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New Rates

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An example of new carrier route prep for ECR barcoded auto-compatible letters up to 3 ounces. ... solicitation for a donation? Is all of the 'personal ... – PowerPoint PPT presentation

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Title: New Rates


1
New Rates What College and University Mailers
Need to Know
Ellenor Kirkconnell Alliance of Nonprofit
Mailers April 23, 2007
2007 CUMSA 20th Annual Conference Appalachian
State University
2
Implementation
  • The USPS filed a rate case in May 2006.
  • The Postal Regulatory Commission made its
    recommendation on February 26, 2007.
  • The Governors have set May 14, 2007, as the
    effective date for the recommended changes in
    rates and fees for all classes except for
    Periodicals. The Board delayed implementation of
    the Periodicals changes until July 15, 2007.
  • The Governors have concluded that three issues
    -- Standard Mail flats, the Nonmachinable
    Surcharge for First-Class Mail letters, and the
    Priority Mail Flat Rate Box -- would benefit from
    further consideration. These three issues are
    being "allowed under protest."

3
Smaller, More Predictable Rate Increases?
8.5
May 14,
4
Key Dates
  • Dec 20, 2007 Deadline for the Postal Service to
    file a last rate case
  • Deadline for Postal Service in consultation
    with the PRC to establish service standards for
    market dominant products
  • Jun 20, 2008 Deadline for PRC to establish new
    system for adjusting rates
  • Postal Service in consultation with the PRC to
    submit plan to Congress for meeting service
    standards
  • Undetermined PRC to complete study on periodicals
    and make recommendations for operational and
    pricing changes
  • Dec 20, 2016 PRC to undertake review of
    ratemaking system and make necessary changes

5
Standard Mail Nonprofit and Regular
6
Household Mail
In 2006, charities mailed 11B fund-raising and
other letters and 3.6B flats to
constituents. Source The Chronicle of
Philanthropy Postal Rates for Charities Likely
to Rise Soon Nonprofit Groups Lobby for Delay
by Holly Hall.
46
9
Figures in billions of pieces. Note Expedited
includes Priority Mail and Express Mail.
Source Household Diary Study, FY 2005.
7
Contribution to Institutional Costs PRC R2006-1
(Dollars in Millions)
8
  • Standard Mail Nonprofit and Regular
  • High-Level Initiatives
  • Shape-based pricing
  • Simplify mail preparation
  • Drop ship incentives
  • Encourage automation-compatible mail
  • Low-cost address change notification


9
  • Standard Mail Nonprofit and Regular
  • Agenda
  • Significant changes
  • Letters Overview
  • Flats Overview
  • New Not Flat-Machinable Category
  • Parcel Overview
  • Questions


10
  • Standard Mail Nonprofit and Regular
  • Simpler Preparation
  • Preparation of automation letters and flats
  • remains the same.
  • Simpler preparation of machinable letters.
  • Parcels dropshipped to delivery units (DDUs) when
    sorted to 5-digit.


11
Be a Better MailerKnow Your Postal Resources

Shape Based
12
Standard Mail Nonprofit and Regular Whats
Changing? New nonmachinable letter rates (no
surcharge) Redefinition of flats New Not
Flat-Machinable (NFM) category No residual shape
surcharge for parcels Different rates for
machinable and irregular parcels
13
  • Standard Mail Nonprofit and Regular
  • Letters Overview
  • No changes for automation letter sorting
  • except optional overflow trays
  • Simpler preparation for machinable letters
  • - AADC and mixed AADC trays
  • - Optional origin 3-digit sortation
  • No DDU rate for ECR letters

14
Standard Mail Nonprofit and Regular Letters
Automation
Std piece .218 .233 .238
.252 NP piece .127 .142
.147 .161
Mixed AADC L011
3-D/Scheme L002
AADC L801
5-D/Scheme optional
Percent Change 7.6 6.8
5 8.8
BMC entry discount .033 SCF entry discount
.042
15
Standard Mail Nonprofit and Regular Price
Examples Letters
16
PRC Opinion and Recommended Decision
  • Fully funds contingency of 678 million
  • Proposes an average 7.6 overall
  • Increases First-Class Mail to 41 cents for first
    ounce (increase of 5.1)
  • Proposes additional ounce requirement of
  • 17 cents (29 decrease) for single piece
  • 12.5 cents (47 decrease) for auto letters
  • 17 cents (28 decrease) for presort letters
  • Proposes an average 9.3 in Std. Mail rates

17
First-Class Mail
Rate Comparison Single-piece Rate 2 oz.
Mailpieces
Current Parcel63 Flat 63 Letter
63 Card 24
May 14, 2007 1.30 Flat97 Letter 58 Car
d 26
106.3
106.3
54
-7.9
8.3
Not 2 oz.
Proposed additional ounce rate 17
18
Standard Mail Nonprofit
Rate Comparison Mailpieces lt 3.3 oz.
Current Presorted Parcel 47.9 Auto
Flat 19.5 Auto Letter 14.8
May 14, 2007 Presorted Parcel78.8 NFM64.1 A
uto Flat30.1 Auto Letter 14.7
64.5
229
54.4
-.7
Rates reflect sortation to ADC/AADC with no entry
discount
19
  • Standard Mail Regular and Nonprofit
  • Nonautomation Letters
  • No surcharge for nonmachinable letters
  • New rates
  • STD increase NP STD increase
  • Current 3/5 .303 .179
  • New 3-digit .411 36 .320 79
  • New 5-digit .328 8 .237 32

20
Standard Mail Nonprofit and Regular Common
Nonmachinable Letter Design
Aspect ratio less than 1.3 or greater than 2.5.
5"
Nonmachinable 4 X 5 1.25
4"
6"
Machinable 4 X 6 1.5
4"
21
  • Standard Mail Nonprofit and Regular
  • Enhanced Carrier Route Letters
  • No requests for manual handling
  • No ECR basic automation rate
  • No DDU entry discount for ECR letters

22
Standard Mail Nonprofit and Regular Enhanced
Carrier Route Letters
  • Full trays only for basic, high density,
  • and saturation letters
  • Barcoded and auto-compatible
  • Up to 3 ounces
  • Group carrier routes within trays
  • Now a requirement for all ECR letters at letter
    rates

23
Standard Mail Nonprofit and Regular Enhanced
Carrier Route Letters
Barcoded, auto, up to 3 oz STD Basic .226
HD .186 Sat .177 NP Basic .157 HD
.117 Sat .108
Percent Change 12.1
3.5 2.9
Carrier Route overflow mail
5-digit/CRs overflow mail
3-Digit Carrier Routes
5-Digit Carrier Routes
No Bundles
Carrier Route
An example of new carrier route prep for ECR
barcoded auto-compatible letters up to 3 ounces.
24
Standard Mail Nonprofit and Regular Enhanced
Carrier Route Letters
Bundled nonauto (or nonbc, or over 3 oz.) pay ECR
flat rates!
3-Digit Carrier Routes
5-Digit Carrier Routes
Carrier Route
25
Standard Mail Nonprofit and Regular
First-Class Mail? Postcard Alternative Free
forwarding and return of postcards Enhanced
customer reaction to First-Class
Mail? Single-piece rate .26 Presorted .
241 Presorted postcard auto 5-D .191 Standard
Mail letter auto 5-D .218 Nonprofit STD
letter auto 5-D .127
26
First-Class Mail
Postcards
5" Min. Length
Thickness .007" - .016"
4 1/4" Max. Height
3 1/2 Min. Height
6" Max. Length
27
Standard and Nonprofit Standard
Cards
5" Min. Length
3 1/2 Min. Height
Thickness .007" - .025"
6 1/8" Max. Height
11 1/2" Max. Length
28
Standard Mail Nonprofit and Regular Flats
Overview All flats Rectangular Flexible
new test (applies to all flats) Uniformly thick
(within ¼ inch) New scheme sort for
nonautomation flats Expanded pricing to match
sortation
29
  • Standard Mail Nonprofit and Regular
  • Flats Preparation
  • New scheme preparation for nonautomation flats
  • Required 5-digit/scheme bundles
  • Required 3-digit/scheme bundles
  • Required 5-digit/scheme sacks

30
Standard Mail Nonprofit and Regular Flats
Automation rate tiers Current Proposed
Nonautomation rate tiers Current
Proposed
31
Standard Mail Nonprofit and Regular Price
Examples - Flats
32
  • Standard Mail Nonprofit and Regular
  • Automation Flats
  • Rectangular, Flexible, Uniformly Thick
  • New Deflection Test
  • New dimensions
  • Min. 5 x 6" x .009"
  • Max. 12 x 15 x 3/4"
  • Reminder New polywrap standards

33
Testing Flexibility for Flats, part 1
Examples of flats that would be considered too
rigid (and therefore not meet the flexibility
requirements) boxes and box-like pieces, and
tight envelopes that are completely filled to
form box-like pieces.
34
Testing Flexibility for Flats gt 10, part 2
Pieces that pass first test and contain rigid
objects.
35
Testing Flexibility for Flats lt 10, part 2
Pieces that pass first test and contain rigid
objects.
36
Standard Mail Nonprofit and Regular
Automation Flats Rectangular, Flexible,
Uniformly Thick Variation not more than ¼
inch
37
Standard Mail Nonprofit and Regular Carrier
Route Flats
A little change here Increased maximum size up
to 12" high and 15" long A little change
there Charge for detached address labels on ECR
flats and parcels.
38
Standard Mail Nonprofit and Regular Not
Flat-Machinable Pieces
  • What makes a piece eligible for NFM rates?
  • Boxes or box-like pieces
  • Rigid contents resulting in a rigid mailpiece
  • Flexible pieces
  • over 15 inches long or
  • over 3/4 inch high
  • Pieces eligible for NFM rates may be mailed
  • as parcels at parcel rates.

39
Standard Mail Nonprofit and Regular Not
Flat-Machinable Pieces
  • Preparation Based on Weight
  • 6 ounces and over
  • 5-Digit, ASF/BMC, Mixed BMC
  • Under 6 ounces
  • 5-Digit, 3-Digit, ADC, Mixed ADC
  • Allow DDU entry if sorted to 5-digit
  • No minimum when entered at DDU

40
Standard Mail Nonprofit and Regular Parcels
  • DDU entry discount if sorted to 5-digit
  • No minimum when entered at DDU
  • New prices 5-digit, BMC, mixed BMC
  • Eliminate residual shape surcharge
  • (separate rates for machinables and irregulars)
  • No bundling (except ECR irregulars)

41
DIM-Weight Pricing
  • Results in more cost-based rates
  • Sends appropriate price signals to mailers of
    lightweight, bulky parcels
  • Provides some rate relief to mailers of heavier,
    denser Priority Mail

42
Mathematical Approach
  • For rectangular (box-like) items, measure the
    length (longest), width, and height.
  • Round off to the nearest whole inch (20-1/4
    inches is considered 20 inches 20-3/4 inches is
    21 inches).
  • Multiply length by width by height. 1,728 cubic
    inches or less, do fret.
  • If the result exceeds 1,728 cubic inches, divide
    it by 194 (the "dim factor.")
  • Irregularly-shaped pieces have an adjustment
    factor of 0.785 .
  • Round up any fraction of a pound to the next
    whole pound to get the dimensional-weight price
    for the parcel. If the actual weight of the
    parcel exceeds the dimensional weight, base the
    price on the actual weight.

43
Weirdest Cases
  • 30 x 18 x 9 4,860
  • 4,860 X 0.785 3,815.1
  • 3,815.1 / 194 19.67 pounds
  • 19.67 rounded up is 20 pounds

44
UAA Volume and Cost (Source USPS, 2004)
DISPOSITION
DISPOSITION
R2006-135 (letters) 1.05 (flats)
45
Address Quality
  • NCOALink - a proactive solution
  • Ancillary Service Endorsements
  • Address Service Requested
  • Manual hard copy notifications Today
    Proposed
  • 75 50
  • Address Change Service
  • Change Service Requested
  • Electronic notifications Today Proposed
  • First-Class Mail 21 6
  • Standard Mail 21 25
  • Automated Today Proposed
  • First-Class Mail n/a Free first 2/
    then 5
  • Standard Mail n/a 2 first 2/ then 15

46
Related Issues
  • DPV (August 2007)
  • Intelligent Mail? Barcode (2009)
  • Move Update Requirement extended to Standard Mail
  • NCOALINK LACSLINK
  • Address Change Service
  • Appropriate Ancillary Service Endorsement
  • A National Customer Support Center (NCSC)
    approved alternate method

47
First-Class or Standard Mail?
  • First-Class Mail
  • Bills and Statements of Account
  • Handwritten or Typewritten Material
  • Mail Sealed Against Postal Inspection
  • Material Having the Character of Actual and
    Personal Correspondence

48
Determining Std Mail Eligibility
Is it typewritten or handwritten?
Is it a bill or statement of account?
Does it contain personal information?
Standard Mail
Examine the Entire Mailpiece
NO
NO
NO
YES
YES
YES
Is there explicit advertising for a product or
service for sale or lease, or an explicit
solicitation for a donation?
NO
FIRST CLASS MAIL
YES
Is all of the personal information directly
related to the advertising or solicitation?
NO
YES
Is the exclusive purpose of the personal
information to support the advertising or
solicitation?
NO
YES
49
Personal Info in Nonprofit Mail
  • Does the mailpiece contain personal information?
  • Does the mailpiece solicit a donation?
  • Is the personal information directly related to
    the solicitation?
  • Is supporting the solicitation the exclusive
    purpose for including the personal information?

Answering YES to all Nonprofit Standard Mail!
50
Fill-in Applications
  • Requesting potential student to complete
    survey or application for sole purpose of
    recruiting is eligible as Nonprofit Standard Mail.

51
Donation is a Request for
  • New or additional funds
  • Membership or renewal
  • Completing a survey
  • Volunteering
  • Taking action related to the org.
  • Contacting the org
  • Applying to or enrolling in
  • Prayers

AND MORE
52
Avoid
  • Tax Receipt
  • Receipt
  • Keep this notice for tax purposes
  • Keep this for your records

You may say.
  • Your contribution may be tax-deductible.
  • No goods or services were provided in exchange
    for this gift.
  • The IRS requires written substantiation of
    charitable gifts of 250 or more.
  • provided that nothing else in the piece
    indicates it serves as such substantiation.

53
Premium Packages
  • Premium vs. Non-Premium Packages
  • Upfront premiums add perceived value to a mail
    piece and generate higher response rates
  • Name and address labels, note cards, memo pads,
    calendars, etc.
  • The more you can tailor an upfront premium to
    your audience, the better the response will be

54
Back-end Premiums
55
  • Dear Member of Class of 07,
  • Wont you join the Alumni Association?
  • Join today for 25thats half the annual
    membership feeand well send you the University
    Hoodie FREE (a 44.95 value)!
  • Name Ms. Newbie Grad
  • 123 Main St, Anytown, MA 01906-2771
  • Ship to ________________
  • ________________
  • Size (XS) (S) (M) (L) (XL) (XXL)
  • ___ 25.00 Check enclosed
  • Visa__
    MasterCard___
  • Discover___ American Express___
  • Account Number_____________ Exp________Code______
  • Name on Card___________________________
  • Signature_______________________________

56
TravelCustomer Support Rulings
  • Customer Support Ruling limits the travel
    restrictions to event with ALL three components
  • Transportation
  • Accommodation
  • Activity/Destination
  • Apply this 3-component test first, then apply
    travel rule.
  • 2001 CSR on travel arrangements that include
    recreational activities -- In Gospel Cruise,
    the religious activities were substantial.

57
Financial Arrangements
  • No credit cards advertisements!
  • Exception If card can ONLY be used on campus.
  • Allowed
  • Payment by credit card

58
But Ive Seen Ads in Nonprofit Mail!
  • The mailpiece meets the Content Requirement of a
    periodical
  • Up to 75 advertising allowed
  • Substantially Related Rules Do Not Apply! (but
    TIF does.)

59
Periodicals Content Requirement (PL 103-329)
  • Title
  • Formed of Printed Sheets
  • Identification Statement containing Title, Issue
    Date (optional if on cover), Statement of
    Frequency, Name and Address of Organization,
    Issue Number (optional if on cover), and ISSN and
    price (if applicable)
  • Known Office of Publication
  • Eligible as Standard Mail

60
TravelCan I include this ad?
  • Take a Thrilling Boat Trip into the Louisiana
    Swamps Bayous...
  • After a short motor coach ride across the
    Mississippi River, experience the timeless beauty
    of the marshes, swamps and bayous of Southern
    Louisiana from the comfort of your swamp boat.
    Enjoy the history of the Cajun people, whose
    ancestors moved here from Nova Scotia more than
    two centuries ago.
  • No trip to south Louisiana can be complete until
    you take a few hours to head down to the swamp.

OFFERED DAILYTour Time 930amAdults 54
Children 29 (ages 3-12)Master Card and VISA
accepted. Please be ready 15 minutes prior to
pick-up time. Check with our reservation center
for exact pick-up times and locations.
61
Eligible Advertisement?
  • The mailpiece meets the Content Requirement of a
    Periodical. Thus, up to 75 advertising allowed
    and substantially related rules do not apply!
  • It contains a paid advertisement for a boat trip
    into the Louisiana swamps and bayous.
  • Transportation? Yes
  • Activity/Destination? YES
  • Accommodations in the ad? NO
  • 2 out of 3This is NOT a travel arrangement. The
    mailpiece CAN be mailed at the preferred rates.

62
Contributor, Donor and Sponsor
  • Listing appears on a page under an appropriate
    heading
  • Listing does NOT contain promotional material
  • Listing is not labeled advertising somewhere else
    in the mailpiece
  • Listing may include logo but no slogan

63
Identification
  • Organization Name / D.B.A or A.K.A
  • Change of Name
  • Copy of certificate from the state
  • Letter from org requesting change
  • Additional
  • File PS Form 3624
  • Copy of certificate from the state
  • Letter from org requesting change

64
Alliance of Nonprofit Mailers 202-462-5132
alliance_at_nonprofitmailers.org www.nonprofitmailer
s.org
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