (Header)Outside-County 
column 2: 3.97 

Row 3:
Column 1: (Header)In-County 
column 2: 3.80
End of Table.
(square bullet)No preparation changes
(square bullet)Free address correction service with full-service Intelligent Mail option
End of text information.

Image Information:
At the far right is a snapshot of newspapers mail pieces, one stacked behind the other.
End of Image information.

Notes:
Periodicals 
The increase for Periodicals mail is 3.97 percent on average – just above the cap. This is one example of where “banked” percentages from the last price change were applied to the cap.
Nearly all Periodicals will experience modest price increases. Publications authorized as classroom and nonprofit, and those publications meeting the limited-circulation criteria will continue to receive a 5 percent discount off the total Outside-County postage. 
Currently, Periodicals are required to receive address correction notifications at a cost. By adopting the full-service Intelligent Mail option Periodicals can qualify for no-fee address correction service (ACS). 
End of Slide 16.



Slide 17:
United States Postal Service Logo in the far left top corner.
Has the heading: Package Services  
The words included are:
Average +3.80% 
There is a table.
Table:
Table has 5 Rows and 2 Column:
Row 1:
Column 1: (Header)Product 
column 2: (Header)% Change 

Row 2:
Column 1: (Header)Parcel Post (retail)  
column 2: 4.45  

Row 3:
Column 1: (Header)BPM Flats  
column 2: -2.00 

Row 4:
Column 1: (Header)BPM Parcels 
column 2: 2.50 

Row 5:
Column 1: (Header)Media Mail and Library Mail 
column 2: 7.47 
End of Table.
(square bullet)Simplify Parcel Post
(square bullet)Remove BMC designations, Local Zone, and nonmachinable surcharge 
End of text information.

Image Information:
At the far right is a snapshot of box mail piece.
End of Image information.

Notes:
Package Services 
Package Services mail consists of Retail Parcel Post, Bound Printed Matter, Library Mail, and Media Mail. The increase for Package Services overall is 3.8 percent. As you can see from this slide, increases by product range from a 2 percent reduction in BPM flats – consistent with our Standard Mail catalog strategy – to an over 7 percent increase in Media Mail and Library Mail.
The big news is, we are simplifying the pricing structure for retail Parcel Post by replacing the separate price categories for Inter-BMC/ASF and Intra-BMC/ASF with a single Parcel Post category based on weight and zone. We also eliminate the Parcel Post nonmachinable surcharge. This change aligns Parcel Post prices and zones with other classes of mail. The oversized price remains as part of the price structure.
Parcel Select BMC and OBMC Presort, and Parcel Select Barcoded Nonpresort will have the same simplification as retail Parcel Post. 
End of Slide 17.



Slide 18:
United States Postal Service Logo in the far left top corner.
Has the heading: Special Services  
The words included are:
(square bullet)Average +3.84%
(square bullet)Certified Mail: $2.80 (+10˘)
(square bullet)Return Receipt: $2.30 (+10˘)
(square bullet)Annual Mailing Fees: $185 (+$5)
(square bullet)Confirm Service
(square bullet)New Bronze tier 
End of text information.

Image Information:
At the far right is a snapshot of a 2 mail pieces and they are as follows:
Image 1: 
Certified Mail Piece
Image 2: 
insured Mail Piece
End of Image information.

Notes:
Special Services
The average increase is 3.84 percent. Special Services include Post Office Boxes and caller service fees, Certified Mail, Return Receipts, Delivery Confirmation and Signature Confirmation services, Registered Mail, and insurance. It also includes ancillary services such as Address Correction service.
Certified Mail increases 10˘, the Electronic Return Receipt price increases 10˘ and annual mailing fees increase $5. There are modest increases to the Delivery Confirmation service fees, and we continue to offer the no-fee electronic option included in the price for certain Priority Mail and Parcel Select Destination Entry packages. 
Confirm service provides customers with information about their mail based on scan data. In this price change, we add a new Bronze tier for small-volume users.
We originally proposed to differentiate mailing agent and owner subscription prices.  Instead, all Confirm subscribers will pay the same subscription price, based on service level.
End of Slide 18.



Slide 19:
United States Postal Service Logo in the far left top corner.
Has the heading: Full-Service Intelligent Mail  
The words included are:
(square bullet)Immediate benefits in May
(square bullet)Free Address Correction Service
(square bullet)Start-the-clock information
(square bullet)Full-service prices (November 29)
(square bullet)0.3˘ less for First-Class Mail
(square bullet)0.1˘ less for Standard Mail, Periodicals, and Bound Printed Matter flats
(square bullet)Long-term benefits
(square bullet)Actionable information
(dash)Operations, marketing, and finance
(square bullet)Paperless documentation 
End of text information.

Image Information:
At the far right top is a snapshot of a bar code.
End of Image information. 

Notes:
Full-Service Intelligent Mail
A significant portion of OneCode Address Correction Service will be incorporated into the full-service Intelligent Mail option. Beginning May 11, the Intelligent Mail full-service option for automation letters and flats and certain carrier route flats will provide no-fee address correction service as well as “start-the-clock” information. 
On November 29 full-service Intelligent Mail pricing is available for First-Class Mail, Standard Mail, Periodicals, and Bound Printed Matter flats as follows:
First-Class Mail: 0.3˘ less for automation letters and flats.  
Standard Mail: 0.1˘ less for automation letters and flats, as well as ECR letters and basic and high-density carrier route flats.
Periodicals: 0.1˘ less for all letters and flats.
Bound Printed Matter flats: 0.1˘ less for Presorted and Carrier Route Flats.
Long-term benefits for customers using the full-service option include actionable information that they can use for operations capacity, timing marketing campaigns, and timing receivables. Paperless documentation is a big plus, simplifying acceptance and delivery of their mail. 
End of Slide 19.



Slide 20:
United States Postal Service Logo in the far left top corner.
Has the heading: Resources  
The words included are: 
(square bullet)USPS.com/prices
(square bullet)New Price List
(square bullet)Downloadable price files
(square bullet)Federal Register notices 
(square bullet)Postal Explorer (pe.usps.com)
(square bullet)DMM Advisory (dmmadvisory@usps.com)
(square bullet)PCC Insider (pccinsider@usps.com)
(square bullet)MailPro (usps.com/mailpro)  
End of text information.

Image Information:
At the far right is a snapshot of a first class stamp and the words as follows:
New Mailing 
Services Prices
May 11, 2009
End of Image information.

Notes:
Resources
We have resources and tools at usps.com/prices and on Postal Explorer to help you prepare for the May 11 pricing change. You will find many helpful materials, including the updated Price List with new prices for First-Class Mail, Standard Mail, Periodicals, Package Services, and Special Services. We’ve also posted our Federal Register notices and downloadable price files.
DMM Advisory is our customer e-newsletter to keep mailing professionals informed of changes to prices, mailing standards, and other important issues. 
PCC Insider is our e-newsletter with important information for PCC members and other mailers.
MailPro is our bi-monthly publication for mailing professionals.
If you haven’t already, please subscribe and stay informed. 
End of Slide 20.