Shaping a More Efficient Future

1
Shaping a More Efficient Future Pricing Change
Effective Monday, May 14
2
Shaping a More Efficient Future Periodicals

• July 15 Implementation
• Outside-County
• More complex container rate application
• Bundle rates based on sort level and container
  level
• Container rates based on container type, level,
  and entry
• Allow time for software development

3
Shaping a More Efficient Future Request for
Reconsideration

• Standard Mail flats
• Nonmachinable surcharge for First-Class Mail
  letters
• Priority Mail Flat Rate Box

4
Shaping a More Efficient Future New Prices

• Reflect changes in operations and the marketplace
• Offer more choices
• Include incentives
• Reduce undeliverable-as-addressed mail
• Better reflect that shape matters

5
Shaping a More Efficient Future First-Class Mail

• Forever Stamp
• Booklets and sheetlets
• Available April 12
• Single-piece rate 41
• Good forever

6
Shaping a More Efficient Future First-Class Mail

• Shape Matters Single-Piece
• Letters 41
• Nonmachinable surcharge 17
• Additional ounce 17
• Postcards 26
• Flats 80
• Parcels 1.13

7
Shaping a More Efficient Future First-Class Mail

• Shape Matters Letters
• Maximum weight 3.5 ounces
• Pieces that exceed 3.5 ounces or any letter-size
  dimension are charged as flats

Minimum 5 inches 3-1/2 inches 0.007 inch
Maximum 11-1/2 inches 6-1/8 inches 1/4 inch
Length Height Thickness
Nonmachinable letters weighing 1 ounce
or less will be charged 17 nonmachinable
surcharge.
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Shaping a More Efficient Future First-Class Mail

• Shape Matters Flats
• Maximum weight 13 ounces
• Pieces that exceed any dimension are charged as
  parcels

Minimum 11-1/2 inches 6-1/8 inches 1/4 inch
Maximum 15 inches 12 inches 3/4 inch
Length Height Thickness
Flats exceed at least one of these dimensions.
Flats with the following characteristics are also
subject to parcel prices

• Not flexible
• Not rectangular
• Not uniform in thickness

9
Shaping a More Efficient Future First-Class Mail

• Shape Matters Lower Prices
• Lower prices for
• Letters over 1 ounce
• Flats over 6 ounces

10
Shaping a More Efficient Future First-Class Mail

• Shape Matters Example
• Flat-size to letter-size envelope

97
58
Save 39
2-ounce example
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Shaping a More Efficient Future First-Class Mail

• Shape Matters Example
• Parcel to flat

97
1.30
Save 33
2-ounce example
12
Shaping a More Efficient Future First-Class Mail

• Workshare
• Presort and automation flats additional ounce 17
• Automation letter additional ounce 12.5
• Maximum weight
• Presort letter 3.3 ounces
• Automation letter 3.5 ounces

13
Shaping a More Efficient Future First-Cass Mail

• Automation Letters
• Automation Carrier Route rates eliminated
• No change to rate eligibility

5-Digit/Scheme Overflow Mail
3-Digit/Scheme Overflow Mail
AADC Overflow Mail
5-digit/scheme optional
3-digit/scheme
Mixed AADC
AADC

• Require 85 full trays
• Reduced overflow option

14
Shaping a More Efficient Future First-Class Mail

• Machinable Letters
• Simplified tray preparation

Origin 3-digit
AADC
Mixed AADC
15
Shaping a More Efficient Future First-Class Mail

• Automation Flats
• Must be
• Flexible
• Rectangular
• Uniformly thick

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Shaping a More Efficient Future First-Class Mail

• Presorted Parcels
• New rate structure
• Barcodes required
• UCC/EAN Code128
• or POSTNET

5-digit 3-digit ADC
17
Shaping a More Efficient Future Priority Mail

• Flat Rates

Price
Flat-Rate Envelope 4.60
Flat-Rate Box 9.15
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Shaping a More Efficient Future Priority Mail

• Dimensional Weight and Balloon Rate Pricing
• Dimensional weight Zones 5-8
• Balloon rate Local and Zones 1-4
• USPS-complimentary packaging not subject to
  either
• Lower prices for heavier
  items

19
Shaping a More Efficient Future Priority Mail

• Dimensional Weight Pricing Example

Zone 8, 10 pound, 1.6 cubic foot parcel 30.50 Reduce size by 25 to 1.2 cubic feet 26.35
Save
20
Shaping a More Efficient Future Express Mail

• New 1-Pound Price

Post Office to Addressee Price
1/2 pound (flat-rate envelope) 16.25
1 pound 19.50
2 pounds 21.40
21
Shaping a More Efficient Future Standard Mail

• Initiatives
• Greater recognition of shape
• Eliminate DDU rate for letters
• Drop ship closer to destination
• Detached Address Label surcharge

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Shaping a More Efficient Future Standard Mail

• Automation Letters
• ECR automation rates eliminated
• No change to rate eligibility

5-Digit/Scheme Overflow Mail
3-Digit/Scheme Overflow Mail
AADC Overflow Mail
5-digit/scheme optional
3-digit/scheme
Mixed AADC
AADC

• Require 85 full trays
• Reduced overflow tray option

23
Shaping a More Efficient Future Standard Mail

• Machinable Letters
• Simplified tray preparation

Optional Origin/Entry 3-digit
AADC
Mixed AADC
24
Shaping a More Efficient Future Standard Mail

• Nonmachinable Letters
• Separate rate structure

5-digit
3-digit
Mixed ADC
ADC
25
Shaping a More Efficient Future Standard Mail

• ECR Letters
• New tray preparation for barcoded
  automation-compatible letters 3 ounces or less
• No change to preparation for nonautomation and
  pieces weighing over 3 ounces
• DSCF-entry rates allowed for some DDU entry

26
Shaping a More Efficient Future Standard Mail

• Flats
• Changes to flat-size mailing standards
• Cover costs
• Efficient processing and delivery

27
Shaping a More Efficient Future Standard Mail

• Automation Flats
• Must be
• Flexible
• Rectangular
• Uniformly thick
• Maximum thickness 3/4?
• Minimum size 5? x 6?

28
Shaping a More Efficient Future Standard Mail

• Flexibility Test

Length runs parallel to the surface
Flats over 10 inches long that contain a rigid
insert length perpendicular to surface
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Shaping a More Efficient Future Standard Mail

• Nonautomation Flats
• Not required to meet all automation standards

30
Shaping a More Efficient Future Standard Mail

• Enhanced Carrier Route Flats
• Not required to meet all automation standards
• ECR maximum size 12? x 15?
• No change to preparation

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Shaping a More Efficient Future Standard Mail

• Parcels
• New rate structure

Machinable rate tiers
5-digit BMC Mixed BMC
Irregular rate tiers
5-digit 3-digit ADC Mixed ADC

• DDU-entry option
• Barcodes required

32
Shaping a More Efficient Future Standard Mail

• Not Flat-Machinable
• Rigid pieces
• USFM 1000 standards
• Provides an additional option

33
Shaping a More Efficient Future Standard Mail

• Not Flat-Machinable
• Preparation
• 6 ounces and over machinable parcel preparation
• Less than 6 ounces irregular parcel preparation
  
• Barcodes required
• Rate marking required
• NFM or Not Flat-Machinable
• DDU entry rates

34
Shaping a More Efficient Future Standard Mail

• Parcel Drop Ship Pricing Example

8 oz. mach parcel, basic presort, BMC drop ship 1.006 Enter at DDU 59.2
Save
35
Shaping a More Efficient Future Standard Mail

• NFM Pricing Example

4 oz. rigid mailpiece, 5-digit presort, DSCF 44.4 NFM rate Use auto-compatible flexible packaging 32.0 Auto flat rate
Save
36
Shaping a More Efficient Future Package Services

• Initiatives
• 20-pound balloon rate
• Barcodes required on Parcel Select
• Nonpresorted Bound Printed Mail rate
• Scheme preparation required for BPM, Library Mail
  and Media Mail

37
Shaping a More Efficient Future Extra Services

• New low-cost OneCode
  Address Change Service
• Redesigned Insurance
• Barcoded and scanned
• 200 and less no signature required
• Lower electronic return receipt fee

38
Shaping a More Efficient Future Extra Services

• Continue Post Office Box realignment
• Caller service now aligned with fee groups
• Business Reply Mail prices based on shape
• Confirm maintains tiered structure
• Annual mailing and permit fees increase

39
Shaping a More Efficient Future International

• New Shipping and Mailing Options
• Global Express Guaranteed
• Express Mail International
• Priority Mail International
• First-Class Mail International

40
Shaping a More Efficient Future International

• Online Discounts
• Global Express Guaranteed 10
• Express Mail International 8
• Priority Mail International 5

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Shaping a More Efficient Future International

• Global Express Guaranteed
• Expedited date-certain delivery service

42
Shaping a More Efficient Future International

• Express Mail International
• Reliable 3- to 5-day service
• Flat-Rate envelope option

43
Shaping a More Efficient Future International

• Priority Mail International
• Reliable 6- to 10-day service
• Flat-Rate box and envelope options

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Shaping a More Efficient Future International

• First-Class Mail International
• Reliable and economical
• For documents and lightweight items

45
Shaping a More Efficient Future International

• Business Services
• International Priority Airmail
• International Surface Airlift
• M-Bags

46
Shaping a More Efficient Future Resources

• USPS.com
• Pricing change usps.com/ratecase
• Postal Explorer pe.usps.com
• MailPro usps.com/mailpro
• DMM Advisory dmmadvisory_at_usps.com