2013 USPS Updates
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The document outlines the 2013 USPS postage rate increases, stating a general rate hike of 4% with specific increases for letters and postcards. It also discusses strategies for cost reduction and new promotional offerings available to business mailers, along with the financial challenges faced by USPS, including substantial losses in 2012. Proposed solutions include legislative changes, opportunities for revenue generation, and allowing USPS to diversify its service offerings.
2013 USPS Updates
- 1. 2013 USPS Updates + Rich Cicha Director, Client Postal Solutions
- 2. 2013 Postage Rate Increase 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 2
- 3. 2013 Postage Rate Increase 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 3
- 4. How can you minimize the increase? Post Mailing Solutions can help… • Take advantage of drop- shipping discounts • Consider commingling • Consider co-palletization and/or co-mailing 4
- 5. Other ways to keep costs down? 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” 5
- 6. Mobile Coupon and Click to Call • Mobile Coupon • Click to Call • 2% upfront discount Registration- Jan 15- April 30 Program Period- March 1- April 30 6
- 7. Earned Value Reply Mail • Credit for BRM and CRM counted • Registered permits required • .o2 per piece discount Registration- Jan 1- March 30 Program Period- April 1- June 30 7
- 8. Emerging Technologies • Near-Field Communication • Augmented Reality • Authentication • 2% overall discount Registration begins June 1 Program Period- Aug 1- Sept 30 8
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- 10. Picture Permit • Customized Permit Indicia • Pre-testing and design approval required • Per piece fee waived Registration Begins June 1 Program Period- Aug 1- Sept 30 6 month lead time recommended 10
- 11. Product Samples • Mail containing product samples • Trial size to incite purchase • 5% off eligible postage Registration begins May 1 Program Period- Aug 1- Sept 30 11
- 12. Mobile Buy it Now • Mobile barcode to mobile optimized site • Tangible items shipped via USPS • 2% off total purchase Registration begins Sept 15 Program Period- Nov 1- Dec 31 12
- 13. Extensive Postal losses The USPS reported losses of over 16 Billion Dollars in 2012 What will this mean about the future of the USPS? 13
- 14. 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 14
- 15. 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 15
- 16. 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). 16
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- 21. Network Rationalization What potential hurdles are there? Delivery uncertainty Changes in Service Standards Campaign planning affected What to do?? 21
- 22. Mail Tracking is becoming more important than ever during this era of consolidation 22
- 23. Tracking by Drop Ship Location 23
- 24. Individual Scan Detail 24
- 25. Liked what you heard? Please visit us at www.sourcelink.com for all things Postal 25