Understanding the May 2015 U.S. Postal Service Price Change Each year—at least once per year—the U.S. Postal Service® (USPS®) changes rates across their various mail classes and extra services. Often concurrent with these rate changes, the USPS may introduce new products, such as a Flat Rate Box, or new regulations, such as presorted mail requirements. These events are referred to as USPS Price Changes. On May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates in December 2014 and January 2015 respectively. Contents Overview......................................................................................................................................................................................................3 Brief Description:..................................................................................................................................................................................3 Key Highlights or Changes:..................................................................................................................................................................3 Additional Information:.........................................................................................................................................................................3 Background..................................................................................................................................................................................................4 Market Dominant vs. Competitive........................................................................................................................................................4 USPS Pricing Tiers...............................................................................................................................................................................4 Relevant Changes for Competitive Classes – “Shipping”...........................................................................................................................5 First-Class Package Service (FCPS)....................................................................................................................................................5 Standard Post.......................................................................................................................................................................................6 Parcel Select (non-presort)...................................................................................................................................................................7 Priority Mail (PM)...................................................................................................................................................................................7 Priority Mail Express (PME)..................................................................................................................................................................8 First-Class Package International Service (FCPIS)..............................................................................................................................9 Priority Mail International (PMI)..........................................................................................................................................................10 Priority Mail Express International (PMEI)..........................................................................................................................................12 Global Express Guaranteed (GXG).....................................................................................................................................................13 Comparing Prices: Retail, Commercial Base and Commercial Plus........................................................................................................14 Qualifying for Commercial Plus Pricing (CPP)...................................................................................................................................14 Tier Comparison.................................................................................................................................................................................14 Relevant Changes for Market Dominant Classes – “Mailing”...................................................................................................................15 First-Class Mail...................................................................................................................................................................................15 Standard Mail.....................................................................................................................................................................................16 Media Mail..........................................................................................................................................................................................16 Library Mail.........................................................................................................................................................................................16 Bound Printed Matter (BPM)..............................................................................................................................................................17 First-Class Mail International (FCMI)..................................................................................................................................................17 Additional Changes....................................................................................................................................................................................18 International Product Changes...........................................................................................................................................................18 USPS Insurance..................................................................................................................................................................................18 Signature Confirmation.......................................................................................................................................................................19 Certified Mail.......................................................................................................................................................................................19 PG 2 Overview Brief Description Key Highlights or Changes: Each year – at least once per year – the U.S. Postal Service® Starting Sunday, May 31, 2015, at 12:01am: (USPS®) changes rates across their various mail classes and extra services. Often concurrent with these rate changes, the USPS may introduce new products, such as a Flat Rate Box, or new regulations, such as presorted mail requirements. These events are referred to as USPS Price Changes. On May 31, 2015, there will be a price change inclusive of both the Shipping and Mailing categories. Both primary competitors of the USPS, UPS and FedEx, increased their rates in December 2014 and January 2015 respectively. Endicia will update all service offerings with the new prices and applicable regulations to ensure our customers are compliant • Priority Mail International for Canada will switch to zone based pricing – there will be 7 pricing zones versus the previous single rate for the entire country. • The USPS will reduce the $0.01 electronic postage / meter discount to $.005 for First-Class Mail Letters (up to 3.5 oz.). • Proposed, pending approval: First-Class Mail Parcel (Retail) becomes First-Class Package Service (FCPS), which would add a Retail pricing tier to the existing Commercial Base and Commercial Plus pricing tiers for FCPS. and print postage correctly. We are committed to providing our • USPS Tracking becomes free for Library Mail and Media customers with all USPS options as soon as they are available, Mail and thus USPS Tracking is included for all domestic and we make it a priority to educate our customers and mail classes at no additional cost with the exception of partners about the changes and how they will be affected. Standard Mail which has a cost of $0.36 per piece. The May 2015 USPS price change includes two proposals filed for approval with the Postal Regulatory Commission (PRC): • Market Dominant CPI filing – Approved in April 2015 • Competitive filing – Approved in April 2015 Effective Date: • U.S. Postal Service: Sunday, May 31, 2015 at 12:01am • USPS will require a signature at delivery for all USPS insured shipments with an insured value of more than $500, up from $200; Signature Confirmation is included at no additional fee Additional Information: • Priority Mail rates remain unchanged allowing shippers to can take advantage of the lower rates that went into effect in September 2014. • FedEx and UPS implemented dimensional (DIM) weight rating for all Ground shipments at the beginning of 2015. This change means that large, lightweight items are much more costly to ship than they were in 2014. It’s important to check and see if the lower USPS Priority Mail rates would be a more economical option. PG 3 Background Market Dominant vs. Competitive USPS Pricing Tiers Market Dominant mail classes are services for which the The USPS offers discounted pricing options to certain types of USPS effectively has a monopoly in the market. customers for specific types of mail classes. They are also able Because there are not equivalent services offered by other carriers, the government restricts the maximum rate at which the Postal Service can raise or change these prices. This restriction means the average percent increase for each Market Dominant mail class cannot exceed the current year’s to negotiate prices for high-volume domestic and international shippers. These negotiated rates are not “published” rates and therefore not covered in our Price Change information. Published pricing tiers include the following: • Retail Price: Retail pricing refers to the standard Consumer Price Index (CPI). counter price for postage purchased at the Post Office™ Competitive mail classes are USPS services that are similar to or other physical retail locations. services offered by private carriers such as FedEx and UPS. • Commercial Base Pricing (CBP): Commercial Base Pricing refers to the discounted postage The presence of marketplace competition increases the USPS’ price for certain mail classes available to electronic flexibility when pricing these classes, including the ability to offer volume or negotiated discounts. There is no maximum rate postage users. The vast majority of Endicia customers cap for any increase in price for these mail classes. automatically receive CBP for applicable Competitive Below is a table of each mail class by category: mail classes. • Commercial Plus Pricing (CPP): Commercial Plus Market Dominant Mail Classes Competitive Mail Classes First-Class Mail First-Class Package Service Standard Mail Standard Post automatically receive them through their software or Media Mail Parcel Select application. Library Mail Priority Mail Bound Printed Matter Priority Mail Express First-Class Mail International First-Class Package International Service Pricing refers to deeply discounted postage prices for certain mail classes available to qualified high-volume shippers. Endicia customers who qualify for CPP pricing Priority Mail International Priority Mail Express International Global Express Guaranteed PG 4 Relevant Changes for Competitive Classes – “Shipping” First-Class Package Service (FCPS) • Proposed, pending approval: The USPS will move First- • Average overall increase: -- Retail: Class Mail Parcel, currently a Market Dominant product, to the Competitive group. This product will be renamed First- FCPS: Retail Pricing Weight 2015 Price Change vs. 2014 1 oz. $2.54 +$0.22 Plus pricing tiers for FCPS. Endicia customers, unless part 2 oz. $2.54 +$0.22 of the USPS Approved Shipper program, will continue to 3 oz. $2.54 +$0.22 use the Commercial Base (or Commercial Plus, if qualified) 4 oz. $2.74 +$0.24 5 oz. $2.94 +$0.26 6 oz. $3.14 +$0.28 7 oz. $3.34 +$0.30 8 oz. $3.54 +$0.32 items like product samples or swatches, single t-shirts, or 9 oz. $3.74 +$0.34 small stuffed animals. 10 oz. $3.94 +$0.36 In order to qualify for the Commercial Plus Pricing tier, a 11 oz. $4.14 +$0.38 shipper must have a customer commitment agreement with 12 oz. $4.34 +$0.40 13 oz. $4.54 +$0.42 Class Package Service and become the Retail pricing tier to complement the existing Commercial Base and Commercial pricing tier for their FCPS packages. • What do shippers use FCPS service for? FCPS is used for items that weigh 13 ounces or less, are more than ¾ of an inch thick (or ¼" thick, if rigid) and 108" or less in length + height + width. It’s great for small, low-value the USPS to send more than 5,000 FCPS packages in a calendar year. Shippers that qualify for FCPS Commercial Plus discounts can ship packages that weigh up to one pound (15.999 ounces). • What is the delivery standard for FCPS? The delivery standard for FCPS is 2-3 days (not guaranteed). This is comparable to FedEx or UPS 2-3 day service for packages weighing less than one pound. PG 5 Standard Post -- Commercial Base Pricing (CBP): FCPS Commercial Base Pricing is increasing by an average of 5.1%, which equates to an average of $0.13 more per package. • What do shippers use this service for? Standard Post is geared toward heavier or larger packages that don’t require expedited delivery. Standard Post is designed to compete with UPS and FedEx Ground services, FCPS: Commercial Base Pricing with the real benefit to shippers being that, unlike the private Weight 2015 Price Change vs. 2014 1 oz. $2.04 +$0.11 fuel, Saturday delivery or rural delivery. 2 oz. $2.04 +$0.11 Standard Post is ONLY available at the retail counter. 3 oz. $2.04 +$0.11 The comparable mail class available to Endicia customers is 4 oz. $2.13 +$0.12 Parcel Select, which features the same delivery time and is 5 oz. $2.22 +$0.13 6 oz. $2.35 +$0.10 7 oz. $2.53 +$0.11 8 oz. $2.71 +$0.12 9 oz. $2.89 +$0.13 10 oz. $3.07 +$0.14 11 oz. $3.25 +$0.14 12 oz. $3.44 +$0.15 13 oz. $3.63 +$0.16 carriers, the USPS does not add surcharges for things like less expensive than Standard Post for all weights and zones. There are no flat rate or regional rate options for Standard Post, nor are there any Commercial Base or Commercial Plus discounts for this mail class. • What is the delivery standard for Standard Post? The delivery standard for Standard Post is 2-9 days (not guaranteed) in the continental United States. This is comparable to FedEx or UPS Ground service. Pricing for Standard Post shipments going to Zones 1-4 is exactly the same as that of Priority Mail® Retail. These packages will automatically be processed as Priority Mail -- Commercial Plus Pricing (CPP): service, unless Ground service is required. Ground service is Commercial Plus Pricing kicks in for weights between 13 oz. required when the item being mailed cannot travel by air, as and 16 oz. and only applies to the extended weight options in the case of hazardous materials. available to these shippers. Pricing for the standard weight range of First-Class Package Service is the same as the Commercial Base tier. • Average overall increase: There is only one price tier for Standard Post. Standard Post pricing will increase on average by 10.2% versus 2014. This The price for the Commercial Plus weight group is increase equates to an average of an additional $5.00 per not increasing in 2015. package. • Tracking: Tracking is FREE for FCPS. For packages weighing 5 lbs. or less, Standard Post pricing will increase an average of +7.5% or +$0.70 per piece. • Tracking: Tracking is FREE for Standard Post. PG 6 Parcel Select (non-presort) Priority Mail (PM) • What do shippers use this service for? • What do shippers use this service for? Parcel Select is geared toward items that don’t require Priority Mail is an excellent and economical option for expedited delivery. It is similar in delivery standard to businesses shipping packages to residential addresses Standard Post, but more economical in all cases and is the that want quick delivery with free tracking, while remaining USPS Ground delivery option for electronic Postage users. cost-conscious. It offers many options, including regular ® There are no Commercial Base or Commercial Plus discounts for Parcel Select. For packages going to Zones 1-4, Priority Mail Commercial Base prices are less expensive than Parcel Select, with delivery likely faster than Parcel Select. For packages weighing 1 lb., Priority Mail is less expensive to all Zones. There are no flat rate or regional rate options for Parcel Select. • What is the delivery standard for Parcel Select? The delivery standard for Parcel Select is 2-9 days (not guaranteed). This is comparable to FedEx or UPS Ground service. • Average overall increase: There is only one price tier for Parcel Select. Parcel Select pricing will increase on average by 10.2%, which equates to approximately $5.00 more per package. zone-based pricing, flat rate envelopes and boxes, regional rate packaging, cubic pricing and Critical Mail envelopes. The Postal Service also offers a variety of free packaging for Priority Mail shipments, which can save businesses even more money. In addition, Priority Mail includes free tracking and $50 of free USPS insurance coverage. Priority Mail includes three price tiers: Retail, Commercial Base, and Commercial Plus • What is the delivery standard for Priority Mail? The delivery standard for Priority Mail is 2-3 days (not guaranteed). This is comparable to FedEx or UPS 2-3 day service. • Rates for PM across retail, Commercial Base, and Commercial Plus remain unchanged from the September 2014 Price Change -- Critical Mail Critical Mail (CM) is a Commercial Plus mail class, only Lightweight packages will see less of an impact. For those available to shippers who meet or commit to a volume weighing 5 lbs. or less, the increase will be 7.5% on average, requirement of 5,000 CM pieces in a calendar year. CM or approximately $0.70 per package. offers two package options: Letter and Flat, as well as a • Tracking: Tracking is FREE for Parcel Select. Signature Upon Delivery pricing option. There is no change to Critical Mail pricing for 2015. -- Cubic Priority Mail Cubic is a Commercial Plus mail class, available to shippers who meet or commit to a volume requirement of 50,000 Cubic-priced pieces in a calendar year. There are no additions to the Priority Mail Cubic mail class options or package sizes. There is no change to Cubic pricing for 2015. PG 7 • Flat Rate and Regional Rate Pricing Tables: There are no changes to Retail, Commercial Base and Commercial Plus Pricing tiers. Priority Mail Express (PME) • What do shippers use this service for? Priority Mail Express is perfect for packages that need to Priority Mail Flat Rate: Commercial Base Pricing be delivered very quickly, with overnight delivery to most locations and second day delivery in outlying areas. Priority Package Type 2015 Price Change vs. 2014 Flat Rate Envelope $5.05 NO CHANGE Legal Flat Rate Envelope $5.25 NO CHANGE Padded Flat Rate Envelope $5.70 NO CHANGE regular zone-based pricing, as well as flat rate envelopes and Small Flat Rate Box $5.25 NO CHANGE flat rate boxes. The Postal Service also offers a variety free Medium Flat Rate Box $11.30 NO CHANGE Large Flat Rate Box $15.80 NO CHANGE APO/FPO Large Flat Rate Box $13.80 NO CHANGE • Tracking: Tracking is FREE for Priority Mail. Mail Express includes free tracking and up to $100 of free USPS insurance coverage. As with Priority Mail, Priority Mail Express users can leverage packaging for Priority Mail Express shipments, which can save businesses even more money. Priority Mail Express includes three price tiers: Retail, Commercial Base, and Commercial Plus. • What is the delivery standard for Priority Mail Express? The delivery standard for Priority Mail Express is 1-2 days (guaranteed). This is comparable to FedEx or UPS Overnight service in most locations and 2-day service in remote locations. • Key changes for PME: Outside of pricing, there is one key change shippers should be aware of with regard to Priority Mail Express: -- The USPS is combining both domestic and International Insurance pricing into one table and there will no longer be separate insurance tables . • Tracking: Tracking is FREE for Priority Mail Express . PG 8 First-Class Package International Service (FCPIS) • What do shippers use this service for? First-Class Package International Service® (FCPIS) is the most economical way to ship packages that are more than ¾" thick and weigh less than 4 lbs. that do not require timesensitive delivery. • What is the delivery standard for FCPIS? • Tracking/Delivery Confirmation: Electronic USPS Delivery Confirmation International™ is FREE on FCPIS packages going to select destinations. The following countries support this service: Australia, Belgium, Brazil, Canada, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Great Britain, Hungary, Israel, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Malta, Netherlands, New Zealand, Northern Ireland, Portugal, Singapore, Spain and Switzerland. The delivery standard for FCPIS varies widely by country and is often dependent on the quality of each country’s local Post. • Average overall increase: -- Retail The Retail price for FCPIS is increasing by an average of 7.3% per package, which equates to an increase in the average price per package of $1.32 For packages weighing 5 lbs. or less, Retail rates are increasing an average of +8.15% or +$0.68 per piece. -- Commercial Base Pricing: The Commercial Base price for FCPIS is increasing by an average of 6.9% per package, which equates to an increase in the average price per package of $1.20 For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of +4.93% or +$0.40 per piece. -- Commercial Plus Pricing: The Commercial Plus price for FCPIS is increasing by an average of 4.8% per package, which equates to an increase in the average price per package of $0.82 For packages weighing 5 lbs. or less, there is less of an impact and Commercial Plus rates are increasing an average of +1.71% or +$0.16 per piece. PG 9 Priority Mail International (PMI) PMI Canada: Commercial Base Pricing Examples • What do shippers use this service for? Priority Mail International® (PMI) is a reliable and affordable Origin Destination Zone Average 2015 Change ($) Average 2015 Change (%) San Francisco, CA Canada 1.1 & 1.2 -$8.48 -6.29% New York, NY Canada 1.1 & 1.2 -$8.48 -6.29% Boston, MA Canada 1.3 +$3.39 +3.90% Orlando, FL Canada 1.3 +$3.39 +3.90% Wichita, KS Canada 1.4 +$6.79 +8.16% Dallas, TX Canada 1.5 +$8.80 +10.87% Anchorage, AK Canada 1.6 +$9.64 +11.84% Juneau, AK Canada 1.7 +$17.16 +18.44% Honolulu, HI Canada 1.8 +$30.59 +30.95% way to ship non-time sensitive packages up to 70 lbs to international locations. PMI includes delivery status with the USPS Track & Confirm tool on all package types except the Flat Rate Envelopes and Small Flat Rate Boxes, which instead include free electronic Delivery Confirmation™ to select countries. • What is the delivery standard for PMI? The delivery standard for PMI is 6-10 business days (to most destinations). • Key changes for PMI Priority Mail International for Canada will switch to zone based pricing – there will now be 7 pricing zones versus one overall rate previously. By doing this, the USPS will be able to keep rates low for select locations and minimize the effect on shippers. Now with zone based pricing, this allows the USPS to charge based on the actual US origin and destination to Canada, instead of having to factor expensive routes into one blended rate. -- Looking at some of the major US cities such as San Francisco or New York, utilizing Priority Mail International to Canada, on average, the PMI rates have decreased across Retail, Commercial Base and Commercial Plus Pricing tiers. -- For Commercial Base Rates, Zone 1.7 and Zone 1.8 • Average overall increase (excluding Canada): -- Retail The Retail price for PMI is increasing by an average of +6.6% per package, which equates to an increase in the average price per package of +$9.28. Flat Rate packaging Retail prices are increasing an average of +7.1% or +$3.44 per package. -- Commercial Base Pricing: The Commercial Base price for PMI is increasing by an are where rates are increasing the most. Zone 1.7 is average of +3.3% per package, which equates to an increasing by an average of 18.44% or $17.16 per increase in the average price per package of +$3.76. package and Zone 1.8 is increasing by an average of 30.95% or $30.59 per package. Depending on where the shipping facility is located and the weight of the package, shippers may be less affected and some may even benefit from a decrease in PMI pricing (see chart below for example locations). Flat Rate packaging Commercial Base prices are increasing an average of +7.3% or +$3.31 per package. -- Commercial Plus Pricing: The Commercial Plus price for PMI is increasing by an average of 0.5% per package, which equates to an overall decrease in the average price per package of -$0.22. Flat Rate packaging Commercial Plus prices are increasing an average of +7.3% or +$3.31 per package. PG 10 • Average overall increase (Canada only): -- Retail The Retail price for PMI to Canada is increasing by an Zones Average 2015 Change Average 2015 Change ($) (%) average of +12.15% per package, which equates to an 1.1 & 1.2 -$8.48 -6.29% increase in the average price per package of +$11.77. 1.3 +$3.39 +3.90% For Zones 1.1 & 1.2, Retail rates for PMI will be decreasing 1.4 +$6.79 +8.16% by an average of 4.01%, which equates to a decrease in 1.5 +$8.80 +10.87% 1.6 +$9.64 +11.84% 1.7 +$17.16 +18.4% 1.8 +$30.59 +30.95% the average price per package of $7.06. The decreases are focused primarily on packages 19 lbs. or higher. Zones Average 2015 Change Average 2015 Change ($) (%) 1.1 & 1.2 -$7.06 -4.01% Flat Rate packaging Commercial Base prices are 1.3 +$6.58 +6.42% increasing an average of +7.00% or +$2.33 per package. 1.4 +$10.50 +10.79% 1.5 +$12.81 +13.57% The Commercial Plus price for PMI is increasing by an 1.6 +$13.77 +14.56% average of 6.61% per package, which equates to an 1.7 +$22.41 +21.32% overall increase in the average price per package of 1.8 +$23.38 +22.41% -- Commercial Plus: +$4.60. For Zones 1.1 & 1.2, Commercial Plus rates for PMI will Flat Rate packaging Retail prices are increasing an be decreasing by an average of 8.74%, which equates to average of +7.0% or +$2.45 per package. a decrease in the average price per package of $10.28. -- Commercial Base Pricing: The Commercial Base price for PMI is increasing by an Zones Average 2015 Change Average 2015 Change ($) (%) 1.1 & 1.2 -$10.28 -8.74% increase in the average price per package of +$9.70. 1.3 +$0.50 +1.16% For Zones 1.1 & 1.2, Commercial Base rates for PMI will 1.4 +$3.59 +5.31% be decreasing by an average of 6.29%, which equates 1.5 +$5.42 +7.96% 1.6 +$6.17 +8.91% 1.7 +$13.00 +15.32% 1.8 +$13.77 +16.36% average of +11.12% per package, which equates to an to a decrease in the average price per package of $8.48. The decreases are focused primarily on packages up to 1 lb. and then packages weighing more than 13 lbs. The decreases are focused primarily on packages up to 5 lbs. and then packages weighing more than 10 lbs. Flat Rate packaging Commercial Plus prices are increasing an average of +7.00% or +$2.33 per package. PG 11 • Tracking/Delivery Confirmation: Track and Confirm is FREE for PMI, but NOT available • Average overall increase: -- Retail with Flat Rate Envelopes or Small Flat Rate Box. However, The Retail price for PMEI is increasing by an average of electronic USPS Delivery Confirmation International is +6.1% per package, which equates to an increase in the FREE for these two types of PMI packages going to select average price per package of +$10.67. destinations. The following countries support this service: Australia, Belgium, Brazil, Canada, Croatia, Denmark, Estonia, Finland, France, Germany, Gibraltar, Great Britain, For packages weighing 5 lbs. or less, Retail rates are increasing an average of +8.19% or +$4.79 per piece. Hungary, Israel, Italy, Latvia, Lithuania, Luxembourg, Flat Rate packaging Retail prices are increasing an Malaysia, Malta, Netherlands, New Zealand, Northern average of +7.1% or +$4.14 per package. Ireland, Portugal, Singapore, Spain and Switzerland. Priority Mail Express International (PMEI) • What do shippers use this service for? Priority Mail Express International offers shippers economical -- Commercial Base Pricing: The Commercial Base price for PMEI is increasing by an average of +1.8% per package, which equates to a decrease in the average price per package of +$1.46. expedited international delivery to most countries, with For packages weighing 5 lbs. or less, Commercial Base date-specific service to select major market countries rates are increasing an average of +8.19% or +$4.79 (i.e. Australia, China, Great Britain, etc.). PMEI includes per piece. $200 insurance coverage, free tracking and a money-back Flat Rate packaging Commercial Base prices are guarantee in certain countries. increasing an average of 7.2% or -$3.84 per package. • What is the delivery standard for PMEI? -- Commercial Plus Pricing: The delivery standard for PMEI is 3-5 business days (date- The Commercial Plus price for PMEI is decreasing by specific delivery available to certain markets) an average of -3.7% per package, which equates to a • Key changes for PMEI: -- PMEI will now be available for Burma, Kiribati, and Sao Tome and Principe decrease in the average price per package of -$7.47. For packages weighing 5 lbs. or less, Commercial Plus rates are increasing an average of +5.18% or +$2.47 per piece. Flat Rate packaging Commercial Plus prices are decreasing an average of +7.2% or +$3.84 per package. • Tracking/Delivery Confirmation: Track and Confirm is FREE for PMEI. PG 12 Global Express Guaranteed (GXG) • What do shippers use this service for? Global Express Guaranteed® is perfect for the international shipment of items or documents that require fast, guaranteed delivery with advanced end-to-end tracking. Final delivery for GXG is made by FedEx, allowing shippers to have full shipment visibility. GXG also includes $100 in USPS insurance coverage. • What is the delivery standard for GXG? The delivery standard for GXG is 1-3 days (guaranteed, datecertain delivery) • Average overall increase: -- Retail The Retail price for GXG is increasing by an average of +5.5% per package, which equates to an increase in the average price per package of +$15.03. For packages weighing 5 lbs. or less, Retail rates are increasing an average of +7.8% or +$7.23 per piece. -- Commercial Base Pricing: The Commercial Base price for GXG is decreasing by an average of -0.9% per package, which equates to a decrease in the average price per package of -$2.67. For packages weighing 5 lbs. or less, Commercial Base rates are increasing an average of -0.6% or +$-0.38 per piece. -- Commercial Plus Pricing: The Commercial Plus price for GXG is decreasing by an average of -1.4% per package, which equates to a decrease in the average price per package of -$3.67. For packages weighing 5 lbs. or less, Commercial Plus rates are decreasing an average of -1.0% or -$0.73 per piece. • Tracking/Delivery Confirmation: Tracking/Delivery Confirmation is FREE for GXG, with no change to this structure from 2014. PG 13 Comparing Prices: Retail, Commercial Base and Commercial Plus Qualifying for Commercial Plus Pricing (CPP) Tier Comparison Commercial Plus Pricing (CPP) provides highly discounted • International and Domestic postage rates to qualified high volume shippers. Customers (no discounts on any Flat Rate option) can qualify for one or more Commercial Plus Pricing options by meeting one of the volume thresholds below or by signing a Customer Commitment Agreement with the USPS. All thresholds are based on the annual (calendar year) quantity of pieces mailed using the listed mail class or combination of mail classes, with the exception of Priority Mail Express. Priority Mail Express qualification is based on the quantity of Priority Global Express Guaranteed Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP Overall 16.0% 24.0% 9.5% Packages: 5 lbs. and under 16.0% 24.0% 9.5% Priority Mail Express International Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP Overall 12.3% 24.4% 13.8% Packages: 5 lbs. and under 8.1% 17.9% 10.8% Priority Mail International (Except Canada) Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP Overall 13.6% 21.5% 9.1% Packages: 5 lbs. and under 13.7% 21.6% 9.1% Mail Express packages sent in the previous four quarters. Qualification thresholds for Priority Mail Commercial Plus Pricing remain unchanged in 2015. The minimum volume thresholds are shown below. Qualification Threshold Mail Class Type of Packages Included Priority Mail Express All domestic Priority Mail Express shipments 5,000 pieces Priority Mail Letters, Flats and Critical Mail 5,000 pieces Priority Mail Letters, Flats, Packages (including Flat Rate), Critical Mail, and Padded Flat Rate Envelope 50,000 pieces Priority Mail Cubic 50,000 pieces International All First-Class Package International Service, Priority Mail International, Priority Mail Express International, and Global Express Guaranteed packages/shipments $100,000 in postage value Shippers are often curious about what these discount tiers really mean in terms of savings. Following is detail around the savings using each tier, illustrating the benefits for any shipper using an electronic postage provider, like Endicia, as well as the benefits high volume shippers can recognize using USPS. • Domestic (no discounts on any Flat Rate option) Priority Mail Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP Overall 16.6% 29.5% 15.5% Flat Rate (ALL) 11.0% 15.3% 4.8% Packages: 5 lbs. and under 15.2% 32.4% 20.4% PG 14 Tier Comparison (continued) Priority Mail International (Canada) Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP FCPIS Avg. CBP Savings vs. Retail Avg. CPP Savings vs. Retail Avg. CPP Savings vs. CBP Overall 11.7% 21.0% 10.5% Overall 10.0% 16.2% 6.9% Packages: 5 lbs. and under 12.7% 21.0% 9.5% Packages: 1 lb. and under 10.0% 15.8% 6.5% Relevant Changes for Market Dominant Classes – “Mailing” First-Class Mail • What is First-Class Mail used for? First-Class Mail® is used to send postcards, letters and flats (large envelopes) that do not require expedited delivery or tracking information. Items can weigh up to 13 oz. and must fall within size and thickness restrictions, the largest of which is ¾" thick for flats. -- Letters The price of a one-ounce (standard) First-Class Mail stamp remains unchanged at $0.49. The price for additional ounces is increasing by one cent to $0.22 per ounce (from $0.21 per ounce in January 2014), as is the non-machinable surcharge; parcel after 3oz. remains unchanged at $0.17. New for 2015: PC Postage users will receive a $0.005 discount when printing postage Additionally, businesses can use First-Class Mail for for 1 to 3.5 oz. letters, which is a decrease from a $0.01 presorted bulk mailings. Presorted pricing and rule changes discount in 2014. The PC Postage rate for a one-ounce are not covered in this document, as they do not impact First-Class Mail stamp will be $0.485. Endicia’s core customer base. The Retail Letter category, defined as the rates charged First-Class Mail Parcel postage is only available at the retail at the Post Office for First-Class letters up to 3.5oz., is counter and details on the changes for this service are not increasing by an overall average of 1.6% or an additional included in this document. The relevant information for $0.01 per letter. businesses that want to use First-Class Mail to ship packages is included in the First-Class Package Service section. • What is the delivery standard for First-Class Mail? 94% of First-Class Mail is delivered in 3 days or less. Delivery times are not guaranteed. • Average overall increase: As a whole, First-Class Mail prices are increasing by 7.4%, which equates to an average of an additional $0.16 per piece. The Metered/PC Postage Letter category, defined as the rates that you can receive through a PC Postage or Meter company, is increasing by an overall average of 2.3% or an additional $0.02 per letter. -- Postcards Postcard prices are increasing by one cent, from $0.34 to $0.35, a 2.9% increase. -- Flats (large envelopes) Overall, the Flats category is increasing by an average of 2.3%. This comes to an average increase per piece of $0.06. PG 15 Media Mail -- Parcels Proposed, pending approval: First-Class Mail Parcel will be renamed to First-Class Package Service (Retail). For additional changes relating to this product, please see the First-Class Package Service section. • What is Media Mail used for? Media Mail is a service used specifically to send educational material. There are restrictions on the type of products or materials that may be shipped using Media Mail, including a restriction on sending video games. Contents may include First-Class Mail Letters and Postcards books, sound recordings, recorded video tapes, printed Piece Type 2015 Price Change vs. 2014 1 oz. Letter: Retail $0.49 NO CHANGE 1 oz. Letter: PC Postage $0.485 +$0.005 Additional Ounce: Letters $0.22 +$0.01 music, or recorded computer-readable media such as CDs, DVDs, and diskettes. Media Mail cannot include advertising of any kind, except for incidental book announcements. • What is the delivery standard for Media Mail? Media Mail is typically delivered in 2-8 days. Delivery times Non-Machinable Surcharge: Letters $0.22 +$0.01 Postcards $0.35 +$0.01 are not guaranteed. • Average overall increase: Overall, Media Mail prices are increasing an average of 6.2%, • Tracking: Tracking is not available with First-Class Mail Letters, Postcards or Flats. Tracking is available for First-Class Mail Parcels and is now FREE. Standard Mail • What is Standard Mail used for? Standard Mail® is used for presorted bulk mailings like advertising, newsletters and catalogs. Presorted pricing and rule changes are not covered in this document. However, there are changes for Standard Mail and those can be found on the USPS website. • What is the delivery standard for Standard Mail? Standard Mail is delivered in 3-10 days. Delivery times are not guaranteed. • Tracking: Tracking is not available with most Standard Mail, though Tracking can be added to Standard Mail Parcels for an additional $0.36 per piece, an increase of thirteen cents versus last year’s price. which equates to an additional $1.30 per package. • Tracking: Tracking for Media Mail is now FREE, both for retail and electronic postage. Library Mail • What is Library Mail used for? Library Mail is used specifically for sending items between qualified organizations. Contents can include items on loan from, or mailed between, academic institutions, public libraries, museums and other qualified institutions. Library Mail shipments are restricted to books, sound recordings, academic theses, and certain other approved items. • What is the delivery standard for Library Mail? Library Mail will be delivered in 2-8 days. Delivery times are not guaranteed. • Average overall increase: Overall, Library Mail prices are increasing an average of 7.1%, which equates to an additional $1.20 per package. • Tracking: Tracking for Library Mail is now FREE, both for retail and electronically. PG 16 Bound Printed Matter (BPM) First-Class Mail International (FCMI) • What is BPM used for? • What is FCMI used for? BPM is used for presorted mailing of bound materials, such as FCMI is used to send postcards, letters and flats (large catalogs and phone books. Presorted pricing and rule changes envelopes) internationally that do not require expedited are not covered in this document. However, there are changes delivery or tracking information. Items can weigh up to 4 for BPM and those can be found on the USPS website. lbs. and must fall with in size and thickness restrictions, the • What is the delivery standard for BPM? BPM is typically delivered in 2-8 days. Delivery times are not guaranteed. • Tracking: largest of which is ¾" thick for flats. • What is the delivery standard for FCMI? Delivery time varies by destination. • Average overall increase: Tracking for BPM is now FREE, both for retail and As a whole, FCMI prices are increasing by 4.0%, which electronic postage. equates to an average additional $0.45 per piece. -- Letters Country Group Average % Change Average $ Change 1 +4.2% +$0.05 2 +4.2% +$0.07 3-5 +4.1% +$0.08 6-9 +4.2% +$0.08 Country Group Average % Change Average $ Change 1 +4.3% +$0.05 2 +4.3% +$0.05 3-5 +4.3% +$0.05 6-9 +4.3% +$0.05 -- Postcards -- Flats (large envelopes) Country Group Average % Change Average $ Change 1 +3.9% +$0.33 2 +3.9% +$0.52 3-5 +3.9% +$0.65 6-9 +3.9% +$0.63 • Tracking/Delivery Confirmation: Tracking/Delivery Confirmation is not available with FCMI. PG 17 Additional Changes • USPS Priority Mail International Insurance Coverage Value 2015 Price % Change $ Change $0.01-50.00 $1.55 -36.7% -$0.90 $50.01-100.00 $2.70 -25.0% -$0.90 Kiribati (price group 7), and Sao Tome an Principe $100.01-200.00 $3.85 -18.9% -$0.90 (price group 7) $200.01-300.00 $5.00 -15.3% -$0.90 Priority Mail International® (PMI) weight and size update $300.01-400.00 $6.15 -12.8% -$0.90 • PMEI destined to Netherlands (price group 17) will now $400.01-500.00 $7.30 -11.0% -$0.90 $500.01-600.00 $8.45 -9.6% -$0.90 $600.01-700.00 $9.60 -8.6% -$0.90 $700.01-800.00 $10.75 -7.7% -$0.90 average of 5.5% up to $200. Rates for insurance coverage from $800.01-900.00 $11.90 -7.0% -$0.90 $200.01-500.00 will decrease an average of 14.3%. Then there Per each additional $100 $1.15 NO CHANGE +$0.00 International Product Changes Priority Mail Express International® (PMEI) Enhancements • PMEI will now be supported in Burma (price group 6), allow a maximum of 66 pounds. USPS Insurance Overall, USPS regular insurance rates are increasing by an will be a subsequent increase of 2.4% that gradually increases as the coverage value increases. Priority Mail continues to include the first $50 of USPS insurance at no charge. • USPS Priority Mail Express International Insurance Rates for Priority Mail International insurance are increasing Coverage Value 2015 Price % Change $ Change by an average of 14.3% and rates for Priority Mail Express $200.01-300.00 $5.00 +113% +$2.65 $300.01-400.00 $6.15 +162% +$3.80 Mail Express International insurance provided by USPS are now $400.01-500.00 $7.30 +211% +$4.95 combined into a single table, however we have separated them $500.01-600.00 $8.45 +119% +$4.60 $600.01-700.00 $9.60 +149% +$5.75 $800.01-900.00 $10.75 +179% +$6.90 $900.01-1000 $11.90 +209% +$8.05 $1000.01-1500 $13.05 +144% +$7.70 $1500.01-2000 $14.20 +107% +$7.35 $2000.01-2500 $15.35 +84% +$7.00 $2500.01-3000 $16.50 +68% +$6.65 $3000.01-3500 $17.65 +56% +$6.30 $3500.01-4000 $18.80 +46% +$5.95 $4000.01-4500 $19.95 +39% +$5.60 $4500.01-5000 $21.10 +33% +$5.25 Per each additional $100 $1.15 NO CHANGE +$0.00 International insurance are increasing by an average of 115%. Do note that the rates for Priority Mail International and Priority below to better illustrate the rate changes. Rates for Priority Mail Express Insurance remain unchanged. • USPS Regular Insurance Coverage Value 2015 Price % Change $ Change $0.01-50.00 $2.20 +4.6% +$0.10 $50.01-100.00 $2.70 +5.8% +$0.15 $100.01-200.00 $3.50 +6.1% +$0.20 $200.01-300.00 $4.60 -16.4% -$0.90 $300.01-400.00 $5.80 -14.1% -$0.95 $400.01-500.00 $7.00 -12.5% -$1.00 $500.01-600.00 $9.45 +2.2% +$0.20 Per each additional $100 $1.30 +4.0% +$0.05 PG 18 Signature Confirmation Certified Mail Rates are changing for both Retail and Electronic purchases, Certified Mail™ will increase by 4.5% from $3.30 to $3.45. There as well as for both Adult Signature options. Pricing for all will also be three new options which are all priced at $8.60. categories is detailed below. • Retail Signature Confirmation™ for First-Class Package Service, Standard Post, Priority Mail and Package Services (Media Mail, Library Mail and Bound Printed • Certified Mail Restricted Delivery • Certified Mail Adult Signature Required • Certified Mail Adult Signature Required w/Restricted Delivery Matter) is increasing $0.10 (3.5%) versus 2014 and will be available for $3.00 per package • Electronic Signature Confirmation for First-Class Package Service, Priority Mail, Parcel Select and Certificate of mailing will increase from $1.30 to $1.35. The cost of a Return Receipt, at time of mailing, would increase from $2.70 to $2.80 Retail; $1.35 to $1.40 Electronic. Package Services is increasing $0.10 (4.3%) versus last year and will be available for $2.45 per package. • Adult Signature Required and Adult Signature Restricted Delivery are available for Priority Mail Express, Priority Mail, Critical Mail and Parcel Select. Adult Signature Required is increasing by $0.30 (5.8%) to $5.50. Adult Signature Restricted Delivery is increasing by $0.30 (5.5%) to $5.75. PG 19 Endicia and USPS: The Right Choice for Your Package Shipments Why Endicia? No Hidden Fees—Private carriers regularly tack on • The leader in electronic postage with over $12 Billion in surcharges for residential, Saturday and rural deliveries, address validation and so much more. It’s all included at no extra cost with the USPS. The cost you see in the Endicia software is the price you pay. APO/FPO, PO Box Delivery—USPS is the only carrier that can deliver to military and diplomatic addresses, as well as PO Boxes. Endicia software makes sending packages to APO/FPO addresses easy with integrated shipping and customs forms. Delivery 365 days/year—USPS is the only carrier that delivers every day of the year to residential addresses, mailboxes, mail slots and PO Boxes. The Endicia software is also available at any time so you can easily print shipping labels for your packages whenever it is convenient for you. postage printed. • Close partnership with the USPS to help tailor the best solution for your business. • Intuitive easy-to-use tools to print labels and track your packages. • Pay-on-Use Returns. Endicia is the only electronic Postage provider to offer this money saving service. With Endicia’s Pay-on-Use Returns you only pay for postage on the return shipping label if and when it is scanned in the mail stream. • Auto-Refund Service (ARS). ARS automates the process of requesting refunds for unused postage by identifying potentially unused shipping labels and submitting a refund request to the U.S. Postal Service. Speedy Delivery—Get packages from San Francisco to New York in 2 days with Priority Mail vs 5-6 days via private carriers (and at lower prices for certain weights). Tracking—With the introduction of the Intelligent Mail Barcode (IMpb) the USPS typically has over 10 scan events per package. Endicia supports IMpb and offers online tracking, making it easy to keep an eye on packages. Flat Rate Options (domestic and international)—Priority Mail flat rate boxes from USPS offer a quick, easy and convenient way to ship packages, at the most affordable price. Endicia software can help you choose the package option that is best for your business. Negotiated Pricing—USPS and Endicia offer the most competitive pricing for your packages. Don’t be fooled by private carrier rates that don’t reflect the true price once hidden charges are included. For more information on how you can save go to www.endicia.com/usps/postage-rate-change/2015 for more details or contact an Endicia Sales Rep today ([email protected] or 800-576-3279, x140) to learn more about how Endicia can help you save time and money. PG 20
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