New Thinking

1
Shape-Based Rate Change

• New Thinking
• New Savings
• Mailpiece design will become even more critical
  with the 2007 postage rate increases

2

• Anna Pascarella, Manager Mail Services
• Brett Edwards, Supervisor Mail Services
• Paul Hirschfelt, Mail Piece Design/USPS

3
Agenda

• Letter
• Flat
• Parcel
• Rates First Class Standard
• Rates - International Mail
• Ancillary Endorsements
• Business Reply
• Reducing Cost

4
Why are rates going up again?

• The costs of doing business
• Fuel, transportation charges, utilities and
  health care benefits continue to increase
• Previous structure did not distinguish letters
  from flats and parcels. It costs more to
  process flats and parcels than it does letters
• New structure gives mailers opportunity to
  obtain lower rates by changing the shape of the
  piece
• USPS is charged for the amount of space used in
  airplanes

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1.0 Physical Standards for Letters

• a. Minimum 5 inches long x 3-1/2 inches high and
  0.007-inch thick.
• b. Maximum 11-1/2 inches long x 6-1/8 inches
  high, and not more than 1/4-inch thick.
• c. Not more than 3.5 ounces.
• d. Rectangular, with four square corners and
  parallel opposite sides.

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2.0 Physical Standards for Flats

• a. More than 11-1/2 inches long, or more than
  6-1/8 inches high, or more than 1/4 inch thick.
• b. Not more than 15 inches long, or more than
  12 inches high, or more than 3/4 inch thick.
• c. Flexible.
• d. Rectangular.
• e. Uniformly thick.
• f. Unwrapped, sleeved, wrapped, or enveloped.

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Letter Flat Measurements
Flats 12 x 15 no more than ¾ thick

• Letters no more than ¼ thick

6 1/8" Max.
3 1/2"
Min Size
5"
11 1/2" Max
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Balloon Rate

• Zones 1-4 Priority Mail
• All zones for Parcel Post
• Parcels that measure 84 but not 108 in
  combined length girth, and weighing are mailable at the rate equal to that of a
  20-pound parcel

9

10
Dimensional Weight Rating

• Dimensional Weight is used because the space the
  package takes up on an aircraft may be more than
  the packages actual weight.
• Zones 5-8 Priority Mail
• Length, width, and height, multiplied together
  are greater than 1728 cubic inches equals 1 Cubic
  Foot.

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• Dim weight calculator can be provided by calling
  Brett or Anna 22164
• Zone charts are included in your handout and can
  be printed from the www.usps.com website

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Rate Calculator can be found on www.usps.com

• Enter weight Pounds___ Ounces___
• Enter Zip Codes From_____ To____

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First Class Mail Prior to May 14, 2007

• Letters
• Flats
• Parcels
• 2-ounce letter 2-ounce flat 2-ounce Parcel
• .63 .63 .63

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First Class Mail May 14 , 2007

• Shape based pricing schedules
• Letters
• Flats
• Parcels
• 2-ounce letter 2-ounce flat 2-ounce Parcel
• .58 .97 1.30

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First Class Mail Cards/Letters

• Old rates
  May 14, 2007
• Post cards .24 .26
• Letters
• 1ounce .39 .41
• 2 ounces .63 .58
• 3 ounces .87 .75
• add .17 surcharge for
• non-machinable 1, 2, 3
• ounce letters

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Example

• 5,000 piece mailing at First Class Rate
• 2oz flat 5,000 x .97 4,850
• 2oz letter 5,000 x .58 2,900

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1.2 Nonmachinable Criteria

• A letter-size piece is nonmachinable if it has
  one or more of the following characteristics
• a. Has an aspect ratio (length divided by height)
  of less than 1.3 or more than 2.5.
• b. Is polybagged, polywrapped, or enclosed in any
  plastic material.
• c. Has clasps, strings, buttons, or similar
  closure devices.
• d. Contains items such as pens, pencils, or loose
  keys or coins that cause the thickness of the
  mailpiece to be uneven.
• e. Is too rigid (does not bend easily when
  subjected to a transport belt tension of
  40 pounds around an 11-inch diameter turn).
• f. For pieces more than 4-1/4 inches high or
  6 inches long, the thickness is less than
  0.009 inch.
• g. Has a delivery address parallel to the shorter
  dimension of the mailpiece.
• h. Is a self-mailer with a folded edge
  perpendicular to the address if the piece is not
  folded and secured according to.
• i. Booklet-type pieces with the bound edge
  (spine) along the shorter dimension of the piece
  or at the top, unless prepared according to.

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Flexibility TestAll Flats

• 1. Place the piece with the length parallel to
  the edge of a flat surface and extend the piece
  halfway off the surface.
• 2. Press down on the piece at a point 1 inch
  from the outer edge, in the center of the piece's
  length, exerting steady pressure.
• 3. The piece is not flexible if it cannot bend
  at least 1 inch vertically without being damaged.
  
• 4. The piece is flexible if it can bend at
  least 1 inch vertically without being damaged and
  it does not contain a rigid insert. No further
  testing is necessary.
• 5. Test the piece to bend at least 1 inch
  vertically without being damaged and it contains
  a rigid insert.

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Flexibility Test
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First Class Mail-Flats

• Old May 14, 2007
• Flats
• -1ounce .52 .80
• -2 ounces .63 .97
• -3 ounces .87 1.14

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Standard Mail (Bulk)May 14, 2007 rates for
Nonprofit

• Automation Machinable
• (bar coded) (non bar coded)
• Letters .161 .164
• Flats .354 .389
• Not all USPS locations are equipped with a flat
  sorter

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Priority Mail

• Old May
  14, 2007
• Flat rate envelope 4.05 4.60
• Flat rate box 8.10 8.95
• Express Mail 14.40 16.25

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Automated Solution
Current Rates How much does your item weigh? (If
over 2 ounces)
Shape-Based Pricing Compliant System
May 2007 Rates Classify your mail by weight,
size, and thickness
Does the item weigh less than 3½ ounces?
No
No
Is the item smaller than 6 1/8 x 11 ½
Does the item weigh less than 13 ounces?
Is the item smaller than 12 x 15?
Is the item less than ¼ thick?
Is the item less than ¾ thick?
First-Class Letter, Flat or Parcel
Parcel
Flat
Letter
First-Class Letter, Flat or Parcel
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International Mail

• Global Express Guaranteed 1-3 days 28.50
• Express Mail International 3-5 days 25.00
• 22.00 Canada
  Mexico
• Priority Mail International 6-10 days
• Flat Rate envelope 11.00
• 9.00 Canada Mexico
• Flat Rate box 37.00
• 23.00 Canada
• Mexico
• First Class Mail International -------- .90
• .69 Canada Mexico
  
  

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Customs Forms

• International mail weighing
• One pound or more requires a completed and
  signed Customs Forms
• One-four pounds requires form 2976 (green)
• Four pounds or more requires form 2976-A (white)

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Ancillary Service Endorsements

• Return Service Requested
• First Class If UAA, mailpiece is returned with
  the new address or reason for nondelivery no
  charge
• Standard (bulk) If UAA, mailpiece is returned
  with the new address or reason for nondelivery
  charged the appropriate single piece First Class
  rate

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• Address Services requested
• FIRST CLASS
• Months 1 - 12 the mailpiece is forwarded no
  charge a separate notice of the new address is
  provided an address correction fee is charged.
  (.50 per copy)
• Months 13 - 18 the mailpiece is returned with
  the new address attached no charge.
• After month 18 or if undeliverable the mailpiece
  is returned with reason for nondelivery attached
  no charge. (new address is not provided after 18
  months).
• STANDARD (BULK)
• Months 1-12 the mailpiece is forwarded no
  charge, new address is not provided.
• After month 12 the mailpiece is returned with
  reason for nondelivery charge is .41 x
  2.4721.01/piece

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Qualified Business Reply Mail

• May 14, 2007
• 1-ounce letter rate .43
• Card rate .28

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Library Mail

• Library Mail rate may be used when sent between
• schools, colleges, universities, public
  libraries, museums, nonprofit religious,
  educational and scientific organizations
• List of items books (reading matter), printed
  music, academic theses, sound recordings,
  printed/duplicated library materials, museum
  materials, teaching aids, printed matter..
• Library Mail must be stamped on the mail piece

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Media Mail

• Only these items may be mailed at the Media Mail
  rates
• Books, including books issued to supplement other
  books, of at least eight printed pages
• 16-millimeter or narrower width films, which must
  be positive prints in final form for viewing
• Printed music, whether in bound or sheet form
• Printed objective test materials and their
  accessories used by or on behalf of educational
  institutions.
• Sound recordings.
• Play scripts and manuscripts for books
• Printed educational reference charts
• Media Mail must be stamped on the mail piece

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FOREVER STAMP

• Intended to reduce the inconvenience to acquire
  new-rate postage or make up stamps
• Is being sold at the new First Class Mail
  single-piece 1-ounce letter rate .41
• Can be used for International mail but the value
  is still .41 additional postage required

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Ways to help reduce cost

• Change the print font
• Re examine forms for unnecessary print
• Group documents into one envelope instead of two
  separate mailings
• Switch from single sided printing to double sided
• Maximize each oz. Add a marketing piece or two
  if you have room to spare in an envelope

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• Use post cards, instead of letters, to send a
  reminder, thank you or save the date
• Fold forms into a 10 envelope instead of using
  an 8 ½ x 11 flat envelope
• Update your mailing list to avoid returns and
  delays-Delivery Point Validation begins August 1,
  2007
• Use Media Mail or Library Mail when possible
• Return receipt is not required for Certified
  Mail-it is a personal preference

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Questions?

• Mail Services 22164
• Presentation will be sent via email to BAS list
  serve