# Presentation: 328297

## Shaping a More Efficient Future

**Pricing Change Effective Monday, May 14**

**Notes:**
Slide 1 (cover slide) 
Shaping a More Efficient Future – Pricing Change Effective May 14, 2007
The Board of Governors set Monday, May 14, as the effective date for new rates and fees for all classes of mail except Periodicals, which is delayed until July 15. 

## July 15 Implementation
Outside-County
More complex container rate application
Bundle rates based on sort level and  container level
Container rates based on container type, level, and entry
Allow time for software development

- Periodicals

**July 15 Implementation**
**Outside-County**
**More complex container rate application**
**Bundle rates based on sort level and  container level**
**Container rates based on container type, level, and entry**
**Allow time for software development**

**Notes:**
Slide 2
Periodicals – Delayed Implementation
We are delaying implementation of new prices for Periodicals mail, including Outside-County, In-County, and mailing fees, to give us and you more time to prepare for the structure recommended by the Commission. We published a proposal in the Federal Register and online at usps.com/ratecase that included a 14-day comment period to explain the changes. We encourage all Periodicals mailers to review our proposal. Periodicals Outside-County mailers will have new incentives to use efficient containers, and the revised copalletization standards further encourage more publishers to combine mailings. We also add new prices for the nonadvertising portion of a mailing to give mailers of high-editorial-content publications access to lower, destination entry rates. 

## Standard Mail flats
Nonmachinable surcharge for First-Class Mail letters
Priority Mail Flat Rate Box

- Request for Reconsideration

**Standard Mail flats**
**Nonmachinable surcharge for First-Class Mail letters**
**Priority Mail Flat Rate Box**

**Notes:**
Slide 3
Request for Reconsideration
While we’re planning to implement all the rates that were recommended, the Governors have asked the Postal Regulatory Commission to reconsider three issues:  
Prices for Standard Mail flats, 
Application of the nonmachinable surcharge for First-Class Mail letters, and 
Price for the Priority Mail Flat-Rate Box. 
The Governors are concerned about the short-term effect that some prices for Standard Mail Regular flats might have on catalog mailers. 
The nonmachinable surcharge as recommended applies only to First-Class Mail letters weighing 1 ounce or less. The Governors asked the Commission to reconsider its recommendation and apply the surcharge to letters of any weight (up to the 3.5-ounce maximum). 
Also, the price for the flat-rate box seems unnecessarily high. 
The Governors asked the Commission to reconsider their recommendations and respond as quickly as possible to all three. 
There is no set timetable for the reconsideration, and there is no assurance that different prices will be recommended. Again, the plan is to implement the recommended rates on Monday, May 14, except for Periodicals rates.

## Reflect changes in operations and the marketplace
Offer more choices
Include incentives
Reduce undeliverable-as-addressed mail
Better reflect that shape matters

- New Prices

**Reflect changes in operations and the marketplace**
**Offer more choices**
**Include incentives**
**Reduce undeliverable-as-addressed mail**
**Better reflect that shape matters**

**Notes:**
Slide 4
New Prices
The new prices reflect changes in operations and the marketplace and will offer more choices and ensure that all types of mail cover their costs. 
The new price structure will create a more efficient mail system so that the overall cost of using the mail is as low as possible. We include incentives to create mailpieces compatible with our processing systems and to deposit flats and parcels closer to where they are delivered. We want to reduce the costs associated with the handling of undeliverable-as-addressed mail by making it easier and less costly for mailers to get updated addresses.
And, shape matters. It’s important to us because the cost of handling each mail shape – letters, large envelopes (flats), and packages – varies widely. Shape is also important to you because it affects how you position your message or your product. 

## Forever Stamp
Booklets and sheetlets
Available April 12 
Single-piece rate 41¢
Good forever

**Booklets and sheetlets**
**Available April 12 **
**Single-piece rate 41****¢**
**Good forever**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 5
First-Class Mail – Forever Stamp
We are introducing a new “Forever Stamp” to make future price changes easier for consumers. The Forever Stamp in booklets of 20 goes on sale nationwide Thursday, April 12, and will help consumers avoid the last-minute rush to purchase stamps when prices change. Beginning May 14 the Forever Stamp will be available in sheetlets of 18 from our Automated Postal Centers and select ATMs. 
The Forever Stamp will always equal the First-Class Mail single piece 1-ounce letter price that is in effect on the day of mailing without the addition of extra postage. The Forever Stamp is priced at the new 41-cent rate. In addition to First-Class Mail single-piece 1-ounce letters, customers may use the Forever Stamp on other single-piece items as well. Additional postage is required for letters weighing more than 1 ounce and mailpieces subject to another rate of postage (such as large envelopes or packages). 
In addition, we have a nondenominated flag stamp available in coils and panes of 20 and 100. The flag stamp is not a forever stamp and will always have a value of 41 cents.

## Shape Matters – Single-Piece
Letters 41¢
Nonmachinable surcharge 17¢
Additional ounce 17¢ 
Postcards 26¢ 
Flats 80¢
Parcels $1.13

**Shape Matters ****–**** ****Single-Piece**
**Letters 41****¢**
**Nonmachinable surcharge 17¢**
**Additional ounce 17****¢**** **
**Postcards 26****¢**** **
**Flats 80****¢**
**Parcels $1.13**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 6
First-Class Mail – Shape Matters
The shape of the mailpiece will play a major role in the prices you pay for First-Class Mail. Letters, large envelopes (flats), and packages (parcels) that weigh the same are no longer the same price. The new price structure recognizes that each of these pieces has substantially different processing costs, so each has separate prices. 
The single-piece 1-ounce letter rate will increase 2 cents to 41 cents. The 17-cent nonmachinable surcharge applies to letters weighing 1 ounce or less that do not meet our standards for aspect ratio, or have other nonmachinable characteristics.
The additional-ounce rate for all single-piece letters, flats, and packages actually decreases to 17 cents from today’s 24 cents. 
The single-piece postcard rate increases 2 cents, to 26 cents. 
The single-piece 1-ounce rate for flats will be 80 cents, and the single-piece rate for packages will be $1.13 for the first ounce. 

## Shape Matters – Letters
Maximum weight 3.5 ounces
Pieces that exceed 3.5 ounces or any letter-size dimension are charged as flats

**Maximum weight 3.5 ounces**
**Pieces that exceed 3.5 ounces or any letter-size dimension are charged as flats**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Length**
**Height**
**Thickness**

**Minimum**
**5 inches**
**3-1/2 inches**
**0.007 inch**

**Maximum**
**11-1/2 inches**
**6-1/8 inches**
**1/4 inch**

**Nonmachinable letters weighing           1 ounce or less will be charged 17****¢ ****nonmachinable surcharge.**

**Notes:**
Slide 7
First-Class Mail – Shape Matters – Letters
Letters that weigh more than 3.5 ounces, or exceed one of the maximum letter dimensions; 6-1/8 inches tall, 11-1/2 inches long, or 1/4 inch thick, regardless of weight, are charged the rates for flats. 

## Shape Matters – Flats
Maximum weight 13 ounces
Pieces that exceed any dimension are charged as parcels

**Maximum weight 13 ounces**
**Pieces that exceed any dimension are charged as parcels**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Length**
**Height**
**Thickness**

**Minimum***
**11-1/2 inches**
**6-1/8 inches**
**1/4 inch**

**Maximum**
**15 inches**
**12 inches**
**3/4 inch**

- *Flats exceed at least one of these dimensions.** **

**Flats with the following characteristics are also subject to parcel prices:**

**Not flexible**
**Not rectangular**
**Not uniform in thickness**

**Notes:**
Slide 8
First-Class Mail – Shape Matters – Flats
Likewise, mailpieces that exceed any one of the maximum dimensions for a flat; 12 inches tall, 15 inches long, or 3/4 inch thick  are charged the rates for parcels. Flats must also be flexible, rectangular, and uniformly thick. The weight limit for flats and parcels is still 13 ounces – after that they become Priority Mail. 

## Shape Matters – Lower Prices
Lower prices for 
Letters over 1 ounce
Flats over 6 ounces

**Lower prices for **
**Letters over 1 ounce**
**Flats over 6 ounces**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 8
First-Class Mail – Shape Matters – Lower Prices
As shape becomes more important in determining price, weight matters less. The additional-ounce rate decreases to 17 cents from today’s 24 cents for all shapes, resulting in lower prices for letters over 1 ounce, and flats over 6 ounces. 

## Shape Matters – Example
Flat-size to letter-size envelope 

**Shape Matters ****– Example**
**Flat-size to letter-size envelope **

- Save 39¢

- Shaping a More Efficient Future
- First-Class Mail**®**

**2-ounce example**

**97¢**

**58¢**

**Notes:**
Slide 10
First-Class Mail – Shape Matters – Example
Here’s an example on how you can save on postage:  If the contents intended for a large envelope can be folded and placed into a letter-size envelope, you can save 39 cents on the first ounce. On the other hand, you may determine that using a large envelope will enhance your message, and choose to pay the higher price.

## Shape Matters – Example
Parcel to flat

**Shape Matters ****– Example**
**Parcel to flat**

- Save 33¢

- Shaping a More Efficient Future
- First-Class Mail**®**

**2-ounce example**

**97¢**

**$1.30**

**Notes:**
Slide 1
First-Class Mail – Shape Matters – Example
Likewise, some items traditionally prepared and mailed as parcels may be reconfigured and placed in a large envelope, saving you 33 cents on the first ounce. When you choose to mail more efficient shapes, our costs are lower and the savings are passed on to you. 

## Workshare
Presort and automation flats additional ounce 17¢
Automation letter additional ounce 12.5¢
Maximum weight 
Presort letter 3.3 ounces
Automation letter 3.5 ounces

**Presort and automation flats additional ounce 17****¢**
**Automation letter additional ounce 12.5****¢**
**Maximum weight **
**Presort letter 3.3 ounces**
**Automation letter 3.5 ounces**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 12
First-Class Mail – Workshare
Similar changes apply to workshare mail. The additional-ounce rate is 17 cents for presort-rate letters, flats, and parcels, and automation-rate flats; the additional-ounce rate for automation letters is lower, at 12.5 cents. These reductions, along with prices based on shape, eliminate the need for the "heavy piece" discount for mailpieces weighing more than 2 ounces. The weight limit for presort letters remains at 3.3 ounces. The weight limit for automation letters increases to 3.5 ounces.

## Automation Letters
Automation Carrier Route rates eliminated
No change to rate eligibility 

**Automation Letters**
**Automation Carrier Route rates eliminated**
**No change to rate eligibility **

**5-digit/scheme**
**optional**

**3-digit/scheme**

**AADC**

**Mixed AADC**

**5-Digit/Scheme**
**Overflow Mail**

**3-Digit/Scheme**
**Overflow Mail**

**AADC**
**Overflow Mail**

**Require 85% full trays**
**Reduced overflow option**

- Shaping a More Efficient Future
- First-Cass Mail**®**

**Notes:**
Slide 12
First-Class Mail – Automation Letters
For automation letters, we eliminated the automation carrier route preparation and rates. 
We retain the 150-piece minimum sort level for automation letters and cards. Sort levels are optional for 5-digit/scheme, and required for 3-digit/scheme, 3-digit origin, AADC, and mixed AADC. 
To encourage more trays filled to capacity, we changed the definition of a “full letter tray” to require pieces to fill at least 85 percent of the tray. And to help reduce the number of “air trays” (partially filled overflow trays) and the overall costs of handling mail in letter trays, we offer a reduced overflow tray option for automation letters.

## Machinable Letters
Simplified tray preparation

**Simplified tray preparation**

**Origin**
**3-digit**

**AADC**

**Mixed AADC**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 14
First-Class Mail – Machinable Letters
We offer a simplified letter mail preparation for machinable letters, requiring sort only to the origin 3-digit, AADC, and mixed AADC levels. To be consistent with Standard Mail, the maximum weight for machinable letters is 3.3 ounces. Letters weighing over 3.3 ounces must be prepared as nonmachinable letters. 
Preparation for nonmachinable letters is not changing. 

## Automation Flats
Must be
Flexible
Rectangular
Uniformly thick

**Must be**
**Flexible**
**Rectangular**
**Uniformly thick**

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 14
First-Class Mail – Automation Flats
The physical standards for automation flats retain most of the criteria for AFSM 100 pieces, with new standards for flexibility. We also added a rectangular-shape requirement and a uniform thickness standard for all flats. The new uniform thickness standard allows up to a 1/4-inch variation in thickness. These changes ensure that pieces paid for at automation flats rates can be processed in automated operations and delivered as flats.
Pieces that do not meet the new standards for flats will be charged parcel rates.

## Presorted Parcels
New rate structure

Barcodes required
UCC/EAN Code128 

or POSTNET

**New rate structure**
**Barcodes required**
**UCC/EAN Code128 **
** **
**or POSTNET**

| 5-digit | 3-digit | ADC |
| --- | --- | --- |

- Shaping a More Efficient Future
- First-Class Mail**®**

**Notes:**
Slide 16
First-Class Mail – Presorted Parcels
Presorted parcels have new workshare prices. The 5-digit rate and sort levels are optional, and the 3-digit, ADC, and mixed ADC levels are required. Mailers must put at least 10 pounds of parcels in 5-digit/scheme sacks, 3-digit sacks, and ADC sacks. Remaining pieces sorted to mixed ADC sacks are charged the single-piece parcel prices. 
Barcodes facilitate processing on the automated package processing system (or “APPS”), and mailers can apply either a 5-digit UCC/EAN Code 128 or a POSTNET barcode on presorted parcels. Unless prepared in 5-digit/scheme containers or paid for at the single-piece rates, a 5-cent surcharge applies to all parcels that are not barcoded, or that weigh less than 2 ounces, and to irregularly shaped parcels such as triangles, tubes, rolls, and similar pieces.

## Flat Rates 

- Shaping a More Efficient Future
- Priority Mail**®**

|  | Price |
| --- | --- |
| Flat-Rate Envelope | $4.60 |
| Flat-Rate Box | $9.15 |

**Flat Rates**** **

**Notes:**
Slide 17
Priority Mail – Flat Rate
The Priority Mail Flat-Rate Envelope is priced at $4.60, regardless of weight or destination. 
Priority Mail Flat-Rate Boxes are $9.15, regardless of weight or destination. The Governors asked the PRC to reconsider its recommended rate, which is higher than the rate we proposed. 

## Dimensional Weight and Balloon Rate Pricing 
Dimensional weight Zones 5-8
Balloon rate Local and Zones 1-4
USPS-complimentary packaging not subject to either
Lower prices for heavier                                items

**Dimensional weight Zones 5-8**
**Balloon rate Local and Zones 1-4**
**USPS-complimentary packaging not subject to either**
**Lower prices for heavier                                items**

- Shaping a More Efficient Future
- Priority Mail**®**

**Notes:**
Slide 18
Priority Mail – Dimensional and Balloon Pricing
Priority Mail packages that exceed 1 cubic foot capacity, addressed to Zones 5 through 8, may be subject to a new dimensional-weight price. We calculate postage for these pieces at the greater of their actual weight or dimensional weight. In general, if a package is relatively light for its size, it may be subject to a dimensional-weight price.
Balloon-rate pricing for Priority Mail packages increases from the 15-pound to the 20-pound rate. Balloon pricing applies only to packages larger than 84-inches in combined length and girth up to 108 inches traveling locally and to Zone 1 through 4 destinations. Balloon pricing no longer applies to packages sent to Zones 5 through 8.
USPS-complimentary Priority Mail packaging available at Post Offices and on usps.com are never subject to balloon rate or dimensional-weight pricing. Dimensional-weight pricing also does not apply to Priority Mail Open and Distribute (formerly “Priority Mail Drop Shipment”) mailings of other classes of mail. 
Again, as shape becomes more important, weight is less important, and prices for Priority Mail pieces weighing over 23 pounds decrease for all zones, many by as much as 20 percent. 

## Dimensional Weight Pricing Example

| Zone 8, 10 pound, 1.6 cubic foot parcel | $30.50 | Reduce size by 25% to 1.2 cubic feet | $26.35 |
| --- | --- | --- | --- |

- Save

- Shaping a More Efficient Future
- Priority Mail**®**

**Notes:**
Slide 19
Priority Mail – Dimensional-Weight Pricing Example
You have opportunities to reduce the impact of dimensional-weight pricing. For example, a 10-pound, 1.6-cubic foot parcel to zone 8 is subject to dimensional-weight pricing in this example since packages this size usually weigh more than 10 pounds. In fact, the industry standard is almost 15 pounds, so the 15-pound price would apply. If you reduce the size of the package by 25 percent, you save $4.15. If you can further reduce the package so it does not exceed 1 cubic foot, you can save another $1.30. 

## New 1-Pound Price 

- Express Mail**®**

**New 1-Pound Price**** **

| Post Office to Addressee | Price |
| --- | --- |
| 1/2 pound (flat-rate envelope) | $16.25 |
| 1 pound | $19.50 |
| 2 pounds | $21.40 |

**Notes:**
Slide 20
Express Mail – New 1-Pound Price
Express Mail pieces often contain material that ranges from a half-pound to 2 pounds. Previously, these pieces paid the 2-pound price. To keep Express Mail a viable alternative for mailers, we add new 1-pound prices. 
The Express Mail Flat-Rate Envelope continues to be charged the half-pound price, regardless of weight. 

## Initiatives
Greater recognition of shape
Eliminate DDU rate for letters
Drop ship closer to destination
Detached Address Label surcharge

- Standard Mail**TM**

**Initiatives**
**Greater recognition of shape**
**Eliminate DDU rate for letters**
**Drop ship closer to destination**
**Detached Address Label surcharge**

**Notes:**
Slide 21
Standard Mail – Initiatives
As in First-Class Mail, Standard Mail pricing has greater recognition of shape. We now have distinct prices for parcels and different preparation guidelines for machinable and irregular parcels to help us process these pieces more efficiently. We no longer provide DDU-entry rates for ECR letters. This is consistent with our efforts to promote delivery point sequencing of all letters, which usually occurs upstream at the mail processing plant. We retain DDU-entry rates for flats and now have DDU-entry rates for parcels as well – since that is the best entry location for those shapes. 
The new prices include a 1.5-cent surcharge for Standard Mail ECR pieces with detached address labels. 

## Automation Letters
ECR automation rates eliminated 
No change to rate eligibility 

**ECR automation rates eliminated **
**No change to rate eligibility **

**5-digit/scheme**
**optional**

**3-digit/scheme**

**AADC**

**Mixed AADC**

**5-Digit/Scheme**
**Overflow Mail**

**3-Digit/Scheme**
**Overflow Mail**

**AADC**
**Overflow Mail**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Require 85% full trays **
**Reduced overflow tray option**

**Notes:**
Slide 22
Standard Mail – Automation Letters
For Standard Mail automation letters, we eliminated the ECR automation basic letter preparation and rates. And just as in First-Class Mail, we retain the 150-piece minimum sort level for automation letters. Sort levels are optional for 5-digit/scheme, and required for 3-digit/scheme, AADC, and mixed AADC.  Mailers also have the option to prepare origin/entry 3-digit/scheme trays. 
Also, to encourage more trays filled to capacity, we changed the definition of a “full letter tray” to require pieces to fill at least 85 percent of the tray. And to help reduce the number of “air trays” (partially filled overflow trays) and the overall costs of handling mail in letter trays, we offer a reduced overflow tray option for automation letters.

## Machinable Letters
Simplified tray preparation

**Simplified tray preparation**

**Optional**
**Origin/Entry **
**3-digit**

**AADC**

**Mixed AADC**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 23
Standard Mail – Machinable Letters
To encourage even greater efficiency, we created separate price categories for machinable and nonmachinable letters, and we eliminated the nonmachinable surcharge. 
Simplified letter mail preparation for machinable letters now requires mailers to sort only to AADC and mixed AADC levels. Mailers may also prepare origin/entry 3-digit trays.

## Nonmachinable Letters
Separate rate structure 

**Separate rate structure **

**5-digit**

**3-digit**

**ADC**

**Mixed ADC**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 24
Standard Mail – Nonmachinable Letters
We replaced the nonmachinable surcharge with a separate rate structure for nonmachinable letters weighing up to 3.3 ounces. Required nonmachinable letter sort levels are 5-digit, 3-digit, ADC, and mixed ADC, all with separate rates. Mailers have the option to prepare origin/entry 3-digit trays. Nonmachinable letters over 3.3 ounces are charged the new not flat-machinable “NFM” rates or, if barcoded and meeting other requirements, an automation flat-size rate. 

## ECR Letters
New tray preparation for barcoded automation-compatible letters 3 ounces or less
No change to preparation for nonautomation and pieces weighing over 3 ounces
DSCF-entry rates allowed for some DDU entry

**New tray preparation for barcoded automation-compatible letters 3 ounces or less**
**No change to preparation for nonautomation and pieces weighing over 3 ounces**
**DSCF-entry rates allowed for some DDU entry**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 25
Standard Mail – Enhanced Carrier Route Letters
ECR letters weighing up to 3 ounces that are delivery point barcoded and automation-compatible are sorted in full trays according to new preparation standards. ECR letters that are not barcoded, not automation-compatible, or that weigh over 3 ounces are sorted and bundled according to current preparation standards. Mailers will sort and bundle mailings that contain pieces both over and under 3 ounces according to current preparation standards. 
DSCF-entry rates are allowed for DDU entry of some ECR letters, including letters with simplified addresses and locally entered mailings of 2,500 pieces or less. ECR letters paid for at the basic letter rate must meet address matching and coding standards and must be delivery-point barcoded and automation-compatible. 

## Flats
Changes to flat-size mailing standards
Cover costs
Efficient processing and delivery

**Flats**
**Changes to flat-size mailing standards**
**Cover costs**
**Efficient processing and delivery**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 26
Standard Mail – Flats
To better align mail preparation with our processing capabilities and to maximize access to lower rates for mailers, we are offering new scheme preparation standards, including scheme preparation for nonautomation flats. We changed our flat-size mailing standards to ensure that the prices for flats and parcels better cover their costs and that those pieces eligible for flat-size prices can be processed on automated flat sorting machines (AFSM 100s) and handled efficiently at delivery. 
We’ve also increase the maximum size for ECR flats so that the same maximum size — 15 inches long, 12 inches high, and 3/4-inch thick — applies to all flats, regardless of the rate paid.

## Automation Flats
Must be
Flexible
Rectangular 
Uniformly thick
Maximum thickness 3/4′′
Minimum size 5′′ x 6′′ 

**Automation Flats**
**Must be**
**Flexible**
**Rectangular **
**Uniformly thick**
**Maximum thickness 3/4****′′**
**Minimum size 5****′′ x ****6****′′ **

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 27
Standard Mail – Automation Flats
The physical standards for automation flats retain most of the criteria for AFSM 100 pieces, with new standards for flexibility that exclude boxes and box-like pieces. We also added a rectangular-shape requirement and a uniform thickness standard for all flats. The new uniform thickness standard allows up to a 1/4-inch variation in thickness. These changes ensure that pieces paid for at automation flats rates can be processed in automated operations and delivered as flats.
The exclusion of pieces over 3/4-inch thick from automation flats is consistent with processing capabilities on our AFSM 100s and our automatic induction systems. Many pieces that are thicker than 3/4 inch and currently qualify for Standard Mail automation flats rates are boxes or rigid pieces, which we cannot process efficiently. Few Standard Mail pieces that are flexible printed material are both over 3/4 inch and under 16 ounces (the maximum weight for Standard Mail). 
We set a 5-inch by 6-inch minimum for automation flats because we cannot efficiently process smaller pieces and they present handling problems at delivery. However, these smaller pieces may qualify for letter rates or nonautomation flats rates, depending on their characteristics. 

## Flexibility Test

**Flexibility Test**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Length runs parallel to the surface**

**Flats over 10 inches long that contain a rigid insert; length perpendicular to surface**

**Notes:**
Slide 28
Standard Mail – Flexibility Test
The new flexibility test is a simple, effective, and efficient way to test flats at acceptance locations and determine which pieces can be processed on AFSM 100s and handled as flats by carriers. Mailers can perform this test on their own pieces, with an employee observing and validating the test.
Pieces must be tested first with the longest side parallel to the edge of a surface. If the piece can pass this test and does not contain a rigid insert, no further testing is necessary. If the piece contains a rigid insert, it must be tested with the shortest side parallel to the edge of a surface as well. 

## Nonautomation Flats
Not required to meet all automation standards

**Not required to meet all automation standards**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 29
Standard Mail – Nonautomation Flats
Nonautomation flats will not be required to meet all automation standards. Pieces that meet the general size and physical characteristics for all flats in DMM 301.1.0 but are too flimsy, are not barcoded, or use polywrap that is not approved, will be eligible for nonautomation flats rates. Small pieces (for example, pieces 4 inches high by 4 inches long) that are over 1/4-inch thick also are eligible for nonautomation flats rates.

## Enhanced Carrier Route Flats
Not required to meet all automation standards
ECR maximum size 12′′ x 15′′ 
No change to preparation

**Not required to meet all automation standards**
**ECR maximum size 12****′′ x ****15****′′ **
**No change to preparation**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 30
Standard Mail – Nonautomation Flats
ECR flats have the same standards as nonautomation flats will not be required to meet all automation standards. Pieces that meet the general size and physical characteristics for all flats in DMM 301.1.0 but are too flimsy, are not barcoded, or use polywrap that is not approved, will be eligible for ECR flats rates. Small pieces (for example, pieces 4 inches high by 4 inches long) that are over 1/4-inch thick also are eligible for ECR flats rates.
We’ve also increase the maximum size for ECR flats so that the same maximum size — 15 inches long, 12 inches high, and 3/4-inch thick — applies to all flats, regardless of the rate paid.
There are no changes to preparation, and as mentioned earlier the new prices include a 1.5-cent surcharge for Standard Mail ECR flats with detached address labels. 

## Parcels
New rate structure

**New rate structure**

| 5-digit | BMC | Mixed BMC |
| --- | --- | --- |

| 5-digit | 3-digit | ADC | Mixed ADC |
| --- | --- | --- | --- |

- Shaping a More Efficient Future
- Standard Mail**TM**

**DDU-entry option**
**Barcodes required**

**Machinable rate tiers**

**Irregular rate tiers**

**Notes:**
Slide 31
Standard Mail – Parcels
We now have separate prices for machinable parcels and irregular parcels. Within each category comes more presort levels and price tiers. A DDU-entry rate for parcels sorted to 5-digit/scheme destinations will be allowed when drop shipped directly to the DDU. There is no minimum for parcels drop shipped to a DDU. 
A 5-digit UCC/EAN Code 128 barcode is required for machinable parcels and the UCC/EAN Code 128 or POSTNET barcode is required for irregular parcels. If not barcoded, unless prepared in 5-digit scheme or 5-digit sacks or pallets, pieces will be subject to a surcharge of 5 cents each. 

## Not Flat-Machinable
Rigid pieces
USFM 1000 standards
Provides an additional option

**Rigid pieces**
**USFM 1000 standards**
**Provides an additional option**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 32
Standard Mail – Not Flat-Machinable 
NFMs are rigid, parcel-like pieces and large pieces (more than 15, up to 15-3/4 inches long or more than 3/4, up to 1-/14 inch thick) that currently qualify for automation flats rates based on the UFSM 1000 criteria. However, these pieces are rarely processed on our flats sorting equipment, and are seldom delivered as flats – they are usually processed either manually or in the parcel mailstream. Current prices do not cover processing and delivery costs for these pieces. The NFM subcategory gives mailers the option to mail qualifying pieces at the lower, NFM rates, rather than at parcel rates.

## Not Flat-Machinable
Preparation
6 ounces and over – machinable parcel preparation
Less than 6 ounces – irregular parcel preparation 
Barcodes required 
Rate marking required
“NFM” or “Not Flat-Machinable”
DDU entry rates

**Preparation**
**6 ounces and over – machinable parcel preparation**
**Less than 6 ounces – irregular parcel preparation **
**Barcodes required **
**Rate marking required**
**“****NFM” or “Not Flat-Machinable”**
**DDU entry rates**

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 33
Standard Mail – Not Flat-Machinable
The NFM category has higher prices than flats, but lower prices than parcels. The preparation and labeling standards for NFMs will direct these pieces to the processing facilities that can efficiently handle them, based on actual operations and mail flows. The preparation and destination entry options for NFMs weighing 6 ounces or more mirror those of machinable parcels because they are both efficiently processed at bulk mail centers (BMCs). The preparation and destination entry options for NFMs weighing less than 6 ounces mirror those of irregular parcels, which are efficiently processed at area distribution centers (ADCs). 
Barcodes facilitate processing and NFMs weighing less than 6 ounces each must bear either a 5-digit UCC/EAN Code 128 or a POSTNET barcode. NFMs weighing 6 ounces or more must bear a 5-digit UCC/EAN Code 128 barcode. Unless prepared in 5-digit/scheme containers, a 5-cent surcharge applies to all NFMs that are not barcoded. Also, each NFM piece must bear the marking "Not Flat-Machinable" or "NFM," either in the optional endorsement line or by placing the marking immediately to the left of or below the postage area. There are no extra services available with NFMs except electronic Delivery Confirmation service. 
We will not allow bundling for NFMs in sacks, but we will allow 5-digit bundles of five or more pieces on pallets. A DDU-entry rate is offered for NFMs sorted to 5-digit destinations when drop shipped directly to the DDU. There is no minimum number of pieces for NFMs drop shipped to DDUs. 

## Parcel Drop Ship Pricing Example

| 8 oz. mach parcel, basic presort, BMC drop ship | $1.006 | Enter at DDU | 59.2¢ |
| --- | --- | --- | --- |

- Save

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 34
Standard Mail – Parcel Drop Ship Pricing Example
In this example, a mailer preparing an 8-ounce parcel that is normally drop shipped to the DBMC would pay just over $1. But, if they entered it at the new DDU-entry rate, they would save an additional 41 cents. And Standard Mail parcels and NFMs can be combined with Parcel Select DDU pieces. 

## NFM Pricing Example

| 4 oz. rigid mailpiece, 5-digit presort, DSCF | 44.4¢
NFM rate | Use auto-compatible flexible packaging | 32.0¢
Auto flat rate |
| --- | --- | --- | --- |

- Save

- Shaping a More Efficient Future
- Standard Mail**TM**

**Notes:**
Slide 35
Standard Mail – NFM Pricing Example
A mailer sending a 4-ounce rigid piece could reduce their costs if the material can be reconfigured into flexible flat automation-compatible packaging. The result would be a 12.4-cent savings over the NFM rates. 

## Initiatives
20-pound balloon rate
Barcodes required on Parcel Select
Nonpresorted Bound Printed Mail rate
Scheme preparation required for BPM, Library Mail and Media Mail 

- Package Services

**Initiatives**
**20-pound balloon rate**
**Barcodes required on Parcel Select**
**Nonpresorted Bound Printed Mail rate**
**Scheme preparation required for BPM, Library Mail and Media Mail **

**Notes:**
Slide 36
Package Services – Initiatives
The minimum charge for parcels subject to balloon-rate pricing for Parcel Post and Parcel Select has been increased to 20 pounds, and balloon rate pricing will continue to apply to all parcels measuring larger than 84-inches in combined length and girth up to 108 inches and continues to apply to all zones.
The barcode discount for Parcel Select-DBMC machinable parcels is incorporated into the price, and all Parcel Select-DBMC machinable parcels must bear a UCC/EAN Code 128 barcode. Nonbarcoded machinable pieces will be charged the applicable Intra-BMC/ASF rate. The mail preparation standards for Parcel Select are unchanged. 
We renamed single-piece Bound Printed Matter "nonpresorted BPM," and eliminated the option to purchase postage for BPM at the retail counter. However, nonpresorted BPM pieces may be accepted for mailing at the retail window (as well as in collection boxes and by letter carriers) when you pre-apply postage using stamps, meter strips, or PC postage. The 3-cent barcode discount for flats and machinable parcels is unchanged. 
To reduce sacks, we require 5-digit/scheme and 3-digit/scheme bundles and 5-digit/scheme sacks for presorted BPM flats, as well as 5-digit/scheme sacks for Presorted irregular and machinable parcels. As with BPM, to reduce sacks, we require 5-digit/scheme and 3-digit/scheme bundles and 5-digit/scheme sacks for presorted Library Mail and Media Mail flats, as well as 5-digit/scheme sacks for presorted irregular and machinable parcels.

## New low-cost OneCode                                      Address Change Service 
Redesigned Insurance
Barcoded and scanned
$200 and less no signature required 
Lower electronic return receipt fee

- Extra Services

**New low-cost OneCode                                      Address Change Service **
**Redesigned Insurance**
**Barcoded and scanned**
**$200 and less no signature required**** **
**Lower electronic return receipt fee**

**Notes:**
Slide 37
Extra Services
OneCode Address Change Service (ACS)
OneCode Address Change Service (ACS) is a new option that allows us to electronically note the incorrect address on a First-Class Mail or Standard Mail letters, and electronically send the corrected address back to the mailer at a much lower cost. 
For First-Class Mail letters using the new OneCode ACS the first two notifications of an incorrect address will be at no fee, and after that at 5 cents each. And, starting this fall 2007, for Standard Mail letters the first two notifications will be 2 cents each, and after that 15 cents each. OneCodeACS requires the use of Intelligent Mail Barcodes (formerly known as "4-State Customer Barcodes").
Insurance
All insured items, regardless of insured value, will be numbered, barcoded, and receive a delivery scan. Items insured for more than $200 will also continue to get a signature at delivery. Insured fees for more than $50 up to $200 are reduced (as is the cost for additional Express Mail insurance coverage). We are also developing an online claims filing process, initially for insurance purchased using Click-N-Ship.
Return Receipt Service 
Electronic option Return Receipt service (which can only be requested at the time of mailing) decreases to 85 cents. Hard copy Return Receipt service requested at the time of mailing increases to $2.15. Return Receipt requested after mailing increases to $3.80. Return Receipt can be added only to items insured for more than $200. 

## Continue Post Office Box realignment
Caller service now aligned with fee groups
Business Reply Mail prices based on shape 
Confirm maintains tiered structure
Annual mailing and permit fees increase

- Extra Services

**Continue Post Office Box realignment**
**Caller service now aligned with fee groups**
**Business Reply Mail prices based on shape **
**Confirm maintains tiered structure**
**Annual mailing and permit fees increase**
** **

**Notes:**
Slide 38
Extra Services
Post Office Boxes and Caller Service 
Overall, Post Office Box fees are increasing. However; individual box holders at different locations may experience a wide variety of price changes as part of our continuing efforts to realign Post Office Box fees and Caller Service fees with our costs for each location. Customers may pay Post Office Box and Caller Service fees for up to one year in advance. 
Business Reply Mail
Business Reply Mail (BRM) prices will be based on shape, with increases and decreases to certain BRM per piece fees. The BRM annual permit fee and annual accounting fee increase, and the QBRM quarterly fees decrease. These new fees apply only to first-time payments and fee renewals. Current BRM customers do not begin paying the new fees until their payment period expires and it is time to renew. 
Confirm Service 
Confirm enables mailers to obtain information about the status of their letters and flats in the mail processing system. We proposed a restructuring of Confirm service, but instead we will maintain the current Platinum, Gold, and Silver tiers. The fees increase for the Gold and Platinum tier subscriptions and quarterly additional IDs. The fees for the Silver tier subscription did not change, but the charge for additional IDs increased.
Mailing and Permit Fees
The permit imprint application fee and all annual mailing fees increase to $175. Annual accounting fees increase to $550. These new fees only apply to first-time payments and fee renewals. Current customers do not begin paying the new fees until their payment period expires and it is time to renew. 

## New Shipping and Mailing Options
Global Express Guaranteed®
Express Mail International
Priority Mail International
First-Class Mail International

- International

**New Shipping and Mailing Options**
**Global Express Guaranteed****®**
**Express Mail International**
**Priority Mail International**
**First-Class Mail International**

**Notes:**
Slide 39
International
New Shipping and Mailing Options
We’re changing our international products to make them clear-cut and easy to use. The changes introduce the familiar USPS domestic product names – First-Class Mail, Priority Mail, and Express Mail – into the international product portfolio for retail customers. Commercial customers may contact the Postal Service’s Global Business group for more information about customized business mailing solutions.
Effective May 14, with the domestic rates and fees, international products will consist of:  Global Express Guaranteed (GXG), Express Mail International, Priority Mail International, and First-Class Mail International and will be available for purchase at Post Offices as well as online at usps.com.

## Online Discounts
Global Express Guaranteed® – 10% 
Express Mail International – 8% 
Priority Mail International – 5% 

- International

**Online Discounts**
**Global Express Guaranteed****®**** ****– ****10% **
**Express Mail International ****– ****8% **
**Priority Mail International ****– ****5% **

**Notes:**
Slide 40
International
Online Discounts
Online tools will make international mailing easier than ever, combining customs forms and address labels for many products shipped using the Internet. Online mailing will be easier on your budget, too, with discounts for international postage purchased using Click-N-Ship at usps.com or through authorized postage vendors. Customers purchasing postage online will qualify for postage discounts of:
10 percent on GXG shipments 
8 percent on Express Mail International shipments 
5 percent on Priority Mail International shipments 
Mailers can also use the same USPS-provided Express Mail and Priority Mail packaging for international shipments that they use for domestic mail. This includes the popular Express Mail Flat-Rate envelope, and the flat-rate options for Priority Mail, including two flat-rate boxes. Customers can continue to use existing international packaging supplies as long as they remain available, but will be charged the appropriate new rates. 
Although this redesign includes increases in international product prices, our products are still priced lower than comparable services of other international carriers. 

## Global Express Guaranteed®
Expedited date-certain delivery service

- International

**Global Express Guaranteed****®**
**Expedited date-certain delivery service**

**Notes:**
Slide 41
International
Global Express Guaranteed 
Global Express Guaranteed (GXG) is an expedited delivery service provided through an alliance with FedEx. The existing "document" and "non-document" price structures will be combined into one. GXG provides reliable, high-speed, date-certain service (one-to-three business days) with money-back delivery guarantee to over 190 countries. Insurance up to $100 per shipment is included. At the mailer’s option, additional insurance may be purchased as limited by destination country, content, or value. 

## Express Mail International
Reliable 3- to 5-day service
Flat-Rate envelope option

- International

**Express Mail International**
**Reliable 3- to 5-day service**
**Flat-Rate envelope option**

**Notes:**
Slide 42 
International
Express Mail International 
Express Mail International (formerly “Global Express Mail”) provides reliable, 3-5 average business day delivery to more than 190 countries with money-back delivery guarantee to select destinations. Specific average-days-for-delivery information to major destinations will be available via the online postage rate calculator and at Post Offices. 
Express Mail International will now offer the same packaging and flat-rate option available for domestic Express Mail. The flat-rate envelope is priced at $22 for Canada and Mexico; and $25 for all other countries. Document reconstruction insurance and merchandise insurance up to $100 will be provided at no additional cost. Additional insurance coverage may be purchased at the mailer’s option. The fee for optional Express Mail International merchandise insurance coverage will be reduced to $0.75 for each $100 or fraction, up to a maximum of $5,000 per shipment. 

## Priority Mail International
Reliable 6- to 10-day service
Flat-Rate box and envelope options

- International

**Priority Mail International**
**Reliable 6- to 10-day service**
**Flat-Rate box and envelope options**

**Notes:**
Slide 43
International
Priority Mail International 
Available to more than 190 countries, Priority Mail International service offers 6-10 average business day delivery. 
Priority Mail International will now offer the same packaging and flat-rate options available for domestic Priority Mail. The flat-rate envelope is priced at $9 for Canada and Mexico, and $11 for all other countries; and two flat-rate box options – $23 for Canada and Mexico, and $37 for all other countries. 
There is a 4-pound weight limit for the Priority Mail International Flat-Rate Envelope and a 20-pound weight limit for the Priority Mail International Flat-Rate Boxes. Tracking information will be available. Limited insurance coverage is included on Priority Mail International items, with the exception of the Priority Mail International Flat-Rate Envelope, where Registered Service will be available at the mailer’s option. 

## First-Class Mail International
Reliable and economical
For documents and lightweight items

- International

**First-Class Mail International**
**Reliable and economical**
**For documents and lightweight items**

**Notes:**
Slide 44
International
First-Class Mail International 
This service provides a reliable and economical means of sending correspondence (letters and postcards), documents, and merchandise weighing up to 4 pounds. Extra services, such as registered and return receipt, may be added on a country-specific basis.

## Business Services
International Priority Airmail
International Surface Airlift
M-Bags

- International

**Business Services**
**International Priority Airmail**
**International Surface Airlift**
**M-Bags**

**Notes:**
Slide 45
International
Business Services
International Priority Airmail 
International Priority Airmail (IPA) is a bulk mailing service for First-Class Mail international items, with average delivery times of 3-7 days. Presort, nonpresort, and drop ship discounts, as well as volume discounts for commercial customers who meet international customized mail program requirements, will remain available. Each IPA mailing must weigh a minimum of 10 pounds. A separate rate group is being established for Australia. In addition, IPA M-bag service is being introduced. M-bags are sacks of mail sent to one addressee. 
International Surface Air Lift 
International Surface Airlift (ISAL) will continue as a bulk mailing service for items weighing up to 4 pounds with average delivery times of 7-14 days. Each ISAL mailing must weigh a minimum of 50 pounds. Presort, direct ship, and drop ship discounts, as well as volume discounts for commercial customers who meet international customized mail program requirements, remain available. M-bags may be sent using ISAL service. Again, a separate rate group is being established for Australia. 
M-bags
M-bags are direct sacks of printed matter sent to one addressee and prices are based on the weight of the bag and contents. M-bags travel by air transportation, and will continue to be offered in all retail locations. Each M-Bag mailing must weigh a minimum of 11 pounds. 

## USPS.com
Pricing change – usps.com/ratecase
Postal Explorer – pe.usps.com
MailPro – usps.com/mailpro
DMM Advisory – dmmadvisory@usps.com

- Resources

**USPS.com**
**Pricing change *****–****** usps.com/ratecase***
**Postal Explorer *****–****** pe.usps.com***
**MailPro *****–****** usps.com/mailpro***
**DMM Advisory *****–****** dmmadvisory@usps.com***

**Notes:**
Slide 46
Resources
USPS.com is your source for up-to-date information. You have access to USPS.com/ratecase, Postal Explorer, and MailPro, and we have our e-newsletter, DMM Advisory. 
Postal Explorer provides the online DMM and IMM, the retail and business rate calculators, and other postal publications and mailing tools. It is an invaluable resource for domestic and international business mailers.
MailPro is our bimonthly publication for mailing professionals. It contains information on Postal Service programs and services, rates and classification, mailing success stories, and industry news. MailPro replaced Mailers Companion and Memo to Mailers in January. To receive MailPro at no charge, send an e-mail to mncs@usps.com, include your name, title, company name, complete delivery address, and daytime phone number.
DMM Advisory is an electronic message board to mailers updated on important issues. To subscribe, send an e-mail to dmmadvisory@usps.com and indicate “subscribe” in the subject line.