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2011 Mailing Services Price Change Presented by: Buddy Goodin Mailing Solutions Specialist

2011 Mailing Services Price Change Presented by: Buddy Goodin Mailing Solutions Specialist North FL District U.S. Postal Service PCC March 9, 2011. Agenda. Timeline CPI cap Changes by class of mail First-Class Mail Standard Mail Periodicals Package Services

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2011 Mailing Services Price Change Presented by: Buddy Goodin Mailing Solutions Specialist

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  1. 2011 Mailing Services Price Change Presented by: Buddy Goodin Mailing Solutions Specialist North FL District U.S. Postal Service PCC March 9, 2011

  2. Agenda • Timeline • CPI cap • Changes by class of mail • First-Class Mail • Standard Mail • Periodicals • Package Services • Extra Services and Fees • Resources

  3. Notify PRC April 17, 2011 Jan 13 PRC Determination Feb 16 34 days Timeline Preparation Regulatory Review Implementation 45 days Price development 49 days

  4. The Price Cap • Based on Consumer Price Index • PRC formula a moving average of CPI data • Current calculation of cap is 1.741%

  5. First-Class Mail • 1.7% overall increase • 44-cent stamp (no change) • New commemoratives issued as Forever Stamps • Nonmachinable surcharge (no change) • New! Parcels: retail/commercial price distinction

  6. First-Class Mail Single-Piece • Letters and Postcards • Additional ounce increases by three cents to $0.20 • Postcards increase by one cent to $0.29 • Parcels • Same price for one to three ounce pieces • New! Retail and commercial base price categories • First-Class Mail International • Letters & postcards to Canada and Mexico – $0.80 • Rest of the world – $0.98 (no change)

  7. First-Class Mail Presort • Letters and Cards • Most prices increase 0.5 cent to 0.8 cent • 2.5-cent price difference between 5D and 3D • No change for additional ounce • Parcels • Address cost issues for lightweight parcels • Same price for one to three ounce pieces • New! Commercial base price category • New! Commercial plus category for heavier parcels • Weight limit increased from 13 ounces to less than 16 ounces

  8. Standard Mail • 1.7% overall increase

  9. Standard Mail • Foster growth in advertising mail • Working with Catalogs and Saturation mailers • Encourage growth • Below average price increase for Standard Flats • New! Jan. 2, 2011: Expansion of Simplified Addressing • “Postal Customer” • For saturation flats and irregular parcels • Delivery to any address, including city delivery routes

  10. Periodicals • 1.7% overall increase • Low price cap constrains ability to cover costs • Encourage efficiency • Above average increase for Origin Pallets • Maintain 9.8-cent differential between 5D – CR

  11. Package Services • 1.7% overall increase • Lower price increase for BPM Flats • Only product covering costs

  12. Extra Services and Fees • 1.7% overall increase

  13. Resources • Online • Current prices ─ usps.com/prices • Postal Explorer ─ pe.usps.com • Current and new price files (downloadable) • Federal Register notices • Domestic Mail Manual & International Mail Manual • DMM Advisory ─ e-mail updates for customers • Subscribe: dmmadvisory@usps.com • P&C Weekly ─ e-mail updates for employees • Subscribe: pandcweekly@usps.com • MailPro ─hardcopy magazine • Subscribe and view online: usps.com/mailpro

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