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January 2021 USPS® Rate Change - What You Need To Know

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Postal Advocate shares all the information you need to know for this coming rate change:
- What rates are changing
- How this impacts you
- What you need to do
- Savings tips

Published in: Education
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January 2021 USPS® Rate Change - What You Need To Know

  1. 1. January 2021 USPS® Rate Change - What You Need To Know
  2. 2. Background and Experience Speaker: Adam Lewenberg • President of Postal Advocate Inc. – The only mail audit and recovery firm in the US and Canada – Manage a portfolio of 160,000 pieces of mailing equipment for the largest US companies. – Speak and teach nationally on mail savings and industry trends. • Former Industry Co Chair- Boston Postal Customer Council and Mail Systems Management Association. CMDSS and MDC Certifications. • Featured Writer for Mailing Systems Technology Magazine. • Worked for one of the largest mailing vendors for over 17 years – Director of national sales for presort, tabletop inserters, addressing hardware/software and green offerings. – Was one of the top 5 account managers nationally working with some of the nations top accounts. December 9, 2020 2
  3. 3. What We’ll Cover: • What rates are changing • How this impacts you • What you need to do • Savings tips • USPS Thoughts December 9, 2020 3 New rates take into effect Sunday January 24, 2021 We will focus on the most common rate structures. For more detail on other mail classes and services go to USPS Postal Explorer at http://pe.usps.gov/PriceChange/Index
  4. 4. USPS Revenue and Volume • Letter volume dropping fast! • Package volumes increasing • Making up for volume declines with rate changes December 9, 2020 4 Service Category Current Compare to Previous Year Change Percent Change Current Compare to Previous Year Change Percent Change 7/1/20-9/30/20 Total First-Class Mail® 5,487,745 5,882,639 -394,894 -6.71% 12,127,030 12,854,136 -727,106 -5.7% Total USPS Marketing Mail® 3,344,305 4,010,287 -665,982 -16.61% 15,570,187 18,301,327 -2,731,140 -14.9% Total Periodicals Mail® 226,887 283,603 -56,716 -20.00% 895,310 1,099,930 -204,620 -18.6% Total Competitive (Parcels) 8,124,134 5,572,260 2,551,874 45.80% 1,956,459 1,326,712 629,747 47.5% Total 17,183,071 15,748,789 1,434,282 9.11% 30,548,986 33,582,105 -3,033,119 -9.03% 4/1/20-6/30/20 Total First-Class Mail® 5,516,615 6,104,544 -587,929 -9.60% 12,041,514 13,263,435 -1,221,921 -9.2 Total USPS Marketing Mail® 2,437,751 3,874,281 -1,436,530 -37.10% 11,247,373 17,681,521 -6,434,148 -36.4 Total Periodicals Mail® 244,710 301,791 -57,081 -18.90% 980,473 1,182,523 -202,050 -17.1 Total Competitive (Parcels) 8,520,580 5,553,211 2,967,369 53.44% 2,084,562 1,315,128 769,434 0.6 Total 16,719,656 15,833,827 885,829 6% 26,353,922 33,442,607 -7,088,685 -21.2% 1/1/20-3/31/20 Total First-Class Mail® 6,420,138 6,537,750 -117,612 -1.8 14,255,575 14,406,800 -151,225 -1.0% Total USPS Marketing Mail® 3,751,525 3,844,747 -93,222 -2.4 17,049,120 17,652,326 -603,206 -3.4% Total Periodicals Mail® 265,485 298,024 -32,539 -10.9 1,020,818 1,163,044 -142,226 -12.2% Total Competitive (Parcels) 6,155,002 5,538,736 616,266 11.13% 1,472,301 1,346,975 125,326 9.3% Total 16,592,150 16,219,257 372,893 2% 33,797,814 34,569,145 -771,331 -2.2% 10/1/19-12/31/19 Total First-Class Mail® 6,771,913 6,933,099 -161,186 -2.3 14,515,399 15,101,517 -586,118 -3.9% Total USPS Marketing Mail® 4,425,562 4,677,793 -252,231 -5.4 20,313,444 22,054,872 -1,741,428 -7.9% Total Periodicals Mail® 286,754 310,657 -23,903 -7.7 1,109,478 1,198,058 -88,580 -7.4% Total Competitive (Parcels) 6,771,075 6,632,419 138,656 2% 1,615,010 1,683,156 -68,146 -4.0% Total 18,255,304 18,553,968 -298,664 -2% 37,553,331 40,037,603 -2,484,272 -6.2% 12 Month Totals 68,750,181 66,355,841 2,394,340 4% 128,254,053 141,631,460 -13,377,407 -9% Revenue Pieces
  5. 5. First-Class Mail® Single Piece • 0% Increase on 1-ounce Letters • Additional ounce increases from $.15 to $.20 for letters. This creates a 7- 12% change for 2–3-ounce mail. • Flats have no increase across all weights! • Post Cards increase by 2.9% December 9, 2020 5 Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $0.55 $0.55 0.0% $1.00 $1.00 0.0% 2 $0.70 $0.75 7.1% $1.20 $1.20 0.0% 3 $0.85 $0.95 11.8% $1.40 $1.40 0.0% 6 N/A N/A $2.00 $2.00 0.0% 13 N/A N/A $3.40 $3.40 0.0% Post Card $0.35 $0.36 2.9% Letters Flats First-Class Mail® Retail
  6. 6. First-Class Mail® Single Piece - Metered Letters • Using a postage meter or a PC postage solution will have a no price increases for letters! • Metered mail (including PC Postage) will save $.04 per piece over stamps purchased from the Post Office! December 9, 2020 6 Savings over First-Class Mail® Retail @ $.55 each Postage meters and PC Postage start at about $15 per month and can make your mail easier to manage. Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $0.500 $0.510 2.0% 2 $0.650 $0.710 9.2% 3 $0.800 $0.910 13.8% Letters Metered Letters Annual Postage # of Pieces @ $.51 each Savings @ $.04 Each $1,000 1,961 $78.43 $2,000 3,922 $156.86 $10,000 19,608 $784.31 $100,000 196,078 $7,843.14 $1,000,000 1,960,784 $78,431.37 First-Class® Mail Metered Savings
  7. 7. First-Class Mail® Commercial • 2-2.5% Increase for automation letters • Flats have the largest increase at 7-8% • Post Cards increased by 3% December 9, 2020 7 Full Service IMB customers still qualify for the additional $.003 savings Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit 1 $0.389 $0.398 2.3% $0.430 $0.460 7.0% $0.260 $0.269 3.5% Automation 3 Digit $0.577 $0.618 7.1% Automation AADC 1 $0.419 $0.428 2.1% $0.620 $0.666 7.4% $0.270 $0.279 3.3% Automation Mixed AADC 1 $0.439 $0.450 2.5% $0.716 $0.774 8.1% $0.276 $0.285 3.3% Presorted (Non Automation) 1 $0.460 $0.460 0.0% $0.810 $0.870 7.4% $0.285 $0.293 2.8% Commercial First-Class Mail® Letters Flats* Post Cards
  8. 8. Marketing Mail® (Formerly called Standard Mail) • 0 - 3% Increase for letters • Flats are seeing the highest increases at 7 – 9%. • Destination Entry Discounts are flat to decreasing for Letters and growing by 44-61% for Flats. December 9, 2020 8 Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit ≤3.5 $0.259 $0.259 0.0% $0.418 $0.450 7.7% Automation 3 Digit ≤4 $0.543 $0.588 8.3% Automation AADC/ADC ≤3.5 $0.284 $0.285 0.4% $0.608 $0.663 9.0% Automation Mixed AADC/ADC-Origin ≤3.5 $0.299 $0.304 1.7% $0.666 $0.726 9.0% Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit ≤3.5 $0.138 $0.138 0.0% $0.240 $0.256 6.7% Automation 3 Digit ≤4 $0.365 $0.394 7.9% Automation AADC/ADC ≤3.5 $0.163 $0.164 0.6% $0.430 $0.469 9.1% Automation Mixed AADC/ADC-Origin ≤3.5 $0.178 $0.183 2.8% $0.488 $0.532 9.0% Marketing Mail® Letters Flats Marketing Mail® Nonprofit Letters Flats Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit >4 $0.184 $0.200 8.7% $0.935 $1.000 7.0% Automation 3 Digit >4 $0.309 $0.338 9.4% $0.935 $1.000 7.0% Automation AADC/ADC >4 $0.374 $0.413 10.4% $0.935 $1.000 7.0% Automation Mixed AADC/ADC-Origin >4 $0.432 $0.476 10.2% $0.935 $1.000 7.0% Weight Ounces Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Automation 5 Digit >4 $0.042 $0.039 -7.1% $0.793 $0.866 9.2% Automation 3 Digit >4 $0.167 $0.177 6.0% $0.793 $0.866 9.2% Automation AADC/ADC >4 $0.232 $0.252 8.6% $0.793 $0.866 9.2% Automation Mixed AADC/ADC-Origin >4 $0.290 $0.315 8.6% $0.793 $0.866 9.2% Marketing Mail® Commercial Flats > 4 Oz Per Piece Per Pound Marketing Mail® Nonprofit Flats > 4 Oz Per Piece Per Pound Prior to 01/24/21 New Rates 01/24/21 % Change Prior to 01/24/21 New Rates 01/24/21 % Change Prior to 01/24/21 New Rates 01/24/21 % Change DNDC $0.020 $0.020 0.0% $0.043 $0.069 60.5% $0.172 $0.276 60.5% DSCF $0.026 $0.024 -7.7% $0.054 $0.078 44.4% $0.216 $0.311 44.0% Letters Flats <4 Ounces Flats >4 Ounces Destination Entry Discounts for Marketing Mail
  9. 9. First-Class Mail® Savings Options • Use Meters or PC Postage to save $.04 on letters • Consider presort services if you run over 500 pieces per day or have one time mailings over 1000 pieces. • Automating your mailings in house can have drastic postage savings. • Presort and automation levels go up to 3.5 ounces for the same rate. • Flats and post cards can have the same automation rates as letters. • Consider moving generic content mail from First Class to Marketing Mail December 9, 2020 9 Mail Piece Examples First-Class Mail® Retail Single Piece First-Class Mail® Metered Single Piece Typical Presort Service - First- Class Mail® First-Class Mail® - Automation Marketing Mail® - Automation Marketing Mail® Non Profit- Automation 1 Ounce #10 Envelope $0.55 $0.51 $.428-.46 $.398-.45 $.259-.304 $.138-.183 3 Ounce Newsletter (6X9) $0.95 $0.91 $.428-.46 $.398-.45 $.259-.304 $.138-.183 8 Ounce Flat (9X12) $2.40 $2.40 $2.17-2.27 $1.86-2.17 $.70-.98 $.47-.75 Post Card $0.36 $0.36 $0.293 $.269-.285 n/a n/a Single Piece Rates Automation Mail with Barcodes
  10. 10. Converting Light Weight Flats to Letters Lightweight Flats – Look for average flat prices of $1.60 or less. Over 50% Savings by folding. – 6 x 9 Envelopes only require that you fold in half. December 9, 2020 10 Flat Envelope Sheets First Class Mail® Flat - Large Envelope First Class Mail® Letter - 6X9 Envelope (Metered) Typical Presort Service - First- Class Mail® Letter First-Class Mail® - Automation Letter Savings 1-2 $1.00 $0.51 $.428-.46 $.398-.45 49-60% 3-4 $1.20 $0.51 $.428-.46 $.398-.45 58-67% 6-10 $1.40 $0.71 $.428-.46 $.398-.45 49-72% Weight Assumptions - Paper = .16 Ounces, Flat = .6 Ounces, 6X9 Envelope = .3 Ounces Letter Envelope - Example 6X9 or #10
  11. 11. Priority Mail® Rate Categories Retail – At USPS Counter or through a postage meter. Commercial Base – Through a PC Postage Solution (USPS.com will no longer qualify for these rates and will default to retail) Commercial Plus – Through a contracted agreement with the USPS. – Priority Mail® - 50,000 packages per year across facilities – Rates are the same as Base December 9, 2020 11
  12. 12. Priority Mail® December 9, 2020 12 Most popular USPS® package service 13 ounce to 70LB items 1-3 day delivery throughout the US 9 primary zones based on distance. Highlights • $.40 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • Flat rate envelopes are staying flat! • 20-25% Increase to zone 9! (Alaska, Hawaii) Average % Increase Retail Commercial Base Flat Rate 5% 3% 1-5LB 4% 3% 6-10LB 4% 3% 11-25LB 8% 7% Over 25LB 9% 7% Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $7.50-14.05 $7.50-14.05 2-15% (4% Avg) $7.02-11.40 $7.02-11.40 1-15% (3% Avg) 5 $10.20-40.00 $10.20-40.00 4-15% (6% Avg) $8.04-33.17 $8.04-33.17 3-15% (4% Avg) 10 $13.60-68.90 $13.60-68.90 4-15% (6% Avg) $9.76-57.94 $9.76-57.94 4-15% (5% Avg) 25 $25-131.05 $25-131.05 7-15% (10% Avg) $19.30-104.82 $19.30-104.82 7-15% (8% Avg) 50 $36.05-207.60 $36.05-207.60 7-15% (10% Avg) $29.16-165.97 $29.16-165.97 7-15% (8% Avg) Flat Rate Envelope $7.75 $7.95 2.6% $7.15 $7.40 3.5% Legal Flat Rate Envelope $8.05 $8.25 2.5% $7.45 $7.70 3.4% Padded Flat Rate Envelope $8.40 $8.55 1.8% $7.75 $8.00 3.2% Small Flat Rate Box $8.30 $8.45 1.8% $7.65 $7.90 3.3% Medium Flat Rate Boxes $15.05 $15.50 3.0% $13.20 $13.75 4.2% Large Flat Rate Boxes $21.10 $21.90 3.8% $18.30 $19.30 5.5% Retail Commercial Base USPS Priority Mail®
  13. 13. Priority Mail® Express December 9, 2020 13 Up to 70LB items 1 day Guaranteed Delivery 9 primary zones based on distance. Highlights • $1.50 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • 0% Increase to zone 1, 2 and 3 vs. 4-8% increase for zone 4-9. Average % Increase Retail Commercial Base Flat Rate 3% 0% 1-5LB 6% 3% 6-10LB 3% 1% 11-25LB 3% 4% Over 25LB 3% 3% Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $25.60-56.10 $25.60-56.10 4-17% (6% Avg) $22.74-49 $22.74-49 3-15% (5% Avg) 5 $27.05-91 $27.05-91 5-18% (7% Avg) $23.91-77.47 $23.91-77.47 4-15% (6% Avg) 10 $40.75-134.20 $40.75-134.20 5-18% (7% Avg) $35.99-114.20 $35.99-114.20 4-15% (6% Avg) 25 $73.85-227.60 $73.85-227.60 6-20% (9% Avg) $64.69-195.84 $64.69-195.84 4-15% (6% Avg) 50 $130.85-420.90$130.85-420.90 6-20% (9% Avg) $114.61-362.20 $114.61-362.20 4-15% (6% Avg) Flat Rate Envelope $25.50 $26.35 3.3% $22.68 $22.75 0.3% Legal Flat Rate Envelope $25.70 $26.50 3.1% $22.80 $22.95 0.7% Padded Flat Rate Envelope $26.20 $26.95 2.9% $23.18 $23.25 0.3% USPS Priority Mail® Express Retail Commercial Base
  14. 14. Savings Tips - Move to Commercial Rates • Huge discounts over retail rates. • Free tracking on usps.com. • Need to process through a PC Postage solution to get the discounts. (Click-N-Ship from the USPS does not allow for Commercial Rates – Only Retail) • Multiple vendor options to process packages • Requires the operator to enter the address and submit to the USPS electronically and create a shipping label vs. meter tape. December 9, 2020 14 Average % Increase Commercial Savings over Retail Flat Rate 9% 1-5LB 17% 6-10LB 22% 11-25LB 23% Over 25LB 20% Average % Increase Commercial Savings over Retail Flat Rate 14% 1-5LB 15% 6-10LB 15% 11-25LB 13% Over 25LB 12% USPS Priority Mail® USPS Priority Mail® Express
  15. 15. First-Class Mail® Package Service December 9, 2020 15 Best Savings Opportunity Less than 1 LB parcels where USPS holds a Monopoly (Private carriers start at 1LB) 1-3 day delivery Highlights • $.25 temporary Q4 2020 increase for per Commercial Base parcel has been eliminated. • Highest increases on light weight items. • Save by converting from Retail to Commercial with improved tracking! • Retail rates go up to 13 ounces forcing heavier items to Priority Mail. Commercial service goes up to 15.999 ounces. Weight Ounces First-Class Mail® - Parcels Retail First-Class Mail® - Package Services Commercial Savings Up to 4 $4.00-4.45 $3.01-3.49 22-25% 5 $4.80-5.20 $3.46-3.85 26-28% 6 $4.80-5.20 $3.46-3.85 26-28% 7 $4.80-5.20 $3.46-3.85 26-28% 8 $4.80-5.20 $3.46-3.85 26-28% 9 $5.50-5.95 $4.04-4.68 21-27% 10 $5.50-5.95 $4.04-4.68 21-27% 11 $5.50-5.95 $4.04-4.68 21-27% 12 $5.50-5.95 $4.04-4.68 21-27% 13 $6.25-6.75 $5.19-5.98 11-17% 14 $7.70-9.90 $5.19-5.98 33-40% 15 $7.70-9.90 $5.19-5.98 33-40% 15.999 $7.70-9.90 $5.19-5.98 33-40% Convert from Retail to Commercial Average % Increase Retail Commercial Base 1-4 Ounce 6% 10% 5-8 Ounce 4% 6% 9-12 Ounce 4% 4% 13 Ounce 5% 4% 14-15.99 Ounce N/A 4%
  16. 16. Commercial Savings Examples December 9, 2020 16 PC Postage starts at around $15 per month! Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $250.00 $182.50 -$67.50 Priority Mail (Less than 10LB) 19% $500.00 $405.00 -$95.00 Priority Mail Express (Less than 10LB) 15% $250.00 $212.50 -$37.50 Total $1,000.00 $800.00 -$200.00 Medium Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $2,500.00 $1,825.00 -$675.00 Priority Mail (Less than 10LB) 19% $5,000.00 $4,050.00 -$950.00 Priority Mail Express (Less than 10LB) 15% $2,500.00 $2,125.00 -$375.00 Total $10,000.00 $8,000.00 -$2,000.00 High Class Commercial Savings Estimated Current Spend Estimated New Spend Difference First Class Parcels 27% $25,000.00 $18,250.00 -$6,750.00 Priority Mail (Less than 10LB) 19% $50,000.00 $40,500.00 -$9,500.00 Priority Mail Express (Less than 10LB) 15% $25,000.00 $21,250.00 -$3,750.00 Total $100,000.00 $80,000.00 -$20,000.00
  17. 17. Additional Rate Change Items December 9, 2020 17 Group Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Canada $1.20 $1.20 0.0% $1.20 $1.20 0.0% $1.20 $1.20 0.0% Mexico (Group 2) $1.20 $1.20 0.0% $1.81 $1.81 0.0% $1.20 $1.20 0.0% Group 3-5 $1.20 $1.20 0.0% $2.24 $2.24 0.0% $1.20 $1.20 0.0% Group 6-9 $1.20 $1.20 0.0% $2.08 $2.08 0.0% $1.20 $1.20 0.0% First-Class Mail International® 1 Ounce 2 Ounce Post Cards Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $2.66 $2.75 3.4% 2 $3.16 $3.28 3.8% 5 $4.66 $4.87 4.5% 10 $7.19 $7.52 4.6% Single Piece Library Mail Weight LB's Prior to 01/24/21 New Rates 01/24/21 % Increase 1 $2.80 $2.89 3.2% 2 $3.33 $3.45 3.6% 5 $4.92 $5.13 4.3% 10 $7.60 $7.93 4.3% Single Piece Media Mail
  18. 18. Special Services December 9, 2020 18 Special Services Retail Electronic Prior to 01/24/21 New Rates 01/24/21 % Increase Prior to 01/24/21 New Rates 01/24/21 % Increase Certificate of Mailing $1.50 $1.55 3.3% Registered™ without Insurance $12.60 $12.90 2.4% Certified Mail™ $3.55 $3.60 1.4% Return Receipt $2.85 $2.85 0.0% $1.70 $1.75 2.9% Insurance $100 $2.85 $2.95 3.5% Insurance $500 $7.10 $7.20 1.4% Marketing Mail® parcels Tracking $0.20 $0.20 0.0% Signature Confirmation $3.15 $3.20 1.6% $2.65 $2.70 1.9% Annual Permit Fees $240.00 $245.00 2.1% Business Reply Mail Permit Fee $240.00 $245.00 2.1% Account Maintenance Fee $725.00 $740.00 2.1% Quarterly Fee $2,460.00 $2,460.00 0.0% Basic $0.85 $0.86 1.2% High Volume $0.093 $0.096 3.2% QBRM Basic $0.072 $0.072 0.0% QBRM High Volume $0.015 $0.014 -6.7%
  19. 19. Certified Mail with Electronic Return Receipt (eRR) • Save $1.10 by switching to an electronic version. December 9, 2020 19
  20. 20. Savings Strategies – Business Reply Mail • Have an inventory of all your Business Reply accounts. • Link in the USPS ACS system. • Validate that all accounts are being used. • Make sure accounts are set up at the right levels. • Monitor usage in monthly/quarterly reviews. • Significant savings by having accounts in the right program as you can see in the table. December 9, 2020 20 Business Reply Mail Basics Basic High Volume QBRM Basic QBRM High Volume Annual Permit Fee $245 $245 $245 $245 Annual Account Maintenance Fee $0 $740 $740 $740 Quarterly Fee $0 $0 $0 $2,460 Total Annual Fees $245 $985 $985 $10,825 Fee per piece $0.860 $0.096 $0.072 $0.014 Postage for 1 ounce mail $0.550 $0.550 $0.532 $0.532 Total cost - Fee and Postage $1.410 $0.646 $0.604 $0.546 Annual Cost by pieces 100 $386 $1,050 $1,045 $10,880 250 $598 $1,147 $1,136 $10,962 500 $950 $1,308 $1,287 $11,098 968 $1,610 $1,610 $1,570 $11,354 1000 $1,655 $1,631 $1,589 $11,371 2500 $3,770 $2,600 $2,495 $12,190 5000 $7,295 $4,215 $4,005 $13,555 10000 $14,345 $7,445 $7,025 $16,285 25000 $35,495 $17,135 $16,085 $24,475 50000 $70,745 $33,285 $31,185 $38,125 100000 $141,245 $65,585 $61,385 $65,425 250000 $352,745 $162,485 $151,985 $147,325 500000 $705,245 $323,985 $302,985 $283,825 1000000 $1,410,245 $646,985 $604,985 $556,825
  21. 21. Savings Tips Compare Rates with the Private Carriers - For every package Benefits to USPS • Don’t charge extra fees for: – Fuel surcharge – Residential, DAS Surcharges – Saturday Delivery – Address Correction Fees • Best rates for lightweight items to residences (Less than 5 LB’s) • First Class Parcel rates for items less than 16 ounces. ($3.01-5.98 per item!) • Free boxes Benefits UPS & FedEx* • Negotiate rates based on volumes. • Guaranteed delivery with refunds. • Ground service with 1-5 day guarantee (Many areas are 1-3 days). • Dedicated account managers. • Typically have the best rates items over 5LB’s or lighter weights going to businesses. *Assumes that you have a corporate agreement. December 9, 2020 21 Multi-Carrier options: 1. Manually compare between systems. 2. Cloud based multi carrier systems – simple to complex. 3. PC/Server based multi carrier systems.
  22. 22. How To Budget For This Increase December 9, 2020 22 Emai: doris.tam@postaladvocate.com for a copy of this excel budgeting tool. Class Weight % Of Class % Change Estimated Current Spend Estimated New Spend Difference First Class Metered Letters 1 85% 2% 2 10% 9% 3 5% 12% Total 3.21% $0.00 $0.00 First Class Flats 0% $0.00 $0.00 First Class Parcles - Retail 5% $0.00 $0.00 First Class Parcles - Commercial 6% $0.00 $0.00 First Class Automation Letters 100% 2% $0.00 $0.00 First Class Automation Flats 7% $0.00 $0.00 Certified with Return Reciept 2% $0.00 $0.00 Priority Mail Retail 6% $0.00 $0.00 Priority Mail Commercial 4% $0.00 $0.00 Marketing Mail Letters 7% $0.00 $0.00 Flats 9% $0.00 $0.00 Other Misc Mail 3% $0.00 $0.00 Total $0.00 $0.00 $0.00
  23. 23. What you need to do: If you have a mail machine, make sure you download the new rates before January 24, 2021 when the rates take into effect Here are links to the different meter vendors: FP: http://www.fp-usa.com/ratechange/ Quadient: https://www.quadient.com/resources/postal-rate- information Pitney Bowes: http://www.pitneybowes.com/us/postal-information/rate- change-info.html Stamps.com: https://stamps.custhelp.com/app/answers/detail/a_id/1685/ ~/january-2017-usps-rate-changes Go to the USPS Postal Explorer website for more information: http://pe.usps.gov/PriceChange/Index December 9, 2020 23 Download the Postal Advocate Rate Comparison Guide – www.postaladvocate.com
  24. 24. Helping multi-location organizations streamline their mailing costs Over 161,000 pieces of equipment, managed by Postal Advocate Recovered over $19,000,000 in lost postage, vendor overcharges and fees ENTERPRISE-WIDEMAILAUDITANDRECOVERY OVER $61,000,000 IN CLIENT SAVINGS $1.9M 59% Average Client Savings Average Equipment Savings HOW WE DO IT • 175+ years of industry experience • Comprehensive web-based tool providing visibility of all mail and equipment spend • Time Savings - Assistance in fleet management visit www.postaladvocate.com or call (888)977-MAIL(6245)
  25. 25. Sign Limited Agency Agreement/Kick-Off Call. Provide copies of vendor invoices, AP export, location list, equipment inventory list. Present savings opportunities and get client approval. Postal Advocate provides ongoing support, manages renewals, billing and vendor compliance. Provide enterprise visibility of all spend, costs and documented savings through enterpriseAdvocate. Provide client log-in. 1 2 3 4 5 6 HOW IT WORKS Work with current vendor to build population report, contract terms/start/end dates, postage volumes, costs. Analyze spend, check for contract compliance, billing errors, vendor fees/overcharges, lost postage. Identify savings opportunities. Submit vendor credit requests, lost postage forms and eliminate avoidable fees. Negotiate pricing. Create catalog. Work with locations - asset validation, rightsize, termination… Full implementation of savings. visit www.postaladvocate.com or call (888)977-MAIL(6245) Conduct Analysis NO COST – AUDIT PHASE CONTRACTED CLIENT
  26. 26. December 9, 2020 27
  27. 27. December 9, 2020 28

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