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New Pricing and Services Updates - May 12, 2008

Explore the latest USPS pricing changes effective May 12, 2008, including updates on Mailing and Shipping Services. Discover new rates, options, and opportunities. Stay informed about changes in pricing structures and incentives.

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New Pricing and Services Updates - May 12, 2008

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  1. New Prices New Flexibility New Opportunities May 12, 2008

  2. Postal Act of 2006 Mailing Services Shipping Services Resources Agenda New Prices – May 12, 2008

  3. Two categories: Mailing Services with a cap Shipping Services with a floor Flexibility Predictability Choices Speed-to-market Postal Act of 2006 New Prices – May 12, 2008

  4. First-Class Mail (includes First-Class Mail International) Standard Mail Special Services Periodicals Package Services Mailing Services New Prices – Mailing Services – May 12, 2008

  5. Consumer Price Index (CPI) cap 2.9% average increase by class Annual, predictable price changes 45-day notice required 90-day commitment Mailing Services New Prices – Mailing Services – May 12, 2008

  6. $38 billion revenue Average +2.89% First-Class Mail New Prices – Mailing Services – May 12, 2008

  7. Letter: 42¢ (+1¢) Forever Stamp Plenty of stamps on hand No more nondenominated transition stamps First-Class Mail – Single-Piece New Prices – Mailing Services – May 12, 2008

  8. Additional ounce: 17¢ (unchanged) Nonmachinable surcharge: 20¢ (+3¢) New 62¢ stamp for 1-ounce square envelopes such as greeting cards Postcard: 27¢ (+1¢) First-Class Mail – Single-Piece New Prices – Mailing Services – May 12, 2008

  9. Promote efficient preparation Maintain strong 2.2¢ incentive for 5-digit Presort letters additional ounce same price as for auto: 12.5¢ (- 4.5¢) First-Class Mail – Automation & Presort Letters New Prices – Mailing Services – May 12, 2008

  10. Align with domestic Shape-based pricing First-Class Mail International • Nonmachinable letter surcharge: 20¢ • Align country grouping with other international products New Prices – Mailing Services – May 12, 2008

  11. $21 billion revenue Average +2.84% Standard Mail New Prices – Mailing Services – May 12, 2008

  12. Price increase well below average Standard Mail Flats (catalogs) New Prices – Mailing Services – May 12, 2008

  13. Lower pound prices for saturation and high-density flats Standard Mail Flats New Prices – Mailing Services – May 12, 2008

  14. $2.2 billion revenue Average +2.72% Periodicals • Allow recent changes to settle in and work on efficiency • New, limited-circulation pricing New Prices – Mailing Services – May 12, 2008

  15. $1.8 billion revenue Average +2.88% Package Services New Prices – Mailing Services – May 12, 2008

  16. $2.7 billion revenue Average +2.85% Special Services • Certified Mail: $2.70 (+5¢) • Return Receipt: $2.20 (+5¢) • Annual Mailing Fees: $180 (+$5) • Delivery Confirmation: no change New Prices – Mailing Services – May 12, 2008

  17. Shipping Services • Greater pricing freedom and flexibility • No price cap • Each product and contract must cover cost • Must cover 5.5% of Postal Service overhead • 30-day notice required • 60-day commitment New Prices – Shipping Services – May 12, 2008

  18. Shipping Services • Priority Mail • International • Express Mail • Parcel Select • Parcel Return Service New Prices – Shipping Services – May 12, 2008

  19. New Price Structures and Incentives Price Lists • Retail prices • Commercial base prices • Commercial volume prices Negotiated pricing • Commercial contract prices New Prices – Shipping Services – May 12, 2008

  20. Express Mail • Average +3% • Sunday and holiday premium: $12.50 (introduced March 3) • Zoned pricing with competitive local pricing • Rename Post Office-to-Post Office as “Hold For Pickup” New Prices – Shipping Services – May 12, 2008

  21. Express Mail Commercial base prices • 3% lower than Retail for Express Mail Corporate Accounts (EMCA), Click-N-Ship, and PC Postage New Prices – Shipping Services – May 12, 2008

  22. Express Mail Commercial volume prices • EMCA and PC Postage New Prices – Shipping Services – May 12, 2008

  23. Priority Mail • Average +6% • New large Flat-Rate box(introduced March 3) • Lower price for APO/FPO addresses New Prices – Shipping Services – May 12, 2008

  24. Priority Mail Commercial base prices • Lower than retail for Click-N-Ship, PC Postage, and permit imprint New Prices – Shipping Services – May 12, 2008

  25. Priority Mail Price examples New Prices – Shipping Services – May 12, 2008

  26. Parcel Select • Last-mile commercial service • Average +5.7% • Promote destination delivery unit (DDU) • Commercial volume prices for DDU • Based on new growth above a threshold • Annual rebates New Prices – Shipping Services – May 12, 2008

  27. Parcel Return Service • First-mile commercial service • Average +2% • Align pricing with outbound DDU • Weight-based pricing New Prices – Shipping Services – May 12, 2008

  28. Global Express Guaranteed • Average +5.2% Retail price examples • Expedited date-certain delivery with money-back guarantee to over 190 countries • Commercial base prices • 10% lower than retail for Click-N-Ship and PC Postage New Prices – Shipping Services – May 12, 2008

  29. Express Mail International • Average +6% Retail price examples • Date-certain delivery with money-back guarantee for packages sent to Pacific Rim countries New Prices – Shipping Services – May 12, 2008

  30. Express Mail International • Commercial base prices • 8% lower than retail for Click-N-Ship, PC Postage, Global Shipping Software (GSS), and Express Mail Corporate Account (EMCA) New Prices – Shipping Services – May 12, 2008

  31. Express Mail International • Commercial volume prices • Express Mail Corporate Account New Prices – Shipping Services – May 12, 2008

  32. Priority Mail International • Average +6.1% Retail price examples • New large Flat-Rate box (introduced March 3) New Prices – Shipping Services – May 12, 2008

  33. Priority Mail International • Commercial base prices • 5% lower than retail for Click-N-Ship, PC Postage, and permit imprint New Prices – Shipping Services – May 12, 2008

  34. International Priority Airmail (IPA) and International Surface Airlift (ISAL) • Average price increase • IPA: 12.5% • ISAL: 21.3% • Continue published prices for full-service and drop ship • Eliminate published ISAL prices for Direct Shipment • Now, available through customized agreement New Prices – Shipping Services – May 12, 2008

  35. Resources • USPS.com/prices • Mailing Services and Shipping Services highlights • New price lists • Downloadable price files • New Postage Statements • Federal Register notices New Prices – May 12, 2008

  36. Resources • Postal Explorer(pe.usps.com) • PCC Insider – PCC e-newsletter (pccinsider@usps.gov) • DMM Advisory – customer e-newsletter (dmmadvisory@usps.com) • P&C Weekly– employee e-newsletter (PandCWeekly@usps.gov) • MailPro – late April (usps.com/mailpro) New Prices – May 12, 2008

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