Rate Change A to Z Webinar presentation

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Information about Rate Change A to Z Webinar presentation
Business & Mgmt

Published on March 3, 2014

Author: jwolf_neopostcom

Source: slideshare.net

Description

This webinar answered questions about the 2014 postal rates and how it impacts your business.

Tom Keenan, Senior Director at Neopost, broke down all the layers of this year’s changes and provided a simplified version with everything needed to know for a smooth transition to the 2014 rates.

2014 RATE CHANGE: A to Z 1

Housekeeping – Presentation Mode  Attendee phone lines are muted.  Questions may be submitted in the lower left hand side of your screen.  Live Event Support phone numbers here Type your questions here Responses will be received by email  You can submit questions throughout the event.  All questions will be answered at the end of the session as time permits.  For technical assistance during the webcast please call: • 866-297-6395 or 847-944-7317 • Reference Confirmation # 36424893 2 ©2014 Neopost USA Inc. All Rights Reserved. 2

Today’s Agenda  Steps to take now to prepare for the upcoming rate change  Overview of the January 2014 postal rate changes  10 Resolutions for More Effective Mailing in 2014 – Get connected to take advantage of electronic discounts – Mail letters at the lowest possible rate – Downsize flat envelopes – Conform to USPS® Shape Guidelines – Ship packages at the lowest possible rate – Take advantage of flat-rate boxes – Use free USPS® Tracking Services – Rethink Accountable Mail – Get the delivery timing right – Manage postage cash flow  Rate Change and Mailing Resources 3  Q&A ©2014 Neopost USA Inc. All Rights Reserved.

Webinar Polling Question #1 4 ©2014 Neopost USA Inc. All Rights Reserved.

Poll results 5 ©2012 Neopost USA Inc. All Rights Reserved.

Our Speaker Tom Keenan is Senior Director in the Neopost USA Marketing Department. Tom is currently responsible for managing Neopost USA’s meter rental and supplies marketing programs. Rate updates and online rate protection are among the products for which he is responsible. 6 ©2014 Neopost USA Inc. All Rights Reserved.

Special Note to Our Customers Your Neopost and Hasler mailing equipment will require a rate update in order to correctly calculate the new Postal prices.  For customers with equipment that is covered by Online Rate Protection: – Connect your mailing machine and download rates by placing a GENERIC CALL to our server from the ONLINE SERVICES menu. – The download will take three minutes. After download, the mailing machine will automatically switch to the new rates on Sunday, January 26, 2014.  For customers with equipment that is covered by a Rate Protection Contract: – Your rate update will be shipped to arrive next week before the effective date. – If your expected rate update failed to arrive, please call one of our rate change service agents for assistance at 1-800-NEOPOST (636.7678). 7 ©2014 Neopost USA Inc. All Rights Reserved.

Order Your January 2014 USPS® Rate Update There’s still time to get your USPS® rate update before the new rates go into effect!  If the cost of your rate update is not included in your meter rental, or already covered by Online Rate Protection or a Rate Protection Contract, you will need to order a January 2014 rate update for your scale or mailing machine.  You – – – may order a Rate Update online, by mail, by phone, or from one of our offices: Refer to the Rate Change Offer Letter that was mailed in December, 2013. Mail in your order and payment with the coupon provided. Log on to your myNeopost account at neopostusa.com/myNeopost and follow the step-by-step instructions – If you are a Hasler customer, log online to neopostusa.com/myNeopost and enter the Invitation Code printed on your Offer Letter – If you failed to receive an Offer Letter, please call one of our rate change service agents for assistance at 1-800-NEOPOST (636.7678). – If your equipment is maintained by one of our Neopost or Hasler Dealers, contact your local Dealership for assistance. neopostusa.com ©2014 Neopost USA Inc. All Rights Reserved. 8

Learn More at neopostusa.com  Order your rate update  Obtain installation and electronic download instructions for your update  Learn more about the ® upcoming USPS rate change 9 ©2014 Neopost USA Inc. All Rights Reserved.

Navigate Our Rate Change Home Page Click on the ‘Technical Information’ link to locate detailed installation instructions for your mailing machine. Log in to myNeopost and order your rate update. Click on the ‘Rate Change FAQ’ link for answers to our most frequently asked questions. 10 ©2014 Neopost USA Inc. All Rights Reserved.

Obtain Installation & Download Instructions 1 2 3 11 ©2014 Neopost USA Inc. All Rights Reserved.

What will Listeners Learn and Take Away today?  A framework for understanding the confusing January 26, 2014 postal price changes  10 Resolutions tied to actionable knowledge that can help listeners become more savvy and effective mailers.  Listeners will also learn: – – – – – How to qualify for a 2% savings on single-piece letters; How to save up to 42% of the price of shipping by Priority Mail; How to fold an 8”x11” paper in half and save 50¢ on postage; How to avoid costly handling surcharges; and Which little-known option is usually the lowest cost method by which to ship packages weighing between 2 and 15 lbs 12 ©2014 Neopost USA Inc. All Rights Reserved.

A Close Look at the January 2014 Rate Change Certified Mail to increase 20¢ to $3.30. Postal Regulatory Commission approves ® 1.7% inflation-adjustment price increase. Price of First-Class Mail postcard to ® increase 1¢ to 34¢.1-oz to 3-oz First-Class Mail parcel to increase 25¢ to $2.32. Large Flat-Rate Priority Mail boxes to increase 60¢ to $17.45. Price to mail a ® one-ounce First-Class Mail flat envelope to increase by 6¢ to 98¢. Postal Service Files Exigent Rate Case. Price of First-Class Mail® stamp to increase 3¢ to 49¢. Postal Service seeks larger “exigent” rate hikes based the extraordinary circumstances of the ‘Great Recession.’ U.S. Postal Service announces overall shipping prices increase of less than 3 percent for 2014. USPS to implement new discounted rate for postage meters. PRC approves Postal Service Proposal. 13 ©2014 Neopost USA Inc. All Rights Reserved.

Postal Service™ to Raise Prices on January 26, 2014  A single Rate Change update will cover the price changes for both Mailing Services and Shipping Services.  But the best way to begin to understand this rate change is to separate the Rate Change into its components. ® USPS Mailing Services ‘Market Dominant’ ® USPS Shipping Services ‘Competitive’ ©2014 Neopost USA Inc. All Rights Reserved. 14

Postal Accountability and Enhancement Act of 2006  Postal Accountability and Enhancement Act of 2006 – Assigned oversight to the Postal Regulatory Commission (PRC) – Allowed for periodic CPI price increases for ‘Market Dominant’ Mailing – Separate consideration of ‘Competitive’ Shipping Services – Anticipated the need for an additional ‘exigent’ rate filing rate increase in the event the Postal Service were to be affected by “extraordinary or exceptional circumstances.” 15 ©2014 Neopost USA Inc. All Rights Reserved.

Rate Change 2014: The Perfect Storm  The USPS ended the 2013 fiscal year with a net loss of $5 billion – 7th consecutive year in which it incurred a net loss – Despite substantial investment and transformation in a more efficient, integrated, automated infrastructure – Despite $15 billion in annual expense reductions since the 2006 Act – Despite nearly $1 billion in savings driven by work hours reduction of 12 Million hours in 2013  In short, the ‘Great Recession’ constituted “extraordinary, exceptional circumstances” 16 ©2014 Neopost USA Inc. All Rights Reserved.

Three Rate Changes in One 1 1.7% annual inflation-adjustment price increase Approved November 21, 2013 2 Overall Price Increase of 2.4% Approved December 12, 2013 3 An additional 4.3% “temporary” 'exigent' price increase Approved December 24, 2013 17 ©2014 Neopost USA Inc. All Rights Reserved.

3 More Important Points  Postal Service delays full-service IMb Intelligent Mail barcode requirement until 2015.  The PRC made approval of the annual CPI-increase conditional upon delay of the IMb requirement on the grounds that the requirement constitutes a price increase and is therefore subject to the CPI price cap statute.  Postal Service implements 1¢ postage meter discount  The USPS is introducing the special one-cent discount on January 26, 2014 for metered single-piece First-Class Mail letters in recognition that postage meters are an efficient way to manage the flow of mail and help the Postal Service control its costs.  Postal Service delays phase-out of commercial base price discounts for mailers who do not conform to IMpb package barcode requirements until January 25, 2015. 18 ©2014 Neopost USA Inc. All Rights Reserved.

Webinar Polling Question #2 19 ©2014 Neopost USA Inc. All Rights Reserved.

Poll Results 20 ©2012 Neopost USA Inc. All Rights Reserved.

Flat-Rate Shipping Prices 21 ©2014 Neopost USA Inc. All Rights Reserved.

Zoned Priority Mail is Less Costly 22 ©2014 Neopost USA Inc. All Rights Reserved.

Increases for Zoned Priority Mail Express are Modest 23 ©2014 Neopost USA Inc. All Rights Reserved.

The Effects of the Exigent Price Increase 24 ©2014 Neopost USA Inc. All Rights Reserved.

RESOLVE TO BE A MORE EFFECTIVE MAILER IN 2014 25

Resolve to Run an Effective Mail Operation in 2014 I will use a postage meter, get connected, and SAVE with automatic postage and electronic-rate fee discounts. I will mail letters at the lowest rate possible. I will ship packages at the lowest rate possible. I will track delivery with FREE USPS® Tracking Services. I will re-think my approach to accountable mail. I will downsize my flat envelopes to save 50¢ each! I will conform to USPS® shape guidelines. I will ship heavy packages in a flat-rate USPS® box. I will reconsider whether mail needs to arrive tomorrow. I will manage my cash flow and pay for postage as I go. . .or even afterwards! 26 ©2014 Neopost USA Inc. All Rights Reserved.

#1) I will Get Connected! Get connected to the Postal infrastructure to take advantage of all the available USPS® discounts and productivity savings I will use a postage meter, get connected, and SAVE with automatic postage and electronicrate fee discounts. ¢ 27 ©2014 Neopost USA Inc. All Rights Reserved.

#1) continued…… My postage meter qualifies me for 1¢ discounts on single-piece First-Class Mail letters in 2014 Save with Commercial Base Pricing discounts Save with electronic rate Special Services 28 ©2014 Neopost USA Inc. All Rights Reserved.

Save with Commercial Base Pricing Priority Mail rates average 15% savings vs. retails rates for all zones & weights & weights Priority Mail Express rates average 33% savings vs. retails rates for all zones & weights Special Priority Mail™ and Priority Mail™ Express flat rates are only available for commercial customers with an approved connected mailing machine. ©2014 Neopost USA Inc. All Rights Reserved. 29

Electronic Rate Discounts Add Up! Electronic-rate discounts on Extra Services align prices with the reduced costs of processing and managing signatures ©2014 Neopost USA Inc. All Rights Reserved. 30

Increase Mail Center Productivity! Processing eServices & eServices with Electronic Return Receipt • It’s as simple as scanning a label + + REPLACES  31 ©2014 Neopost USA Inc. All Rights Reserved. 31

#2) Meter Your Letter Mail at the Lowest Rate The more work you do, the less the USPS does, and you reap the savings 1¢ discount on singlepiece First-Class Mail letters Save on every piece. One at a time or in bulk. Presort your mail by ZIP code 32 ©2014 Neopost USA Inc. All Rights Reserved.

Presort Your Mail and Save Presort your mail by ZIP code Presort automation and nonautomation rates are the same The more work you do, the less the USPS does, and you reap the savings max weight: 3.3 oz 33 ©2014 Neopost USA Inc. All Rights Reserved.

Presort Rates for First-Class Mail® Commercial First-Class Mail® Retail Letter First-Class Mail® Retail Letter Presorted (nonautomation) Automation 3 Digit Automation 5 Digit 1 Ounce 0.480 0.460 0.406 0.381 2 Ounce 0.690 0.460 0.406 0.381 3 Ounce 0.900 0.720 0.666 0.641 Commercial First-Class Mail® Retail Flat First-Class Mail® Retail Flat 1 Ounce Presorted (nonautomation) Automation 3 Digit Automation 5 Digit 0.980 0.815 0.634 0.451 Business and Commercial Mailers Still Benefit from ‘Second Ounce Free.’ First introduced for January 2012, First-Class Mail Presorted and automation letters weighing up to 2 ounces will continue to mail at the 1-ounce price. 34 ©2014 Neopost USA Inc. All Rights Reserved.

#3) Downsize Flat Envelopes Resolution #3 I will downsize my flat envelopes 1 oz Pay only 48¢ versus 98¢ for 1-ounce 1.19 1.40 0.48 6”x9” qualifies for letter rate vs. flat envelope rate. 3 oz 0.98 Use 6 x 9 envelopes vs. flat envelopes and save 50¢ per piece! 2 oz 0.69 0.90 Save 50¢ apiece with the new 1¢ meter discount! ©2014 Neopost USA Inc. All Rights Reserved. 35

Fold the Pages to Minimize Costly Flats 10” x 13” Flat + 9 sheets 9 sheets folded = $ 1.40 = $ 0.69 6 x 9.5” Envelope Save more than 50% by changing the pricing category from FLAT to LETTER 6 x 9.5” is lighter than a large envelope by .5 ounces 36 ©2014 Neopost USA Inc. All Rights Reserved.

#4) Get in Shape: Conform to USPS® Guidelines Resolution #4 I will downsize my flat envelopes I will Get in Shape, conform to USPS piece shape guidelines, and avoid paying extra for manual sorting! Avoid non-machinable surcharges! Conform to the Postal Service™ shape-based standards. align prices with the costs of processing mail, particularly pieces that require manual sorting and handling 37 ©2014 Neopost USA Inc. All Rights Reserved.

Stay in Shape to Save Money First-Class Mail® Letter $0.21 Under 13 ounces First-Class Mail® Flat Envelope over 13 ounces Classified as Package Classified as Priority Mail® 38 ©2014 Neopost USA Inc. All Rights Reserved.

#5) Ship Packages at the Lowest Rate Retail Flat-Rate Boxes are good. Flat-Rate Boxes at discounted Commercial Base Prices are better. Zoned Priority Mail at Commercial Base Prices can be better still! Save on packaging too! The advantages of Priority Mail.  1-, 2- or 3-day delivery based on package origination and destination  USPS® Tracking Services included  Up to $50 in insurance included (for mail pieces with barcodes)  Saturday and residential delivery at no extra charge for many locations  Free package pickup for many locations 39 ©2014 Neopost USA Inc. All Rights Reserved.

Save on Priority Mail® with Zoned CBP 40 ©2014 Neopost USA Inc. All Rights Reserved.

Save on Priority Mail® Express with Zoned CBP 41 ©2014 Neopost USA Inc. All Rights Reserved.

Discover Regional Rate Boxes! If you qualify for already discounted Commercial Base Pricing, you can save even more with Regional Rate Boxes And save on packaging too! All the advantages of Priority Mail at less cost.  1-, 2- or 3-day delivery based on package origination and destination  USPS® Tracking Services included  Up to $50 in insurance included (for mail pieces with barcodes)  Saturday and residential delivery at no extra charge for many locations  Free package pickup for many locations ©2014 Neopost USA Inc. All Rights Reserved. 42

Regional Rate Boxes  A lower-cost alternative for packages shipped over short distances  Regional Rate Boxes work best for small, dense packages that might otherwise be expensive to ship. – 15 pounds or less for Box A – 20 pounds or less for Box B – 25 pounds or less for Box C  Regional Rate Box A is the overall lowest-cost USPS® option for packages weighing between 2 and 15 pounds ©2014 Neopost USA Inc. All Rights Reserved. 43

#6) Ship Heavier Packages in a Flat Rate Box ‘If it fits, it ships®’ One flat rate up to 70 lbs! Free packaging Free USPS Services ® Tracking 44 ©2014 Neopost USA Inc. All Rights Reserved.

#7) Track Packages with FREE USPS® Tracking Services USPS® Tracking Services are free when you mail by Priority Mail® or Standard Post (formerly Parcel Post) Retail Rate Electronic Rate You save $ 0.00 $ 0.00 $ 0.90 100% Retail Rate Electronic Rate You save $ 1.05 $ 0.00 $ 1.05 100% 45 ©2014 Neopost USA Inc. All Rights Reserved.

#8) Re-think Accountable Mail Delivery Confirmation™ I won’t overpay for a service that I might not need. Confirmation of Delivery Signature Confirmation™ Signature Confirmation of Delivery/Receipt Certified Mail Proof of Mailing Signature Kept on File Return Receipt Signature Confirmation of Delivery/Receipt Electronic Return Receipt Signature Confirmation of Delivery/Receipt Registered Mail Proof of Mailing Signature Confirmation of Receipt by designated recipient Restricted Delivery Signature Confirmation of Delivery/Receipt by designated recipient ©2014 Neopost USA Inc. All Rights Reserved. 46

The Comparative Costs of a Signature Signature Confirmation™ Retail Counter Electronic Rate Signature Confirmation™ $ 2.90 $ 2.35 Electronic Return Return Receipt Electronic Return Receipt after Green Card Receipt delivery $ 2.70 $ 1.35 5.25 Don’t overpay for a service that you might not need. 10 Pieces mailed at Electronic Signature Rate $ 13.50 The 1 piece for which you need a Signature $ 5.25 47 ©2014 Neopost USA Inc. All Rights Reserved.

#9) Does it Really Need to Arrive Tomorrow? I will reconsider whether mail really needs to get there tomorrow. Priority Mail® First-Class Flat-Rate Mail® Letter Envelope $ 5.60 1-oz letter $ 0.48 $ 5.05 Will it arrive tomorrow anyway? The USPS interactive delivery map at https://www.usps.com/pri ority-mail/map/ will help me find out! First-Class Mail® Parcel 8-oz parcel $ 3.22 Priority Mail® Flat-Rate Small Box $ 5.80 $ 5.25 Express Mail® Flat-Rate Envelope Carrier 1 Next Day Air $ 19.99 $ 22.05 Express Mail® Flat-Rate Envelope Carrier 1 Next Day Air $ 44.95 $ 28.10 48 ©2014 Neopost USA Inc. All Rights Reserved.

Priority Mail Delivery Map https://www.usps.com/priority-mail/map ©2014 Neopost USA Inc. All Rights Reserved. 49

#10) Pay for Postage as it is Used I will manage my cash flow and pay for postage as I use it. Or even afterwards. I will switch from checkbased postage prepayment and to ACH Direct Debits from my bank account. Or I will download now and pay later with a monthly postage invoicing program.  Can I take advantage of these postage payment programs to better manage and control cash flow?  Do I prefer to pay for postage on my standard accounts payable schedule?  Do I need the flexibility to revolve a balance?  Do unplanned jobs frequently cause me to run short of postage? 50 ©2014 Neopost USA Inc. All Rights Reserved.

Conclusion  Rate Changes provide opportunities – Review your shipping and mailing options – Evaluate your current costs of mailing and shipping to best practices  Align your mailing practices with USPS® strategic and tactical objectives to capitalize on the best combinations of price, value and services • Get connected to the Postal infrastructure to take advantage of all the available USPS® discounts and productivity savings Thank you 51 ©2014 Neopost USA Inc. All Rights Reserved.

More Information and Q&A Tom Keenan Sr. Director, Services Marketing t.keenan@neopost.com Rate Change Service and Support 1-800-NEOPOST (636-7678) Contact Us: Request Customer Support 52 ©2014 Neopost USA Inc. All Rights Reserved.

Rate Change and Mailing Resources 53 ©2014 Neopost USA Inc. All Rights Reserved. 53

Rate Change and Mailing Resources  USPS.com USPS – Frequently Asked Questions – January 2014 Mailing and Shipping Services Price Changes http://faq.usps.com/eCustomer/iq/usps/  neopostusa.com Rate Change Page – USPS® to Increase Prices for 2014 http://neopostinc.com/Support/Rate-Change.aspx Frequently Asked Questions – January 2014 Mailing and Shipping Services Price Changes http://neopostinc.com/Support/Rate-Change/Rate-Change-FAQ.aspx Rate Change Installation Instructions http://neopostinc.com/Support/Rate-Change/Installation-Instructions.aspx 54 ©2014 Neopost USA Inc. All Rights Reserved.

Mailing Resources – cont.  Postal Explorer- http://www.pe.usps.com – – – – Calculators. Price changes. Domestic and International mail manuals. Rates and descriptions.  National Customer Support Center - https://ribbs.usps.gov – IMB (Intelligent Barcode) services. – Business Mail Acceptance. – Important Updates, etc.  Address Quality – www.usps.com/business/manage-address-quality.htm – http://www.satorisoftware.com/learn/address-quality/ 55 ©2014 Neopost USA Inc. All Rights Reserved. 55

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