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In January 2014 the USPS is expected to implement the next price adjustment as well as changes to mailing rules and regulations, including implementing the Full Service Intelligent Mail Barcode requirements. The details behind the price change and mailing regulations will determine the level of complexity a mailer has to contend with as it relates to automation discounts, Full Service IMb and more. Watch this webinar as industry experts Ann Daley and Alison Hall discuss these time sensitive and business critical topics in more depth. To learn more visit: http://www.pb.com/Postal-Information For a step-by-step guide to Full-Service IMb implementation, visit http://pbi.bz/17Q3TyX
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Ann Daley Vice President, Government & Regulatory Affairs, Pitney Bowes Alison Hall Director of Client Services – Direct Mail Solutions, Pitney Bowes
A USPS PRICE CHANGE & FULL-SERVICE IMB® - 2014 HERE WE COME!
Agenda
WHAT’S INSIDE Background
Highlights
The Details
Promotions
Intelligent Mail® Barcode
2
2 Proposed Market Dominant Price Adjustments
1.Consumer Price Index-Urban (CPI-U) Price Proposal Average price increase of 1.69%
2.Exigent or Above-the-Cap Price Proposal
Renewed exigency request – Due to Great Recession Average price increase of 4.30% Caveat: Board of Governors reserves the right to pull the exigent
price increase if Congress acts on postal reform legislation
Background
3
1.69% CPI + 4.30% Exigent = 5.99% overall average increase
Timeline
4
Target Implementation Date is January 26, 2014
Classes of Mail Affected
5
First-Class Mail® Single-Piece Letters & Cards Presort Letters & Cards Flats Parcels Outbound Single-Piece
International
Periodicals
Special Services
Standard Mail® Letters Flats Parcels High Density/Saturation Letters Every Door Direct Mail Retail Parcels
Package Services Bound Printed Matter (BPM) Flats BPM Parcels Media, Library Mail Alaska Bypass
Retail First-Class Single-Piece one-ounce letter increase − CPI from .46 to .47 cents − Exigency from .46 to .49 cents
New First-Class Mail® letter price category to be called “Metered Mail” − 1 cent less than First-Class Single-Piece
Changes to residual First-Class Mail letters price structure
The USPS® continues to price AADC and 3-Digit Letters and Cards at the same level
Second-ounce free continues for all Presort First Class Mail letters (Non-automation and Automation)
Intelligent Mail® barcode $.003 incentive maintained
First-Class Mail® Change Highlights
6
Flat Sequencing System (FSS) preparation will be required in Destination FSS (DFSS) zones
Standard Flats − $0.001 per piece discount for pieces on DFSS-entered
scheme pallets
AADC and 3-Digit Presorted Letters will continue to be priced the same
− Presorting requirements are NOT changing
Intelligent Mail® Barcode $.001 incentive maintained
Simple Samples – No increase in the price of Simple Samples
Standard Mail® Change Highlights 1
7
Customized Market Mail reduced from $.046 to $.044
New prices for EDDM – Commercial − $0.151 to $0.203, based on entry point
EDDM Retail – price increasing to 16.8 cents (CPI); 17.5 cents (Exigent)
Proposing to disallow use of detached address labels (DALs) with all Standard Mail flats mailed with simplified addresses (EDDM); therefore, all EDDM flats entered at BMEUs or Retail would have to bear simplified addresses directly on the flats
Standard Mail® Change Highlights 2
8
Special Services Change Highlights 1
9
Certificate of Mailing CPI Price CPI + Exigent Price
Basic $1.25 $1.30
Firm Book Mailing 0.45 0.47
Bulk: First 1,000 pcs 7.50 7.80
Each Add’l 1,000 pcs 0.90 0.95
5-Digit 0.4129 0.451
Certified Mail $3.15 $3.30
Return Receipt
Requested at time of mailing
Electronic $1.30 $1.35
Green Card 2.60 2.70
Merchandise 4.20 4.40
Requested after mailing 5.05 5.25
Special Services Change Highlights 2
10
USPS Tracking CPI Price CPI + Exigent Price
First Class Mail (Parcels Only) Retail $1.00 $1.05
First Class Mail (Parcels Only) Electronic 0.00
First Class Package Service Electronic 0.00
Priority Mail Retail 0.00
Priority Mail Electronic 0.00
Standard Post Retail 0.00
Standard Mail Parcels Electronic 0.22 0.23
Package Services Retail 1.00 1.05
Package Services Electronic 0.22 0.23
Parcel Select Electronic Electronic 0.00
USPS Tracking CPI Price CPI + Exigent Price
Electronic $2.25 $2.35
Retail 2.80 2.90
FSS preparation will be required for Periodicals mailed in DFF Zones
FSS pricing at the bundle level, sack level, and pallet level will be introduced at all entry points
Full-Service IMb® incentive maintained
Periodicals Change Highlights
11
FSS pricing to be introduced for BPM Flats
FSS price categories introduced for presort at originating entry, DNDC entry, DSCF entry, and DFSS entry, as well as carrier route presort at originating entry, DSCF entry, and DFSS
No FSS pricing for DDU destination entry
FSS pricing incentives for BPM flats may be introduced after January 2014
Eliminates $0.03 POSTNET barcode incentive for BPM Flats
Retains $0.001 Full-Service IMb incentive for BPM Flats
Package Services Change Highlights
12
Key Details
13
***All Changes are Proposed until Approved***
Letters (1 oz.) $0.46 to $0.47 CPI $0.47 to $0.49 Exigent
Letters additional ounces $0.20 CPI $0.21 Exigent
First –Class Mail® International Global Forever Stamp (1 oz.) – $1.10 to $1.15
First Class Postcards $0.33 CPI $0.34 Exigent
First-Class Mail® Retail
14
Price
change
Key First-Class Mail® Single-Piece Prices
15
Current
Price
CPI
Price
CPI + Exigent
Price
Stamp Price 0.46 0.47 0.49
Meter Price 0.46 0.46 0.48
Single-Piece Flats 0.92 0.94 0.98
Single-Piece Cards 0.33 0.33 0.34
Retail Parcels 2.07 2.23 2.32
Save 1¢ on First-Class letters that have postage affixed using: Postage Meter PC Postage Permit Imprint Pre-canceled stamps
No piece minimums No preparation requirement No requirement to report those pieces on a postage statement
NEW: First-Class Meter Rate
16
46
The new price category will be based on incremental weights up to 3.5 oz. Metered pieces claiming the new “Meter Price” will have postage applied
directly to the pieces, and will be deposited as “Retail mail”.
4
First 3 ounces in each FCM parcel category still a single price cell
$.18 additional ounce price after 3 ounces
First-Class Mail® Retail Parcels
17
Oz. Current CPI Exigent
1 2.07 2.23 2.32
2 2.07 2.23 2.32
3 2.07 2.23 2.32
4 2.24 2.40 2.50
5 2.41 2.57 2.68
6 2.58 2.74 2.86
7 2.75 2.91 3.04
8 2.92 3.08 3.22
9 3.09 3.25 3.40
10 3.26 3.42 3.58
11 3.43 3.59 3.76
12 3.60 3.76 3.94
13 3.77 3.93 4.12
PARCELS
First-Class Mail® Commercial Letters
18
Current
Price
CPI Price CPI + Exigent
Price
Mixed AADC
Automation Letters 0.405 0.415 0.435
AADC Automation
Letters 0.384 0.389 0.406
3-D Automation
Letters 0.384 0.389 0.406
5-D Automation
Letters 0.360 0.366 0.381
First-Class Mail® Commercial Flats
19
Current
Price
CPI Price CPI + Exigent
Price
Machinable
Presort 0.772 0.782 0.815
Mixed AADC 0.740 0.750 0.782
AADC 0.640 0.659 0.691
3-Digit 0.594 0.602 0.634
5-Digit 0.406 0.4129 0.451
0.208 each additional ounce
Mailers may continue using current preparation standards Residual 1oz and 2oz pieces presented in
the same tray receive the blended price on those pieces
NEW: Mailers have the option of separating out 1oz and 2oz pieces and paying the lower metered rate
Commercial Residual Single-Piece
Letters: Two Options
20
Weight Not
Over (ounces)
CPI CPI+E
1 $0.46 $0.48
2 $0.66 $0.69
Blended $0.48 $0.50
Key Details
21
***All Changes are Proposed until Approved***
Standard Mail®
Mandated Flat Sequencing System (FSS) Preparation Requirements
Flat mail going to ZIP Codes served by the FSS will require specific ways to sequence, bundle, and place mail on pallets and will be different from current methods
FSS preparation will be different when mailing at non-FSS areas
New FSS pricing Introducing FSS Facility and FSS Scheme pricing for
High Density, High Density Plus and Carrier Route Flats. $0.044 difference between Origin and DFSS Scheme
USPS to offer a $0.001 per piece discount off the DSCF price for those pieces brought to a DFSS in scheme bundles on a DFSS scheme pallet
The discount is an incentive for mailers to enter the mail at a plant where there is an FSS machine
Standard Mail®
22
Flats
Sequencing
System
Simple Samples allows you to send trial-sized products to your customers No increase in price Induct mail without unnecessary outer packaging Lower prices offered for higher-volume tiers
Price reduction for Customized Market Mail from ($0.46 to $0.44)
New prices for Every Door Direct Mail (EDDM) – Commercial: EEDM Saturation Flats is $.001 less than other Saturation Flats
EDDM Retail moves to Market Dominant List – price increasing from $.16 to $.168 (CPI), $.175 (Exigency)
Standard Mail®
23
Saturation and High Density Incentive
Encourage existing mailers to increase mail volume by rewarding them with a rebate on incremental mail pieces above a predetermined volume baseline Commercial Saturation Mail eligible for 20% rebate Commercial High Density Plus and High Density Mail eligible for 15%
rebate Rebate provided as a credit in the postage account in early 2015
Standard Mail® Incentive
24
Key Standard Mail® Prices
25
Current
Price
CPI Price CPI + Exigent
Price
Letters (5-D Auto entered at Origin)
0.247 0.250 0.261
Flats (5-D Auto Flat entered at Origin)
0.362 0.368 0.386
Carrier Route (Flat entered at Origin)
0.279 0.283 0.295
High Density/Saturation
Letters (Saturation Letter entered at Origin)
0.189 0.190 0.198
High Density Saturation
Flats (Saturation Flat entered at Origin)
0.201 0.202 0.211
EDDM-Retail 0.160 0.168 0.175
Mobile Technology Promotions Encourages mailers to integrate direct mail with mobile technology using best practices in mobile marketing
Branded Color Mobile Technology Emerging Technology Featuring NFC Promotion Mail Drives Mobile Commerce Promotion
Technology Drives Relevance Leverage the value of innovative direct mail techniques that are less widely used, but have been shown to increase effectiveness of mail campaigns
Color Print in First-Class Mail Transactions Promotion Mail and Digital Personalization Promotion
Promotions Overview
26
Leverage Value of First-Class Mail Intended to slow the volume decline in First-Class Mail by ensuring reply mail, transactional mail and First-Class advertising remain a relevant part of the First-Class Mail marketing mix
Premium Advertising Promotion Earned Value Promotion
New Customer Acquisition Provides an extra incentive for new customers to try direct mail EDDM Coupon Promotion
Promotions Overview
27
Promotions Details
28
Beginning in January 2014, the USPS® will require mailers receiving automation discounts to be Full Service IMb™ compliant
Full Service Intelligent Mail® will be REQUIRED for: Postcards (First-Class Mail® only) Letters, and flats when mailed using:
First-Class Mail® Standard Mail® Periodicals®
Flats mailed at Bound Printed Matter® prices
IMb® Requirements
29
IMb® Requirements
30
FULL-SERVICE
Intelligent Mail® barcode on mailpiece x
Unique serial number in barcode* x
Intelligent Mail® barcode on trays and containers x
Electronic Documentation (e-Docs) submission x
FAST® Appointment Scheduling x
*Small mailings (fewer than 10,000 pieces) can use the same serial
number for all pieces, if: • Postage is affixed to each piece at the correct price OR
• All pieces are of identical weight and separated by price
Additional information on Full-Service requirements can be found on:
http://www.pb.com/Postal-Information/Intelligent-Mail-Barcode/
What if I don’t move to Full-Service? Non-Automation Rates! I want my Automation Rates! In-house Solution Outsource Fully Outsource Partial Outsource
Options to Become Compliant
31
Evaluate Implementation Options
32
Fully Outsourced
Mixed:
Services &
Solutions
In House
(with Solutions)
Full Service Discounts
Full Service ACS
(FREE)
NIXIE Processing Careful Planning
Time to Implement Highest Risk
Implementation Cost
Recurring Costs
Control
Database Management Appends IMb Meet Move Update
Physical Mail Production IMb® on mailpieces
Mail Preparation IM® tray and container labels
Mail Presentment Electronic documentation (eDoc)
In-house or Outsource (Mixed or Full) Determine Responsibilities & Liabilities
33
USPS® Feedback Start-the-Clock ACS® data Mail data quality reports
1. Review https://ribbs.usps.gov for critical technical information 2. Obtain Mailer ID through USPS Business Customer Gateway 3. Communicate your MID to your Mail Services Provider OR, 4. Enter your new MID into your Mailing Software 5. Create Your Intelligent Mail® barcode in Mailing Software 6. Utilize Mailing Software to prepare to submit eDoc to USPS 7. TEM TESTING – Submit test mailing e-documentation to the USPS for each type of
mailing you may prepare for approval – Add an Intelligent Mail® Barcode to your Mail Piece Layout in Document Composition software. NEW! With TEM approved software, you can bypass TEM Testing.
8. Print mail pieces or export mail list Intelligent Mail® barcode Mailing 9. Print IMb Tray/Sack, and Container Labels 10. Submit Postal documentation electronically – Mail.dat or XML – PostalOne! or
Postage Statement Wizard 11. Watch Mailer Scorecard for verification results
Steps to Implementing Full-Service
Intelligent Mail®
34
https://ribbs.usps.gov
35
NEW! Full-Service Intelligent Mail®
Webinar Series
36
https://ribbs.usps.gov/index.cfm?page=intellmailpresentations
Timeline for Implementation*
37
Obtain CRID/MID
Week 1
Software purchase –
Week 2
Install Software – Train IT/Staff – Implement and Test Software Week 3
Set up Software with MID/CRID
Week 3 - 4
TEM Processes -submit Full service
test files through TEM – USPS Postal One
Week 4 **
Test for Each Type/Class of Mail needs to be
generated & submitted; i.e.; First-Class Letters,
Flats, Standard Mail Letters, Flats, Periodicals.
TEM TESTING – USPS Postal One
Portal Weeks 4 – 5 Plan for multiple testing
Back & Forth
TEM Full-Service (FS) Authorization
Week 4 - 5
Create mailing with
IMb in software
Week 6
Create IM Tray/Sack & Container Labels
Print/Produce Mailing
with IMb
Submit E-documentation – mail.dat, XML, or
Postage Wizard
Schedule FAST appointments if needed
* Estimated time
only, results will
vary
** Plan for USPS approval time
and resubmission if necessary.
Can bypass TEM by using
software previously approved
by USPS
Decide Outsource (full or mixed) or Handle In-house If Outsource, determine responsibilities and manage relationship If In-house, start by familiarizing yourself with https://ribbs.usps.gov NEW! Full-Service Webinar Series
Review approved software vendor list and select software
Apply for your MID at https://gateway.usps.com
Find Technical Guides and tools at https://ribbs.usps.gov
Prepare to use eDoc
Test through TEM if needed
Monitor Mailers Scorecard
Full-Service IMb® Checklist
38
Ann Daley Vice President, Government & Regulatory Affairs, Pitney Bowes [email protected]
Questions?
Alison Hall Director of Client Services, Direct Mail Solutions, Pitney Bowes [email protected]
39
THANK YOU.