Shaping a More Efficient Future

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Shaping a More Efficient Future Price Change
effective May 14, 2007
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Why Change Prices

• Costs going up
• Changes in operations and the market
• First price restructuring proposed since 2001
• Prices track CPI over time

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High-Level Goals

• Growth
• Efficiency
• Cost coverage
• Addressing
• Positioning for the future

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High-Level Initiatives

• Shape-based pricing
• Less emphasis on weight
• Incentives
• Containers
• Drop shipping
• Sorting
• Packaging
• More choices
• Forever Stamp
• Low-cost Address Change Service

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Agenda

• Review full product line
• Strategy
• Significant changes
• Specific examples
• Timeline to 2007
• Questions

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Forever Stamp

• On sale April 12, 2007
• Convenient
• 1-ounce single-piece price
• Good forever
• Will be available in booklets of 20 or sheets of
  18

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First-Class Mail Strategy

• Shape-based pricing schedules
• Letters
• Flats
• Parcels

2-ounce letter 63
2-ounce flat 63
2-ounce parcel 63
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First-Class Mail Strategy

• Shape-based pricing schedules
• Letters
• Flats
• Parcels

2-ounce letter 63 ?58
2-ounce flat 63 ?97
2-ounce parcel 63 ?1.30

• De-emphasize weight

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First-Class Mail Significant Changes

• Single-piece 39 ?41
• Postcards 24 ?26
• Additional ounce 24 ?17
• Automation letters 23.7 ?12.5
• Presorted letters, flats, parcels 23.7
  ?17

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First-Class Mail Examples
Letters
Parcels
Flats
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First-Class Mail Examples
6
39
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Priority Mail Strategy

• Cover costs
• Especially large lightweight items
• De-emphasize weight for heavier items
• Continue to increase convenience

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Priority Mail Significant Changes

• Dimensional weight pricing for Zones 5-8
• Lower prices for some heavier items
• Flat Rate Box becomes permanent

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Priority Mail Examples
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Priority Mail Examples
8.50
3.70
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Express Mail Strategy

• Low-cost alternative for shipping documents

• Significant Change
• New 1-pound price

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Express Mail Examples
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Special Services Strategy

• Improve address quality
• Modernize services

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Special Services

• Significant Changes
• New low-cost
  One Code Address Change Service
  for letters
• Redesign Confirm service
• Redesign Insurance
• Reduced electronic Return Receipt fee
• Continue to realign Post Office Box fees

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Special Services Examples
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Special Services Examples
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Special Services Examples
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Timeline
2006
2007 May Jun July Aug Sep
Oct Nov Dec Jan Feb
Mar Apr May Jun
10 Months
1 Year
Filing Date (May 3, 2006)
Litigation (May through March 2007)








PRC Recommendation (Early March)
Governors Decision (March/April)
Implementation (May14,2007)
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Communicating

• USPS.com/ratecase
• DMM Advisory
• Mailers Companion
• Implementation Teams
• Federal Register Proposed Rule

dmmadvisory_at_usps.com
usps.com/mailerscompanion
gpoaccess.gov
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Thank You Questions?