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Information about FuturePriceProposal

Published on April 16, 2008

Author: Christian

Source: authorstream.com

Slide1:  Shaping a More Efficient Future Price Change Proposal Slide2:  Why Change Prices Costs going up Changes in operations and the market First price restructuring proposed since 2001 Prices track CPI over time Slide3:  High-Level Goals Growth Efficiency Cost coverage Addressing Positioning for the future Slide4:  High-Level Initiatives Shape-based pricing Less emphasis on weight Incentives Containers Drop shipping Sorting Packaging More choices Forever Stamp Low-cost Address Change Service Slide5:  Agenda Review full product line Strategy Significant changes Specific examples Timeline to 2007 Questions Slide6:  First-Class Mail Strategy Shape-based pricing schedules Letters Flats Parcels 2-ounce letter 63¢ 2-ounce flat 63¢ 2-ounce parcel 63¢ Slide7:  First-Class Mail Strategy Shape-based pricing schedules Letters Flats Parcels De-emphasize weight 2-ounce letter 63¢ ►62¢ 2-ounce flat 63¢ ►82¢ 2-ounce parcel 63¢ ►$1.20 Slide8:  First-Class Mail Significant Changes Forever Stamp Convenient 1-ounce single-piece price Good forever Single-piece 39¢ ►42¢ Postcards 24¢ ►27¢ Slide9:  First-Class Mail Significant Changes Additional ounce 24¢ ►20¢ Letters over 1 ounce go down Flats over 6 ounces go down Similar pattern for workshare Automation letters 23.7¢ ►15.5¢ Presorted letters, flats, and parcels 23.7¢ ►20¢ Slide10:  First-Class Mail Significant Changes Discontinue heavy piece discount Discontinue carrier route rates New Presorted Parcel category Presorted Parcels rate tiers Slide11:  First-Class Mail Significant Changes Presorted Letters Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed Slide12:  First-Class Mail Examples Letters Flats Parcels Slide13:  First-Class Mail Examples + 19¢ + 3¢ + 41¢ - 1¢ Slide14:  Priority Mail Strategy Cover costs Especially large lightweight items De-emphasize weight for heavier items Continue to increase convenience Slide15:  Priority Mail Significant Changes Dimensional weight pricing for Zones 5-8 Lower prices for some heavier items Flat Rate Box becomes permanent Slide16:  Priority Mail Examples Slide17:  Priority Mail Examples + $8.50 + $4.60 Slide18:  Express Mail Strategy Low-cost alternative for shipping documents Significant Change New 1-pound price Slide19:  Express Mail Examples Slide20:  Standard Mail Strategy Align pricing with operations Encourage growth of efficient, effective mail Expand shape-based pricing Slide21:  Standard Mail Significant Changes Increase drop ship incentives Create distinct prices for parcels Add “Not Flat-machinable” category Slide22:  Standard Mail Significant Changes Discontinue destination delivery unit rate for letters Differentiate prices for detached address labels (DALs) Add more presort options Slide23:  Standard Mail Significant Changes Nonmachinable surcharge factored into prices Nonautomation Letters Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed Slide24:  Standard Mail Significant Changes Flats Automation rate tiers Current Proposed Nonautomation rate tiers Current Proposed Slide25:  Standard Mail Significant Changes Parcels Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed Slide26:  Standard Mail Significant Changes Not-Flat Machinable Proposed rate tiers Slide27:  Standard Mail Examples Slide28:  Standard Mail Examples +47.7¢ +27.7¢ +8.6¢ - 5.2¢ +21.6¢ +1.6¢ Slide29:  Periodicals Strategy Encourage efficiency Containers Drop ship Simplify copalletization rules Slide30:  Periodicals Significant Changes New 85¢ container rate Enhanced drop ship incentives Particularly for high-editorial content Slide31:  Periodicals Examples Slide32:  Periodicals Examples + 4.7¢ + 2.7¢ - 2.2¢ Slide33:  Package Services Strategy More efficiency Streamline product offering Slide34:  Package Services Significant Changes Lower increases for DDU and DSCF entry Require barcodes Parcel Select items Discontinue retail Bound Printed Matter Slide35:  Package Services Examples Slide36:  Special Services Strategy Improve address quality Modernize services Slide37:  Special Services Significant Changes New low-cost One Code Address Change Service for letters Redesign Confirm service Redesign Insurance Reduced electronic Return Receipt fee Continue to realign Post Office Box fees Slide38:  Special Services Examples Slide39:  Special Services Examples Slide40:  Special Services Examples Slide41:  Special Services Examples Slide42:  Timeline 2006 2007 May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Governors Decision (March/April) Implementation (May/June) PRC Recommendation (Early March) Litigation (May through March 2007) Filing Date (May 3, 2006) 10 Months 1 Year Slide43:  Communicating USPS.com/ratecase DMM Advisory Mailers Companion Implementation Teams Federal Register Proposed Rule dmmadvisory@usps.com usps.com/mailerscompanion gpoaccess.gov Slide44:  Thank You Questions?

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