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2013 USPS Updates

Rich CichaDirector, Client Postal Solutions

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PAEA requirement – Rates cannot go up on average more than CPI

• Prices for all products (Mailing and Shipping services) will increase by 4-percent

• Prices for Mailing Services, such as regular letters and advertising matter, will increase only 2.6-percent

2013 Postage Rate Increase

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Average increase of 2.57%Highlights of the increase: • Letters (1oz.) – 1-cent increase to

46 cents• Letters additional ounces –

unchanged at 20 cents• Letters to all international

destinations (1oz.) - $1.10• Postcards – 1-cent increase to 33

cents

2013 Postage Rate Increase

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Post Mailing Solutions can help…

• Take advantage of drop-shipping discounts• Consider commingling

• Consider co-palletization and/or co-mailing

How can you minimize the increase?

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Take advantage of the promotions being offered by the USPS in 2013

• Mobile Coupon and Click to Call• Earned value Reply Mail• Emerging Technologies• Picture Permit• Product Samples• Mobile “Buy it Now”

Other ways to keep costs down?

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• Mobile Coupon• Click to Call• 2% upfront

discount

Registration- Jan 15- April 30Program Period- March 1- April 30

Mobile Coupon and Click to Call

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• Credit for BRM and CRM counted• Registered permits

required• .o2 per piece

discount

Registration- Jan 1- March 30Program Period- April 1- June 30

Earned Value Reply Mail

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• Near-Field Communication• Augmented Reality• Authentication• 2% overall

discount

Registration begins June 1Program Period- Aug 1- Sept 30

Emerging Technologies

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• Customized Permit Indicia• Pre-testing and

design approval required• Per piece fee waived

Registration Begins June 1Program Period- Aug 1- Sept 306 month lead time recommended

Picture Permit

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• Mail containing product samples• Trial size to incite

purchase• 5% off eligible

postage

Registration begins May 1Program Period- Aug 1- Sept 30

Product Samples

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• Mobile barcode to mobile optimized site• Tangible items

shipped via USPS• 2% off total purchase

Registration begins Sept 15Program Period- Nov 1- Dec 31

Mobile Buy it Now

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Extensive Postal losses

The USPS reported losses of over 16 Billion Dollars in 2012

What will this mean about the future of the USPS?

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Extensive Postal losses

• $11.1 billion from prefunding retiree health benefits

• Prefunding – 70% of net loss

• $13.4 billion outside the control of the Postal Service

• But… Revenue from package service business increased by $926 million

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What can be done?

• Congress pass comprehensive legislation to move the Postal Service toward financial health• Provide business mailers with new

opportunities to connect with customers in a more individualized way.• Allow USPS to determine delivery frequency

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What can be done?

• Allow USPS to offer non-postal products and services• Develop a more

streamlined governance model for USPS • Resolving the overfunding of the Postal Service’s obligation to the Federal Employees’ Retirement System (FERS).

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What potential hurdles are there?

Delivery uncertainty

Changes in Service StandardsCampaign planning affectedWhat to do??

Network Rationalization

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Mail Tracking is becoming more important than ever

during this era of consolidation

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Tracking by Drop Ship Location

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Individual Scan Detail

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Liked what you heard?

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