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Mailing Services Price Change Effective April 17, 2011 January 2011 1 2011 Mailing Services Price Change GBPCC L & L Andrée Kater Manager, Business Mail Entry Alabama District U.S. Postal Service March 17, 2011
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Mailing Services Price Change Effective April 17, 2011 January 2011 2 Agenda Timeline CPI cap Changes by class of mail First-Class Mail Standard Mail Periodicals Package Services Extra Services and Fees Resources
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Mailing Services Price Change Effective April 17, 2011 January 2011 PRC Determination Feb 16 34 days 3 Timeline PreparationRegulatory ReviewImplementation 45 days 49 days Price development Notify PRC Jan 13 April 17, 2011
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Mailing Services Price Change Effective April 17, 2011 January 2011 4 The Price Cap Based on Consumer Price Index PRC formula a moving average of CPI data Current calculation of cap is 1.741%
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Mailing Services Price Change Effective April 17, 2011 January 2011 5 First-Class Mail Product% Change Single-piece Letters & Cards0.5 Flats5.3 Parcels3.8 Presort Letters & Cards1.8 International4.0 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
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Mailing Services Price Change Effective April 17, 2011 January 2011 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)
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Mailing Services Price Change Effective April 17, 2011 January 2011 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
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Mailing Services Price Change Effective April 17, 2011 January 2011 8 Standard Mail Product% Change Letters1.8 Flats0.8 Carrier Route Letters, Flats, and Parcels1.4 High Density / Saturation Letters0.6 High Density / Saturation Flats and Parcels 0.4 Parcels (NFM’s / Parcels)11.3 1.7% overall increase
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Mailing Services Price Change Effective April 17, 2011 January 2011 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
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Mailing Services Price Change Effective April 17, 2011 January 2011 10 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 Periodicals Product% Change Outside County1.8 Inside County1.1
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Mailing Services Price Change Effective April 17, 2011 January 2011 11 Package Services Product% Change Single-piece Parcel Post1.8 BPM Flats0.7 BPM Parcels2.0 Media Mail (including Library Mail)2.0 1.7% overall increase Lower price increase for BPM Flats Only product covering costs
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Mailing Services Price Change Effective April 17, 2011 January 2011 12 Extra Services and Fees Product% Change PO Boxes2.2 Certified Mail1.8 Return Receipt 0.7 Money Orders0.3 Fees 3.0 Other 1.7 1.7% overall increase
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Mailing Services Price Change Effective April 17, 2011 January 2011 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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Mailing Services Price Change Effective April 17, 2011 January 2011 Q ????????????????????????????? U E THANK YOU! S T ??????????????? I O N S ??????
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