USPS Rate Change = Savings! Understanding the September 2014 U.S. Postal Service Rate Changes Each year—at least once per year—the U.S. Postal Service® (USPS®) changes rates and policies across various mail classes and services. On September 7, 2014 the USPS will announce a rate change focused on Priority Mail, with a few additional service updates. The good news is that this rate change includes a price decrease for those using Priority Mail! Endicia customers will see significant savings in many Priority Mail weight classes and zones, particularly for heavier items. Keep reading for more information on the rate changes and how they can affect your business’ bottom line.
Contents Introduction..................................................................................................................................................................................................3 Key 2014 Rate Changes for Priority Mail.....................................................................................................................................................4 Key Service Changes...................................................................................................................................................................................7 Domestic Changes:..............................................................................................................................................................................7 Package Pickup and Pickup on Demand®....................................................................................................................................7 International Changes...........................................................................................................................................................................7 Priority Mail Express International® (PMEI) Enhancements..........................................................................................................8 Parcel Manifest Minimum Requirement Modification...................................................................................................................8 Prohibitions, Restrictions and Observations for International Mailing Update............................................................................8 Priority Mail Express International® (PMEI) and Priority Mail International® (PMI) Weight and Size Update...............................8 Background..................................................................................................................................................................................................9 USPS Pricing Tiers...............................................................................................................................................................................9 Retail Price.....................................................................................................................................................................................9 Commercial Base Price (CBP).......................................................................................................................................................9 Commercial Plus Price (CPP)........................................................................................................................................................9 Priority Mail Explained..........................................................................................................................................................................9 Endicia and USPS: The Right Choice for Your Package Shipments........................................................................................................10 Why Endicia?.............................................................................................................................................................................................10
PG 2
Introduction Now you have a choice for heavier packages! The USPS rate change of September 7, 2014 is the perfect opportunity to re-evaluate your shipping mix and consider the USPS for your heavier packages. With rate decreases across
Average Savings Per Package The following charts show how much you could save by using USPS Priority Mail with Endicia vs the private carriers. $2.90 FedEx/UPS Ground residential surcharge and 7% fuel surcharge included in calculations.
over private carrier rates and up to 35%* over previous Priority
Commercial Base Pricing (CBP) & Commercial Plus Pricing (CPP) versus FedEx/UPS Ground, Zones 1-5
Mail rates.
Zones 1-5
many weights and zones, shippers can save an average of 42%*
Priority Mail allows you to reach your customers quickly,
Category
CBP
CPP
Avg. $ Change Avg. Savings Avg. $ Change Avg. Savings
0-5 lbs
-4.41
-39%
-5.67
-50%
opportunity to save money and contribute to your bottom
5-10 lbs
-3.12
-25%
-5.42
-42%
line especially as the holiday shipping season approaches.
10-15 lbs
-2.41
-17%
-4.92
-36%
15-20 lbs
-1.94
-13%
-3.77
-25%
typically in 2-3 days and at a great value. It is a tremendous
Businesses will benefit at the up to 5 lbs weight class and save even more at 5 lbs+.
Example Savings Dependant on number of packages sent, weight, and zones USPS versus FedEx / UPS Ground. $2.90 FedEx/UPS residential surcharge and 7% fuel surcharge included in calculations. CBP Packages 5-10 lbs, Zones 1-5—Average savings = $3.12 per package. 25% average savings over private carriers Packages up to 5-10 lbs, Zones 1-5 Savings based on 2 month period # Packages per day
20
50
150
300
Total savings
$3,806
$9,516
$28,548
$57,096
CPP Packages 5-10 lbs, Zones 1-5—Average savings = $5.42 per package. 42% average savings over private carriers Packages 5-10 lbs, Zones 1-5 Savings based on 2 month period # Packages per day
20
50
150
300
Total savings
$6,612
$16,531
$49,593
$99,186
*Based on Commercial Plus rates, zones 1-5
PG 3
Key 2014 Rate Changes for Priority Mail The major change is in lower pricing for those using Priority Mail with Commercial Base Pricing (CBP) and Commercial Plus Pricing (CPP) rates. Retail rates will increase for packages weighing 5lbs and less across zones 1-8 and will increase across zones 6-8 for packages up to 18 lbs, but rates will decrease across zones 1-5 for packages weighing over 5 lbs. Following is a comparison of average retail, CBP, and CPP rates across zones 1-8 and then across zones 1-5 where the rate decreases are focused.
PG 4
Average overall change for regular Priority Mail shipments, Zones 1-8: Retail:
Commercial Base:
For packages weighing 5 lbs. or less, Retail rates (Zones 1-8)
For packages weighing 5 lbs. or less, Commercial Base rates
are increasing by an average of 2.6% or +$0.26 per piece.
(Zones 1-8) are decreasing an average of -0.3% or -$0.03 per piece.
Category
Avg $ Change
Avg % Change
Category
Avg $ Change
Avg % Change
Zones 1-8 avg decrease across all weights
-$0.37/pkg
-1.0%
Zones 1-8 avg decrease across all weights
-$1.24/pkg
-4.5%
0-3 lbs
+$0.23/pkg
+2.8%
0-3 lbs
$0.00/pkg
0.0%
3-5 lbs
+$0.30/pkg
+2.5%
3-5 lbs
-$0.09/pkg
-0.7%
5-10 lbs
-$0.09/pkg
-0.3%
5-10 lbs
-$1.42/pkg
-7.8%
10-15 lbs
-$1.45/pkg
-4.9%
10-15 lbs
-$4.13/pkg
-16.1%
15-20 lbs
-$2.01/pkg
-5.5%
15-20 lbs
-$6.03/pkg
-18.6%
20-25 lbs
-$1.01/pkg
-2.4%
20-25 lbs
-$3.98/pkg
-11.1%
25-30 lbs
$0.00/pkg
0.0%
25-30 lbs
-$0.07/pkg
-0.2%
30-35 lbs
$0.00/pkg
0.0%
30-35 lbs
$0.00/pkg
0.0%
35-40 lbs
$0.00/pkg
0.0%
35-40 lbs
$0.00/pkg
0.0%
Category
Avg $ Change
Avg % Change
Flat Rate Envelope
+$0.15/pkg
+2.7%
For packages weighing 5 lbs. or less, Commercial Plus rates (Zones
Legal Flat Rate Envelope
+$0.15/pkg
+2.6%
1-8) are decreasing an average of -3.6% or -$0.39 per piece.
Padded Flat Rate Envelope
+$0.15/pkg
+2.5%
Category
Avg $ Change
Avg % Change
Zones 1-8 avg decrease across weights
-$1.62/pkg
-6.4%
0-3 lbs
-$0.06/pkg
-0.6%
3-5 lbs
-$0.49/pkg
-4.9%
5-10 lbs
-$2.42/pkg
-14.2%
10-15 lbs
-$4.02/pkg
-17.7%
15-20 lbs
-$4.12/pkg
-15.6%
20-25 lbs
-$3.71/pkg
-12.8%
25-30 lbs
-$3.20/pkg
-9.9%
30-35 lbs
-$2.85/pkg
-7.9%
35-40 lbs
-$1.22/pkg
-3.0%
Small Flat Rate Box
+$0.15/pkg
+2.6%
Medium Flat Rate Box
+$0.30/pkg
+2.4%
Large Flat Rate Box
+$0.45/pkg
+2.6%
APO/FPO Large Flat Rate Box
+$0.45/pkg
+2.9%
Regional Rate options The Regional Rate Box type C rate will have a sizeable decrease, while box type A and B rates will remain unchanged Box Type
Zones 1-8 Avg $ Change
Zones 1-8 Avg % Change
Box A
$0.0/pkg
0.0%
Box B
$0.0/pkg
0.0%
Box C
-$5.82/pkg
-18.7%
Commercial Plus:
PG 5
There is a substantial savings for packages shipping across Zones 1-5, especially at the heavier weights. CBP and CPP reflect cost saving primarily from 5-25 lbs.
Average overall change for regular Priority Mail shipments, Zones 1-5: Retail:
Commercial Plus:
For packages weighing 5 lbs. or less, Retail rates (Zones 1-5)
For packages weighing 5 lbs. or less, Commercial Plus rates
are increasing by an average of 2.4% or +$0.20 per piece.
(Zones 1-5) are decreasing an average of -8.5% or -$0.69 per piece.
Category
Avg $ Change
Avg % Change
Category
Avg $ Change
Avg % Change
Zones 1-5 avg decrease across all weights
-$0.74/pkg
-2.9%
Zones 1-5 avg decrease across all weights
-$2.80/pkg
-15.1%
0-3 lbs
+$0.20/pkg
+2.8%
0-3 lbs
-$0.13/pkg
-1.9%
3-5 lbs
+$0.19/pkg
+2.4%
3-5 lbs
-$0.85/pkg
-11.3%
5-10 lbs
-$0.09/pkg
-4.0%
5-10 lbs
-$4.23/pkg
-34.7%
10-15 lbs
-$3.29/pkg
-15.0%
10-15 lbs
-$7.03/pkg
-43.2%
15-20 lbs
-$4.06/pkg
-14.9%
15-20 lbs
-$7.21/pkg
-38.0%
20-25 lbs
-$1.77/pkg
-5.8%
20-25 lbs
-$6.49/pkg
-31.0%
25-30 lbs
$0.00/pkg
0.0%
25-30 lbs
-$5.60/pkg
-24.1%
30-35 lbs
$0.00/pkg
0.0%
30-35 lbs
-$4.98/pkg
-19.4%
35-40 lbs
$0.00/pkg
0.0%
35-40 lbs
-$2.14/pkg
-7.6%
Commercial Base:
Regional Rate options
For packages weighing 5 lbs. or less, Commercial Base rates
The Regional Rate Box type C rate will have a sizeable
(Zones 1-5) are decreasing an average of -0.7% or -$0.03 per piece.
decrease, while box type A and B rates will remain unchanged
Category
Avg $ Change
Avg % Change
Zones 1-5 avg decrease across all weights
-$2.07/pkg
-9.8%
0-3 lbs
$0.00/pkg
0.0%
3-5 lbs
-$0.15/pkg
-1.7%
5-10 lbs
-$2.48/pkg
-19.1%
10-15 lbs
-$7.22/pkg
-38.5%
15-20 lbs
-$10.55/pkg
-44.6%
20-25 lbs
-$6.96/pkg
-27.0%
25-30 lbs
-$0.06/pkg
-0.5%
30-35 lbs
$0.00/pkg
0.0%
35-40 lbs
$0.00/pkg
0.0%
Box Type
Zones 1-5 Avg $ Change
Zones 1-5 Avg % Change
Box A
$0.0/pkg
0.0%
Box B
$0.0/pkg
0.0%
Box C
-$10.18/pkg
-44.4%
PG 6
Key Service Changes Domestic Changes:
International Changes:
Package Pickup and Pickup on Demand® will be extended to
Priority Mail Express International® (PMEI) Enhancements
the following additional products and customers: • First Class Package Service® • First-Class Package Return Service® • Parcel Select®
PMEI with Guarantee Service will now be available to the following additional countries: • Germany
The PS Form 5630 scan form will be updated to reflect these
• Thailand
new products
• New Zealand • Sweden • Switzerland • Israel • Canada (added on March 27th, 2014) • Lebanon (Price Group 8)
PG 7
Parcel Manifest Minimum Requirement Modification • Shipments made via Priority Mail Express International®, Global Express Guaranteed®, Priority Mail International®, and First Class Package International Service® will now be included along with domestic parcels in calculating the permit imprint minimum requirement of 50 pounds or 50 pieces.
Prohibitions, Restrictions and Observations for International Mailing Update
Priority Mail Express International® (PMEI) and Priority Mail International® (PMI) Weight and Size Update • PMEI destined to Australia will now allow a maximum of 66 pounds and 36” of length with a max length plus girth of 97”. • PMI destined to Australia will now allow for the increased dimension of 42” of length with a max length plus girth of 97”. • Full Country Listings will be available on Postal Explorer prior to September 7.
• Australia will be prohibiting most food, plant, and animal products. • Moldova will be prohibiting items containing software or technical devices specifically developed, manufactured, programmed, or adapted to intercept information. • Moldova is also adding a new observation stating that valuable articles should be sent as insured mail. • Ukraine is revising its observation regarding goods sent by Priority Mail Express International™ service making these items subject to duties and taxes at a value of EUR 150. • Uruguay is adding prohibitions on eyeglasses and medical products (including medicines, supplements, creams, perfumes and nail polish). • These are a summary only. When effective, updates will be posted on Postal Explorer at http://pe.usps.gov.
PG 8
Background USPS Pricing Tiers
Priority Mail Explained
The USPS offers discounted pricing options to certain types
• What do shippers use this service for?
of customers for specific types of mail classes. They are also
Priority Mail is an excellent and economical option for
able to negotiate prices for domestic and international shippers.
businesses shipping packages to residential addresses
These negotiated rates are not “published” rates and therefore
that want quick delivery with free tracking, while
not covered in our Price Change information. Published pricing tiers include the following:
• Retail Price: Retail pricing refers to the standard
remaining cost-conscious. It offers many options, including regular zone-based pricing, flat rate envelopes and boxes, regional rate packaging, cubic pricing and
counter price for postage at the Post Office™ or other
Critical Mail envelopes. The Postal Service also offers a
physical retail locations.
variety free packaging for Priority Mail shipments, which
• Commercial Base Price (CBP): Commercial Base
can save businesses even more money. In addition,
pricing refers to the discounted postage price for certain
Priority Mail includes free tracking and $50 of free USPS
mail classes available to electronic postage users. The
insurance coverage.
vast majority of Endicia customers automatically enjoy
Priority Mail includes three price tiers: Retail,
this price for applicable Competitive mail classes.
Commercial Base, and Commercial Plus
• Commercial Plus Price (CPP): Commercial Plus pricing refers to deeply discounted postage prices for certain mail classes available to qualified high-volume shippers. Endicia customers that qualify for these discounts automatically receive them through their software or application.
• What is the delivery standard for Priority Mail? The delivery standard for Priority Mail is 2-3 days (not guaranteed). This is comparable to FedEx Ground or UPS Ground. The other comparable service is FedEx or UPS 2-3 day service.
PG 9
Endicia and USPS: The Right Choice for Your Package Shipments
Why Endicia?
No Hidden Fees—Private carriers regularly tack on
• The leader in electronic postage with over $11 Billion in
surcharges for residential, Saturday and rural deliveries, address validation and so much more. It’s all included at no extra cost with the USPS. The cost you see in the Endicia software is the price you pay. APO/FPO, PO Box Delivery—USPS is the only carrier that can deliver to military and diplomatic addresses, as well as PO Boxes. Endicia software makes sending packages to APO/FPO addresses easy with integrated shipping and customs forms. Delivery 365 days/year—USPS is the only carrier that delivers every day of the year to residential addresses, mailboxes, mail slots and PO Boxes. The Endicia software is also available at any time so you can easily print shipping labels for your packages whenever it is convenient for you.
postage printed. • Close partnership with the USPS to help tailor the best solution for your business • Intuitive easy-to-use tools to print labels and track your packages. • Pay-on-Use returns. Endicia is the only electronic Postage provider to offer this money saving service. With Endicia’s Pay-on-Use Returns you only pay for postage on the return shipping label if and when it is scanned in the mail stream. • Auto-Refund Service (ARS). ARS automates the process of requesting refunds for unused postage by identifying potentially unused shipping labels and submitting a refund request to the U.S. Postal Service.
Speedy Delivery—Get packages from San Francisco to New York in 2 days with Priority Mail vs 5-6 days via private carriers (and at lower prices for certain weights). Tracking—With the introduction of the Intelligent Mail Barcode (IMpb) the USPS typically has over 10 scan events per package. Endicia supports IMpb and offers online tracking, making it easy to keep an eye on packages. Flat Rate Options (domestic and international)—Priority Mail flat rate boxes from USPS offer a quick, easy and convenient way to ship packages, at the most affordable price. Endicia software can help you choose the package option that is best for your business.
For more information on how you can save go to
Negotiated Pricing—USPS and Endicia offer the most
www.endicia.com/USPS-rate-change-sept-2014 for more details
competitive pricing for your packages. Don’t be fooled by
or contact an Endicia Sales Rep today (
[email protected] or
private carrier rates that don’t reflect the true price once
800-576-3279, x140) to learn more about how you can save on
hidden charges are included.
shipping costs during this holiday season.
PG 10
